Building Top Line Revenues with Marketing

5 land mines to avoid Paul Renaud

Shtick !

Marketing was simple back then

4P’s: Place

4P’s: Product

4P’s: Price

$.49 to $ .99 for a 45 Record

4P’s: Promotion

Loyalty?

Marcomms

Why did I choose Alice Cooper?

’Well …OK …!’

And because ‘Music is an international language’

PAUL ANKA (now) PAUL ANKA (16years old)

When was the last Time you…

Why do we make things so

complicated?

Land mine #1 Marketing, Sales…what’s the difference?

Marketing…Sales…

Which department matters most in a company? Marketing or Sales…

‘What comes first? The chicken or the egg?’

Marketers need to have sold something to be effective in marketing!

Marketers must understand the pain of trying to ‘make the sale’!

Selling isn’t easy!

Marketing…Sales…

Sales discipline

Sales’ ability to reach sales targets established in the Business plan – Imperative.

Account Managers go through consistent prospecting process till a sale is made.

Marketing…Sales…

Day to Day Plan 0930 – 1030

Account Managers starting their day early, on time to do Telephone calls Returning phone calls of previous day

Leads generated internally Cold calls to prospects

Confirm presentations booked by other team members Call on new contact developed within existing clients

Follow up on Direct mail program Goal: Book a meeting even if it short in nature. The AM does not try to sell products/services

over the phone.

1030 – 1230 Customer meetings either booked or “in the neighborhood” calls to existing clients.

1230 – 1300 Lunch

1300 – 1600 Customer meetings

1600 – 1900 Returning phone call messages on same day

Leads generated internally. Follow up on Direct mail program.

Cold calls to prospects Confirm presentations

Call on new contacts provided by Marketing leads or Customer Service.

Marketing…Sales…

AM starts effective after approximately 1 ½ years of selling.

• know your customers,

• learn the tricks of the trade,

• avoid mistakes,

• focused on customer needs,

• expert at ‘closing’.

Marketing…Sales…

Fact:

strong link between Sales & Marketing.

always seek feedback from sales (reading market, understanding competition, fine tuning products/ services).

NO feedback from sales? that’s a problem. Either:

1) Sales don’t have your number/email/ channel to give to feedback, 2) Not welcoming feedback? 3) NO environment for sales to give feedback.

Marketing…Sales…

Listen to the music!

Land mine # 2: Customer Experience – are we ‘In Synch’?

One magic moment where your company is evaluated.

Product/service

Performance

Interaction with customers

How services are delivered

‘Moment of Truth ‘

‘When passengers see a coffee stain on the

tray table in front of them, they automatically

assume that we have engine troubles.’

Tom Peters (Passion for Excellence, 1985)

‘Moment of Truth ‘

SMS for an outstanding balance on client’s bank card:

Cod ID client XX8644YY: La 06/02/2012 suma datorata este

67.41 RON. Restantele se raporteaza Biroului de Credit.

‘Moment of Truth ‘

Assessment:

1. Total lack of politeness. No ‘ ‘we would like to raise to your attention’…

2. No explanation – Straight to credit bureau.

3. No warnings; ‘out of the blue’. No emails, no attempt to call/ perhaps enquire as to why unpaid or inactive.

Contradiction:

Enormous budgets for ATL advertising in TV, Print and outdoor with 3 Romanian sport figures.

‘Moment of Truth ‘

Result:

Client canceled the card, rather all cards.

The solution:

All touch points and customer facing departments to be in unison.

Product Managers/Marketing communications need to be attentive what:

Customer care

Retention/loyalty

Collections teams are sending to the customer via SMS.

‘Moment of Truth ‘

All customers bring value!

Marketing OWNS the messages to customers!

All messages to customers, have to be CONSISTENT !

‘Moment of Truth ‘

Stick to the Shtick

Land mine #3: Dealing with apathy. How Branding can instill a killer instinct

Customer complaints are vital

how we are doing

Opportunity to solve problems

What’s worse than a customer complaining?

A customer that does not complain (…and

walks).

Dealing with Apathy

SOUL

is what the Brand represents…

it’s the promise delivered every day.

