Overall Marketing ROI – How much should marketing invest?

Cross-Marketing Situation:

• A top tier financial company needed a way to decide on marketing investment levels
  for a growing roster of products in a competitive category within a dynamic marketplace.
• In addition, the company was faced with regulatory changes that would limit the use of certain direct marketing distribution channels projected to have a significant impact on future sales.
• Finally, the organization required new performance, setting targets of 20% growth vs. prior year.

Marketing Performance Management Opportunity:

The aggressive business performance goals would need to be met with insight into cross-marketing impact and projections. 

• Understand the new Direct Marketing dynamic given new regulations and declining response rates, and learn the impact of direct marketing on other channels. 
• Understand how Brand marketing had been used in the past, for insight as to its impact on direct or other channels.

Fisical Pro Insight:

The customer used Kneebone Fisical Pro to visualize the cross-marketing events and results.

• Direct Marketing drove traffic on other channels such as the web and call center.
• Brand advertising had strong impact on response rates.
• Direct marketing response rates were diminishing regardless of tactic or offer due to market conditions.
• Marketing budget was not adequate to achieve target growth of 20%.

Reflex Action:

This customer used Kneebone Reflex to create various scenarios based on what they had learned in their analysis, what the current market trends were dictating, and what the business required for the next year. Using Kneebone’s patented Key Performance Algorithm (KPA) The team created 3 scenarios that included marketing investments and performance projections.

1. Budget as allocated
2. Increased Budget Requirement for 20% growth
3. Budget Optimized against market opportunity 

Customer Experience:

The senior most marketer had the support of specific impact studies on budgeting scenarios and was able to present these at the operating committee level.  The Marketing manager responsible for the individual campaigns had specific insight into performance of certain campaigns and tactics and the confidence recommend brand and demand generation integrations. Uncertainty around diminishing returns on direct marketing was flagged.

Kneebone ROI:

The business was successful in driving +10% over target growth rate. The required budget was reduced by 25%, and an integrated approach to advertising drove incremental growth, and created the opportunity of longer term brand building.