More so than ever, “return on investment” is on the tip of business leaders’ tongues. Ensuring that every marketing dollar provides client/customer and enterprise value has become a particularly hot topic fueled by today’s uncertain global economic outlook.
At Arbolus we offered our clients a helping hand by hosting a webinar with three world leading marketing executives, to learn how they successfully target high-value customers and in doing so, maximised ROI.
Despite diverse backgrounds, all three experts identified common tools and methods they use to guarantee the success of the marketing teams they have led.
A focus on ROI, they all agree, is something that all successful marketing executives need. They must understand exactly “how the business grows from the acquisition, expansion and retention of the right kinds of customers.” This is what “drives the business metrics” explains Michelle Bottomley, former CMO of New York Life and Barclaycard, referring to revenues and profits.
But how is this done? What tricks does a marketing executive employ to ensure they’re acquiring, expanding and retaining their high value customers to maximize their ROI?
Data & Analytics
The use of data and analytics plays a key role in the development of relationships with high value customers. Michelle explains that she often collaborates with her businesses’ data analytics teams to answer key business questions such as:
- Do we have a few customers that are generating 80% of our revenue or profits?
- If so, what are the common features of our HVCs?
- Do we have some low or medium valued HVCs that we can grow?
The answers to these questions allow her to identify and focus on specific high value targets, in order to maximise ROI.
Marketer Input, from the Get-go
Ex-CMO of Nike, Greg Hoffman agrees that working with other teams is of the utmost importance. He explains that businesses shouldn’t “be in a situation where they have a product or service that is searching for a consumer” - marketers, as the employees responsible for “owning the relationship with the customer”, should be involved from product conception. Ultimately, these insights from marketers at an early stage, can prevent unnecessary, wasteful investment in products the consumer isn’t interested in.
Deeper Customer Relationships
Greg explains how he has focused on bi-directional relationships, which allow relationships with customers to flourish over a longer period of time. He explains that beyond selling its products to customers, Nike aims to be with them when they run 10k, as well as help them with training tips, nutrition and more.
CJ Bruno, Ex-VP of Sales and Marketing at Intel explains that this not only has the benefit of enhancing the relationship and brand loyalty, but it also allows marketers to respond quickly to customers’ changing needs and feedback that is often communicated through these bi-directional channels.
Knowing Clients & Personalising Content
And as businesses come to know their customers/clients better, tailoring content to their needs is a must, explains CJ. Knowing who the client is, what it is that they want, and what the purpose of the transaction is, allows marketers to adapt and build highly effective personalised campaigns.
Greg adds that “a brand or a company that can't meet the personal needs and preferences of a customer is going to be left behind.”
As the tools available to marketers improve and the barriers between them and their customers/clients shrink, it is of vital importance that they are building effective, meaningful relationships with those that represent the greatest value. This means being more involved in the product; using customer/client information effectively; and gearing personalised content towards individuals.
These insights from world leading marketing executives demonstrate how quickly world leading marketers’ approaches are changing. If you’re interested in learning more from Greg, Michelle and CJ, click here to learn more about the Arbolus Circle they have formed: a small team of Fortune 500 executives, on hand to help forward thinking businesses grow.