Today, virtually all marketing and corporate executives believe that tracking brand and marketing metrics is important to their overall success. At the same time, few organizations consistently track the brand and customer experience metrics which could improve performance. Why? It isn’t easy. System-wide marketing and brand performance measurement is daunting and difficult.
But with a performance measurement strategy in place, every organization can begin to take simple steps with existing programs to understand, measure and improve performance, setting the stage for increased accountability, proof of ROI, and expansion of revenue generating programs.
Questions for Your Organization to Ask:
Would a better understanding of what a “performance dashboard” might look like help your organization plan for a measurement strategy?
Do you track some of your marketing programs consistently? If so, develop a strategy to track all recurring programs by the same set of performance metrics.
Have you considered the potential intersections of brand and marketing measurement programs through quantitative customer research?
How difficult would it be to choose a single customer metric – such as loyalty – and begin to track performance?
The connection between actual brand experience and customer expectations is crucial to the perceptions of your brand.
A deep understanding of the importance of alignment between the customer experience and brand promise is evidenced by the nearly one-hundred percent of customers who responded in a recent MCorp Consulting survey who – through a series of research methodologies, across retail customer segments – stated that this relationship strongly affected their perception of an organization.
At the same time, just over half of the organizations we’ve worked with feel that they are performing extremely well in this regard. In short, the more accurately aligned the customer experience is with the brand promise (and their expectations of the brand that your promise implies) the greater the positive influence your brand will have on your customer relationships.
How well aligned are your brand and customer touchpoints?
Taking a look at your own company, how closely aligned do you think experience and brand are? If you deliver what you promise across all your touchpoints, then you’re part of a thriving minority. Congratulations! But maybe there’s some discontinuity. Or perhaps you don’t know. If that’s the case, there are questions to ask to help you find the answers.
Does your brand accurately reflect the relationship your customers feel they have with you?
Do your employees deliver your brand in the same way customers feel about it?
Does management “buy into” your brand?
Does your market perception and brand promise match the brand experience across all your touchpoints?
What do your customers think of you vs. your competition?
For those organziations who get this connection, the threads that drive success are a combination of direction and obsession. Top-down direction from a leadership team that both understands and values the customer experience. And obsession on the part of everyone in an organization when it comes to delivering a consistent, branded customer experience.
From back-office operations and the call center to front-line, customer-facing staff, obsession with experience delivery and “expectation management” across touchpoints and interactions is a hallmark of customer experience leaders, across industries.
The Economy has slowed, but it has not (completely) stalled. Even as we plough through the unemployment statistics and wait for what most believe will be a long climb out of the “Great Recession,” as long as there are companies and people doing business, things will continue to be bought and sold. That’s why for many smart businesses, now is the time to grab this opportunity to increase customer loyalty, solidify market position, and get new customers.
The evidence is in, and supported by studies of every major slowdown since 1970: Marketing wins market share in recessionary times.
Studies conducted by organizations ranging from Business Week and Harvard Business Review to The Wall Street Journal support this contention, underlining the importance – and value – of marketing in an economic downturn.
In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980 to 1985 and concluded that at the end of 1985, “…firms that had maintained or increased their advertising during the 1981-1982 recession could boast an average sales growth of 275% over the preceding five years. Those who cut advertising realized a paltry increase of only 19%.”
Management Review asked AMA member firms about spending during the 1990-1991 recession. “Fortune follows the brave,” it announced, noting that the data showed that most firms that raised their marketing budgets enjoyed gains in market share.
And Harvard Business Review chimes in with this: “The rationale that a company can afford a cutback in advertising because everybody else is cutting back [is fallacious]. Rather than wait for business to return to normal, top executives should cash in on the opportunity that the rival companies are creating for them. The company courageous enough to stay in the fight when everyone else is playing safe can bring about a dramatic change in market position.”
The tipping point: where fear and opportunity collide
In spite of this overwhelming evidence, many companies are still tightening their belts, and the marketing budget is typically an early casualty. This is a mistake for two primary reasons. First, if you reduce spending on marketing, you will reduce the number of new customers. Direct marketing drives direct sales. And consistent brand presence is critical to keeping – and increasing – customer loyalty and prospect awareness. Second, (a direct result of the first reason) it is much easier to gain ground against competitors who have cut back on marketing. Why? It’s easier to drop below buyer radar as a result of decreased market presence.
