The “4Ps”— price, product, promotion, and place — have been the cornerstone of a successful marketing strategy for over 50 years. And for good reason.
Focusing on price, product, promotion, and place still makes perfect sense, even as consumers’ online behaviors change the ways in which we deliver our messages and communicate with our audience.
However, as the ever-growing availability of marketing technology platforms and new data sets offer myriad possibilities for connecting with consumers, marketers must also focus on using technology to foster personalized experiences. Recent studies show that 81% of shoppers have done their research online before ever stepping inside a store, and 74% get frustrated when messages and offers have nothing to do with their interests. For marketers looking to create meaningful connections with audiences across digital channels, customer relationship management (CRM) is an essential part of a successful marketing strategy.
CRM and the new 4Ps of digital—process, people, platform, and performance—offer new ways to meet consumers’ needs and customize messaging for audiences that expect personalization.
Content produced in collaboration with Response Media.
In recent years, marketing leaders have increasingly come under pressure to deliver on organizational strategy and brand engagement. They are also responsible for the critical operational processes and marketing technology stack to support revenue goals and other business objectives.
The head of any marketing department must juggle strategy, internal processes, and personnel while coordinating technologies to profitably execute and prove ROI. However, the truth is that many marketers simply feel unprepared for these challenges. In fact, a survey by Deloitte recently found that 32.2% of CMOs feel they lack adequate tools and processes to measure success.
Streamlining your process to improve consumer relationships starts with a few key questions:
- Is your brand ready for today’s marketing environment? Do you have all the pieces in place?
- What tools would help you market to the correct audiences, stay relevant, personalize messaging at greater scale, and respond to interest immediately?
- How can you translate your company’s needs and goals into an operational marketing strategy?
- Can you justify the budget and quantify return?
- Will this solution fit with the company’s data governance or Master Data Management (MDM) strategy?
- Do you have the right stakeholders, bandwidth, competency, and partners to put all this in place?
Price, product, promotion, and place are just as important as they ever were, but each of the original Ps is dependent on adapting to new technologies and processes that deliver results. Effectively organizing your marketing strategy with the right CRM can go a long way toward solving many modern day marketing woes.
The key to communication in the digital age is personalization. Gone are the days when one mass message would work for every consumer.
Studies show that consumers are 80% more likely to make a purchase when brands offer a personalized experience. And as consumers demand more personalization, the people, internally and externally, who market your product become the bridge between the traditional Ps and the new Ps.
At its core, CRM is about people and building relationships. Adopting a functional CRM program can actually improve teamwork, communication, and consumer relationships by providing data to segment audiences and mapping out consumer touchpoints with your organization. Price, product, and promotion still matter to consumers—but without personalization and the people which enable those connections, audiences may never find your product or bond with the brand.
Business is built around forming loyal relationships, and one of the most important parts of fostering those relationships is choosing the right tool to manage consumer data and help you get the right message out at the right time to the right consumer segment.
Choosing the most effective platform for your business is critical. According to Gartner Group, 55% of all CRM projects don’t produce results. A bad fit platform could be a costly mistake. Make sure you’re choosing platforms that fit the size of your business with a relatively painfree onboarding process that’s easy for the entire team to use.
The best platforms in the world won’t mean much unless you’re collecting data around the success of your organization. Some of the essential key performance indicators (KPIs) for measuring the success of your CRM are customer service, engagement, response time, conversion, loyalty, and advocacy.
Developing a solid CRM solution means bucketing and organizing the business processes and technology that support targeting, audience insights, consumer acquisition and retention, and, most importantly, conversion and loyalty. Then, and only then, can an organization map all of that to the consumer lifecycle and lifetime value for effective performance measurement.
While technology has changed and evolved since the introduction of the original 4Ps, consumers’ main needs haven’t. They want to both feel valued and buy products that provide value. As the accelerating pace of technology and big data makes it necessary for CMOs to prove they are providing that value to consumers across all touchpoints, they must also directly link success to business objectives such as revenue and market share. The New 4Ps of Digital and CRM provide the roadmap and bridge between the original 4Ps and the modern era of dynamic marketing.
If you want to learn more about how to bridge the gap via CRM don’t miss Response Media’s guide ‘The New 4Ps of Digital’.