Marketing ROI -- Part one

Hey all.

As 2009 nears a close, the annual year-end theme song begins to play. It sounds like this:

"I spent all this money on marketing. What do I have to show for it?"

I'd say folks are singing a little louder and a little harder this year. Especially because of the other common theme: The "we cut our marketing budget across the board with little thought to the impact on results" song.

Is this you? Do you want to stop spending money on marketing and yielding little or moderate results? Start with an honest audit of what you are doing.

Ask yourself:

1. Were my expectations for the campaign or program realistic? Did I attempt to take down an elephant with a rubber band? Is it realistic to send 150 emails to one list (that has never heard of you) one time and yield more than 3% in response? Be honest. If you're expectations are out of alignment with your activities, then you are doomed to repeat this error again. And again.

2. Was your program properly funded? This goes hand in hand with Number 1. There are many ways to establish a budget. The key is to fund appropriately. What is the goal? What is needed to achieve the goal? If you don't know, seek professional assistance (even if that is just a consultant who does not execute and therefore has no stake in the answer).

3. Have you given your program enough time to work? How much time does it take for a marketing program to yield results? It can take between 12 and 18 months for a program to catch on, build momentum and yield measurable results that can be tied back to the marketing efforts. It all depends on existing brand awareness, your understanding of the market place and customer needs, buying cycle, program timing, etc. Just don't fall into that trap of trying a mailer once and killing the planned campaign because the first mailer didn't ring the phone.

If your marketing didn't yield desired results in 2009, it's time for an honest assessment of what might be going wrong. Without an accurate understanding of the past you can't plan for a more successful future.

We're going to continue to cover this topic. More later. And thanks!

Are B2B marketers ready for twitter?

Hello all,
Excellent article about Twitter and B2B in the recent B2B Straightline Direct.

Is the b2b (business to business) marketing world ready for Twitter?

I'd say yes...and no.

Yes? Because almost every client we have wants on board. And no because most of them are clear on why they should be tweeting and what they'll get out of it.

We council them about Twitter as we would about any marketing tactic:

1. What is the purpose of Tweeting? Be specific. Don't just set up an account because your competitor has one (if I had a nickel for every time I heard that rationale...). Set up an account, tweet, search, and follow...with a purpose. To cultivate partner relationships (as the article discusses), to create the impression of being a content expert, to extend customer services policies. Establish a reason for investing time into this tactic, and be consistent, again, as you would with any marketing tactic.

2. Set realistic expectations for your efforts. As the article mentioned above states, there is little proof of a connection between Twitter followings and sales leads or orders. Setting realistic expectations goes hand in hand with Point #1 -- know what you want to get out of your activity...and measure "results" based on that specific purpose.

As with any tactic, having unrealistic expectations can spell the (ugly) death of any activity.

3. Have the basics covered. Is your web site customer-friendly? How about your print materials -- are they integrated with your other marketing tactics? What about public relations -- are you leveraging media channels to create awareness and generate leads? No? Well we suggest covering the basics before entering into the social media world. Chicken before the egg and all that.

Not to say that there isn't value in tweeting and other social media tactics. It's a time and resource thing, right? Gotta get on base before you can steal second.

We welcome any thoughts on Twitter and B2b. Feel free to share.

More later...

Automakers look for cost-savings from agencies -- and just about everyone else

Yes. It's been a long time since we've posted. We have good reason. We expanded the agency this summer by bringing on a new partner. Jody Jacobs joined us in August. She provides the global experience we've been seeking, as well as high-level, strategic marketing program development. Learn more about Jody here.

But the real reason for my post....just read the blurb in the Wall Street Journal about Automakers seeking to cut costs by rethinking their long-term ad agency agreements.

Check out the article, if you're so inclined. (Automakers look for cost-savings from agencies)

As the owner of an agency with a business-to-business marketing focus, I think the auto makers are right on. A nod of respect to large, established agencies, but for many marketers, especially those in the industrial or manufacturing sectors, paying for the overhead associated with large firms isn't necessarily feasible these days.

With the exception of a few behemouths who can win business based on the creatively outstanding work they've delivered, agencies should rethink the way they are structuring their costs and serving their clients.

Marketers want the most bang for their buck. They aren't as likely to get this from large firms with established infrastructures. Agencies that are thriving today are those that are seeking partnerships with firms that offer complementary services so they can help clients without burdening them with overhead.

