Last week I was invited to a roundtable with other CPG industry experts, and we were asked if we thought the competition for CPG companies was going to intensify or decrease over the next 12 to 24 months. My answer was similar to the other experts’, but I gave different reasons than many of them. After a few days pondering about the answer I gave, I realized that I was way off base. While other experts reasonably argued that competition would increase due to the pressure retailers create by promoting private label brands, I justified my answer saying that the raise of eCommerce would force CPG companies to develop skills and knowledge not currently in their repertoire, forcing them to compete in a field mostly foreign to them. Now I realize I was completely off. Let me explain why.
Long-Term Business Sustainability Depends on the Right Measures
A metric commonly used to measure the performance of high-growth businesses is Customer Lifetime Value over Customer Acquisition Cost, or more simply CLTV/CAC. It is a much better metric to provide an objective to marketing teams than many others we have seen in the past, but it has also some tremendous flaws associated with it, and if not used correctly and in the right context, it can jeopardize the business using it.
Developing a marketing campaign requires a unique combination of creative, big-picture thinking and focused, detail-oriented implementation. It can be challenging to figure out how to piece all the different elements together, but breaking down the process into tangible steps can help ensure that your vision will translate into effective tactics to reach your business objective through powerful creativity and seamless execution.
I have worked with numerous startups, medium businesses, and in large multinational companies, and when it comes to campaign planning and execution, there are common mistakes that can be avoided through careful planning and methodical execution. Whether if you are the person in charge of marketing in a 2-person startup or a brand director supported by 5 different agencies, you should find this two-part series useful.
Generally speaking, smaller companies have limited time and resources, and they tend to skip important steps in the process given their natural bias to action or simple lack of bandwidth. Larger companies often lack the synergic coordination between teams required to make the most of the resources available or fail to properly execute their plan due to the lack of attention towards smaller, technical, yet critical details.
For this reason, I’ve decided to learn from my mistakes and the mistakes made around me and document the process required to plan and launch a successful marketing campaign. In this first part of a two-part series, we’ll be exploring how to put your business objective and target audience to work, creating actionable steps that take you from data analysis to an idea that serves as a solid foundation for your campaign. Continue reading
You already know that you need to break down organizational silos to change the way teams work together. Knowing this, you may be thinking about investing in the hot new technology of a Customer Data Platform (CDP).
These marketer-managed data repositories allow you to create a single customer profile that can then be used by other systems. This gives you the power to enhance your (re)engagement activities across media. CDPs can be a smart way to collect data once and make it work for you, again and again, breaking through silos to create a more cohesive process for your team. Instead of having different team members each independently working on a piece of the puzzle, you can use this technology to bring them together.
You’ve probably already started hearing vendor pitches for a CDP (and if not, just wait. They’re going to be all the rage for 2019). Before you make a decision about a purchase, though, my advice is to take a step back and make sure that you have the talent in place to take full advantage of what a CDP has to offer. Continue reading