SRM: A Transformative Approach to Marketing Optimization

By Tom Ratkovich Published May 3, 2016

A cornerstone of LEAP’s compelling approach to data-driven marketing optimization is the somewhat nebulous concept of Shared Resource Management (SRM). So how does LEAP define this concept and, more importantly, how does it benefit the company’s client partners?

As applied by LEAP, SRM is simply the practice of sharing costs across a coalition of companies with (1) parallel business opportunities and constraints, and (2) common resourcing and asset requirements to address those opportunities. For LEAP’s coalition partners, these requirements certainly include a sophisticated marketing technology infrastructure to enable data integration, analytics and modeling, campaign design and automation, reporting and more.

However, the more costly and volatile component of the resourcing equation is typically the expertise and experience to effectively leverage the immense functionality of the technology in satisfying the business objectives. Unlike software and related infrastructure, professional know-how is a finite resource – one subject to competitive bidding, human fragilities and many other uncertainties that simply cannot be remedied by creating backup copies. Not to mention the fact that quality people are expensive and burdensome to find.

So two persuasive benefits of Shared Resource Management should be clearly in focus:

  • By sharing costs across a partner coalition, companies benefit from world-class marketing automation and digital platforms on a highly favorable investment basis; and
  • These companies benefit from the proven competence of a stable team devoted to deploying that world-class technology to optimize customer growth, engagement and monetization. Best of all, the coalition partners don’t have to find them, pay them or keep them.

But there are other advantages of an SRM-driven approach to marketing automation:

  • More is Less. In other words, by consolidating the acquisition or purchase of things that generate economies of scale, coalition partners benefit from reduced unit costs. Among those things that scale well are marketing executions – such as email or direct mail. Coalition volumes drive cost reductions and efficiencies in email executions, direct mail production and postage. Consolidation of data purchases – including demographic, lifestyle and behavioral data – increases coalition volumes that contribute to per unit cost reductions unavailable to coalition partners individually.
  • Benchmarks and Best Practices. We’re all curious. We want to know how we compare to our peers. But for LEAP’s coalition partners, the benefits extend well beyond the satisfaction of curiosity. By monitoring the performance of 50+ companies across a plethora of common metrics, best practices in campaign design, pricing strategy, channel deployment, creative execution and more can be identified and rapidly adapted/replicated across the coalition – because they are all supported by an expert team leveraging a common platform.

Needless to say, the benefits of Shared Resource Management are extensive and enormous. Cooperation and consolidation deliver efficiencies and effectiveness to an industry desperately in need of transformative solutions.

 
 
 
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