Sales are Down - Should You Ax the Marketing Team or Change Your Strategy?

Have you noticed that your marketing isn’t working as well as before? Do you think it is time to replace your marketing team? If so, you are in good company. The average tenure for a Chief Marketing Officer is around two years. But, before you start calculating severance packages, you should know that the next marketing team may not be any more successful. The rules of the game have changed and you have to adapt to win.

Where have all the customers gone?

They have moved without leaving a forwarding address. Digital technology is opening new channels and your customers are in the drivers’ seat. They control when and where they receive information. And, they are enjoying the ride. Revenge is sweet. Do you remember when we realized that people went to the kitchen during commercials? We turned up the volume so they could still hear our message. Do you remember when telephone calls became economical? We called during dinner and trained our representatives that “No thank you” was not an acceptable response. Do you remember when we realized sending emails were free (or close to it)? We filled their inboxes with our promotions. It is payback time and consumers are using technology to say “No thank you” by skipping commercials and blocking calls and emails.

But wait! You didn’t do any of those things and your response is still down? Unless you have the cure for cancer, competition surrounds you. It is a global market and almost every product is a commodity. Customers have many choices and few reasons to remain loyal to a specific company. Response rates will continue to decline as new shopping venues increase. A strong brand identity will slow the process, but will not stop it. The only effective weapon against the fractioning marketplace is building good customer relationships.

Does CRM really work?

The challenge is to connect with your customers, not have the latest and greatest technology.  Yes, CRM can work with the right balance of planning, people, and processes. The best practices start with a clear definition of customer expectations and grow into a service oriented organization. The inspiration can come from the top, but success is dependant on the rank and file. Everyone must participate for it to work. The goal is to create a customer experience so phenomenal that your customers become your recruiters.

Word of mouth has always been the best advertising and highly desirable. Today, it is a requirement if a company wants growth and prosperity. Gimmicks may have a short run, but long term success requires much more. Customers have to know that every shopping experience, regardless of channel or season, will be pleasant and meet their expectations.

But my customers expect fast, free, and friendly!

It often seems that customers want everything fast, free, and friendly when you review their complaints. The reality is that most customers are trained to expect poor service, so a good shopping experience is a welcome surprise. Of course, expectations are different for different companies so you have to find your customers’ specific needs. Before you develop your next survey or organize a focus group, try benchmarking. It is economical, effective, and universal. It crosses channels, departments, and divisions improving marketing and operations.

The greatest benefit of benchmarking is that it quantifies areas often considered intangible. Many companies treat customer service from the call center to fulfillment as a cost of doing business. They miss opportunities to build relationships and improve marketing by reducing service. Change requests are met with “Show me the ROI” responses. Benchmarking can deliver the return on investment (ROI) information while improving marketing and operations.

Take the WEC Benchmarking Challenge

If you are still skeptical of how benchmarking can deliver, take the WEC Benchmarking challenge. There are two parts to it, increasing sales, and reducing costs. It doesn’t require sophisticated technology, additional investments, or a long term project. It does carry a warning: Once you have tried benchmarking, it can be addictive for companies wanting to growth and profitability.

Part One: Increasing Sales

Choose 2,000 of your best customers and separate them with an A-B split. Flag the A customers in your order management system as “Platinum”. Set it up so every contact point identifies these customers as the best. CSR’s should see their status whenever they access the customer’s account. Packing lists should also identify them. Tell everyone in the organization that you are focusing on improving relations with your best customers. Make sure your team knows how to identify the platinum customers in your system. Remind them about your focus every week and ask for feedback. Continue marketing as usual. Monitor sales for the two segments weekly over a twelve week period.  You will find that A customers have a greater value than the B ones. Now you have information to quantify service enhancements.

Part Two: Reducing Costs

Choose an area where workload is nearing or exceeding capacity. For this example, we will use the call center. Have a meeting with the agents and explain that you are working on a plan to improve their work environment. Ask them to document their challenges and any suggestions for improvement. Tell them that you will be monitoring everyone’s work load and posting the results. Continue monitoring for a twelve week period. Each week choose a simple improvement suggestion and implement it. You will find that productivity and morale increase, reducing the need for additional personnel.

Still thinking about axing your marketing team?

Before you ax your marketing team think about their role and empowerment. If they are following the marketing plan of days, gone by, do they have the opportunity to change? Or is every new idea they present met with resistance and trepidation? Your marketing team knows your products and customers better than anyone you can recruit. Give them the opportunity to show you how good they really are.

Next Steps: Read Is Fear of Benchmarking Costing You Money?

Reduce marketing to hit-and-run customers How Much Money Do You Waste Marketing to Hit-and-Run Customers?

Check out The New Rules of Multichannel Marketing and the Multichannel Analytics Intensive Workshop

Stay ahead of your competition by subscribing now. Don’t lose your competitive edge by waiting for the articles to be posted online.

	Subscribe

It is free and guaranteed

to help you profitably grow your business.

If you are still undecided, check out more free articles.

Thank you for stopping by for a visit. Y’all come again soon!

Have a great day!

Debra Ellis - Founder

P.S. Even if you don't subscribe, join our Multichannel Magic blog. We love to have commentary that that helps our industry improve.

Do you like this article? Please feel free to share it. You may send it to your own list, post it on your site, or post it on your blog. It must be unaltered and printed in its entirety, including links.

And this must be included at the end of the article:

©2004-2009 Wilson & Ellis Consulting. All Rights Reserved.
Visit www.wilsonellisconsulting.com for more multichannel management articles.

 Home ~ Services ~ Playbooks ~ Articles  ~ Contact Us ~ Blog  ~ Join Our Affiliate Program  

3175 Sweeten Creek Road ~ Asheville, NC 28803

Office: (828)626-3756 ~ Fax: (828)626-3753

admin@wilsonellisconsulting.com

Copyright © 1998-2009 Wilson & Ellis Consulting  All rights reserved

For Reprint Permission contact dellis@wilsonellisconsulting.com

 For the Media                                                                                                                                                   For Search Partners