We began this series with a simple premise: in the post-Covid world, Profit will become the fifth and most important P of marketing. Not just the CMO but every CxO will need to become the Chief Profitability Officer.
These timeless words by Peter Drucker reinforce the need for innovation in marketing: “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
A new set of marketing ideas can help drive profitability. The starting point for all these ideas is the customer data platform (CDP) – which collects customer data at every touchpoint and stores it for easy access, analysis and action for the marketer. By applying data science and determining Customer Lifetime Value (CLV) and mapping the Best Customer Genome (BCG), brands can enter the world of Velvet Rope Marketing (VRM) to maximise revenue from their Best Customers. This is the surest path to growing profits.
We also discussed two additional marketing approaches: Median Customer Marketing and Long Tail Marketing. Both can augment VRM to add incrementally to profits.
Here is an overview of the ideas discussed:
Profits are oxygen for a business. In the new world that is being created, companies that are on the path to profitability will be the winners. The new marketing ideas that we have discussed in this series can help businesses lay a solid foundation to emerge victorious in the new future. Are you ready to don the title of Chief Profitability Officer for your business?