The New 4Ps of Marketing

In college or at some point in your career, you learned about the 4Ps of marketing: location, price, product, and promotion. Although almost 60, 4Ps still weigh today. However, the marketing landscape has undergone drastic changes.

Legislation, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), are among the most recent amendments. Brands now face challenges in implementing important marketing tactics, such as personalization, which rely heavily on consumer data collection.

Today, marketers need to further evolve towards a consensus-based data strategy to drive their personalized marketing strategies.

The new 4Ps for marketing – privacy, permission, personalization, and performance (ROI) – is the way forward for marketers looking to gain consumer trust and loyalty.

  1. Privacy: crumble cookies

Not long ago, most consumers in the United States lost their privacy. Scandals like the Cambridge Analytica disaster in 2018 and one data breach after another have changed that attitude. Trust and transparency are now the main concerns consumers and lawmakers are realizing.

New legislation, such as the GDPR and CCPA, requires brands to seriously analyze how they collect, use and protect data. They also often need to make significant changes or face consequences such as heavy fines, penalties, and loss of customers.

The cookie has been the reigning king of digital marketing for years. Unfortunately, the cookie is closed. Google has announced changes to its Chrome browser that will provide users with more information about how they are tracked on the web using cookies.

Marketers have long relied on cookies to track consumer interests and behavior, but we will need to find new and better ways to collect data in a world beyond cookies.

  1. Personalization is more important

Consumers receive thousands of marketing messages every day. Since many of these posts are irrelevant, the public ignores them and makes it even more difficult for brands to stand up.

The best way to make a good impression and eliminate all noise is through personalization. Messages tailored to consumer behavior and perception of preferences are much clearer and provide significant ROI.

Personalization improves the customer experience and increases customer engagement and loyalty. It can also reduce acquisition costs by up to 50%, increase sales by 15% and increase the efficiency of marketing spending by 30%.

  1. Permission is required

Third-party data is unreliable and is often incomplete, which undermines consumer confidence. To find a balance between privacy and personalization, a data strategy based on consent must be implemented: when brands require prior consent, consumers must receive personal and relevant brand information and marketing messages.

Marketers need to quickly and easily collect data from third parties (preference data) and adapt it to the current regulatory landscape. However, today’s consumer knows what the value is and, therefore, expects a tangible exchange of value, in which he gets something in exchange for his personal data.

Brands that offer interactive experiences and attractions are ahead of the competition. Questionnaires, surveys, questionnaires, and social stories are just a few of the ways marketers can improve the customer experience by conducting surveys and collecting opt-ins.

  1. Performance (ROI)—KPIs, KPIs, KPIs

Meting distinguishes successful marketing professionals from packaging. Knowing the performance of your campaigns and using the data to inform future marketing campaigns is the key to progress and revenue.

But it can be difficult to see which key performance indicators (KPIs) are the most important.

While website traffic, clickthrough rates, and annual revenue are important, the metrics that provide actionable insights about your customers should be the most important influence on your business decisions. These are my top three marketing KPIs:

  1. Customer lifetime value (CLV). As a marketing KPI, nothing beats customer value. If you do not follow the CLV, you will lose a critical criterion. By predicting how much your customers are likely to spend, CLV provides a glimpse of future profits so you can reach customers with the highest level of engagement and spending potential.
  2. Net Promoter Score (NPS). The Net Promoter Score is used to assess the loyalty of a brand’s relationship with the customer and provides a critical view of the performance of the customer experience (CX). Improve NPS by identifying the pain points in your CX and making changes that have the greatest impact on your customers.
  3. Customer recurrence rate. Do your customers always come back? This KPI provides insight into your strategy to increase customer loyalty and provide a world-class experience that is worth repeating.

Conclusion

Several high-profile breaches have caused consumer confidence to plummet to the lowest level on record. Marketers must strive to earn their trust after another attack on privacy regulations. Brands that are evolving rapidly and using the new marketing 4Ps will gain a competitive advantage.