Michael Wolfe on getting more from your marketing $$$s

20 Feb,2012

By A Correspondent

 

In today’s time there is an added pressure on justifying each and every paisa spent on marketing, thus making the return on investment (ROI) all the more critical. That’s where Rainman Consulting steps in. Their core expertise lies in making ‘profit from marketing effectiveness’.

 

Rainman recently hosted Michael Wolfe, CEO, Bottom-Line Analytics LLC who gave insight into marketing effectiveness and talked about Marketing Optimization Modeling, focusing on retail marketing applications.

 

Wolfe gave a peek into what they do, which includes measuring the impact of the marketing investments of each program and campaign at a time, besides giving the big picture. They also determine the ROI from the marketing spends and, most importantly, providing a plan that ensures a marketer get the most out of his or her marketing budget.

 

Wolfe explained how they do this: “The plan helps in determining what works and what doesn’t and thus showing one how to move budget from less to more productive activities. This exercise usually nets a plan which will get you 4 to 8 per cent more sales revenue, all without spending an additional dime on marketing.”

 

“We do this with a mathematical modelling, sometimes called econometrics. We call this Marketing Optimization Modelling,” added Wolfe, who later went on to show how they achieve this.

 

As he explained, this is basically the application of advanced econometrics towards measuring marketing effectiveness and ROI and is done through collection of media, marketing plans and POS sales data. “We assemble and validate a predictive model which casually links each of your marketing activities to retail sales. From this exercise we are able to specifically quantify the impact of media and marketing on the retail sales and provide you with direct guidance on what is working well and what is not.”

 

The session then explained in detail the models for marketing optimization and a case study where application of this model helped in turning around the business. The simulation exercise actually helps in moving funds from less to more productive activities leading even to achieve 5-10 per cent greater revenue with the existing marketing spends. This also helps in more effective deployments by media, message, promotional event and by market.

 

Wolfe emphasized on modelling and marketing measurement that must break out and go beyond the silos. During the discussion, he also touched upon the topic of social media ROI and steps to navigate through it.

 

The session concluded with few keys to success that included doing what no others can do, focusing on being strategic, understanding the client’s business, never ceasing to innovate, customizing, having passion and evangelise and most importantly loving what you are doing.

 

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