Agencies that are thriving today are those that are helping clients use their budgets as wisely as possible. Maybe that means replacing a standard print campaign with online activities -- a reduction in fees for the agency, but a potential boom for the marketer.

It's not just the auto industry that should consider an agency review. Medium and small manufacturers may want to consider it as well. The recession will subside. Some sources predict a rebound in 2010. Manufacturers who are smart about their marketing (among other things) will be positioned not just for recovery but for growth.

An agency -- and marketing audit -- can be a first step in securing market leadership.

As a marketer, make sure you ARE getting the biggest bang for your buck. Conduct an audit. Ask questions of your current agency regarding the SMARTEST options for your marketing investment. Think outside the box with regard to resources (ie. a small firm may still be a highly qualified option that can provide great services). And if you haven't already done so, craft a strategic marketing program for 2010. The road to success begins with a map.

More later.

Search Engine Marketing Best Practices

I just read an instructive interview in BtoB magazine -- Chris Baggott of Compendium Blogware provided excellent insight into the importance of organic search and blogging.

Mr. Baggott correctly states that almost all clicks on a search engine results page happen on the organic, not the paid advertising side.

And yet...many marketers remain focused on Pay Per Click campaigns because it's more trackable, more manageable, more...well...more talked about.

But from where our agency sits, there's more opportunity for connecting with prospective buyers via a organic search program vs. a PPC program.

Connections = conversions.

Conversions are the holy grail of marketing -- especially when marketing in a recession.

I love how Mr. Baggott states: Searchers only care about one thing -- their search.

An organic search program allows marketers to reach searchers (read: prospective buyers) in so many more ways (times and places) than a paid program. This is particularly important when so many marketers are cutting budgets or trying to figure out where their dollars are best spent.

A b2b search marketing program that is organic in nature offers many opportunities for customer engagement: Online syndicated content. Carefully-crafted, keyword-laden, topic-specific landing pages. And blogs.

What matters most in your search program is the customer. Whatever your search strategy is, you must be aligned with the customer in order to make those critical connections. What are they searching for and what phrases are they using? Are they using ductless mini-splits or cheap air conditioning? Recycled poly furniture or plastic lawn chair?

Find out what they want. Then give it to them.

Success is borne in a broad-based, customer-driven search strategy.

Now go get 'em!

McDonald's and Smart Recession Marketing

I love McDonald's for more than the fries (and yes, I'm brand loyal. Their marketing campaigns from the '70s suitably corrupted my impressionable brain).

I love what they're doing with their McCafe campaign. http://adage.com/article?article_id=136423

Not because I'm anti-Starbucks, although it's enormously frustrating to me that I like their coffee on the spot...but not when I brew it at home.

But because McDonald's is living what so many agencies preach in tough ecomomic times:

AGGRESSIVE MARKETING IN RECESSIONS CAN LEAD TO SIGNIFICANT MARKET SHARE INCREASES.

Whew. I got that out of my system.

But I BELIEVE in it.

McDonald's is launching what has been called their biggest marketing campaign ever. That's saying something. Fully integrated campaign designed to increase market share and revenues by $1 billion. That increase has to come from somewhere, right? Yep. From same or similar category providers who aren't marketing as aggressively...or might be in a tad bit of trouble.

Whether you are selling aerial work platforms or air conditioners, HVAC installation services or soap, the same principles apply:

1. Even in recessions, buyers are still buying. The cycle might be longer, but needs are still there.

2. In a recession, one or more of your competitors will STOP marketing.

3. That means that your customers have fewer choices...and more mind share.

4. This is your chance.

McDonald's is making an enormous investment in this effort. Success for your firm may not require such an investment. Just strategy and commitment.

Is there a lag in your market place? Competitor who's scaled back? Take action. Think about it. Thanks for reading.

Your (International) Web Site

2009 has been a funny year. (now that I think about it, am I really laughing?)

We're encountering two recurring themes -- web sites are the marketing "tactic" companies are most commonly seeking and manufacturers are expanding into foreign markets in order to offset some US based losses.

Okay. Those two things don't define the entire universe. But you can't ignore a trend.

So that begs the question: How do the two efforts come together?

