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.