Sales & Marketing Effectiveness

Wisdom from Marketers for Marketers

Once again, I must point out that nothing beats getting solid, down-to-earth advice from successful real-life marketers.  Well, except, maybe getting it for free!

Earlier this year, Marketing Sherpa released their 7th annual “Wisdom Report”, so if you haven’t heard about it yet, check it out and download it now. Their Marketing Wisdom for 2009 is packed full of real life stories, lessons learned and tips gathered from 101 marketers for marketers. 

The topics include email, search engine, B2B, lead generation, direct mail, metrics, customer service issues, and much more. 

You definitely don’t want to pass this up.  Plus, you don’t want to pass up logging onto the MarketingSherpa site at least once a week to review their marketing case studies, research, surveys, and access to free reports.  If you’re in the market for some great marketing advice and ideas, this is the place to go. 

Marketers Take Wrong Route to Revenue Opportunities

It appears that lack of existing customer insight and the tools to leverage that insight is creating a revenue roadblock for many marketers. 

Despite the critical need to leverage current customer knowledge, especially during this recessionary period, many marketers are throwing up their own obstacles to reaching solid, ready-and-waiting opportunities. 

Instead of concentrating on and maximizing their existing customer potential, too many marketers are spending their limited resources on acquiring new customers, while allowing their existing customers to fall by the roadside.  What a huge waste. 

According to a recent study titled, “Routes to Revenue”, conducted by the Chief Marketing Officer Council (CMO), and based on a survey of more than 650 senior marketers, an astounding 75.9% of these senior marketers believe they are not realizing the full revenue potential of their current customers.  Only 46.5% of the surveyed marketers feel they have good insights (note, not excellent) into retention rates, customer profitability and lifetime value. 

Additional study findings include:

• 22.3% lack real-time data and analytics from across all customer touch points

• 21% say that selectively gathered information is inaccurate or incomplete

• 15.5% cite problems with data silos and restrictions in availability and use across the organization

Marketers were also asked what strategies they are using to realize greater revenue and profitability from existing customers.  Top responses were:

• 60.1% - becoming more personalized, relevant and precise in customer communication

• 44.5%  - finding new ways to cross-sell or up-sell current accounts

• 41.0% -  addressing under-penetrated markets or new customer segments

• 32.20% - using more efficient channels or alternative media to engage customers

“Many marketers, and in most cases, the larger organizations, don't have the insight into their customer data to be able to determine what the opportunities are The constrained environment we have today will force marketers to do more analysis, get more data, get more insight and intelligence into their customers, and map strategies to up-sell, cross-sell, partner and be more inventive in the ways they engage with existing customers,” noted Donovan Neale-May, Executive Director of the CMO Council. 

Neale-May said there are three core areas marketers should be focusing on to improve their overall performance: customer insight, customer experience and customer advocacy.

“That is all about retention marketing and more individual retention management,” he said. “Most creative groups tend to see value in external programs, rather than looking at the customers they already have, the cost of acquiring customers, the value of the deal and whether they are targeting customers that are most predisposed toward the company or brand.

“These do not all require outside media or marketing dollars. They require much more drilling and integrating with the customer database and sales organizations.”

So, are you leveraging existing customer insight to maximize your revenue potential?
If not, then why not?

If you want some guidance on these issues, then take a few minutes to review the following. I am sure it will help. Download Sales & Marketing Effectiveness Overview 

Was this article valuable?

Still Flying Blind in 2009?

The new year is already tick-tocking away. You, now have only 11 months to identity and solve your biggest sales and marketing challenges.  

How well you leverage, integrate, share and view your customer data, marketing analysis and resulting reports will likely predict your company’s position in the marketplace at the end of 2009 and into well into 2010. 

Are you equipped with the right tools, customer intelligence and focus to succeed?   

If you can’t definitely say “Yes!”, then I suggest that you review the following: MARKETERS ARE FLYING BLIND WHEN IT COMES TO LEVERAGING CUSTOMER DATA AND ANALYTICS. Lack of Customer Data Sharing, Integration and Insight is Impacting Competitiveness, Retention Rates, Revenue and Profitability.

Next, check out The Chief Marketing Officer (CMO) Council website at http://www.cmocouncil.org
and start tooling up with their free executive summary and/or full report, titled Business Gain From How You Retain.  This is an impressive study that surveyed more than 450 senior level marketers across the globe, with 72% being in North America. 

