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Published Date: 2023/09/12

Digital promotions continue to evolve through platform companies' data utilization. Maximizing Effectiveness with "SP COMPASS" (Part 2)

SP COMPASS is a system that simulates the expected number of participants when implementing digital campaigns. Developed jointly byDentsu Inc.and Dentsu Digital Inc., this system is a unique Dentsu Group solution that enables the efficiency and optimization of digital sales promotions.

Continuing from Part 1, we hear from Dentsu Inc.'s Masahiro Fukuda and Dentsu Digital Inc.'s Kanon Iino, who were involved in its development. They discuss the potential of "SP COMPASS" and its future outlook.

Seeing End-User Behavior Changes Promotion

Q. For whom do you envision "SP COMPASS" being useful?

Iino: First, I believe it's a system that will be easy to use for those with requests like "We want to improve our campaign design" or "We want to know what we can achieve maximally with a limited budget." While many companies only obtain sell-in information (delivery to retailers, etc.), not sell-out information (purchases by end-users at retailers), customer data showing who bought what and how is a significant asset for sales promotion.

On the other hand, while some companies hold member data within their own CRM (Customer Relationship Management) systems, the reality is that a high percentage of them are not effectively leveraging that data for campaign execution.The data analyzable through data clean rooms provided by platform operators often connects to various SNS platforms and payment services. Leveraging this data could fundamentally shift the perception of digital promotions. It could evolve from being "just another promotional tool alongside or as a substitute for analog promotions like sticker or receipt campaigns" to becoming "a means of creating connections between companies and customers."

Ms. Kanon Iino, Dentsu Digital Inc.

Q. Companies without campaign experience often don't know where to start. Does this mean even such companies can improve campaign precision by accumulating data through "SP COMPASS"?

Iino: That's correct. For instance, some companies run campaigns year-round and have internal patterns like "this is roughly how it will turn out." However, every time new digital sales promotion tactics emerge, trends in design and incentives also shift. We want to use SP COMPASS as the starting point for planning, considering not just customers who react to incentives, but also the ideal customer profile we want to engage.Additionally, companies that only run campaigns a few times a year, or have never done one before, often find themselves in a situation where they don't know how to proceed. SP COMPASS can be utilized by such companies without accumulated data, so we strongly encourage them to try it. In practice, the Dentsu Group planners handle the hands-on data analysis, so even companies that still lack confidence in digital can implement it without issue.

Fukuda: We often hear that "without knowing how much sales will increase, it's difficult to get approval" when implementing campaigns. In such cases, using SP COMPASS as a hook might be possible. The ability to simulate results before actually running a campaign is a significant strength, and I believe it would be welcomed by the responsible parties at each company.

To Make Digital Promotions Continuously Improve Effectiveness

Q. As sales promotion becomes increasingly digital, how do you perceive the changes in this field?

Iino: I feel that unless you truly understand the meaning of "digital sales promotion," even a great plan can yield completely different results depending on where and how it's executed. There's the term "digital campaign," which I believe simply refers to methods that use digital tools like smartphones to make entry easier. That alone leaves the challenge of how to leverage the connection gained with customers who entered.

On the other hand, "digital sales promotion" involves collecting customer information with their consent. The more campaigns you run, the more this data accumulates. Utilizing this data correctly allows you to precisely determine what kind of initiatives will increase participation rates among the customers you want to target next, and how to effectively roll out promotions. Whether or not you leverage the customer data that digital uniquely enables to accumulate will fundamentally change the effectiveness of your sales promotion efforts.

Fukuda: This often becomes a key discussion point with client companies. Even for digital campaigns, it's not over once a customer enters. Rather, we must value the connection afterward and consider how to prevent a disconnect between the client company and the customer.Digital promotions are a means to build connections with customers. It's crucial to leverage those connections to create positive experiences for customers. Highly effective campaigns align with customer needs and preferences, so I believe "SP COMPASS" is a solution for enhancing customer relationships.

Dentsu Inc. Masahiro Fukuda

Q. It's been about six months since the release. How do you envision "SP COMPASS" being used going forward? Also, how do you plan to expand it?

Iino: First, we want all planners seeking more efficient and effective sales promotion strategies to make full use of it. While many may associate Dentsu primarily with advertising, we hope "SP COMPASS" will help more clients recognize that the Dentsu Group also possesses strong capabilities in digital sales promotion.

Furthermore, "SP COMPASS" is designed to evolve into a solution that contributes even more to sales promotion strategies by accumulating data and undergoing continuous updates. We want to build it together by having it used extensively in actual digital sales promotion settings and receiving feedback. We also warmly welcome inquiries based on consultation, such as "We want to do this kind of promotion" or "Is this possible?", even if the plan isn't fully solidified yet.

Fukuda: I agree with what Iino-san said. It would be great if we could have mutual discussions with client companies about what "SP COMPASS" can actually do for them.

It could be about how to approach a design we've proposed, or even discussions about the analysis results SP COMPASS generates, like "We interpreted it this way—does that make sense?" or "This part could be improved." Ultimately, we want to upgrade SP COMPASS so it's not just a system that displays simulation results. We want it to be utilized in various ways. So, we'd be thrilled to have lots of these back-and-forth exchanges.

Iino: Through these data clean rooms we're establishing with each company, we aim to leverage data to implement better marketing strategies.

 


 

Unlike traditional analog promotions, advancements in digital promotion mean campaigns aren't just executed and forgotten—results can now be accumulated as data. We want to continue leveraging SP COMPASS, along with various other systems and services, to not only streamline and maximize promotional efficiency but also to continually rethink how we connect with our customers.

The information published at this time is as follows.

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Author

Masahiro Fukuda

Masahiro Fukuda

Dentsu Inc.

At a domestic IT consulting firm, engaged in various phases of client projects including core system construction and operation, as well as ERP, CRM package, and service implementation. Subsequently, after working in customer success and corporate data collection/analysis for marketing utilization at a domestic venture company offering B2B marketing services, joined Dentsu Inc. Currently, primarily leveraging experience in system construction/operation and data research/analysis, engaged in effect analysis of advertising and sales promotion measures utilizing major platform providers' Data Clean Rooms, as well as solution development.

Kanon Iino

Kanon Iino

Dentsu Digital Inc.

Joined Dentsu Inc. in 2016. Served as an integrated planner in the Promotion Bureau, seamlessly proposing online initiatives (digital video advertising and campaigns) and offline initiatives (distribution strategies). Subsequently worked in the Business Collaboration Bureau as a producer developing new solutions through collaboration with platform operators. Joined Dentsu Digital Inc. in 2020, contributing to clients' DX advancement through OMO initiatives leveraging data from major domestic platform providers, utilizing accumulated experience.

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