marketing dashboards

Customer Conversations: The Value of Adding Data & Analytical Skills

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 Jamie, the VP of Marketing at one of our manufacturing companies, in a recent conversation expressed excitement  about securing someone from the finance group to support marketing data and analytics. “It took 2 years of lobbying but now we’ll be able to make better and more informed decisions,” said Jamie.  To which I replied, “Awesome!” Image

Then, in my usual fashion, I asked a series of rapid-fire questions: 

  • What decisions are you hoping to make and in what priority order?
  • What and where is the data that they will be accessing? 
  • What is the data capture and management plan?
  • Is he just going to start delving into the data( A.K.A. boiling the ocean to see what treasures await) or are there specific insights about customers or the market that you want to gain? 
  • How will his contribution be measured? 
  • Is his role specifically digging into and analyzing data- and if so for what?
  • Will he serve your team in a broader capacity a.e marketing ops, performance management and reporting? 

Well, you can see the line of questioning.

Jamie said, “Whoa, I didn’t really think about what he was going to do or how, I just knew we needed someone who was comfortable with data and analytics because this isn’t my strong suit.”  I said, “Adding this capability to your team is a great win, and demonstrating how it will prove and improve the value of marketing will create an even more important win. Now that you have this person, it might be a good idea to take some time to think about and decide function’s scope, role, purpose, etc.” 

Jamie said, “Yeah, these are good questions and getting off on the right foot and in the right direction is really important for the team and for him.  It almost took a miracle to get this person; we won’t get a second chance at it.” 

Jamie asked if we could schedule a meeting next week to discuss things further.  I said, “Of course, it would be our pleasure.  In the meantime, your person may find our Marketing Operations:  Enabling Marketing Centers of Excellence and from Intuition to Wisdom: Mastering Data, Analytics and Models white papers helpful .” As we set a date for our next call, Jamie said in closing, “ Downloading these as we speak.” 

Analytics: The Essential Ace in Every Hand

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None of us would agree to play a card game with cards missing from the deck; we would know that the odds of winning would be significantly diminished. Yet surprisingly, many marketers are willing to implement marketing programs sans analytics.

In the past few weeks I have attended several marketing conferences. At each event, marketers are talking enthusiastically about how to make Web sites, SEO, social media, email campaigns, and mobile better. However, there is very little conversation about how to be smarter. Analytics is an essential card — actually an ace — in every marketer’s deck for enabling fact-based decisions and improving performance, and most importantly, for being smarter.

While the ace alone has value, when played with other cards its power is truly revealed. And when it comes to analytics, the other card is data. Yes — we have all heard the common complaint about the elusiveness of quality data. Unfortunately, data quality has been an issue in organizations for so long that it has now become the ready excuse for why marketers cannot perform analytics. To harness the power of your analytics card, identify your data issues and create a plan to address them.

Another reason that you may overlook this missing card in your deck is that guessing or gut instinct has been working well enough. Unfortunately, this approach may not suffice in the long-term and your “luck” may run out as organizations push to make “smart” decisions. As marketers, analytics is our opportunity to actively contribute to fact-based decisions. Through analytics, marketers achieve new insights about customers, markets, products, channels, and marketing strategy, programs and mix. It also enables marketing to help improve performance, competitiveness, and market and revenue growth.

As the importance of analytics gains momentum, marketers with analytical acumen will be in great demand. According to some resources, the complexities of data analysis and management are becoming so enormous that there is a shortage of people who are able to conduct analysis and present the results as actionable information. Taking the initiative and honing your analytical capabilities will enable you to make sure you have this ace in the deck — and preferably, in your hand.

Most of us are already working with a time and resource deficit. Try to find a way each quarter to bolster you analytical skills. Attend a conference, read a book, take a class, and bring in experts you can learn from. Here are some key analytical concepts and skills to add:

· Quantitative Decision Analysis
· Data Management
· Data Modeling
· Industry and Competitive Analysis
· Statistical Analysis
· Predictive Analytics and Models
· Marketing Measurement and Dashboard

If you can build your analytics strength, you’ll always have an ace in your pocket.

