When profiles are assigned to individuals, you can choose how much you want to spend to reach them. High-value prospects should be treated differently and should be reached at all costs. Remember: Marketing teams that focus on achieving a low CPM are missing a great opportunity, as CPM is only one data point. The CPM to acquire high-value prospects should be much higher than a low-value prospect. Digitally, you want to make sure when you see these consumers you are speaking to them. Once your best customers and best prospects scores are established, it is up to the business to decide how much each is worth. For example, look at the wealth management industry.
Deposits from wealthy individuals can generate millions of dollars in fees over the course of a banking relationship. A very smart bank did the hard work of
defining its best customers and prospects. The very best prospects received direct mail pieces that cost more than $100 to print and send. Sounds crazy? Because the targeting was so accurate, all they needed to do was convert a handful of prospects in order to achieve a massive ROI.
The bank is now public and worth billions of dollars. It had the courage to spend against its highest-value prospects and the discipline to spend less on its lower-value prospects.
Leading Change
As leaders of strategic change, CEOs need to push their marketing teams to focus more on individual consumers and less on media. Direct-to-consumer businesses should look at marketing as a way to reach and win very specific consumers. Unfortunately, with the advent of digital marketing, many organizations spend so much time talking about clicks, impressions and redemptions that their marketers have lost sight of what they are trying to accomplish — their mission.
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