Reading an interesting research summary in HBR that I wanted to share.
Whether you are a B2B or B2C company, the time taken to respond to prospects stimulus online can significantly change the ROI of your web presence. As this research shows, many firms are too slow to follow up on these leads. As HBR states:
– 37% responded within an hour
– 16% within one to 24 hours
– 24% took more than 24 hours
– and 23% never responded at all!
As companies are investing significantly to get prospects out of the web, they should have a much better turnaround, don’t you think?
Reasons not to do so include retrieving leads from CRM daily rather than on the fly, sales forces focusing on their own generated leads and rules for leads dispatching not effective enough (“fairness” can be damageable).
Where are you with this? Better know where your marketing ROI is headed sooner than later.
– Posted using BlogPress from my iPhone
A recent research from Aberdeen about Marketing Asset Management gives an opportunity to compare to the best in class.
Aberdeen uses 3 key performance criteria to compare:
- 44% of the sales forecasted pipeline generated by marketing, as compared to 2% contribution for laggards organizations,
- An average 9% reduction Year-over-year cost of market asset creation, as compared to a 6% increase among laggards,
- 15% average decrease in year-over-year time-to-market of content of all types and formats, as compared to an increase among laggards.
To achieve best in class performance, you need to
- Allow all geographies and business units to customize marketing content with proper control
- Centralize asset approval and distribution to expedite time to market and improve content
A recent study published by ComScore and its research partner dunnhumbyUSA, shows that consistent online advertising can actually lift retail sales in the CPG industry by 9% over a 3 months period and contribute more to brand building than TV ads (+8% over a 12 months period according to an Information Resources, Inc. report.).
“These early results confirm the ability of online advertising to successfully build retail sales of [consumer packaged goods] brands on par with the impact of television advertising. It is likely that the more precise targeting ability of the Internet – especially in terms of accurately reaching the desired demographic segment – is a key reason for its effectiveness. That is meaningful in and of itself, but when you take into account the fact that online advertising is generally less costly than television, these results take on even greater significance,” said Gian Fulgoni, Executive Chairman of comScore
Let me know how does your marketing-mix looks for the remaining part of 2009, you may bend it to more of the web?
During my Lotus years, I’ve been given the opportunity to meet Mike Zisman our CEO at the time. One of his statement stayed with me since then: “The purpose of any enterprise is to acquire new customers and retain existing ones. Product an services are only a means to that end.” It sounded a bit simplistic initially, but my experience in several companies since then reinforced my conviction of the importance and truthfulness of this statement.
During my marketing journey, I discovered the notion of customer lifetime value (CLV), more complex to comprehend and so effective to coin what your marketing focus should be and furthermore how to present it to your team. It also allows to present to CEOs and shareholders the real value ($) of customer loyalty.
Here comes customer equity that definitely coins the term that best represent all of this. You now can think of CLV as an an additional equity to the shareholders or the brand ones.What if you could revise Marketing ROI and fine tune your marketing course of actions based on this equation coming from Roland T. Rust in Advertising Age : “The ROI is simply calculated as the projected increase in customer equity minus the discounted [marketing] investment divided by the investment.”
But how do you calculate customer equity with real numbers? Now we’re talking 😉
Well, a number of tangible and intangible enters into this and I do not necessary agree with Roland Trust in his article. I’d refer you to Customer Equity Calculations dedicated site, and will come back on this later on. To approach it, just think of customer equity as the total of the discounted lifetime value of all of its customers. I know, not that intuitive.
To be continued …
Several years ago I discovered Sergio Zyman in Paris when he was conferencing for his new book “The end of marketing as we know it“. He’s not bringing some rocket science to marketing but effectively highlights and helps us focus on the do’s and don’t of an effective marketing. As a matter of fact, he left me with this quote that I keep in mind at all times:
“The sole purpose of Marketing is to sell more to more people, more often and for more money.” — Sergio Zyman
In light of this quote, I’m always focused on filling the gap between sales and marketing, making sure sales reps are perceiving added value from marketing activities. If you do not enjoy good business relationship with your sales counterpart, start asking yourself what is to be changed in your deliverables. Marketing success is about increasing revenue and lowering cost of sales. Whether in Marketing 1.0 or Marketing 2.0 it makes no difference.
I’m bringing this up as I recently read some interesting numbers about Sales performance Benchmarks, and I wanted to share with you the striking ones out of this survey from 1,300 companies across all industries:
- Only 60% of sales reps are making or exceeding quotas.
- Only 37% of firms report they have implemented a formal sales process.
- 63% of revenue comes from existing business, while 37% comes from new business
- Only 38% of companies have what they would call “forecasting accuracy.”
- Most have close rates of under 50% of proposals written (average=48%).
This Lewis Green post says it all:
“For at the end of the day, our bottom lines and the value of what we do are measured in sales, not direct mail campaigns, sell sheets or packaging….I also believe that sales and marketing staffs should be in one department and should work closely together on every step of the process, from understanding the customers, to strategic marketing and sales planning, to closing sales” — Lewis Green
Fellow Marketers, we’re in charge on this. Let’s make it happen.