Business circles in India are starting to buzz with a new P-word. Instead of "pandemic," or "post-pandemic," "profitability" is now top of mind for discerning leaders.
Many may know the math for growing profitably but not the multiplier for making it happen.
The opportunity for brands to grow, and to do so profitably, comes on the back of strengthening consumer sentiment. Even as supply chains faced vulnerabilities and interest rates rose, India’s Consumer Confidence Index continued to climb, hitting a two-year high of 84.8 points in January 2023.
To ride on this optimism and grow profitably, it makes sense to apply the math for it: maximize revenue and minimize cost. This might be common knowledge to many, but not all may be aware of how marketing can be a powerful multiplier in this equation.
By applying the right principles, a business can use marketing to win more customers with a higher customer lifetime value, and do so at the same, or even lower, acquisition cost. This supercharges growth and profits.
The following three principles can help you achieve your business goals with marketing, and they can be applied across all industries. In this instance, we’ve included examples of how leading finance brands used the principles to multiply their results.
To achieve your aligned goals and drive profitable growth, use marketing strategies that are optimized to deliver a high return on ad spend (ROAS) and low cost of acquisition. This is what leading general insurer Tata AIG did to grow its travel insurance business with marketing.
Having aligned its goals and moved from generating leads to acquiring valuable customers, Tata AIG used Target ROAS bidding to maximize the ROI of its Search campaigns. The marketing solution allowed it to prioritize the acquisition of customers who show intent to purchase high-value policy products. This resulted in an 8% higher revenue, a 34% lower cost per acquisition, and a 126% higher ROAS
Its test-and-learn approach with App campaign for installs drove a 41% increase in app installs and a 50% lift in account openings at flat costs. So it shifted its marketing investment in the digital channel toward the winning approach, and ramped up growth and profits.
2023 presents opportunities for your business to continue to grow profitably. By aligning your marketing with business goals, investing in effective marketing channels, and optimizing toward valuable customers, you can help your business supercharge growth and achieve profit maximization.