For starters, marketers must evolve past the standard thought process: "I'm doing business in Germany, I need to translate our site." (Our PR Guru is German by the way, so if you need German translation...)

http://www.wavelengthresults.com/agency/jennifer_taylor.asp

Effective online and global marketing integration in today's market looks more like this:

-- Translations that allow for regional content appropriateness (Glocalization)

-- Site tools that enable marketing material distribution to resellers and distributors, thus streamlining the building of the brand with new customers

-- online brand standards to ensure brand consistency from market to market

-- customizable marketing materials that are available to distributors on their schedule (i.e. when you're sleeping, they may be working. I remember having to coordinate with an overseas office back in the old days. The time delay from a business standpoint is brutal).

Then there's Search, Search, Search. (Has the repetition driven home the importance?)

The Internet has made your business a global one in ways you may already be aware of -- and some you may not. It's absolutely essential that you harness "technology" to the benefit of your global marketing efforts. Proper use of technology will drive results.

Search is especially potent for small and medium-sized businesses seeking to cultivate a foreign market.

It's possible that if you have a relevant product and a web site, that you've already gone global. Without even knowing it. (Search drives up to 40% of a supplier's traffic, BTW). What an interesting thing to consider.

Is your web site "ready?" Think about it...

Going Global?

Whether your small, medium or large...these days, going global might represent a solid opportunity for growth. Some companies are entering foreign markets by carefully planned design. Others find that through a series of circumstances, they're a global marketer!

Effective global marketing requires more than translating your brochure and web site. To truly integrate into your chosen market, marketers must be focused on building -- and protecting -- their brand.

And striving to achieve regional relevance.

Relevance is key. According to Interbrand, 70% of your brand and its expression must remain consistent from market to market -- an excellent rule of thumb.

That leaves 30% for regionalized expression of your brand. It's this last 30% that often makes the difference between successful market entry and mediocre results.

Content is a marketer's best opportunity to achieve relevance. But in order to do so, you need:

-- an understanding of the relationship between the "end user" and your product/service.

-- the ability to deliver your message effectively

-- an understanding of the best channels through which your message can be delivered.

We suggest that you tap your feet on the street to gain this insight -- your distributors or resellers who are based in the new market. Engage them to find out what messages related to your product will best resonate with buyers in their market.

Be sure to use some of the Google Tools to help craft your messages (Google Insights) and plan your search strategy (Ad Planner). Proper planning ensures appropriate use of program funding.

We're finding that small and mid-sized firms are most intimidated by the process associated with "going global." But often, these are the folks with the most to gain from proper brand building and global marketing strategies. If you keep it realistic...and manageable, your company can achieve long-term growth abroad.

More thoughts on Going Global later. We'll talk about how to use technology to protect your brand AND get your message out.

...thanks for reading.

Recession Marketing Part 3 -- Integrate Online and Offline

Some more thoughts on making the most of your marketing during these most unusual times...

We've talked about rethinking, not just reducing, your marketing spend, looking at your program as a whole to identify the best ways to invest your budget, regardless of its size...

But once your budget is properly invested, should you stop there?

No. Now it's time for message overhauls.

Many marketers do a fine job of making sure that their marketing messages are customer focused (and some don't, deferring to inside out messages that don't resonate with buyers). But is crafting messages that present the ways in which your products or solutions solve customer problems enough?

No matter how good your creative is, there's always room for improvement.

Message relevance is an excellent way to connect with buyers and outwit competitors.

There are online tools that offer invaluable insight into the phrases that customers use to search for solutions. This information can not only be used to enhance your search rankings by integrating it into your content and navigation strategy. It can be used to enhance your offline efforts and improve the effectiveness of your print materials.

Google has unveiled a pretty cool tool that allows marketers to find out what phrases marketers are really using when they're searching for products and services (hint: it's not Google Keywords and if you'd like to know more, shoot me an email). Basically, you can learn loads and loads about what your customers are thinking. And apply it to the materials that drive your customers where? Back to your web site where you can draw them ever deeper into your unique and meaningful benefits.

I'll say it again because it bears repeating: these are not days to be wasting marketing dollars. These are days to be maximizing the awareness you have, and engaging customers for that moment when the tide turns positive again.

Use every trick in the book (that's ethical) to position yourself for success.

I'm giving a presentation on global marketing tomorrow, so we'll take a hiatus from recession marketing for a few days. Can't say I mind. Is anyone else tired of bad news?