The Six C’s of a Customer-Centric Marketing and Sales Pipeline

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Just like Sales, Marketing is responsible for managing a predictable, reliable demand generation pipeline with a plan that ultimately produces higher value opportunities and maximizes revenue.

We believe that the traditional approach to the pipeline — Awareness, Interest, Demand, Action —or the more modified version of this pipeline — Awareness, Interest, Consideration, Purchase —is outdated. Why? Because customers are no longer passive recipients or a sidelined spectator.

In today’s environment, customers are actively engaged in the buying process, leveraging a mix of vehicles from search engines to customer generated blogs and reviews, from online communities to social networks, and from broadcast to personalization designed to create engagement and enhance experience. Therefore, how we approach, define and leverage the pipeline must also change.

Marketing and Sales teams have tried to tackle the change by jointly defining what a qualified lead is. This is working for some companies but not all. Why? We have to change how we think about the customer engagement process, not just our terms.

One of the best ways to change our thinking is to alter the language we use to define and describe the customer buying pipeline.  However just addressing our thinking is not enough in the complex, multi-touch, digital marketing world we live in. In addition to shifting the paradigm it is critical that we store all of the information coming in from our customers and prospects so we can track and measure the effectiveness of our marketing efforts, and the best place to do this is in your CRM system.

Perhaps this six step idea of how customers engage will strike a chord with you and will more accurately reflect how Marketing can measure its contribution. These six steps are:

. Contact

. Connect

. Conversation

. Consideration

. Consumption

. Community

These may seem like a new twist on an old idea, but language matters. These labels aren’t about what we do TO a prospective customer, but rather what we do WITH them. These revised labels suggest collaboration between the buyer and your company. Another key difference from the traditional approach is that these labels are behavioral in nature. This makes it easier to define what behaviors for each measurable stage you want to be able to affect and measure. Together, these steps create the string or series of behavioral events most prospects exhibit on their way to becoming and remaining a customer. Let’s briefly examine each of these.

Contact

While awareness is an important factor, what really matters is establishing contact. Prospects may be cognizant of your company and its products and services but until they demonstrate some degree of interest, you may be wasting time and money. Making contact means you need more than a vague idea of the market or customer set, you must have actual contact information. For some organizations, they are just beginning to build their contact database. For others, they have an extensive existing contact database they may be adding to and maintaining.

For most companies, though, this information is stored in their CRM systems, which if set up properly tracks every single customer or prospect you are engaging with.  CRM systems, such as salesforce.com, are the basis for all Sales and Marketing campaigns so when getting ready to contact the people in your database you need to make sure you have a well thought out lead and contact lifecycle built to capture all this contact information.  If your response lifecycle is constructed properly you can “count” the number of people who gave you their contact information and permission to contact them.

Connect

With contact made the next thing is to connect. What is the difference between a contact and a connection? A contact is an observable signal of hello from a person; it doesn’t mean they are eager to get to know you better. A connection suggests at least the virtual exchange of a handshake and the establishment of some type of rapport. You can approach measuring Marketing’s impact on creating connections in much the same way as we measured contacts: the number of connections made, the cost to acquire and maintain, and the rate of conversion from connection to conversation. We’ll be able to use a version of these metrics for each step.

Unfortunately, you can’t tell how deep a well is by measuring the length of the pump handle. That is, just because the connection has been made, doesn’t mean you have a customer or even someone who is inclined to engage in a conversation beyond the casual and polite visit to borrow a thing or two or yack about the weather. It’s about becoming a follower — downloading material from your website, signing up for your newsletter, participating in your webinars, etc. This is why the conversation stage is so important. This is the first stage that truly signals more than a passing interest.

Connection is perhaps the most important stage to track when measuring you marketing.  From a metrics perspective the connection is all about who responded to your campaigns – how many hand raises each campaign produced, how every Marketing campaign contributes to the Sales pipeline of your company, etc.  For this to be as effective as possible tracking the results of these connections in salesforce.com (or whatever CRM solution you use) is very important because it keeps Sales and Marketing on the same page and gives everyone context for the conversation that is about to start.

