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| Welcome to the Claymanite. |
Who are you? What are your goals and objectives? This issue of The Claymanite concentrates on some questions that might feel a little like soul searching.
In our first story, "What is your Why," we reference a TED speech by Simon Sinek in which he encourages companies to focus on why they do what they do rather than just what they do. Not only is this an important exercise for companies, it also makes your marketing message more customer focused.
Our second story, "Your Customers Are In Control," focuses on how to reach customers, prospects, and the great grey mass of "unaware" buyers.
Finally, our third story, "The Real Importance of ROI," poses the question of whether ROI is really the best measurement for success. If an ad yields clicks to a website, that's a major positive, but what happens to the people who clicked? The real measure of success is sales.
Consider this the philosophical edition of The Claymanite. We hope that some of these questions spark good conversation as we begin to turn our attention, believe it or not, towards 2011. |
What is Your Why?
 Many companies these days focus their marketing communications on what they do instead of why they do it. For example, a car manufacturer might say, "We manufacture the most fuel efficient cars in the world." This simply explains what they do. Think about when someone asks you what you do. You probably say, "We make blank blank products." Answering that way is really only the ending of the story, however. Why do you make that product? What is the real mission of your company? The car manufacturer might say, "We want our customers to save money so they can enjoy the finer things in life. That's why we make fuel efficient cars." More and more innovative companies are focusing on the why rather than the what. What is your why? Read More |
 Your Customers Are in Control
Once you know why you do what you do, there is another great truth to accept. The customer is not just right. The customer is now in control. Launching products at a time that is most convenient for your company is no longer the best route to success. What's more important is launching products at times that are most convenient to your customers. Assuming that a marketing plan can remain unchanged for a year or more is no longer realistic. With that in mind, it's time to use marketing content strategically in order to reach the right buyer at the right time or to change course if this is not happening.
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The Real Importance of ROI 
Return on Investment ('ROI') is a phrase one hears a lot these days. In a time when budgets are being pinched, everyone wants to know that their efforts are creating something beneficial and tracking to the bottom line. For marketing initiatives, ROI has always been the way to answer that question. ROI has been measured based on clicks to a website, based on reader response cards, and more. But is ROI really the end of the equation? Are clicks to a website what makes a return? We think the most important factor is the conversion of a lead into actual sales.
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Continuing Blogs from a Mad Man
Larry has some thoughts on the recent passing of journalist Daniel Schorr, who died at the age of 93. Read Larry's blog and voice your opinions! |
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What is Your Why?
Many companies these days focus their marketing communications on what they do instead of why they do it. For example, a car manufacturer might say, "We manufacture the most fuel efficient cars in the world." This simply explains what they do. Think about when someone asks you what you do. You probably say, "We make blank blank products." Answering that way is really only the ending of the story, however. Why do you make that product? What is the real mission of your company? The car manufacturer might say, "We want our customers to save money so they can enjoy the finer things in life. That's why we make fuel efficient cars." More and more innovative companies are focusing on the why rather than the what. What is your why?
Consumers today are dealing with three different factors when they are looking for products or services. First, they are likely not confident that they will find a credible company that will provide exactly what they need. Second, they are likely working under budgetary constraints. And finally, they are overloaded with information as more and more companies find ways to promote themselves. In order to rise above the crowd, companies need to start explaining why they do what they do rather than simply what they do. To learn more about the power of why, we recommend watching Simon Sinek's TED Speech, " How Great Leaders Inspire Action." Then join the conversation that our resident Mad Man started on his blog.
A Real Life Example of Why
Steven Quinn, Chief Marketing Officer of Wal-Mart, spoke at a marketing conference last fall and explained how Wal-Mart changed its emphasis from "what" to "why." He explained how Wal-Mart originally communicated that the company sold products at everyday low prices. Although important, this was not really a difference-maker. Top management at Wal-Mart recognized that promising lower prices, especially during a down economy, was not a revolutionary concept. Management also probably knew that Wal-Mart's low prices often created bad PR on a local level as Wal-Mart abandoned loyal suppliers and uprooted local, family-owned businesses.