Although, the study was conducted and reported on several months back, I think it’s safe to say the issues and obstacles addressed remain a huge problem for companies of all sizes, in all industries, everywhere. The summary alone is extensive and packed full of value, while the full report provides significant ideas on how to succeed in 2009, 2010, 2011…you get the picture. 

Consider the following stats:

• The average company loses more than 10 percent of its customers each year.

• Acquiring new customers can cost five times more than satisfying and retaining current customers.

• A two percent increase in customer retention has the same effect on profits as cutting costs by 10 percent.

• Loyal customers are 15 times more likely to increase spend than high-risk, intermittent customers.

Then consider some of the study findings:

• Only 50 percent of global marketers report having a strategy for further penetrating or monetizing key account relationships

• A surprising 45 percent rate the effectiveness of customer relationship management (CRM) systems as deficient or needing more work

• Only 15 percent of companies rate themselves extremely good or effective at integrating disparate customer data sources and repositories.

• Just 50 percent report they have fair, little, or no knowledge of the customer.

• While more than 35 percent of respondents report that the CMO or marketing department (38.9 percent) has primary responsibility for the customer analytics function, they are not leveraging its value. Over 31 percent of those surveyed do no data mining at all and 63 percent are only doing moderate levels of data mining for intelligence and insight.

• Key initiatives to increase customer retention include improving customer communications (65.2 percent); addressing complaints, problems and pain points (51.8 percent); and enhancing the customer experience (54.8 percent). Unfortunately, fewer marketers noted their companies’ willingness to modify busin  ess practices and policies to accommodate customer need

According to the study:

The research demonstrates a disconnect between what marketers say they want to do and how well they are equipped to do it. For example, close to 50 percent of the respondents say they are improving customer retention by enhancing front-line customer service, while at the same time, only 55 percent report that their customer service and support teams have access to real-time customer data.

A fair number of survey participants (23 percent) say they’re able to acquire a sufficient amount of customer data but don’t have the ability to share the information, while 33 percent think that there is insufficient data as well as an inability to share.

Another way to put it is: If you don’t retain, you don’t gain.

Are you equipped to succeed in 2009?  What about 2010 and beyond?  Is your company still wearing blinders or are you flying with vision?

Was this article valuable?

Have You Wrapped Up That 2009 Marketing Plan?

If not, there is still time, but not much, to wrap it all up.  Keep in mind, there is no Santa coming to deliver a nice tightly wrapped marketing package outlining your plans for success in the coming year. 

If your 2009 plan is still on the table and you’re yet trying to determine effective strategies and dollars, I encourage you to peruse the following links to 2009 marketing trends, surveys, advice and predictions.  These resources could help you finalize an effective marketing plan for the coming year. You need a plan that puts you ahead of the pack next year…and years after. 

And, even for those of you who have finalized your 2009 marketing plans, you might find some valuable ideas that you could integrate into those plans. 

Changes to Marketing Spending and Strategy Coming in 2009
For some excellent insight on potential marketing budget and strategy changes coming in 2009, you must read this post on 1to1 Media’s blog – Think Customers: The 1to1 Blog .  This article provides the results of a survey of their readers and LinkedIn members on potential changes to their 2009 marketing budget and strategy.  The survey conducted by Ginger Conlon, Editor-in-Chief of Peppers & Rogers Group’s  1to1 Media, and article comments are a wealth of information that you can’t afford to miss.

How’s That 2009 Marketing Plan Coming?
Also, back in August, Ginger Conlon posted this article based on 10 trends offered by Richard Feldman, managing partner of Source Marketing that may impact marketing in 2009 and beyond. As Ginger stated, “Keeping tabs on trends can help”. 

Media Alert: ANA Reveals 2008 Annual Conference Polling Results
Check out the results of a poll conducted by the Association of National Advertisers (ANA) during their 2008 Annual “Masters of Marketing” Conference.  The 1200 attendees, including a mix of B-to-B and B-to-C marketers, were polled about their marketing mix, budgets, plans and tactics for growth in 2009.  Learning what other marketers are planning may help you with your 2009 marketing strategies. 

What won’t fly in that 2009 marketing plan
For some great suggestions and additional resources to help you solidify your 2009 marketing plan, read this post published on the Red on Marketing blog built by Business Communications Group.  The post covers several specific 2009 marketing strategy questions along with some good answers, ideas and additional marketing links/resources.  You don’t want to pass this by. 

