As we near the end of 2022, I'm having a lot of conversations with leadership across Marketing and Product functions and by far the most frequent and intense topic is Governance.
Here are some assumptions that everyone seems to share -
(For the start of 2023 at least, one might even call them facts.)
➡️ Businesses have to generate More Value for and from their customers (higher activation, higher engagement).
➡️ Businesses have to Spend Less to generate that value (lower CAC, less retargeting).
➡️ Competition for customer attention is fiercer than ever (discounts are a race to the bottom).
💡 The 3 points above make the 4th point obvious:
➡️ Businesses have to use their owned media/channels more effectively (effectiveness = revenue output, efficiency = effort input)
In other words: Razor Thin Margins that Only Work at Scale and which Assume Extremely Low Customer Acquisition Costs - is not a viable business model in 2023.
So far so good.
But Businesses are composed of parts, and those parts have to operate somewhat independently. 🗳️
A super app has different product verticals. A commerce app has different business/product-line verticals.
The leadership of each part recognises the first 3 bullets above, and arrives at the 4th point: They need to use channels more.
This is where Governance becomes the problem.
Your super app has a 🚗 ride-hailing team sending messages, and a 🥡 food delivery team sending messages, and a 💳 payments team sending messages.
They're all sending to the same users at the same time. 🚫🛑
Even if your app *only* does Food Delivery, you still have:
- a general marketing team sending notifications about vouchers & offers,
- a product team sending lifecycle messages about the customer's wishlist,
- a merchant partner team sending notifications on behalf of their restaurant partner,
- and on and on.
It's a mess.
Every leader I speak with knows it's a mess. That's why Governance is at the top of everyone's Priority List for 2023.
Here's the good news:
You don't have to wade into a political war that will burn up the first quarter of 2023 while you resolve it and arrive at some set of Rules that satisfy none of the teams and isn't followed anyway. Instead, connect your CRM delivery provider to Aampe and get Governance as a feature.
Here's how Aampe determines which message(s) should be sent to each user:
- First, we map out each of your user's affinity and preference for each of your products or verticals.
- We then allow you to assign values or weightings to each of your verticals (We can do this by revenue, nominally, or ordinally)
- We calculate the Estimated Value as a simple function by mapping the propensity/probability that a user will respond to a Vertical to the Vertical Value.
- From that calculation, we decide which individual user will receive which vertical's message(s):
Your app is like an economy with different Agents (teams) using Resources (your channels) to maximise their Value to the business.
You can decide whether you want your app to work more like a:
- Command Economy - enforce centralised rules about what message is sent when
- Market Economy - revenue optimisation decides what message is sent when, or
- Mixed Economy - set guidance targets and then let the system manage traffic within those guide rails.
If Governance is on your mind, drop us a note and we'll show you how Aampe's simple Governance module can help you hit your business and marketing goals in the first quarter of 2023.
Image credit onlyyouqj on Freepik