The traditional method of marketing in which a company will engage their agencies with typical briefings, the agency then spins around some ideas, concepts get developed based on those ideas, which then leads to media purchased, ads run, results measured, and congratulations go around… doesn’t necessarily work as much anymore. It’s the way that it has always been done, however, and that makes it a hard practice to steer away from.
The heart of the change is going from standard advertising and promotions behavior to what the CMO of CVS, Rob Price, describes as “Insights to Action function”. As a result, Price explains that CVS is reducing the level of traditional advertising they have done in the past.
Traditional advertising focuses on frequency and reach: how often a potential customer views your brand and how many of those potential clients can be reached in the marketplace. CVS recognized that they have as many as 35 million people entering their stores every week, and tens of millions engaged with their mail-order pharmacy and prescription benefit management. Those are all impressions from their client base. Price says that CVS is now working with IT, their Store Operations and Digital team together now in their marketing efforts. It’s a collaborative effort rather than working in silos.
In that regard, CVS has shifted from awareness and acquisition to the customer experience and retention of the vast base they already have at their fingertips.
And how about this for expanding customer experience: Steinway, the piano store, will stage a private concert in your home after the purchase of a grand piano. It pushes the marketing effort far beyond the typical campaign and into a method of direct action. And they are seeing results as referral sales have risen. Action vs. campaign is a winning strategy.
Source: Forbes