Maybe chasing short term ROI is a long term losing bet.

I love the methodology and challenges of multi-channel marketing, but maybe chasing short term ROI is a long term losing bet.

Recently I was speaking to a friend who is responsible for campaigns to put “butts in the seats” of a popular restaurant chain. The marketing approach is to offer some kind of value based proposition, in this case a coupon offer. Then execute a multi-channel campaign and wait for the results. The pressure is to hit an immediate ROI’s. Anything failing to meet the targeted monthly guest counts is considered a failure.

Short term this may be effective, and keeps the CEO’s “satisfied”. However, it is a mathematically certainty that eventually the customers will fatigue from the relentless pounding. Consequently the pressure rises to deploy more financial assets to bring in “new” customers and the short term ROI starts to erode and the death spiral begins.

The inherent problem we don’t own most channels including social media, ad words, web sites, broadcast and print. We are all held hostage and subject to cost variations which controlled by others. You don’t own their data. Your company is constantly competing for cost effective ad space and with limited options the message is getting more and more drowned out by the white noise of the internet.

The winning bet …Use multi-channel marketing to:

1. Build your database, your community, one that you own.
2. Then give them targeted content that enriches their experience with your brand.

Content marketing is educational; it builds brand loyalty without directly selling products or services.

1. Take a look at REI’s YouTube channel https://www.youtube.com/channel/UCwZcNfPpV9CXSVbpH1ckVmw
   1. Here there’s a series of indoor and outdoor activities presented in short film format. They enrich REI’s community; create passionate followers that equate to loyal consumers.
2. Then there is Baby Center, which is owned by Johnson and Johnson https://community.babycenter.com/
   1. It’s a blog site for mothers (dads too) to discuss the multitude of issues around, babies, and toddlers. J&J isn’t pushing product but has built a loyal community that is content, data rich which creates a prefect haven to understand the wants and needs of the new parent.

The winning brands both big and small will deploy their marketing assets to grow their own community. Whether you’re selling B2B or B2C cultivate your database. It is the best way to have growth with the greatest long term ROI.