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Scientific Micromarketing: Mechanics of the Technology

[Abstract ]

This paper approaches the scientific micromarketing opportunity through initially posing the following questions that in all likelihood would present themselves to the C-level executive suite of a company considering the benefits, costs and other considerations involved in joining the scientific marketing revolution:

a. What is demand management & revenue optimization, what technology-based solutions are currently available and how do they work?

b. How can DMRO contribute in a meaningful way to making our organization much better than it is today?

Understand the risk-adjusted benefits available in competing technology solutions: Mechanics of the technology

The technology decision is a critical component of a DMRO strategy. CIOs and other technology decision-makers need to understand the risk-adjusted benefits of a technology solution; in other words, for a given potential return on investment – in the form of enhanced productivity and operational leverage – what is the magnitude of potential risk – including implementation risk, interface risk, security risk and process flow risk among others. What does the technology look like in the eyes of its users and decision-makers, and what does it look like in the eyes of the organization’s existing systems and architecture?

Technology must be able to serve the firm across its organizational silos, or stovepipes, in ways that allow each part of the organization to achieve optimal productivity and profitability taking into account both local (departmental) and global (firmwide) objectives. This requires a robust design that easily facilitates rules management, price management, business intelligence, optimization, scenario analysis and other forms of simulation, user management and system monitoring. The intelligent component of the technology engine must contain high-level science and mathematics to provide market-facing insights surpassing those delivered by competing solutions. The insight needs to be holistic – to focus not only on optimal prices but also products for customer penetration (cross-selling), optimal deals and promotions and guidance to curtail customer churn. There is no single right or wrong decision, so all of these integrated functions must operate on a sophisticated level of probability analysis.

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