This said, we recognize costs do need to be cut. So marketing smarter is more important than ever. From strategically leveraging social media tools to doing a better job of tracking brand, marketing and customer experience ROI, there are many ways to scale back dollars without dropping off the radar.
What’s the worst that can happen if you don’t step up your customer acquisition and recession activities?
You slowly leak customers and profits, and can’t keep the doors open long enough to participate in the recovery. It’s happened to plenty of companies already and there are many more to follow before we’re through. Or maybe you and your current competitor’s scale back your marketing, only to find a competitor you didn’t know existed come from behind to take over your market.
Today, the phrase “for every loser, there is a winner” has particular relevance. Your organization may be staying the course, cutting back or (let’s hope!) using this opportunity to aggressively dominate its market. No matter which direction you’re headed at the moment, it’s not too late to take steps to make sure you’re one of the winners. But don’t leave it too long…
C-Suite execs share concerns across sectors, size and geographies.
In our business, we talk to key executives literally every time we’re engaged to help address an issue. Usually in the areas of brand, touchpoint, loyalty and customer experience improvement, we hear many of the same questions and concerns from the “C” suite, across industries, company size and geography. This insights and concerns have also been surprisingly consistent for the past several years, indicating to us (on a qualitative basis) that they may be universal, and that many struggle to resolve them.
Why should brand and marketing performance be tracked “by the numbers?”
Though not all, a small majority of executives we speak with feel that – overall – their brand and marketing programs are at best only somewhat effective. We think this perception is driven by the lack of clear metrics to show what’s working, and what isn’t – and why. To improve both perceived and actual performance, marketers must be clear on their objectives, and relentlessly work to improve their programs and measure their success.
Where does marketing (and the voice of your customer) get to sit in your boardroom?
This is particularly prevalent in organizations where marketing might not have as “big” a seat at the board table as other groups. Though more and more executives are coming from marketing and sales backgrounds, the ability to quantify performance is key to assessing effectiveness.
If you’re part of a company that “gets it” then good for you. Keep it up. But if you’re not tracking the “soft stuff” by the numbers, there are some questions you can ask that may begin to get you there.
Does your organization have an overall philosophy of encouraging and rewarding performance?
How does marketing specifically support the CEO’s agenda, and deliver the results to support his or her strategic objectives?
Whose “agenda” is marketing tasked with pursuing?
Are there any informational barriers between the marketing department and the CFO’s suite?
Has your organization begun thinking about the benefits of tracking brand and marketing performance, and being able to improve performance over time as a result?
We think that the challenge many marketers face is to become more strategic and accountable in nature, focusing more on financial and customer value metrics – without sacrificing the creativity inherent in successful brand and marketing initiatives that truly “connect” with and engage your audiences.
1. Be Dominant: Many studies show that companies which slow marketing spending lose out now, as well as after a recovery. You want your customers to know that they’ve picked a winner, and your prospects to know you’ll survive – and thrive – in tough times as well as good.
2. Audit Your Brand your company or product brand accurately reflect who you are… and who you want to be? Is what you say you stand for believable – and important to your target audience? Make sure the brand you go forward with is the right one, and put systems in place to maintain its value. A consistent experience, a single “voice” and the way you communicate your brand in other ways is critical. If you are like most companies, your brand is the most valuable intangible asset your company owns. Improve it, and protect it.
3. Reevaluate Your Product and Service Mix: Are there ways you can repackage existing products or services in ways that can provide more value? Or, develop a product or service line that can accommodate smaller clients or customers with reduced budgets? Ask your customers – they’ll be happy to help.
4. Embrace Your Database: Your current database probably houses former customers and prospects, as well as current customers and suppliers. Now’s the time to go after them. Reactivate dormant accounts and leads with new products, promotions and services. Also, contact current customers for referrals. Give them ideas they can use to help their business in the current economy, and they’ll be happy to pass you on to others who could benefit from your knowledge.
5. Measure your Return on Marketing Investment: The problem with many marketing efforts is the inability of management to ascertain what really works, and why. That’s why smart marketers always measure outcomes so they know exactly where to invest for the greatest return. The more you test and measure, the more relevant data you’ll get. And the more data you get – and analyze – the smarter your marketing will get.
6. Cost Controls: Controlling cost does not mean cutting cost. It means being smarter with the budget you do have, and wringing greater value from every dollar you invest in your marketing program. Closely related to Marketing ROI, controlling costs allows you to invest your money where it drives the greatest revenue.