Check back tomorrow...thanks for reading

Recession Marketing Part 2 -- Don't reduce, Rethink!

In spite of some moderately good news about the economy, and how we may have hit bottom in some industries, how to market in this environment remains a hot topic for many B2B marketers.

Yesterday, we established that ceasing marketing altogether is a very dangerous proposition for any company, regardless of size. I remember in the late 90s when a prominent construction equipment manufacturer decided not to exhibit at the industry's most important show. THE most important show...the perception was that they were in trouble. And it opened the door for smaller players who effectively chipped away at their market share. Supports the point about the dangers of going away...

But for many marketers, budget cuts are essential in order to preserve jobs and other key assets.

So where does that leave us?

We'd suggest as a first step: Don't just reduce: Rethink

Don't just apply budget cuts across the board to activities you're already executing. Or simply drop tactics based on percentage of budget.

Step back and look at the program as a whole.

What is the best use of this entire pool of funds? At this time, is it most wise for me to pull all print dollars and beef up my PR campaign? After all, if you're cutting from 12 ads to 6 that's one thing. But if you're cutting from 12 ads to 3 -- and not beefing up other areas of your integrated plan -- what do you think you're REALLY gaining from those 3 ads? Could the money be spent with greater impact and return on objective elsewhere?

When customers are dodgy, it's hard to internalize the fact that now is a great time to pick up market share and position your brand for growth when the market rebounds. But that is exactly the case.

So don't just cut. Rethink. This is your chance to make the most of what you have. And still achieve your goals. Or at least position your brand for success.

More next week...Thanks for reading.

Recession Marketing Part 1

I read a quick blurb in The World Trade Center's Intelligence Brief (this is a trade organization for companies who export). (visit http://www.hwtc.org/)

The Brief discusses the pros and cons of pulling back on marketing during a recession. Here's a link in case you want to check it out. It's a quick read, but insightful. http://www.strategic-briefs.com/BIB/WTCCPACurrent.pdf

Unlike many articles that discuss recession marketing, this one makes a clear connection between ceasing marketing activities and customer perception.

From a financial standpoint, cutting marketing and advertising when times are tough makes perfect sense. But from a long-term growth perspective....not so much.

As the Brief points out, when you cease marketing, you leave your most important assets vulnerable to competitors, those being your customer base and your brand. It's only logical for customers to think you might be in trouble if you don't maintain some form of visibility. You can guarantee that one company in your category will use the current economy to increase market share. The relationship between recessions and marketing is a consistent one: someone pulls back, someone moves in.

Which position do you want to take, with an eye toward the future?

As an agency, of course we understand the need to maintain jobs and manage budgets.

We'd simply argue in favor of SMART spending vs. no spending. What people might not realize is that cutting a budget without rethinking your strategy might be just as bad as stopping altogether. After all, when resources are limited you don't want to waste dollars by spending them where they are ineffective.

Today, I just wanted to introduce the article and an objective, non-agency perspective on the importance of marketing during a downturn. Next, we'll provide valuable, real-world ideas on how to be the marketer picking up market share and comes out a winner when the market rebounds. More later...

Customer Retention vs. Customer Acquisition -- Which Makes More Sense in Today's Economy?

In a recent interview with B2B Magazine, Jeffrey Mills, director of marketing at Sage North America’s business management division, shared the company's top marketing priority: "engage current customers and ensure they're active" with the company...

Customer acquisition? Important. But second.

We agree wholeheartedly with Mr. Mills' approach and think focusing on customer retention should always be a top priority for marketing department (and we're sure it is for Mr. Mills).

But marketing to existing customers often becomes an afterthought for busy marketers, especially when the corporate objective is to expand market share and cultivate new customer relationships.

Customer satisfaction, as we've all read, is worthless these days. Customer loyalty is the holy grail. A loyal customer is less susceptible to competitive messages and not only returns for your products and services on their own volition, but advocates on your behalf when appropriate.

Loyal customers help companies weather uncertain economic times.

Creating customer loyalty requires patience and a committed focus on achieving that specific goal. Marketing should identify key customer touchpoints, and identify ways in which to significantly enhance the customer's interaction with the company.

Identify additional services that benefit your customers, provide a revenue boost for your company and deepen the customer's relationship with your product.

Customer engagement strategies can go a long way to protecting a marketer in an economy as rocky as this one. Companies that do it right come out winners over the long-term...

