Strategy Overview and 80/20 Rule

SamuraiDR exclusively focuses on optimizing direct response marketing budgets to maximize customer lifetime value.

 

Our strategy is simple

  1. Measure ad and channel performance. Set visible KPIs and tie them to transactions/revenue using available data to estimate ad and channel contribution to customer lifetime value.
  2. Strategically assign budget to the highest performing ads and channels giving priority to the highest performing ads and channels. Invest in high ROI ads and channels until reaching the point of diminishing returns
  3. Identify and execute against opportunities to improve KPI performance at the ad and channel level on an ongoing basis.

 

Each step in the strategy is supported by a set of base assumptions. Assumption 1; the advertising channel will be configured based on a set of best practices. Best practices will be defined as work product completed at a quality level we’d expect from a classical journeyman or better. Assumption 2; KPI measurement is analyzed based on a known constraint set and taking into account difficult to measure potential ad impact. Assumption 3; all (most) decisions will be based on a statistically significant data set.

 

This might seem oversimple. Maybe you’d rather pursue the hot new social channel. Maybe you’re worried you could end up over-investing in the latter part of the customer journey and starve new demand generation. Many advertisers will turn a blind eye and a deaf ear to a simple strategy that assigns available resources to the best performing ads and channels. Others believe that decisions like this drive the 80/20 rule in business.

 

What is the ’80-20 Rule’
The 80-20 rule is a rule of thumb that states that 80% of outcomes can be attributed to 20% of all causes for a given event. In business, the 80-20 is often used to point out that 80% of a company’s revenue is generated by 20% of its total customers. Therefore, the rule is used to help managers identify and determine which operating factors are most important and should receive the most attention, based on an efficient use of resources.

Investopedia

The 80-20 rule applies to your digital and traditional advertising campaigns. Here’s another cliche in advertising, “half of my advertising doesn’t work, I just don’t know which half”. This used to be true. In 2018, it would be incredulous to claim that it’s possible for marketers to accurately quantify the impact of all advertising. (either on or offline) but it is accurate to claim that strategically using the digital tools available, smart advertisers can decide where to allocate resources in order to generate the largest sales revenue within a constrained budget.

 

Who should contact SamuraiDR?

 

If you are an advertising decision maker who could benefit through increasing top or bottom line revenue you should contact SamuraiDR. We can help you implement proven tactics to increase transactions and revenue in the short term. We can also help introduce your brand to likely customers in a way that allows you to generate the frequency necessary to elicit a positive buying decision.

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