We recently put together our first newsletter with a focus on the importance of the customer insight dimension in our market culture model. It brought back some great examples of how really customer focused companies can use insights to create more value for customers and the profits that follow.
During the 1990s in Australia the candy bar market began declining. Most producers reacted by increasing their candy bar size and lowered their prices. They thought customers wanted more for less and acted accordingly.
Milky Way’s Customer Insight
In the case of Milky Way bars they decided to dig a little deeper. They found that most candy bar consumption was by 8-10 year-olds at about 4.00pm in the afternoon when with a parent shopping. Parents resisted buying it for their kids because they would not want to eat their meal at night as a result.
Taking Insight to Action
So, the company reduced the size of the bar, kept the price the same, repositioned it as a snack “that will not fill you up” and they sold an extra 10 million bars.
That’s how and why deeper insight leads to profit….
We had a really great event on Marketing ROI the other week that I forgot to post on earlier but better late than never…..
We had Jim Lenskold from the Lenskold Group keynote and a talented group on our panel that included Seth Berman, Director of Strategy and Operations for Blue Shield of California (a great client of ours) and Laura Van Galen the CEO of Bleu Marketing Solutions. I had the opportunity to moderate this great panel and took the opportunity to get as much audience input as we could take to cover a wide range of issues related to Marketing ROI, from where to start, to the culture needed to support ROI improvements etc…
I think the bottom line is marketing ROI is necessary but often painful for organizations to deal with because it requires discipline and analysis and it is so easy to do what’s been done before because it is safe and accepted. Marketing ROI is a bit like diet and exercise, you know you will be leaner, fitter and better of for it but its just so hard to do…. so what’s the answer?
Don’t think about it and just start building it into your own culture, every activity that you engage in as a marketer ask yourself 3 questions:
1. Why am I doing this?
2. Can I measure it? (if unsure have other people measured it?)
3. Is it providing a positive return given the time effort and money expended on it?
Here are some photos from the event……
Jim Lenskold Keynote
Chris Brown Moderating
Our Talented Panelists Seth Berman of Blue Shield and Laura Van Galen from Bleu Marketing
Our very own highly talented EVP from our Boston Office Sean Gallagher with Jim and Seth