Survey Says: Nearly 43 percent of healthcare marketers plan to spend more in 2009
Details of the survey were posted by Mac McIntosh, president of Mac McIntosh Incorporated, a sales and marketing consulting firm.  While the survey is centered on healthcare marketing, healthcare is a huge growing industry and a glimpse into what some healthcare marketers are planning and spending in 2009 could provide some great insight into marketing strategies for any industry. It’s a great read and may show you how to apply their strategies into your own.  Mac’s post also includes a one-question 2009 marketing budget survey which provides a comparison between 2008 and 2009 marketing budgets. 

Marketing Into The Storm: How The Recent Crisis Will Create New Opportunities 
This article by Mike Gospe, Co-Founder of KickStart Alliance puts forth three marketing truths that companies need to embrace and act upon in order to achieve success and excel in 2009.  Great advice for the coming year and all the time. 

Strategic Thinking 3.0 - A media forecast for 2009 
These 2009 media predictions offered by Nick Brien is president and CEO of Mediabrands provide some valuable opinions about marketing in 2009.  Although, this forecast seems to embrace advertising firms, it is valuable for all companies since many B-toB and B-to-C organizations use ad agencies for much of their marketing efforts.  Definitely worth your time. 

InfoGrow Corporation Website and Blog 
Last, but hopefully not least, is my company’s website and blog. I invite you to visit both sites and look over the solutions we provide to all companies everyday in order to help them achieve sales & marketing effectiveness.  Solutions that worked 20 years ago, will work in 2009 and in the future. 

I hope these links/resources are of value to your marketing efforts in 2009 and years after.

Happy Holidays and Best Wishes for the New Year

Was this article valuable?

Some Industries Thrive During Hard Times

Good news!  There are those industries that actually grow during tough economic times, so opportunities still abound for your sales and marketing people. Just need to know where to look. 

I’m not sure any industry is what I would call recession-proof, but according to the Bureau of Labor Statistics (BLS), there were 72 industries that grew throughout the recessions of 1990, 2001 and, again, in 2007.  Based on the BLS statistics, these industries are the most likely ones to continue growth now and in the future. 

Among the industries that have typically thrived during recessions are:

• Healthcare
• DIY industry for hardware, supplies
• Debt management
• Consulting
• Energy

There are lots more and you can find a complete list at Career Hub.  You can also find more information on these recession-proof industries at BizChicksRule, Yahoo! HotJobs, Wikipedia, plus numerous other places. 

So, check out the links above and do your own search for other valuable lists.  No doubt, you will get some ideas on how to better focus your sales and marketing efforts, find new and better prospects, and most important, thrive also. 

As I stated in my last post, Hard Times Require Hard Work, a slow economy shouldn’t slow your marketing efforts. 

And, if you have an idea or suggestion of any other recession-proof type industries, add a comment and let us all know.  There is enough business for everybody, even during hard times.  We just need to know where to look and see the opportunities. 

Was this article valuable?

Driving Sales to Existing Customers Takes a Marketing Dive

According to a joint study by the Association of National Advertisers (ANA) and BtoB Magazine, the marketers’ role is evolving beyond their primary function of communications.  The survey, conducted in February and March by research firm Guideline, is a follow-up to a previous ANA survey, which found that 70% of marketing organizations have been reorganized in the last 3 years. 

In the newest survey, B-to-B marketers were asked which best described their pre and post organization functions.  Following is a summary of the results:

Marketing Communications
  -  62% pre
  - 47% post
Responsible for Strategy / Innovation
  - 14% pre
  - 24% post
Drive Sales to Existing Customers
  - 14% pre
  -  7% post
Direct New Business Development
  - 10% pre
  - 23% post

While it’s refreshing to see that B2B marketers might finally be recognized for making large contributions to business growth, I’m amazed that the role of B2B marketing in driving sales to existing customers was cut in half! Plus, this function in B2C marketing also took a 3% dive. It was equally surprising that neither ANA or BtoB mentioned this change while discussing the survey results. 

Have marketers forgotten that retaining and driving sales to existing customers is critical to business success?  If you’re not driving sales to existing customers and giving them a reason to stay with you, your competition will certainly give them a reason to leave. Customer retention, which includes cross-selling and up-selling propels profits.  Most surveys, across all industries, prove that keeping one existing customer is 5-7 times more profitable than acquiring one new customer.

So, why did this survey show that the marketing role in driving sales to existing customers was cut in half?  Does that mean companies don’t place a marketing emphasis on this function?  If marketing isn’t driving sales to existing customers, who is? 

Was this article valuable?