After some soul searching, Wal-Mart emerged with the message that they offer everyday low prices to help people provide better lives for their families. Paying less for prescriptions, groceries, and household goods means more money left over for vacations, birthday parties, and essentially, more money in the bank. Wal-Mart made this the core of their television advertising campaign, shifting the focus from price slashing (represented by the smiley face that flew around reducing costs in the store) to why they lower prices, which they represented by happy families who are able to have fun despite the tough economy.
Which campaign speaks more to you?
State What's Not Obvious
A customer or a prospect can look at a website, peruse literature, or otherwise educate themselves about what a company does. To reference one of Simon Sinek's examples, everybody knows what Apple makes. But is that why people stand in line for hours to buy Apple products? Apple makes it clear that they want to be the leader in the technological revolution. They want to be innovative and they want to help their customers feel like innovators. That sentiment, the "why," is why people will find themselves attracted to Apple over and over again.
Customers will also be able to figure out what you make. Will your customers be able to ascertain why you do what you do or how they will benefit from what you make? Do your customers know that your product will make their company more efficient or that your product will increase the perception of them as high quality product or service providers? Perhaps it's time to let them know. |
Your Customers Are in Control
Once you know why you do what you do, there is another great truth to accept. The customer is not just right. The customer is now in control. Launching products at a time that is most convenient for your company is no longer the best route to success. What's more important is launching products at times that are most convenient to your customers. Assuming that a marketing plan can remain unchanged for a year or more is no longer realistic. With that in mind, it's time to use marketing content strategically in order to reach the right buyer at the right time or to change course if this is not happening.
One trick of the trade is to refrain from viewing customers and prospects as a single grey mass that receives marketing content year-round. According to Paul McKeon, president of a content-generation firm, there are actually four types of individuals that marketing tactics should target. Those four types are the unaware buyer, the tentative buyer, the engaged buyer, and the invested buyer.
The Unaware Buyer - This is the hardest person to reach because, as the name suggests, this person is simply unaware of your products. This person might not even know that your product could improve his or her quality of life. Content for the unaware buyer must be interruptive and has to be about them, not about you. Focusing on the "why" message (see "What's Your Why" earlier in this newsletter) is ideal when targeting these individuals. To get unaware buyers to pay attention to your message it's important to talk about things like high failure rates, lost shipments, and inefficient machines in their workplace, things that might be on their minds. Meeting these people on Social Media sites as they discuss their struggles is a great way to raise awareness. Verbiage on a company website that answers a potential question could also be effective. Developing a special page titled, for example, "How can I track shipments more efficiently" would be a way for a shipping company or data management company to attract unaware buyers who are in need.
The Tentative Buyer - The tentative buyer may also be a "lead." Perhaps he encountered you at a trade show or perhaps he saw an ad in passing. This person wants to learn as much as possible about the best solution without being sold anything. Content for the tentative buyer should be educational and the tentative buyer should be able to find information about your company based on his or her problems. A blog can effectively communicate this information online. An informational brochure can also offer the tentative buyer a pressure-free way to learn about a product. In both cases, information on how to contact a sales person should be available but not dominant.
The Engaged Buyer - A company might also call this person a prospect. This person has gathered information about a product and is considering a purchase, but she is not quite ready to commit. Content for the engaged buyer must be validating. Make it a point to answer his or her questions and objections. Make your offer compelling. And most importantly, make the buyer feel like she would not only be safe in making this purchase, but she would also be smart. Case studies and testimonials are great ways to communicate with the engaged buyer. Seeing proof that real people purchased a product and were satisfied can make a major impression on the engaged buyer.
