Defining Profit-Driven Marketing
Traditional optimization - based around maximizing a volume metric within a fixed budget - prevents marketers from fully realizing their marketing plans. Rather than allowing for a balanced approach, it drives to a KPI that does not necessarily reflect the full customer journey. Profit-based marketing requires marketers to drive around one single orienting KPI - profit - which frees them to develop strategies to drive consumers to sales.
Additionally, ROI and ROAS lure marketers into a false sense of security. While great for comparing two marketing efforts, these ratios require a volume metric to provide context to the broader business.Listeners will learn how to evaluate how close they are to PDM and what the next steps are for those in each phase of maturity.
The New Playbook
Tactically, what does this mean for marketers? Besides the prospect of an escape from fixed budgets, it allows us to broaden our focus by narrowing our work to one relevant KPI. Account structuring and bid adjustments have to be set up to reflect and optimize for profit. Identifying the most relevant content is made more accurate. Appropriate lookback windows and secondary KPIs will also be discussed in the context of brand, ecommerce, and nonprofit use cases.
1. Evaluate which phase of profit-based marketing maturity their organization is at
2. Determine strategic goals to drive their next steps
3. Learn how they can implement key tactics at each phase of maturity.
6. The Old Playbook
Stage Goals
Performance-Driven
Marketing
Drive performance
Manage linear touchpoints
Persona-Driven
Marketing
Connect with audiences Connect linear
touchpoints
7. Strategies
Drive performance
Manage touchpoints
Connect with audiences
Connect linear touchpoints
Success = single action
Customer journey = linear
Online interactions = clear
window into perception
Interaction = value
Assumptions
8. Assessing Value
Customer experiences are part of something bigger -
customer relationships.
The ultimate indicator is whether prospective customers
choose to purchase our products and services – the moment
they say “I need this.”
12. Performance Driven Campaign Example
Post Mortem - “Our campaign was way too expensive.”
Social - Boosted Every Post
Email - Email Takeover for duration of campaign
Search - Optimized for 2 exact match keywords
18. Persona Driven Campaign Example
Post Mortem - “Revenue was below target”
Social - Boosted posts and ran retargeting
Email - Awareness - drip campaign
Search - Optimized for 2 exact match keywords & used paid
search to target broad match
19. Persona-Driven Tactics
● Focus on bottom of funnel activities that are closest to
revenue
● Try to drive linear journeys
23. Changing
Our
Goals
1. Identify what other steps happen
before, during, and after
conversion for your users.
2. Accept the Pyrrhic victory
3. Identify your revenue-driving
(and profit-driving) segments by
behavior, not just demographics
25. Profit-Driven Marketing Example
Post Mortem - “We met our plan to outperform.”
Organized yearly schedule by aligning strategy with both
business priorities and consumer behavior
Leveraged machine-learning ad tech to personalize and
target where possible
26. Profit-Driven Marketing
What We Do
● Test and act based on how tactics have driven users to
purchase -- even very high in the funnel
● Focus on relationships over journeys
27. Profit-Driven Tactics
● Look at the total impact of the campaign & account for
the synergy of our digital channels and campaigns
working together
● Assume that there are thousands of customer journeys -
focus on customer relationships