New Challenged created by The Pandemic
The impact of the Covid-19 outbreak on the economy has significantly changed the outlook for retail spending. We are experiencing a new era where the business has to adapt to a digital concept to survive. Furthermore, digital media has been the biggest strength for businesses to reach new customers and bring brand awareness.
Last week, we had the pleasure to interview Paul Michel, Sr. Performance Marketing Manager from Harry Rosen, who shared with us the challenges faced by Harry Rosen during the pandemic. Paul provided us with insights on marketing strategies used to increase the business as Harry Rosen is expecting a considerable return of clients this summer and a busy wedding season.
The first impact of Covid-19 on retail stores was the lockdown. All stores were closed, working from home, people not leaving their house for any special occasion
What is Performance Marketing and how to measure success?
“ The role of the Digital Marketer needs to evolve beyond a single channel focus to a more integrated & holistic view. \”
According to Paul, Performance Marketing goes beyond Digital. Performance Marketing can be described as digital marketing; planning; performance budgeting; conversion analysis & optimization; Journey Mapping & Creative Briefs; Omni-Channel focus; social media & listening; traffic building; and segmentation & loyalty. However, Digital Marketing inside Performance Marketing is Online Channel Focus; Media Planning, execution, reporting & optimization; and achieving digital media KPIs.
The measurement of success is a combination of Digital KPIs and Overall KPIs. While the Overall KPIs are based on gross sales; net sales; gross margin %; gross margin contribution; share of wallet; and market penetration. The Digital KPIs involve:
ROAS = Revenue / Media Spend
Cost Per New Client Acquired = Media Spend / # of New Clients
CPA = Media Spend / Transactions
CPL = Media Spend / Lead
Digital Media Journey at Harry Rosen
Paul also pointed out the Digital Media Journey at Harry Rosen. The start point is understanding the customer and macro-trends, developing KPIs and measurement strategy, testing and optimizing media and finally, measuring success. As per the graph below:
In my opinion, the two steps I would prioritize more would be understanding the customer and developing KPIs and measurement strategy. The two steps are directly related considering that your KPIs would have no direction or meaning without your customers.
I personally loved the opportunity to work on the case study in which we had to come up with the best plan for a summer wedding season campaign and social media platform after a low season due to the impact of the pandemic and thinking of some innovative campaigns, I enjoyed discussing all the idea with my team and presenting to Paul. It was an incredible opportunity.
To conclude, I would like to thank Paul Michel for the interview and for the rich content shared and for Wendy Greenwood for providing us with this opportunity.