Peter Rosenwald shares his experience bringing accountability to marketing. He describes trying to account for the success of marketing campaigns in his book Accountable Marketing. This examines many ideas that are critical to quantitative marketing and covers a vast range of industries.
No One Is Average
He gives some great perspectives — such as “Average: The Most Dangerous Word in Contemporary Marketing” (Rosenwald, 2004, page 13). With data, we can break down our customer base and understand specific customers. As such, one shouldn’t just assume average describes anyone. Targeting the average customers can mean you target no one.
In a similar vein, he suggests that in retail not all space is the same. This may seem obvious to retailers but it is helpful to state for students.
Some square meters, like some customers, are worth more than others.
Rosenwald, 2004, page 57
When analyzing plans don’t simply find out how much of the store it will take up but what specific space in the store. One has to compare any planned usage to what the space can achieve through the best alternative use, not some average usage.
Bringing Accountability To Marketing
Rosenwald explains his idea of Allowable Cost Per Order (ACPO). His formula could be clearer but the basic idea is sound. You find out what the order is worth and then see what you can spend to gain the order. (Of course, things are complicated if one order may lead to more orders).
One thing that is especially useful to explain to students is the importance of testing. He suggests that: “There is a natural tendency on the part of many marketers .. to… just “go for it” when planning a campaign” (Rosenwald, 2004, 239).
Testing can seem to be a waste, you have to spend money on controls, i.e. things that you don’t think will work as well. Testing can, however, help you have a better idea of what is actually working. Furthermore, you can test things you would never roll out on a complete campaign. “..don’t be afraid to also test “crazy” ideas. “Crazy” ideas may lead to breakthroughs…”
Rosenwald is a great example of a practical book by a seasoned manager, (some of the use of language may annoy but), it is well worth a look.
For more on marketing accountability see here, here, and here
Read: Peter J. Rosenwald (2004) Accountable Marketing: The Economics of Data-Driven Marketing, Thomson.