Efficiency and Effectiveness: The Perfect Marketing Mix
People often look at marketing efficiency and effectiveness as two sides of the same coin with little or no differentiation. After all, both theoretically lead to higher conversions and revenue, so is there really a difference?
The answer: most certainly “yes.” While both do have a similar aim, efficiency and effectiveness remain wholly different components of your marketing strategy. That said, they definitely rely on one another for optimal results.
Finding the proper balance of efficiency and effectiveness in your marketing strategy can be a catalyst for tremendous growth, which is why this guide to identifying and executing on opportunities for improved efficiency and effectiveness in your business has been produced.
“First, what do you mean by efficiency and effectiveness?”
At a high level, efficiency and effectiveness are two different measures of success in your marketing strategy.
Efficiency measures the success of your process. As a result, measures of efficiency typically center around minimizing spend. Where can we continue to see the same or better results at a lower cost to the business?
Typical measures of marketing efficiency include: CPA, click-through rates, conversion rates, and visitor engagement activity.
Effectiveness, on the other hand, measures the contributions your marketing strategies have made to the business. Are you generating revenue and if so, how much?
As a result, marketing effectiveness measures are generally more financially-driven. Customer lifetime value, revenue per visit, and audience share versus competitors are just a few factors in considering a strategy’s effectiveness.
If efficiency and effectiveness were a football team, efficiency would be the defense, focused on keeping the points low on the board while the offense (a.k.a. “effectiveness”) piles on touchdown after touchdown for a blowout victory.
“How do I identify marketing ineffectiveness and inefficiencies?”
Ineffectiveness is easy to spot. if your business does not see the expected return on investment from your marketing efforts, that is ineffective marketing (though identifying the root cause of that ineffectiveness can admittedly be far more complex).
Inefficiency requires more of a deep-dive into your business. Lucky for you, you have access to this great guide to identifying inefficiencies in your marketing strategy.
In short, spotting inefficiencies often requires an honest evaluation of your marketing strategy to find where you are wasting time and whether the tasks wasting your time can either be disposed of completely, or outsourced to a data management platform.
“How can a data management platform improve efficiency and effectiveness?”
First and foremost, data management platforms enable marketing automation efforts.
Much has already been written about the value of marketing automation on improving operational efficiency, but suffice it to say, automation can be a guaranteed way to save time, reduce overhead costs and increase profit margins.
An integrated marketing strategy also benefits from the efficiency of a data management platform by acting as a single source for incoming leads being collected across all of your different channels.
On the effectiveness side, using the right data management platform can unlock a number of other creative ways to leverage your data for better customer interactions and higher conversions, thus resulting in more business value from your marketing strategy.
Perhaps the biggest value add, however, is how the right data management platform actually bridges the gap between efficiency and effectiveness by better aligning sales and marketing teams.
Using a single, cloud-based platform gives both teams easy access to up-to-date data. And because marketing automation often has a positive impact on data quality and analysis, the quality of leads delivered to sales by marketing inevitably improves. With better data managed in a more efficient manner, the effectiveness of both teams takes a massive leap forward.
ReachForce helps marketers increase revenue contribution by solving some of their toughest data management problems. We understand the challenges of results-driven marketers and provide solutions to make initiatives like marketing automation, personalization, and predictive marketing better. Whether you have an acute pain to solve today or prefer to grow your capabilities over time, ReachForce can unify, clean, and enrich prospect and customer lifecycle data in your business, and do it at your own pace.