CRM marketing mantras for recession
Marketing
budgets are most at risk during economic downturns, but Gartner Inc has
identified six marketing processes that can be automated to drive
revenue and cut costs, maximizing marketing budgets and return on
investments (ROIs).
“Blindly cutting marketing budgets during an uncertain economy will impair a company’s ability to retain and grow its customers, now, as well as when the market returns to more stable growth,” said Kimberly Collins, managing vice president at Gartner.
The research firm advocates the use of six key marketing processes to help marketing drive revenue, cut costs and drive ROI, thus justifying its spending. Three of the processes - customer retention management, lead management and online marketing - focus on driving revenue; while the other three - creative production management, marketing fulfillment and financial management - are designed to improve accountability and cut costs.
Retention management
Retaining high value or potential high-value customers is essential in difficult economic times. Gartner advises that organizations calculate the profitability and value of customers, identify those they want to keep and develop retention programmes based on their customer segment and identified needs.
This includes understanding how a customer may be affected by the economy and developing programs to support them. Event triggers can proactively identify when a customer’s circumstances may be about to change and staff should be trained and empowered to recognize this. Gartner predicts that in 2009, companies that develop effective retention management processes will reduce churn of profitable customers by at least 10 percent within six months.
Lead management
By expanding marketing’s role in the lead management process, companies can improve lead quality and ensure higher conversion rates by sales. The company advocates leveraging marketing insights, such as using marketing data and content to augment leads prior to sending them to sales.
It is expected that companies that automate lead management processes in 2009 will increase revenue by at least 10 percent within six to nine months, despite the uncertain economy.
Online marketing
The Web is a cost-effective way to reach customers and one of the easiest channels in which to measure marketing ROI. Companies are advised to identify and prioritise three to four online marketing initiatives and measure marketing ROI, increasing budget programmes for those delivering high ROI.
The company foresees that in 2009, companies that invest in new online marketing processes will drive at least a 10 percent increase in revenue within six months.
Creative production management
Automating creative production or product launches reduces time to market and improves resource allocation and efficiency, cutting marketing costs without cutting programs. A marketing resource management (MRM) module for creative production management can incorporate calendaring, tasks, project management, business rules and workflow, freeing up time for more creative work.
Gartner predicts that in 2009, companies that automate creative production will save 15 percent or more of their creative advertising budgets within three to six months.
Marketing fulfillment
Marketing fulfillment solutions (often a module of MRM) provide 24/7 access to collaterals via portal, print-on-demand and procurement capabilities, helping companies save on paper, shipping and physical storage costs.
In 2009, companies that invest in marketing fulfillment solutions will be able to eliminate 5 percent or more of marketing waste within three to six months.
“Blindly cutting marketing budgets during an uncertain economy will impair a company’s ability to retain and grow its customers, now, as well as when the market returns to more stable growth,” said Kimberly Collins, managing vice president at Gartner.
The research firm advocates the use of six key marketing processes to help marketing drive revenue, cut costs and drive ROI, thus justifying its spending. Three of the processes - customer retention management, lead management and online marketing - focus on driving revenue; while the other three - creative production management, marketing fulfillment and financial management - are designed to improve accountability and cut costs.
Retention management
Retaining high value or potential high-value customers is essential in difficult economic times. Gartner advises that organizations calculate the profitability and value of customers, identify those they want to keep and develop retention programmes based on their customer segment and identified needs.
This includes understanding how a customer may be affected by the economy and developing programs to support them. Event triggers can proactively identify when a customer’s circumstances may be about to change and staff should be trained and empowered to recognize this. Gartner predicts that in 2009, companies that develop effective retention management processes will reduce churn of profitable customers by at least 10 percent within six months.
Lead management
By expanding marketing’s role in the lead management process, companies can improve lead quality and ensure higher conversion rates by sales. The company advocates leveraging marketing insights, such as using marketing data and content to augment leads prior to sending them to sales.
It is expected that companies that automate lead management processes in 2009 will increase revenue by at least 10 percent within six to nine months, despite the uncertain economy.
Online marketing
The Web is a cost-effective way to reach customers and one of the easiest channels in which to measure marketing ROI. Companies are advised to identify and prioritise three to four online marketing initiatives and measure marketing ROI, increasing budget programmes for those delivering high ROI.
The company foresees that in 2009, companies that invest in new online marketing processes will drive at least a 10 percent increase in revenue within six months.
Creative production management
Automating creative production or product launches reduces time to market and improves resource allocation and efficiency, cutting marketing costs without cutting programs. A marketing resource management (MRM) module for creative production management can incorporate calendaring, tasks, project management, business rules and workflow, freeing up time for more creative work.
Gartner predicts that in 2009, companies that automate creative production will save 15 percent or more of their creative advertising budgets within three to six months.
Marketing fulfillment
Marketing fulfillment solutions (often a module of MRM) provide 24/7 access to collaterals via portal, print-on-demand and procurement capabilities, helping companies save on paper, shipping and physical storage costs.
In 2009, companies that invest in marketing fulfillment solutions will be able to eliminate 5 percent or more of marketing waste within three to six months.
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