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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.
If you haven't done so already...
It is free and guaranteed
to help you grow your business.
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