The Invested Buyer - The invested buyer is a customer or, perhaps, the kind of brand evangelizer that we discussed in the last issue of the Claymanite. Content for the invested buyer must be exclusive. It should give the buyer a sense of being a member of a select club. Make this individual feel the way you feel when you go to a restaurant and the server remembers your name. Although you want the invested buyer to feel special, you never want to talk down to him or make him feel as though he is not smart enough to understand your solutions. E-newsletters or occasional e-blasts are great ways to reach out to this group. Don't be afraid to include "privileged" information at times, such as a sneak preview of a new product. These people should always feel like they have your undivided attention and appreciation.
How can a company cycle marketing initiatives so that these four distinct groups receive the kind of communications they want or need? A database of contacts should incorporate all but the first group. Anytime an individual expresses interest in a product, that person should enter the company's system. Certain kinds of "touches" should result in a sensible reaction. A request for a quote, for example, the action of an engaged buyer, should result in literature that informs but does not oversell. At a trade show where a company might encounter the "Unaware Buyer," make sure there is something that could draw that person to the booth.
Do you have a way to communicate with each of these groups? Do you know how to reach them? Now is a great time to start considering these questions.
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The Real Importance of ROI
Return on Investment ('ROI') is a phrase one hears a lot these days. In a time when budgets are being pinched, everyone wants to know that their efforts are creating something beneficial and tracking to the bottom line. For marketing initiatives, ROI has always been the way to answer that question. ROI has been measured based on clicks to a website, based on reader response cards, and more. But is ROI really the end of the equation? Are clicks to a website what makes a return? We think the most important factor is the conversation of a lead into actual sales.
Capturing Leads
The first obstacle to measuring ROI or converting a lead into a sale is actually capturing the lead. Heading into 2011, Clayman Advertising will be discussing ways to more aggressively pursue leads tied to any marketing initiative, whether a print ad campaign, Social Media, or direct mail. Formulating the ROI equation and converting that information to sales requires a strong foundation.
There are numerous ways to capture leads, including special, customized landing pages on a website, the collection of RFQ or RFP forms, and more. Using the assistance of a program like Google Analytics can assist in offering a deeper level of understanding regarding website traffic, including traffic tied to those customized pages tied to certain ads or literature.
The Alignment of Sales and Marketing
Once leads are captured, it is essential to have a plan in place for how to act on them. This process is one that requires input from the sales team as well as the marketing team. In fact, according to the 2010 Miller Heiman Sales Best Practices Study (Northern Illinois University) released just last month, the companies that have fared the best over the last year have been those where there was a strong alignment between sales and marketing.
Compared to companies that have "low" alignment, companies with "high" alignment between sales and marketing were:
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12% more likely to show year-over-year (YOY) growth of 5% in Qualified Leads
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8% more likely to have conversion rates of 40% or more
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19% more likely to register a YOY growth rate of 5% in customer acquisitions
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11% more likely to see a YOY retention increase of 5%
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8% more likely to increase average billings per customer by 5%
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4% more likely to increase revenue YOY by 5%
Why is the alignment of sales and marketing important? Marketing can deliver clicks or RFQs or requests for literature. However, there needs to be a passing of the torch at that point from marketing and communicating to managing the lead. Based on the analysis of customer types (see this issue, "Your Customers Are In Control"), companies know that someone who clicks to a website or asks for more information may be converted into a sale if they receive the right kind of communication at the right time. What will that communication be? Again, alignment can help. The sales team can ask the marketing team to develop a specific kind of communication dedicated to the lead management program.
The real return on a marketing investment is sales, not clicks. With a proper alignment between the sales team and the marketing team, it is easier to trace from what source sales are coming. Was that sale from a person who initially clicked to a website? Which ad did the person react to? Sales and marketing need to be in constant communication, adjusting strategies to maximize results.
What Do You Want To Accomplish?
Now is the time to consider what your company's goals are going to be. Let's discuss how a more solid lead management and conversion to sales plan could assist in reaching your sales goals for 2011. As we begin to explore and converse about new marketing opportunities, let's weigh them not just on the potential ROI, but also on how leads from that initiative can be converted by an aligned sales team into the real return - new customers. |
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Sincerely,
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