By: Wendy Greenawalt
Marketing is typically one of the largest expenses for an organization while also being a priority to reach short and long-term growth objectives. With the current economic environment, continuing to be unpredictable many organizations have reduced budgets and focused on more risk and recovery activities. However, in the coming year we expect to see improvements and organizations renew their focus to portfolio growth.
We expect that campaign budgets will continue to be much lower than what was allocated before the mortgage meltdown but organizations are still looking for gains in efficiency and response to meet business objectives. Creation of optimized marketing strategies is quick and easy when leveraging optimization technology enabling your internal resources to focus on more strategic issues. Whether your objective is to increase organizational or customer level profit, growth in specific product lines or maximizing internal resources optimization can easily identify the right solution while adhering to key business objectives. The advanced software now available enables an organization to compare multiple campaign options simultaneously while analyzing the impact of modifications to revenue, response or other business metrics.
Specifically, very detailed product offer information, contact channels, timing, and letter costs from multiple vendors and consumer preferences can all be incorporated into an optimization solution. Once defined the complex mathematical algorithm factors every combination of all variables, which could range in the thousands, are considered at the consumer level to determine the optimal treatment to maximize organizational goals and constraints. In addition, by incorporating optimized decisions into marketing strategies marketers can execute campaigns in a much shorter timeframe allowing an organization to capitalize on changing market conditions and consumer behaviors. To illustrate the benefit of optimization an Experian bankcard client was able to reduced analytical time to launch programs from 7 days to 90 minutes while improving net present value.
In my next blog, we will discuss how organizations can cut costs when acquiring new accounts.