Marketing must spend money on programs that work, and let their competitors spend money on everything else.

SLMA Radio Commentary on  Feb 3rd  to listen go to:

Victor Hugo said, “People do not lack strength, they lack will.”

From an article I wrote for the January 17th BtoB Magazine  entitled “ The Time is Now for Sales and Marketing to Align.”  I said,” Marketing must spend money on programs that work, and let their competitors spend money on everything else.”

 A marketing manager will say in response, “Are you stupid?  I want to spend money on things that work.”   And yet I question their sincerity when the tools to decide what works and what doesn’t are available and go unused.  I am speaking about the tools of CRM and Marketing Automation.

CRM is used by 80% of the B2B companies (and yet most are unhappy with the ROI).  Marketing automation is used to varying degrees (I am told) by 15-20% of B2B companies.  

Companies don’t have an excuse to avoid measuring marketing efficiency from leads.  They can genuinely find out what works and what doesn’t if they have the will. 

My take on the Victor Hugo quote is, “People do not lack CRM and MA tools, they lack will.”
So, the situation revolves around the will to measure and be measured. 

Marketers must stop being timid.

Marketing has the strength, they have the knowledge and the tools which are no longer prohibitively expensive, they need the will to understand that they can measure the ROI for lead generation programs.
 
 I contend that marketers are builders of wealth but they must delve into the CRM or MA systems and report on the ROI for lead generation programs. 

What’s the alternative?  They spend and hope for success while keeping their eyes closed to the failure of their programs.

Are you a blind-folded Hunter?

The result of this “do nothing” alternative is that most people in the company will assume marketing is needed, but they can’t articulate its success.  Most will say the leads are no good; that marketing is a blindfolded hunter shooting randomly without thought or reason.

We know this isn’t true and yet we also know that perception is reality.  Until the perception is changed reality resides in the minds of the managers willing to blame marketing for forecasts that go unmet and salespeople who don’t make quota. 

In my mind there is no longer any choice, marketing must use the tools it has (or can get), accept responsibility for measuring the results of the money it spends, and take credit for the wealth it builds.

Time to Take an Oath

In seminars and speeches I give, at the end of the program I often ask the audience to stand up and take several oaths that they will do the following:

1. Will you prove the ROI for the money you spend on lead generation programs?

2. Will you pursue the most efficient media for creating the most qualified leads for your sales channel?

3. Will you take your rightful place as builders of wealth in their company?

Many people come up to me afterward and say they have the will, but now they need to know how to do it.  I give them a five step process (don't we just love steps and processes?).

Five Steps to Prove you are a builder of Wealth!

Step 1:  Separate Branding from Lead Generation Tactics.  Lead generation tactics should always carry an estimate of the sales return.  Separating the two, shows management what you can measure.   

Step 2:    Stop waiting for sales to do its part and follow-up with the inquirer.  Marketers, either manually or via a marketing automation system, can perform many of the initial touches or deliver content to the inquirer.  They can qualify the inquirer and deliver a sales ready lead to the sales channel.  

Step 3:  Make sure the leads are closed out (lost or bought) in the CRM System.  If you have an indirect sales channel, skip this and go to step 4.

Step 4:  If you can’t find out the closure of sales leads from the sales channel, perform periodic “Did You Buy Studies.”  Call inquirers and find out what they bought and from whom.    Take credit for creating the lead and the sale.

Step 5: Repeat steps 1-4 above and report the results while adjusting the marketing spend for those tactics that are working for you. 

In short, marketing must spend money on programs that work and let their competitors to spend money on everything else.

To hear this post on SLMA Radio and also hear interviews with:

Ron Ploof President of Ronamok.com New Media Evangelist.

Lisa Horner, Director, Campaigns Citrix Online

Listen Now:

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Comments

[Michael A Brown]

Jim, you are spot-on. May I add two observations:

Marketers who believe the social media nullify the well-known and successful tenets of direct marketing are wrong. Companies still have to segment accurately, select and pursue near-term viable opportunities, and take the long-term development approach for the rest. To be sure, the social media can contribute to those things, but woe to the organization that considers the social media a panacea.

Also, some B2B marketers are covering for two or three of their laid-off former colleagues. A lead development director told me the other day that he is too stretched and fatigued to pay detailed attention to the numbers.

One remedy for both these issues is for executives to interact with marketing more often, not only when the numbers don't come in as desired.

[Andy Brownell]

I think one of the reasons more marketing teams don't use the tools available is simply a lack of knowledge. If they knew how easy they are to setup and manage they'd quickly take advantage. Knowing the ROI on various programs can only help. It isn't enough to know how many leads were generated by this program or that landing page, you have know how much was sold as a result of each investment. The tools make it easy.

[play flash games]

Jim, you are spot-on. May I add two observations:

Marketers who believe the social media nullify the well-known and successful tenets of direct marketing are wrong. Companies still have to segment accurately, select and pursue near-term viable opportunities, and take the long-term development approach for the rest. To be sure, the social media can contribute to those things, but woe to the organization that considers the social media a panacea.

Also, some B2B marketers are covering for two or three of their laid-off former colleagues. A lead development director told me the other day that he is too stretched and fatigued to pay detailed attention to the numbers.

One remedy for both these issues is for executives to interact with marketing more often, not only when the numbers dont come in as desired.
+1