As we near the end of 2010, so many of us are in the annual budgeting process. We develop our budgets, we create our plans and we define the metrics we will use to determine whether we reached our goals or not.
In the marketing world, metrics are much more complicated than just determining whether corporate goals are met or not. Marketing strategies must focus on how we plan to continue execution of our corporate messaging across a variety of channels. In this new age of personalized communications, messages must be tailored to individual needs and preferences if they are going to get attention.
Marketing guru, Seth Godin made this observation on the differences between Mass Marketing and Direct Marketing: “The key distinction [between direct marketing and mass marketing] is when you know it’s going to work. The mass marketer doesn’t know until the end. The direct marketer knows in the beginning. The mass marketer is betting on thousands of tiny cues, little clues, and unrecorded (but vital) conversations. The direct marketer is measuring conversion rates from the first day.”
Current technology makes it easy to build robust CRM databases containing a plethora of information about our contacts including contact information, purchasing history, personal preferences and demographical data. Only about 20% of organizations have found a way to utilize this data effectively to execute and track communications with their customers. However, once in place, it is amazing what can be learned from customer response…and how you can improve on customer communications. But, you have to take the first step….so, how do you measure success?
Wishing each and every one of you great success [which can be measured] in 2011!