(Learn Why Traditional Agencies Don’t Understand Performance Marketing)
9 Questions you can ask your team about properly handling the digital transformation (HINT: Start at the end goal and reverse engineer the process)
- Do you understand all of your digital marketing data? Is your CRM data and your digital marketing efforts stored in one centralized location?
- Do you understand your true LTV’s?
- Are you doing predictive modeling off of your LTV’s to gain market share and stay profitable as you scale?
- Are your digital marketing efforts profitable per channel? If not, what are your competitors doing?
- Are your board, your execs, your decision makers, and your leaders seeing the same data, and working collectively towards pre-set KPI’s to profitably move the company forward?
- Do you have processes around leveraging AI/Automation and are these processes actually moving the company forward, or slowing you down? Optimize every digital process at least twice a year, by wire-framing out the process and identifying inefficiencies.
- Have you had your digital marketing campaigns audited from an outside expert?
- Have you had your tech stack audited by an outside expert?
- How are you holding your digital champions accountable? Outside of revenue/profit goals, are they held to certain KPI’s that track incremental growth?
Why Traditional Agencies Don’t Understand Performance Marketing In The Digital Transformation
If you are looking to stay true to your brand, but drive the most value out of your digital marketing efforts, you are going to want to read this.
The days of playing it “safe” with an agency are over. As these agencies have not truly embraced and figured out what a few, small professional media buying agencies now understand, omni-channel performance marketing has become the new reality.
So what’s currently happening and where are these agencies getting it wrong?
From my years of experience working with agencies and now running one, I see a huge gaping hole in the ability of advertising agencies to understand and drive omni-channel performance through traffic source-specific strategies.
Most agencies are trying to ride the “performance” wave, by adding the buzz word to their website and having their media buyers (who have always been with them) try to hit new KPI’s that are based around sales/downloads/leads.
Unfortunately, these agencies and media buyers have not been trained properly on how to actually run a successful omni-channel digital marketing campaign.
The most established brands are under attack. I have said this before, but everything from retail, CPGs, and any other types of large corporations are being disrupted by savvy media buyers.
Another huge problem is many of these brands are not in constant communication with their agencies and the most important digital marketing campaign data is not properly integrated with CRM data and other customer experience data that now needs to talk to each other in real-time.
Beyond integrating this data, it needs to be customized per department to allow certain leaders and team members to make real-time decisions faster by simplifying data points. From successful creative per channel, to attribution, if your brand doesn’t have a fully customized real-time reporting dashboard, you are not properly set up to scale in the digital age.
If your brand is driving to the same landing page across every major digital channel, you are simply selling yourself short.
The opportunity to understand the mindset that a person is in when they are searching for something compared to when they are scrolling on Facebook cannot be overlooked. These behaviors and psychological aspects allow for increased CVR just by testing new landing page optimizations based off of knowing the intent of the user, purely from the platform. Once you identify that, you will be able to layer in other variables to test, including everything from copy, images, videos, and UI/UX.
So, what’s the solution?
There are certain foundational processes that need to be set up as you fully transform your digital marketing efforts to more performance-driven, positive ROI campaigns.
The biggest mistake that brands and agencies make, is when they start by looking for one unicorn software that does it all, but lacks the fundamental processes that drive profitability across different traffic sources and campaigns.
I suggest for business intelligence, you use a cloud-based data aggregator like DOMO that allows you to customize data points with API access to every traffic source and software/technology you can think of.
Yes, you will want to find tools and programs that speed up your work flow, including automation and AI, but not building the processes first are the mistake that most agencies and brands are making.
The digital transformation is a fully integrated holistic understanding of how to drive ROI and increase LTV’s through a fully optimized and on-going customer experience (at least the way we look at it).
It’s all about efficiency, profitability, and customer experience. Building processes around these core values of digital transformation will help you make sense of all the noise.
If you have any more questions regarding how to own the digital transformation, please reach out to me directly.
Chief Marketing Officer