B2B Search and Google

I attended a BMA event in NYC on Thursday. Google was kind enough to host and two of their B2B search gurus were featured speakers.

No surprise, it was a top-notch event. Google knows its brand and is skilled at "living it." You can feel the brand, even in intangible ways.

The big surprise of the evening (at least to me) was the ways in which search differs for B2B vs. B2C.

B2B searchers, Google says (if Google could speak) are much more picky about their results. As marketers, we've been trained and are in turn training our clients to focus on first-page results. Hone your message, craft your advertising so you can appear on page one.

Still important in the B2B world...but data indicates that many B2B searchers -- especially those searching industrial or highly technical solutions -- will go much deeper to find the RIGHT solution. 5 even 10 pages deep.

B2B marketers, Google "says" will use longer search phrases. Where a B2C searcher will use a 2 maybe 3 word search string, B2B marketers are more complex -- stringing together longer search phrases (up to 5 or 6).

Excellent insight made even more powerful by the analytic and planning tools offered by Google, Twitter and others.

The lessons of the day? (at least for me...) B2B online search is more than a growing media deserving of precious marketing dollars. It's one that requires specialized understanding by agencies to fully capture the opportunities on behalf of their clients.

ROO vs. ROI

Just read a great (and quick) article about measuring ROI of email campaigns.

Consider New Methods to Measure ROI on Email Campaigns (B2B) urges marketers to expand their view of ROI to include referrals (lower cost of customer acquisition) and social media integration (product/brand advocacy).

Excellent ideas.

I'd say it's equally important to focus on long-term results -- Return on Objective.

We're finding the problem with ROI in today's "justify every dollar" market is that it becomes so tactically focused. Not that that's a bad thing. Just that it's not a big picture view.

Measure in the moment, yes. Doing so allows you to tweak, refine, improve.

But plan for measurement over the long-term. Return on Objective -- where the campaign gets you after 12 or 18 months -- may provide a better picture of how your overall strategy is performing...

Creative for the heck of it?

I saw the craziest web site today. I mean "out there", wacky crazy. No nav. No copy until you clicked on pulsing parts of an image (no, it wasn't a naughty site). No nothin'.

Admittedly, our agency isn't on the cutting edge of New Media. And we aren't doing a ton of flash or high level "image only" sites.

But I'm thinking...in today's world where buyers of ALL types are busy busy busy...where budgets are being scrutinized and cut to bare bones...where marketing spending is being held to higher levels of accountability than ever before...

In this climate, shouldn't we be using our web sites to communicate with our buyers? Is this the time for creative for creative's sake? Or should we be using every opportunity to connect and immediately help build a sense of value as we walk our prospects toward a feeling of comfort and ROI...

Yeah, this site looked cool. But I'm going to stick with sites that connect, deliver relevant content and drive value.

Thoughts?

The Value of Customer Service

I admit that when a person gets caught up in the throes of a busy day, and busy schedule, a busy life it's easy to forget the value of our relationships.

When you're in business, those relationships also go by another name: Customer.

I got a good lesson in customer service today.

More importantly, I got a lesson in the value of relationships no matter the size of the customer.

I've been working with a regional media channel for years. I've had 4 account reps in 5 years of placing media with this group.

Okay. The media we place is small. Maybe that puts us at the bottom of the experience chain. Fair enough. Not ideal, but fair.

I've been trying to contact media rep #4 for weeks, no response. I admit, I'm using email. I like email. I can use it at midnight.

No answer. I call today.

I learn my rep quit. That he gave notice in DECEMBER. and I am just now being told. With a material deadline looming.

I'll spare you the rest of the details and focus instead on the message: "You're just not that bigadeal."

Huh.

I guess even in this tough economy there are folks faring so well that customers of every size just don't matter. Just the bigger ones. Forget about the cash cows, like our account, that place media faithfully year in and year out with very little (actually NO) effort required by your sales team. The billings aren't big enough (the profit margin should be). We'll get to you when we get to you.

That's pretty poor customer service. And a terrible way to build a relationship. And relationships build businesses long term.

I'm glad I got this reminder today. That customers of all sizes matter. They may not be a fit for your organization, but they matter. And they talk...

I'm liking this lesson. Especially in today's economy. It won't always be bad out there...but it might get worse for those of us who forget the value of our relationships...

Just food for thought