Companies :
How can we spend our marketing euros more effectively and minimize waste ?
Customers :
Why can’t companies cut out all the junk, and present me with only relevant and compelling offers?
Marketers spend millions of euros every year on advertising and other forms of marketing promotion. Is it money well spent?
In most cases, the answer is no, not by a long shot. The reason is simple: Most marketing messages reach a large number of the « wrong people » and only a small fraction of the « right people ». The wrong people are consumers from whom a company stands to derive little, if any benefit. The right people are consumers who can make all the difference in the world in terms of future growth and profitability.
In their efforts to drive brand awareness and sales revenues, smart companies are coming to realize they can no longer afford to market mostly to the wrong people. They can no longer put all their eggs in the basket of mass media marketing, or what some executives knowingly call « spray-and-pray marketing ».
Today, the pressure to demonstrate marketing ROI has never been greater. That being the case, many companies are taking a hard look at how they allocate their marketing resources. They’re taking a more scientific approach to marketing and treating it as a true business discipline. This means more rigorously capturing, analyzing, and manipulating customer data. And it means delivering narrowly defined messages that are differentiated, and designed to resonate with customers’ specific wants and needs. This process is called precision marketing.
(Source : Precision Marketing, Jezz Zabin & Gresh Brebach, John Wileys & Sons, inc)