Are your marketing strategies aligned with your revenue goals?

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While marketers often have a wide range of KPIs, metrics, and goals to track, the bottom line is almost always the same: marketing is meant to grow revenue. 

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During a recent conversation with Amy Parker, a seasoned marketer with extensive experience in multi-unit businesses, we discussed how achieving revenue goals through marketing requires a multifaceted approach. This includes understanding business fundamentals, leveraging data for efficiency, adopting an integrated marketing strategy, and maintaining strong digital marketing agency relationships.

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Based on our conversation and years spent leading my own data-driven digital marketing agency, Brighter Click, I delve deeper into these components below, offering insights on how they collectively contribute to successful marketing outcomes.

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Understanding Business Fundamentals

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"The first thing I want to understand is how does the business make money? I think all too often people think marketers make really pretty creative and that's all we do. But I think the best marketers are the ones who understand the business and understand it holistically." - Amy Parker

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One of the first things Amy emphasized is the importance of understanding how a business makes money. Too often, marketers are seen merely as the creators of appealing visuals and catchy slogans, but effective marketers dig a lot deeper than that. They understand the business holistically, including how it drives sales and where the pressure points in the profit and loss statement (P&L) lie. Here’s why that’s so important: 

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• Understanding the intricacies of the P&L allows marketers to align their strategies with the company’s financial goals. For instance, in the grocery retail sector, where Amy has a great deal of experience, understanding the P&L reveals the tight margins that these businesses operate under. 

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• This knowledge informs how marketing strategies should be structured and helps identify the most effective ways to position marketing within the organization. It’s not just about driving sales but ensuring that every marketing dollar spent contributes to the bottom line.

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Additionally, understanding the business’s financial goals helps marketers craft more relevant and impactful campaigns. If a company is trying to increase their market share, the marketing strategy would focus on brand awareness and customer acquisition. On the other hand, if the goal is to improve profitability, the strategy might focus on promoting higher-margin products and optimizing marketing spend.

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This is why, at Brighter Click, one of the first things we discuss with our clients during onboarding is what their unique goals are. This allows our strategy team to brainstorm the most effective ways to help them achieve those goals. 

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Importance of Data and Efficiency

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Again, using grocery retail as an example, where margins are notoriously thin, data-driven decision-making is crucial. Amy shared insights on how analyzing the flow of dollars through the P&L can highlight where efficiencies can be improved. For example, assessing the effectiveness of print advertising versus digital channels can lead to more efficient marketing spend.

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Data helps identify which products drive traffic and sales. Understanding the customer basket, not just the hero product, allows for more targeted and effective marketing strategies. Marketers can enhance top-line and bottom-line performance by focusing on the most profitable customers and products.

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Data-driven marketing also allows for continuous optimization. By regularly analyzing performance metrics, marketers can identify what’s working and what’s not, making necessary adjustments in real time. This iterative process leads to more effective campaigns and better ROI.

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Amy also pointed out the importance of efficiency in marketing operations. Streamlining processes and eliminating redundancies can free up resources that can be better used elsewhere. For instance, automating repetitive tasks like email marketing and social media posting can save time and reduce costs, allowing the marketing team to focus on more strategic initiatives.

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Integrated Marketing Approach

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Amy strongly advocates for a balanced marketing approach that integrates brand marketing with performance marketing. These two elements should not be viewed as separate but as complementary. Strong brand marketing enhances the effectiveness of performance marketing by increasing brand awareness and consideration, making the performance marketing efforts more efficient.

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“If you have developed great brand awareness and have done a great job of communicating your brand promise to your target customers, the promotional side or the performance side is just going to be that much more efficient." - Amy Parker

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Performance marketing focuses on specific actions, driving immediate customer responses. However, without the support of robust brand marketing, these efforts can fall short. Businesses can achieve more sustainable revenue growth by maintaining a balance between building long-term brand equity and driving short-term sales.

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For example, a well-executed brand marketing campaign can create a strong emotional connection with customers, leading to increased loyalty and repeat purchases. This, in turn, makes performance marketing campaigns more effective, as customers are more likely to respond to offers from a brand they trust and feel connected to.

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Additionally, an integrated approach ensures consistency across all marketing channels. This consistency reinforces the brand message and creates a cohesive customer experience, further enhancing the effectiveness of marketing efforts.

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Managing Agency Relationships

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One thing I’ve learned from years of leading an agency is the importance of collaboration and transparency. Open communication with agencies is vital to achieving marketing objectives. The right agency can provide valuable insights and execute strategies that align with the business’s goals.

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Agencies like Brighter Click bring a wealth of experience and expertise, but we need to be integrated seamlessly into the clients’ operations. Regular and transparent communication ensures that everyone is on the same page and working towards the same objectives. This collaboration can lead to more innovative and effective marketing strategies that drive revenue growth.

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Not all agencies are created equal, and it’s crucial to select ones that have a deep understanding of your industry and can adapt to your business’s unique needs. Additionally, building strong relationships with agencies based on trust and mutual respect can lead to more fruitful partnerships and better results. Our best clients are the ones we collaborate most closely with – while they turn to us for marketing insights and execution, we rely on them to help us understand their goals, audience, and brand vision. 

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Real-World Applications

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To put this all together and lean into Amy’s area of expertise, let’s consider a hypothetical example of a grocery retailer aiming to boost its revenue through effective marketing. The retailer first conducts a thorough analysis of its P&L to identify key areas for improvement. They discover that while their fresh produce section drives significant traffic, it also has the highest wastage rates, impacting profitability.

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By leveraging data, the retailer can refine its marketing strategy to promote produce more effectively through targeted offers that encourage bulk purchases or loyalty programs that reward repeat customers. Plus, by streamlining their marketing operations and automating certain tasks, they can reallocate resources to more strategic initiatives.

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The retailer also balances brand and performance marketing efforts. They launch a brand campaign highlighting their commitment to fresh, locally-sourced produce, creating an emotional connection with customers. This campaign is supported by performance marketing efforts, such as targeted digital ads and in-store promotions, driving immediate sales.

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Finally, the retailer partners with a trusted agency that specializes in grocery retail marketing. Through open communication and collaboration, they develop innovative campaigns that resonate with their target audience and achieve their revenue goals.

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How to Achieve Your Business Revenue Goals

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Achieving revenue goals through marketing is not just about flashy ads. It requires a deep understanding of the business, leveraging data for efficiency, integrating brand and performance marketing, and maintaining strong agency relationships – it’s why my team puts so much effort into research and testing. 

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By focusing on these core areas, marketers can develop strategies that not only drive sales but also contribute significantly to the overall profitability and sustainability of the business.

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Want More Strategies for Success?

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