This week, QSRweb published insights from our SVP of marketing, Susan Lietz, about how big data can improve marketing efforts in the QSR industry and beyond. Check out an excerpt from the article, below.
We all know the big, failed product launches, especially those from companies known for marketing greatness like New Coke, the Arch Deluxe and Orbitz soda. And, of course, there’s lots of analysis out there about why they crashed and burned, but I believe every executive in charge of those campaigns would have benefited from one simple thing: more accurate real-time data.
We can now see the crucial link between digital marketing and brick-and-mortar transactions. Today’s technology can accurately determine when an ad shown on a smartphone, for instance, actually leads someone to a retailer for such a purchase. That’s a real game-changer when you consider that 90 percent of transactions still occur in the traditional retail setting.
The Real-Time, Cross-Device Difference
Restaurants have always been able to connect advertising campaigns with sales, however indirectly. By the crudest measure, an executive could look at how much they spent on advertising and how much of a sales boost was experienced during that time in order to compute a back-of-the-envelope ROI figure.
However, that method required weeks, if not months of additional work to make a final determination about whether a new product was hitting its mark. But now, there are new forms of measurement available.
This year, for instance, smartphone penetration is approximately 77 percent, according to comScore. When you consider we now also can pinpoint both when a consumer witnesses an ad (through cross-device targeting), as well as when they (and their smartphones) enter a fast food outlet, it’s clear that data now allows us to very accurately connect the dots between our marketing investments and point of sale.
What This Means for Fast-Feeders
Larger-sized chains often find it difficult to stay agile as a product becomes a runaway hit or flop. With accurate real-time data, executives gain the same type of visibility their franchisees have on the front lines.
At the same time, cross-device pairing can offer much more detailed data concerning who is actually seeing advertising, as opposed to the information that gross rating points can provide. This kind of pairing helps executives see which audience segments are being most affected by marketing efforts. The results can often be surprising.
So the bottom line on this for restaurants is that this kind of data capture and analysis is essential for executives who want to definitively know which ads are most effective at accomplishing their sales goals. Perhaps equally important is the fact that this kind of data can quickly expose the marketing flops that you can rapidly abandon, in order to invest your time and money into something better.
Read this article in its entirety at QSRweb.