With the rapid growth of emerging digital media forms and channels, consumers and enterprises are interacting more frequently, and customer journeys are more complex. Meanwhile, enterprises are adopting more marketing channels and media portfolio. The massive amount of consumer data and marketing data generated therefrom serves as the basis for marketing leaders’ insights and precision marketing. However, most companies can’t effectively manage and utilize consumer data, and they leave data assets unused. More organizations are beginning to invest in DMPs, CDPs, and other consumer data management tools, and they’re aiming to achieve closed-loop tracking of cross-channel, full-link marketing and optimizing marketing resources by integrating third-party and first-party data.
By combining the capabilities of DMP and CDP, the YOYI DataBank solution aims to create a customer private data bank and to build a data management platform from the perspectives of data acquisition, data management, tag management, data empowerment, and data security. DataBank is capable of acquiring and cleaning data through all channels, connecting and integrating the first-party data identification, establishing a first-party data tag system for customers based on actual business, and supplementing third-party tags to realize data empowerment and ensure data security.
To understand the potential return on investment (ROI) an organization may realize by using DataBank, YOYI commissioned Forrester Consulting to apply the Total Economic ImpactTM (TEI) model for evaluation and analysis. The purpose of this study is to provide readers with a case and framework for evaluating the potential financial impact of YOYI DataBank.
• In Year 2, the return on ad spend (ROAS) for repurchase increased to five times as high as before, and the present value of the three- year benefit is about ¥9.07 million. Before using DataBank, the high annual advertising and marketing investment of the interviewee’s organization did not help it achieve refined management, and its CRM data was underutilized. After using DataBank, the ROAS of the organization increased to five times as high as before.
• In Year 2, the ROAS for new customer acquisition increased to three times as high as before, and the present value of the three- year benefit is about ¥23.21 million. After using DataBank, the interviewee’s organization could identify customers with high purchase intentions more effectively, reduce the overlapping investment in market cultivation and promotional advertising, and make better use of limited advertising resources. This contributed to the improvement of ROAS.
• The efficiency of marketing effect analysis increased by 93%, and the present value of three-year benefit was about ¥1.09 million. Before using DataBank, the marketing data of the interviewee’s organization was provided by a third-party advertising data organization. This required manual analysis and increased the workload of marketers. DataBank helped the organization shorten the report generation time and reduce the analysis workload and data errors so marketers can spend more time improving the marketing effect.
Unquantified benefits. Benefits that are not quantified for this study include:
• Real-time optimization of advertising and marketing strategies. Before using DataBank, it took a long time for marketers to obtain marketing effect monitoring data, so it was difficult to adjust advertising strategies in time. This means the organization missed the opportunity to optimize the effect. The real-time reporting capability of DataBank effectively supported the marketers to plan and adjust activities in time, and it provided support for the promotion of the overall marketing effect.
• Improvement of the marketing management ability of the organization. Before using DataBank, the marketing department of the interviewee’s organization lacked visibility of customer data and cross-platform data in the enterprise, and it also lacked tools to integrate and analyze that data. DataBank gave marketers more control over the marketing effect, which made it possible to plan the marketing budget and expected effect. ?
• Integration of marketing and sales metrics. Before using DataBank, the organization measured the effects of advertising with metrics as cost per mille (CPM) and cost per click (CPC). Due to the lack of full-link tracking of consumer purchases, marketing and sales metrics were relatively fragmented. DataBank helped marketers identify high-intention customers and strengthened the connection between marketing and sales metrics. ?