For far too long, marketing has been viewed as a cost centre instead of a revenue driver. The bottom line for businesses is all about the financial health of the company and the impact of that financial health starts with marketing.
But how do marketers prove their impact? With more data than ever available, there is a huge expectation on marketers to take the data and prove their worth.
“More than 80% of marketing executives worldwide say they need to restructure marketing. 29% say the need for change is urgent.” – The Economist Group / Marketo
C-level executives generally don’t come from a marketing function. Many of them think of marketing as purely creative function that produces questionable results. And if it can’t be measured, then it’s logical that the marketing budget is the first thing to go when revenue is down.
Marketo recently released an on-demand Webinar that explains why senior marketing executives are struggling to prove marketing impact and grow revenue.
Six strategic measures to earn a seat at the Executive Table
There are six strategic measures of growth relevant to clients and the profitability of your business:
1. Client retention. Each business knows its best prospects are its existing customers, but how many companies excel at CRM? Whereas not all clients are great prospects, those 20% of clients that deliver 80% of your profit almost always are.
2. Share of key clients’ spend. In professional services, share of spend is measured by what proportion of the clients’ spend goes to your business and how many service lines this represents. In other industries, it is measured by the number of products purchased by each customer.
3. Recommendation is the greatest compliment your business can receive, with a zero cost of acquisition.
4. Available market. This is the market your brand could serve; that is, the segments of the market targeted by your products or services within your company’s geographical reach.
The last two metrics come straight out of your business’ management reports: direct margin and organic growth:
5. Margin is a part-reflection of a company’s ability to charge above wholesale rates.
6. Organic growth shows your customer’s value your business and is measured by increased output, customer base expansion, or new product development, as opposed to mergers and acquisitions.
These six metrics are those that really count. Strong, strategic marketing can have a positive influence in all these measures.
At Twinlife Marketing, we work with you to develop your marketing goals to support and drive your business strategy. We will collaborate to set tangible goals that are measurable. Marketing campaigns will be tied to specific sales goals and we will measure and continually refine to improve your results.
To find out how we can Make Marketing Work for your business, either attend our boutique, educational workshop or call (02) 9238-1969 to make an appointment to discuss your business’ growth.
Tags: business growth, business strategy, marketing at executive table, marketing goals, marketing strategy