As customer management practices take hold in India, retailers will increasingly need to account for their marketing spends in ways that are measureable and ROI driven. The old school of brand impressions, media frequency and reach will be supplanted by customer acquisition, activation, value lift, basket composition and transaction frequency measures. In this scenario, it will be interesting to understand how best practice global retailers are developing their marketing platforms, and what immediate steps could be taken by Indian retailers.
Driving consumer behaviour change through data: One of the major elements in a data-driven approach to marketing is the collection and management of customer data. A major challenge in data collection in India is that the privacy of consumers is often compromised. In order to drive consumer behaviour change, it is essential to treat customer data with utmost respect and care.
Respect for relevance: As marketers, one needs to communicate with customers. Mass communication by its very nature is about having a certain reach within the chosen universe. Data-driven marketing, however, is about segmenting this universe into an optimal number of homogenous cohorts and making the messaging more relevant and targeted.
Customer profit, loss and investment forecast: In the modern retail environment, a marketer’s biggest asset is not the brand, the media channels or the budget; it is the customer. It is, therefore, critical to evaluate and plan marketing activities based on the consumer’s contribution to the company’s financial goals.