Marketing is filled with instances of bloopers and embarrassing mistakes that have often ended up in terrible failure.
Let’s take Coca-Cola for example.
After a magnanimous success in the 40s to 60s, they saw a decline in sales and attributed it to the change of taste and introduced a sweeter version of the original taste called New Coke. It is safe to say that there was a major lack of insight into the customer psyche with zero analysis. They did not factor the emotional connection people have with the original flavor and the product bombed real bad! Here, the minds behind this campaign failed to dive into customer analytics which affected the entirety of the campaign.
So you don’t make that mistake, remember the Coca-Cola blunder via the following formula
|Perimeter of the Campaign Success: Length of the time invested * Depth of customer analysis|
We will talk more about this in the later sections.
The Schrödinger’s Cat
All marketing campaigns are like Schrödinger’s cat. Until you have executed that campaign idea, it is both a success and a failure simultaneously. You won’t know unless you open the box.
However, being a marketer, you can’t really work on speculations. You need numbers and that too, good numbers, otherwise, the ROI of your company will fall into the abyss. Oh! There you go. Using a marketing term so casually – a term that can determine the rise or fall of an organization.
Since formulae have always helped shorten long sentence structures, we can concise this explanation into the following formula.
|ROI = The Amount of Money Invested – The Amount of Money Earned Post Campaign
The Amount of Money Invested
Amount > Speculated ROI – Your campaign performed well
Amount < Speculated ROI – You have some learning to do
The Relatability Paradox
A neutron walks into a bar and asks how much for a drink? The bartender replies, “for you, no charge”. ~ Sheldon Cooper, Big Bang Theory. Now you cannot be that bartender since you have a responsibility towards your brand and organization, helping them earn revenue.
In marketing terminologies, this is known as lead conversion. You need to convert that neutral charge to a positive one to get the money flowing. There are many variables to this one. Content relatability, customer engagement, and customer analysis.
Breaking it down to a formula in a two-step approach
|Content Relatability ∝ Customer Engagement|
Which leads to
|Lead Conversion = (Content Relatability + Customer Engagement)|
Lead conversions are one of the main objectives for all marketers.
The Traffic Volume
What is the essential factor to consider for your conversions and company growth is the flow of customers visiting the site every day, week, or month. Though it is unsafe to crowd at places these days, the high volume of traffic clustering online at your brand’s site is most welcomed. The more the merrier.
However, to bring in this traffic flow, marketers need to consider three very important variables – time invested in crafting strategies, the scope of market trends, and of course, customer analytics. You need to know your traffic before you bring them over and then work on amplifying their numbers.
|Volume of Traffic Flow = Length of Time * Width of the Market Scope * Depth of Customer Analytics|
The Campaign Perimeter
Lead conversions depend a lot on the success of the campaigns. However, creating excellent and successful campaigns is no walk in the park! This equation involves the variables of content relevance and customer analytics.
Customer analytics helps understand the mindset of the customer ——–> With this dive into their psyche, behaviour and preferences, and can create relevant content which will boost engagement ———–> Customer engagement brings in viewership, awareness, and ultimately loyalty ——————-> Successful Campaigns
To make it simpler
|Successful Campaigns = The Extended of Relative Content * Depth of Customer Analytics|
Conclusion: Why Do Marketers Need Maths?
Everything in marketing boils down to capital invested and capital earned, i.e. profit. Maths is an important part of marketing and advertising as there is a need to understand the amount of money and the aforementioned formulas are applied to get the brand message out.
Since the world relies on big data, data crunching is not only the forte of the technical teams but the marketers as well because all departments, including the creative ones, are run by data. Math forms the common denominator for all data related solutions.
Tags: customer analytics, customer engagement, formukla, marketers, Marketing, Mathematics of marketing, maths, traffic, volume