Question

Topic: Research/Metrics

Efficacy Measurement Of Btl Activiies

Posted by shakirb4u on 4/15/2014 at 1:43 AM ET 250 Points
Hi... in the current time , we can see marketing concentrating on BTL activities . I am working on a project for two wheeler company in India and they are looking for a way to measure the efficacy of BTL activities conducted ..Any suggestion please ?
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RESPONSES

  • Posted by tcgren on 4/15/2014 at 2:28 AM Accepted
    Just wanting to clarify your query:
    1) efficacy of using BTL marketing vs ATL?
    Or
    2) efficacy of the actual BTL channels utilized?

    If it's the 2nd question, are you really trying to answer whether you've gone the correct route of choosing your target population and methods correctly?
  • Posted by shakirb4u on 4/15/2014 at 2:42 AM Author
    Yes ..I am trying to whether I've gone the correct route of choosing my target population and methods correctly .
    Im also trying to answer how correctly have I done my BTL activity , has it been efficient ? or was the activity I conducted a waste of money( for instance i spent 100$ but generated sales of only 10$) .

    What are the metrics I can use to measure the activities I have conducted , and the metrics should also be manageable , so that I can understand that it was due to this metric , the activity was not successful and I can work on that ... Thanks a lot for your help in this regards :)
  • Posted by Gary Bloomer on 4/15/2014 at 7:27 PM Accepted
    Every dollar you spend on messaging needs to bring it its equal or higher in sales.
  • Posted by Gary Bloomer on 4/15/2014 at 7:31 PM Member
    … opps. I hit SUBMIT to quickly.

    I loathe the word "metrics". That point aside, a few numbers worth looking at include:

    cost per impression; reach; frequency; call to action; conversion to sale ratio … these might be worth looking at. Cost per lead as well. How much does it cost you to attract, to serve, and to retain each client or customer? Life time value of each customer.

  • Posted by mgoodman on 4/15/2014 at 7:36 PM Accepted
    Gary Bloomer wrote: "Every dollar you spend on messaging needs to bring in its equal or higher in sales."

    Gary: Isn't that rule of thumb guaranteed to lose a lot of money in the long run? And doesn't it depend importantly on the specific industry and company, and on the marketing objective?

    Maybe this: "Every dollar you spend on messaging needs to bring in its equal or higher in VARIABLE PROFIT."

    Of course, in some cases you might want to investment spend and would be prepared to spend more on messaging than you earn -- at least for a limited period of time.
  • Posted by koen.h.pauwels on 4/16/2014 at 2:48 AM Accepted
    agreeing with Michael and Gary, I am already impressed that you appear to be able to link your BTL activities to how much sales revenues they generate. That is indeed a key metric; how do you measure and attribute sales lifts to different BTL (and ATL) activities? in my experience, that is crucial (at least to the companies i consult), and gets most attention in books on smarter marketing and return on marketing investment

    Cheers

    Prof Koen Pauwels
    www.notsizedata.com
  • Posted by tcgren on 4/16/2014 at 5:06 AM Member
    For each of the "channels" or slices of target customers you reach, you'll have done kind of an ROI or IRR figures, where the inputs are value of customer (may be different for different channels, costs to acquire, cost to maintain, etc). I would treat each target group as its own mini-business case. You can evaluate each one separately. Here's an example: years ago I used to work on a financial services direct mail program, and each quarter/month we had different "launches" with their own specifications. We also did some experiments with offerings and marketing message so we could compare results much like in a lab setting. Then, within 3, 6, 9, 12, 18 months we evaluated the short-term and long-term impacts of that and adjusted future offerings based on that. If a specific campaign wasn't expected to meet a certain ROI, we wouldn't launch until we could make it profitable.
  • Posted by tcgren on 4/16/2014 at 5:16 AM Member
    As to whether you are choosing the right customer segments with the right message and form of interaction? Well, I guess that's the marketing homework that needs to happen. There are different ways to segment: gender, geography, education level, customer credit quality, age.... You'll need to evaluate what makes most sense for your product. First, wgat is your value proposition? A good start is an affinity group, if you are targeting something more upscale or iconic. If you care going for low-cost, then consider credit quality or age or geography. Then evaluate which segments will give you the best ROI, within reason. You may not want to do a big outlay of upfront expenditure if you aren't certain of your business case assumptions, I.e. acceptance rates, lifetime customer value, etc
  • Posted by Gary Bloomer on 4/16/2014 at 7:35 PM Member
    Michael: Correct. Profit is indeed the goal. I blame too little coffee and being overly eager to respond to the question.
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