A 3-portion marketing success recipe
Revenue maximization is infinite, while Cost minimization is finite. You bet, I didn’t like it the first time I heard it too! As a Finance professional I’d always sweat over the cost part of the equation to figure out ways to increasing profitability,and the clearly uncertainty with a revenue trajectory was also unsettling. Reality however is that as a CEO when you’re constantly looking to move the profitability metrics and improve marketing RoI, you are actually worried about finding newer ways drive revenue streams.
Strategically speaking, what really should a CEO drive for when it comes to his marketing programs? Given below is a simple 3 part recipe to succeed with your marketing programs and drive for higher marketing RoI:-
#1 Horizontal Focus:-
If you look closer, you’ll understand that by choice or organization design your CMO is sitting on a highly silo-ed and vertical marketing organization with layers of functions and disciplines. Call it the curse of the industrial revolution or the winning tenet of Jack Welch,organizations have embraced ‘Specialization’ a bit too seriously and woven it into their management fabric. Now this causes your marketing organizations to be in vertical silos. Reality is that your customers don’t care how your internal marketing looks like, they need an integrated and unified communication, response and solution. And this integration has to be closely aligned with your Brand Strategy and business goals.The disciplines and channels of marketing, public relations and media are working in tandem towards the same strategies and goals, which means they’re speaking the same language to customers on the ATM, across the physical branch, on the call center, over the email i.e everywhere!
This integration will not be easy, the hard reality is this is inevitable. Traditional approaches or the last decade realization of RoI led metrics will not be help.
CEOs along-with CMOs will have to undertake leadership led changes that impact reconstitution of budgets, change in processes, and build competence to manage cross-channel messaging. Alignment of the marketing organization and skewing of efforts and resources appopriately will ensure customer value maximization the offshoot of which will be Revenue maximization
#2 Real-time response:-
Historically Brands invest millions of dollars in fine-tuning the perfect line of communication or visual. And depending on the scale of marketing maturity this typically involves User research agencies, Ad Agencies, Market research, Predictive Analytics, Focus groups, whiteboards, Multivariate testing etc. Experience tells us that what was relevant in the CxO discussion rooms mostly fail to create even a ripple, and even the most water-tight marketing strategies become dinosaurs before the first official post is published on the Facebook wall. One look at Starbucks’ UK Twitter campaign tell us how counter intuitive the program turned out with widespread brand bashing!
Every marketing program is laid out with a Visual and Communication Line, remember to have Plan ‘B’for both. Now what happens if Plan ‘B’ fails too..Duh! simple have a Plan ‘C’ for Plan ‘B’. Remember I meant a back-up plan when I said Plan ‘B’…there’s nothing like a world’s best Creative or the ultimate slogan, till it delivers the results you’re looking for.
And don’t forget, your responses should be near real-time to customers’ reactions else all is lost. Technology, process and analytics hold the key here to facilitate your response actions.
“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” – Maya Angelou
No words can be more truer and relevant than these. CEOs & CMOs can ill afford to ignore this profound quote from Maya Angelou, in todays marketing scenario of scant consumer attention. Regardless of where your market facing programs are headed i.e. existing customers or potential customers, build for an awesome and holistic experience. Consumers love interesting and engaging experience this has enabled companies outsell competition for generations. Examples of late category entrants who literally swept consumers away like Google, Clear Trip, Pinterest etc drive home the same point… Experience Matters!
The discussion on how to craft an engaging experience and aligning for a cross channel seamless experience is beyond the scope of this post, what’s important to note is the lesson learnt.
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