Full AdWeek Article: How the Marketing Technology Landscape Will Transform in the New Year
2019 Marketing Trend #1: Smaller Marketing Budget, Smaller Tech Stack
Sometimes marketing departments overspend without getting results or they lack the ability to show results. This year, we can expect smaller marketing budgets to rear their heads in 2019 and come as a result of a more astute c-suite with laser focus on spending only when there’s a direct and attributable benefit to the business. Let’s take the Fiji Water stunt at the Golden Globes. [Fiji Water girl photobomb.] It was barely a hot second later when articles proclaiming it a marketing success dominated news feeds across social networks, news sites and marketing circles. With 1.1B impressions, 160M reach, 375k engagements and impression value of $5.5M – it wasn’t much of a surprise that many believed the investment was worth it. However, as Avinash Kaushik pointed out: “A week is too soon. In two weeks they’ll probably get the data to help understand the shift in Consideration and Intent (two important brand metrics). In 4 to 6 weeks their analysts can isolate the causal impact on sales. Rest (social impressions) is noise.” Keeping in mind that Fiji paid to be a sponsor at Golden Globes, they now have analyze whether the exposure generated true business results or not. In 2019, it will be critical that marketers and agencies be able to show what’s happening in their marketing and advertising programs and they’ll be counted on to answer the ever-elusive of return on investment.
If you’re not tracking your marketing and advertising, you need to start. For online programs (whether earned, owned or paid) you must put the effort into custom URLs and integrating pixels into your websites. For offline tracking on a limited budget (meaning, beacon tracking isn’t an option), you’ll need to get creative with your tracking. [Not sure? Send me a message!]
2019 Marketing Trend #2: Focus on Retention, rather than acquisition.
Many marketers have laser focus on how to find and acquire the next customer, spending too much time and money on acquisition and not enough on retention. In 2019, we’ll see a shift in marketing programs that will focus more on retention. This is important because we already know that the probability of selling to an existing customer is 60% compared to 5% for new customer. With a stronger focus on customer-centricity, marketers will really zero-in on CLV models (customer lifetime value.)
Calculate your basic LTV (lifetime value.) Your customer lifetime value can be calculated historically, over specific time periods or it can be predictive. It can be simple or complex. [I’ll share the simple version here because chances are, you’re a small business like me and this will do just fine!]
What do you need in order to make the calculation?
For the sake of simplicity, let’s say you own a donut shop in Cape Breton [if you’re one of my former MRU/SAIT students – you’ll remember this one; you are welcome.] Let’s say you want to know the LTV of a customer. Here’s a simple breakdown:
Customer Spend Per Visit (data via POS):
Customer 1: Spends $3
Customer 2: Spends $2.50
Customer 3: Spends $4
Average Customer Spend: $3.16
Customer Visits Per Week:
Customer 1: 3
Customer 2: 3
Customer 3: 4
Average Customer Visits Per Week: 3
Average Customer Value Per Week: $9.48
Average Customer Lifespan: 15 years
Simple Calculation: [Avg Cust Value Per Week x 52] x 15 = $7,394.40
So now you have an idea of how valuable each customer could be to your business. Explore ways to nurture existing customer relationships. Perhaps it’s a loyalty program where you reward more visits per week (similar to McDonalds coffee card.) This small incentive may be enough for your existing customers to bump visits up per week; refer a friend.
2019 Marketing Trend #3: Offline and online marketing will work together.
According to Statista, retail commerce sales are expected to surpass $2.8 trillion globally; online transactions are growing at 3x the rate of offline transactions. Yet, consumers still prefer to shop in-person. In 2019, we’ll see companies put more effort into omni-channel capabilities. (Omni-channel marketing literally just means that you approach sales in a way that gives your customers an integrated shopping experience.) For example, someone visiting your store may trigger a tracking beacon on an app (e.g.: Sportchek) that way sales associates could get additional information to better serve the customer (shoe size, colour preference, style etc.) The goal is that your customer will have the same seamless experience shopping online, as they will offline in your store. But what many businesses are struggling with is how to connect online experience and offline. It is becoming sophisticated and requires serious investment.
Map out your customer journey. How do they learn about you? Look at the data you have available (Google analytics, social data, surveys, online listening.) What steps do customers take before purchasing? (do they visit the website at a specific frequency? do they phone? email? chat?) Where are the gaps in your customer service? (do you have a presence on social channels, but no one there manning them?)
2019 Marketing Trend #4: Strong focus on AI, Analytics and bypassing IT
Historically, many organizations typically have one big strategy meeting per year to chart the course and make decisions for the entire year (and budget.) However, now instead of having annual meetings, many companies and agencies are making decisions throughout the year based on data. Some are making decisions hourly; consider those running Facebook ads with multi-million dollar budgets – they’re optimizing continually and making decisions about offers, creative, copy and target audiences etc. However, manual optimization can be a massive time-suck. The same organizations are opting for programmatic buying. “Programmatic media buying, marketing and advertising is the algorithmic purchase and sale of advertising space in real time. During this process, software is used to automate the buying, placement, and optimisation of media inventory via a bidding system.” (via The State of Digital)
If you’re a smaller organization just starting out online, the thought of running ads manually can be overwhelming but the idea of integrating automation into the ads can be even more overwhelming. There are products out there that can help you better manage this process. Consider AdEspresso. Essentially it is designed to help you create and scale advertising campaigns. They have a 14-day trial and their base membership is $49/month USD.
I’ll be keeping a close eye on trends for 2019, but I’m curious, which trends will you be acting on?