Marketing is still a guessing game for most companies, warns top marketer Chad Jones. Companies are still in the age of trial and error and their marketing to create incentive plans, announcements, web sites, promotions and scatter them around either, as throwing seeds of a speeding car window and hoping to get some birds along the way. While there is some possibility of getting some birds in this way, it doesn't work like this for clients in the world of marketing.
Customers are different. This is the basic idea of data-driven marketing and ideas professed by Chad Jones and other marketers. Ideally, companies must have 4-5 models of average customers, that is, identify the various behaviors and demographics to link them to their customers. In this way, you can create predictive models (i.e., know that, for example, young College-educated will buy from your shop more frequently, that middle age workers). The idea of predictive model is based on the assumption that the client's past behavior will help you understand their future conduct. If you like your product and have bought weekly for the past 2 years, it is safe to assume that they will continue to buy weekly for the next 2 years and beyond.
The second principle of database-based marketing is knowing how to allocate resources. The purpose of marketing is getting a good Return on Investment (ROI). This means that if you spend $ 1 on marketing, you should get at least $ 1.5 profits (not for sale!). Chad Jones you should get at least 2 dollar sales for a good ROI, but for start $ 1.5 is acceptable. Analyze the ROI for your different marketing efforts will show you are better than others, where to allocate more funds and which strategies to stop altogether.
The game of marketing never stops. Is like a dance complex, where the partner bow to each other, they start dancing hand in hand, separate and take a turn around the room and then came together. Similarly, for each marketing effort you do there is a response from customers-a positive or a negative response. In all cases, principles of marketing based on data that must react. It means that you have listened to your customers-even listened their silence. Reacting to other marketing efforts is like saying your client understand what you mean, here's my answer. And then you start the cycle again, as soon as you see changes in the behavior of clients.
The marketing activities is an intuitive and you have to let the data speak to you. If you look beyond the raw numbers, it feels, in the end, your customers who say what they think of your business. Ignoring their voice means the end of your business, once Chad Jones explains.
http://marketing91.com/forum/member.php/1252-Chad-Jones
