Top 5 Ways to Maximize Marketing Budget Profitability
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Between all the recent restrictions, limitations, deprecations, and new data privacy laws that have been imposed on marketers, there have been many complications that have collectively succeeded in reducing the enjoyable elements of growth marketing. These grievances are shared by growth teams in nearly every industry, whether it's PLG, B2B, DTC, or even subscription brands. Yet, despite volatile markets and limited budgets, growth teams should deliver strong results going forward.
This expectation, which stems primarily from investors expecting large returns on investment, creates a frustrating and paradoxical situation for growth teams. After all, customer acquisition costs are rising and expenses need to be managed, while ensuring retention rates and an upward trajectory of profitability. That's a big ask, especially with a tight marketing budget.
In an ideal world, implementing multiple growth loops would be enough to keep engines running with minimal back-end effort. In reality, growth teams need to be more diligent in the approaches they take to achieve optimal profitability from their marketing budgets.
Here are five tactics data-driven growth teams should consider to increase the impact of their campaigns.
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look hereRecent and upcoming regulations limit advertisers' ability to collect and process data for internal use. This is especially detrimental because solid data is needed to build, match, and grow audiences for future ad campaigns
This places considerable importance on first-party data, which is inherently GDPR compliant and crucial in today's privacy environment. Based on this data, personalized experiences and advertisements can be offered to customers and prospects.
Then there is zero-party data such as survey results, which allows brands to offer greater personalization. Campaigns can be based on customer preferences. I place a high priority on zero-party data because it gives brands the insights needed to assess customer lifetime value. In turn, this can be used to acquire more customers of similar lifetime value.
The sky is the limit when this data is paired with an AI-powered predictive platform, which can use data-driven models to further expand its user acquisition network loyal customers who are more likely to make long-haul purchases.
2. Reduce customer acquisition costs on a budgetCustomer acquisition costs have increased dramatically in recent years, and there is no quick and easy way to reduce them instantly, at least not yet. However, some workarounds indirectly reduce these costs while increasing profitability. These workarounds include focusing on customer retention; the introduction of a freemium option; and using internal data to power predictive marketing. Together, these actions would save the growth and marketing teams a lot in terms of budget, and the data that would be extracted from them would allow the teams to make more informed decisions.
3. If relevant...
Check out all the Smart Security Summit on-demand sessions here.
Between all the recent restrictions, limitations, deprecations, and new data privacy laws that have been imposed on marketers, there have been many complications that have collectively succeeded in reducing the enjoyable elements of growth marketing. These grievances are shared by growth teams in nearly every industry, whether it's PLG, B2B, DTC, or even subscription brands. Yet, despite volatile markets and limited budgets, growth teams should deliver strong results going forward.
This expectation, which stems primarily from investors expecting large returns on investment, creates a frustrating and paradoxical situation for growth teams. After all, customer acquisition costs are rising and expenses need to be managed, while ensuring retention rates and an upward trajectory of profitability. That's a big ask, especially with a tight marketing budget.
In an ideal world, implementing multiple growth loops would be enough to keep engines running with minimal back-end effort. In reality, growth teams need to be more diligent in the approaches they take to achieve optimal profitability from their marketing budgets.
Here are five tactics data-driven growth teams should consider to increase the impact of their campaigns.
EventOn-Demand Smart Security Summit
Learn about the essential role of AI and ML in cybersecurity and industry-specific case studies. Watch the on-demand sessions today.
look hereRecent and upcoming regulations limit advertisers' ability to collect and process data for internal use. This is especially detrimental because solid data is needed to build, match, and grow audiences for future ad campaigns
This places considerable importance on first-party data, which is inherently GDPR compliant and crucial in today's privacy environment. Based on this data, personalized experiences and advertisements can be offered to customers and prospects.
Then there is zero-party data such as survey results, which allows brands to offer greater personalization. Campaigns can be based on customer preferences. I place a high priority on zero-party data because it gives brands the insights needed to assess customer lifetime value. In turn, this can be used to acquire more customers of similar lifetime value.
The sky is the limit when this data is paired with an AI-powered predictive platform, which can use data-driven models to further expand its user acquisition network loyal customers who are more likely to make long-haul purchases.
2. Reduce customer acquisition costs on a budgetCustomer acquisition costs have increased dramatically in recent years, and there is no quick and easy way to reduce them instantly, at least not yet. However, some workarounds indirectly reduce these costs while increasing profitability. These workarounds include focusing on customer retention; the introduction of a freemium option; and using internal data to power predictive marketing. Together, these actions would save the growth and marketing teams a lot in terms of budget, and the data that would be extracted from them would allow the teams to make more informed decisions.
3. If relevant...What's Your Reaction?