7. Launch a Targeted, Integrated New-Business Campaign: Now is a great time to launch a customer acquisition campaign. Set specific goals, tighten-up cost controls, and strive to sell product and build brand. Target your best customer segments through an integrated campaign across different media (including social and other online tactics) leveraging results-driven direct-marketing and customer engagement strategies.
8. Reevaluate Your Marketing Service Relationships: Are you totally satisfied with your marketing or PR agencies? What about strategic marketing counsel? Do you have a Social Media agency, or an expert on-staff? There are lots of smart practitioners out there, and many may be able to give you greater insight, higher levels of service, and greater value for your investment.
9. Enhance the Customer Experience: Do you provide “bullet proof” customer service? The cost of getting new customers is much higher than getting more business from existing customers. Each customer you lose is taking money out of your pocket over time. By improving customer experience – with a focus you’ll boost awareness, acquisition, loyalty and retention.
10. Increase Customer Insights: The more you know about your customers, the more accurately you can target brand and marketing messages to address their specific needs. To do this, marketing executives need to get down in the trenches. What do your prospects and customers want or need, and why? From voice-of-the-customer research to tracking your brand’s online reputation, it’s easier to gather real-time data – and act on it – than ever before.
Fueled in part by the Internet and other interactive technology channels, as well as the increased fragmentation and segmentation of traditional media, the explosion of brand and marketing touchpoints has increased the complexity of acquiring and retaining customers.
In many instances, this rapidly changing and increasingly hectic landscape can also lead to higher marketing costs, reduced marketing and brand effectiveness, and declining customer loyalty.
Increased customer choice leads to new skills for marketers
For most customers, instant access to choice, market opinion and competitors – combined with increased levels of education, product knowledge, and awareness of competitive options – have significantly increased their service expectations, making the process of cost-effectively delivering products and services even more complex. And as this complexity increases, the time, expense, and skills required of companies selling and servicing increases as well.
In response to this evolving landscape, “marketing” is being re-defined as “the science and art of finding, serving, retaining, and growing profitable customers.”
Brand and customer experience are more important than ever
That’s why brand and customer experience are more involved and more important than ever in fueling acquisition, driving word-of-mouth referrals, and ensuring retention of the right customers. Because yesterday’s marketers must become tomorrow’s customer experts, leveraging a deeper understanding than ever of customer wants, needs, perceptions and options to drive more of the right customers closer to their organizations.
Summary: Spent: Sex, Evolution, and Consumer Behavior revisits the notion of conspicuous consumerism. What is interesting, however, is Miller’s refreshingly academic exploration of the concept of “fitness flaunting” – signaling your own traits and qualities to attract mates, intimidate rivals, etc. From the perspective of a professor of evolutionary psychology, Miller argues that what you are displaying to others is less of a conscious consumerist decision, and more of an evolutionary outcome to ensure survival of the human species.
You’ll love this book if: You are already skeptical of marketers.
Marketers are often portrayed as evil geniuses, but in reality, they’re typically floundering around like everybody else. They try to keep up with the latest consumer psychology fads by reading the shortest available pop-business books by eccentric writers with extremely large or small quantities of hair.
You’ll hate this book if: You are looking for the “shortest available pop-business book” for getting consumers to buy your products.
You might also hate this book if you happen to drive a Hummer, which Miller mentions several times, and classifies (along with peacock tails) as “conspicuous waste”:
A highly visible expenditure of resources that brings no material benefit, but that simply signals the expender’s ability and willingness to waste those resources.
Words of Wisdom:
Thus, most BMW ads are not really aimed so much as potential BMW buyers as they are at potential BMW coveters, to induce respect for the tiny minority that can afford the cars. This explains why BMW sometimes advertises in mass-circulation magazines: it is an inefficient way to reach their target market of potential BMW buyers but it is a very efficient way to reach the BMW coveters who might respect the BMW buyers.
Why we think this book is important: Although often tongue-in-cheek (and unable to fully disguise his own opinions and preferences), Miller nonetheless convincingly makes the case for eschewing the narcissist temptations of modern consumerism for more enlightened ways of communicating who we are to our fellow humans.
While there are still some B2B executives who dismiss social media as an effective tool for engaging key audiences, the truth is that many B2B companies have successfully embraced the interactive world of “Web 2.0”, adapting core tools and technologies to connect with prospects and customers in ways they could only dream of a few short years ago.
In fact, earlier this year Forrester Research reported that B2B buyers have very high social participation; this presentation on Slideshare (“Using Buyer Social Behavior to Boost B2B Social Media Success”) outlines their 4-step approach, as well as Forrester’s Social Technographics ladder, a segmentation slice of online users based on their likelihood to leverage and/or participate in social media in business decision making.