Dealing with Apathy

Let me give you an example – yes… banking! 4 years ago debit card renewed/ needed to wait for my new card. after 1 week… after 2 weeks ‘nope not ready yet’… after 6 weeks, finally get my card! Fast forward 4 years now. Same bank! bank calling to deter potential fraud debit card had to be renewed! 5 weeks to get a renewed card after multiple calls

Dealing with Apathy

Bright looking employee reaction: ‘Humm’

NO Initiative,

NO attention to the customer,

NOT a bit of empathy!

Dealing with Apathy

WANT to find the answer

HAVE the initiative

WANT to kill himself for the brand

WANT to please his customer

WANT to make a difference

FEEL part of the brand!

Dealing with Apathy

The brand makes it happen!

Brand is solution to

apathy

Land mine #4. Of course the campaign is integrated…

Common integrated campaign pitfalls

Pitfall #1: Media that don’t reinforce each other

Pitfall #2: Create a budget first, metrics second

Pitfall #3: Awareness vs. sales

Pitfall #4: Delegate and forget

Of course the campaign is Integrated!

More details: Blog - http://blog.renaud-investments.ro/

Ask agency or team making the proposal:

• ‘The TVC will complement online how?’ or

• ‘Prove to me that customers will see same message in 2-3 different media, creating call to action?’

•‘Explain link between Outdoor and web banners?’

Pitfall #1: Media that don’t reinforce each other

Of course the campaign is Integrated!

Adding any combination of media is EASY

Getting them to work ‘in synch’ is NOT!

The messages : Consistent

Choice of media needs to build a 1-2 punch

Must complement each other.

Pitfall #1: Media that don’t reinforce each other

Of course the campaign is Integrated!

Common mistake: Set a budget first, then spend later on a variety of media.

The justification to coming up with budget first could be: a) Slow sales

b) Competitors are not advertising as much or

c) The state of the economy.

Pitfall #2: Create a budget first, metrics second

Of course the campaign is Integrated!

Of course the campaign is Integrated!

Pitfall #3: Awareness vs. sales

It is possible to design Marketing so that the initiatives and tools you create can generate customer revenues.

Look for an agency that can focus on:

creation

execution ..and

integration of all Marketing initiatives

Of course the campaign is Integrated!

Chief Marketing Officer Sales-and-Marketing Pro:

see results

maintain the consistency of the message.

CMO has to be diligent enough to have created a succession !

Pitfall #4: Delegate and forget

You must consider the following: 1) Who’s the target of marketing campaign?

2) Initiatives follow the marketing plan?

3) Goals this campaign seeks to achieve?

4) Are Leads captured?

5) Monitor the results?

Of course the campaign is Integrated!

Will my mother

understand this?

Land mine #5. We’ll measure it later

We’ll measure it later

“I am certain that half the money I spend in advertising is wasted. The trouble is, I do not know which half. ” –John Wanamaker

Sustained brand advertising, or targeted retail promotions?

“Classical” media advertising or hard-selling direct Marketing?

Evaluation tools that are used to measure a project’s viability:

Internal rate of return (IRR)

Net present value (NPV)

Contribution Margin

Return On Investment (ROI)

We’ll measure it later

Return On Investment (ROI)

We’ll measure it later

Here is a breakdown of a trade show costs and revenues:

Trade Show Expense $20,000

New Accounts 5

Existing Accounts with New Business 15

Total Accounts 20

Acquisition Cost/Account $1,000

New Accounts Year After

Revenue Generated $50,000

Gross Profit Percent 40%

Gross Profit $20,000

Tax Rate 35%

After-Tax Gross Profit $13,000

Working Capital @ 10% of Revenue -$5,000

Cash Flow $8,000

Trade Show Expense After Tax $3,250

ROI 146%

(Source: InfoTech Marketing, 2012)

(Cash Flow – Total Show Costs)/ Total Show Costs

8000-3250/3250 = 146%

Don’t be a ROI sissy

CFO

You

Generating Top Line Revenues! The rules are the same as they were in the 70’s: 1) Listen to the music! 2) Stick to the ‘Shtick’! 3) Brand is solution to apathy 4) Will my mother understand this? 5) Don’t be a ROI sissy

Summary

Renaud is Romania’s leading Business Coach

www.renaud-investments.ro http://blog.renaud-investments.ro

Marketing

Applied

www.leadersinmarketing.ro