The conclusion is simple: “If you’re a B2B marketer and you’re not using social technologies in your marketing, it means you’re late.”
B2B social media touchpoint examples: Different approaches, common goals.
Social media touchpoints needn’t look like your teenage daughter’s MySpace page. Nor should they – but that doesn’t mean B2B marketers can’t make us laugh.
IBM (Consulting and Products) The now-famous “Art of the Sale Series” shows the fun side of IBM in their videos, a take-off on “The Office.”
Accenture (Consulting)
Global consulting firm Accenture has entered the social media world with several employee-written blogs, including a “Consulting Analyst Video Blog” , along with other tools and channels focused on sectors, clients, prospective employees, and others.
Kelly Services takes a slightly different approach.
Although their client list is comprised of Fortune 500 companies, Kelly has focused social media efforts on improving the “product” (employees) with videos aimed at honing job interview skills by showing humorous videos of interviews going awry. The videos can be found on their website for job seekers called getajobthatdoesntsuck.com.
Now that popular social media tools Facebook and Twitter have been invaded by Baby Boomers, we can safely conclude that these sites are now “mainstream” and “safe” for even the most skeptical B2B marketers.
“Boomers are the mainstream of the country now,” says Rainie. “When you attract a mainstream audience, you’re going to attract a lot more commercial interests. Boomers validate that this is a big market, and that this is a place where commercial interests can make money.”
Bottom Line: If you’re not in, you’re already late.
No matter your industry, if you’re in B2B (or B2C or Non-Profit, or…) and you are not yet leveraging some of these tools, then you’re late. But it’s not too late.
Though wildly successful at connecting people, businesses in general are still feeling their way through the options. Even though most businesses won’t see immediate sales, the ability to drive awareness and influence your audiences is high. From micro-blogging (e.g. Twitter) to You Tube, and Facebook to LinkedIn, the range of touchpoints is broad, and the ability measure influence and activity is high.
Which leaves us with one question: What is your social media strategy?
I read an article recently on a respected marketing-focused website, which I responded to like a daytime soap opera viewer: “It made me laugh, it made me cry.”
Brands matter in B2B markets. I laugh, because the notion that someone would think otherwise (or that a writer would posit this opinion with such dignity and a straight digital face) is so surprising it’s actually funny.
But I cry because this seems to indicate that there’s still a question about the value of brands. While the author made several reasonable, if not inspiring points, (“Marketplaces are constantly changing.” “Companies have to adapt to stay ahead.”) the core notion that brands need to differentiate rings absolutely true.
Brands have always mattered.
No matter what you’re selling (Coke, Cornflakes, combines or computers), there is no inherent difference in the core process of building emotional attachments to your brand.
In larger-ticket business purchases, there’s more rational support required to support that emotional buying decision, but if there’s no connection, there’s no sale.
After all, people – particularly in the B2B market – buy from people, not companies. The emotional connections that are often made in a “Blink” (Thanks, Malcolm) can be created, nurtured and grown through your brand.
Yes, brands matter in B2B. Which means that what you stand for, how you’re positioned and what your people say and do, can make or break your business. Just as it has for the last 200 years….
I read an article recently on a respected marketing-focused website, which I responded to like a daytime soap opera viewer: “It made me laugh, it made me cry.”
Brands matter in B2B markets. I laugh, because the notion that someone would think otherwise (or that a writer would posit this opinion with such dignity and a straight digital face) is so surprising it’s actually funny.
But I cry because this seems to indicate that there’s still a question about the value of brands. While the author made several reasonable, if not inspiring points, (“Marketplaces are constantly changing.” “Companies have to adapt to stay ahead.”) the core notion that brands need to differentiate rings absolutely true.
Brands have always mattered.
No matter what you’re selling (Coke, Cornflakes, combines or computers), there is no inherent difference in the core process of building emotional attachments to your brand.
In larger-ticket business purchases, there’s more rational support required to support that emotional buying decision, but if there’s no connection, there’s no sale.
After all, people – particularly in the B2B market – buy from people, not companies. The emotional connections that are often made in a “Blink” (Thanks, Malcolm) can be created, nurtured and grown through your brand.
Yes, brands matter in B2B. Which means that what you stand for, how you’re positioned and what your people say and do, can make or break your business. Just as it has for the last 200 years….