Conversation

Now we’re talking! That’s the best way to describe the conversation stage. There’s a flow of information back and forth between prospects/customers and you. Both parties are engaged. This is where the rubber meets the road. You cannot acquire a customer that requires a considered purchase without a conversation or series of conversations. Once the conversation is in play, the next step is consideration.

Consideration

We must understand the difference between a conversation and consideration. Just because we have a conversation in play with a customer doesn’t mean you have a qualified opportunity that is seriously considering purchasing from you. Consideration involves customers/prospects applying careful thought to your offer and company and weighing their options. Different marketing vehicles, such as customer references, case studies, and third party white papers, will be deployed at this stage to help the customer/prospect build preference and predisposition toward your offering. At this stage it is possible to determine whether you have an opportunity worthy of sharing with sales.

Time is money so in addition to measuring the time it has taken to move a contact to this stage you can begin to quantify the value of the opportunity as well. We can measure Marketing’s financial contribution to the pipeline.  One of the best ways to quantify Marketing’s contribution to the pipeline is by leveraging weighted campaign influence as opposed to traditional Marketing ROI.  Weighted campaign influence enables marketers to attribute multiple campaigns to every opportunity but also assign different campaigns certain weights, because it is highly unlikely that every campaign touch played the same role in creating an opportunity.  Check out Full Circle CRM’s description of campaign influence to learn a little more about this metric.

Consumption

Even though the opportunity has now moved to the domain of Sales, Marketing still plays a role in converting the opportunity from consideration to a contract to consume or an actual consumption of the product or service. And upon consumption, Marketing can now measure the overall conversion rate, and time, the cost from contact to customer, the cost to acquire, and Marketing’s “win” rate (how many of the Marketing opportunities closed and how this rate compares to the win rate of non-Marketing generated deals).

Leveraging your CRM solution to track your company’s Marketing funnel is a great way to concretely track this.  For example, you can set up reports on your Sales, Telesales, and Marketing funnels inside of salesforce.com to see the results of the handoff between Marketing and Sales as well as the volume, conversion rates, and velocity of leads generated from your campaigns.  You can see where Marketing is effective and where it can be improved.

Community

It would be a shame to stop investing in a relationship that has just begun. A customer is your most important asset. Customers are also your most important advocates. In the world of customer generated content, blogs, social networks, and product reviews, marketing organizations need to focus on developing their customer community, the final C in the pipeline. There are numerous ways to build this community, such as using Facebook and LinkedIn or other social networks to create a means for your customers to engage with you and each other. Hopefully these six key measurable stages for developing, implementing and measuring Marketing’s contribution to the opportunity pipeline offer you a valuable approach for understanding how to measure the engagement of your customers. It also enables a more collaborative conversation with marketing and sales. With a new year on the horizon, now is the time to revisit how you frame your pipeline.

See part one of this conversation at the Full Circle CRM Blog

Power Up Your Marketing to Prove Business Value

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Numerous studies throughout 2012 reiterated just how challenged marketers are in proving
Marketing’s business value.

The Capsicum Report found that “Marketers lack commercial acumen and don’t speak the language of the business, reporting their contributions in terms of ‘activities’ or ‘outputs’ rather than the business key performance indicators.”

The Economist Intelligence Unit reported that “the CMO’s traditional dilemma of demonstrating effectiveness, return on marketing investment, and relevance to the business still persists.”

The Forrester Evolved CMO study stated that “to prove their value and justify investment, they (CMOs) must tie marketing closer to business results.”

The 11th annual marketing performance management study conducted by VisionEdge Marketing and ITSMA reported a continuing trend of the C-Suite’s perception that only about 25% of marketers are able to demonstrate their impact and contribution to the business.

Some marketers, though, are cracking the code, and we can learn lessons from them as we work to power up our marketing.

One of the key differences about the stellar performers is that these marketers view and present themselves as businesspeople first. This elite group is customer-centric above all else, and it’s driven to transforming or establishing Marketing as a center of excellence within the organization.

These marketers work at ensuring that Marketing focuses on producing results that matter to the business, particularly in customer acquisition, retention, and value, and they are able to communicate those contributions in ways that are relevant to the C-Suite.

These marketers consistently apply five best-practices:

1. Aligning marketing activities and investments with business outcomes

2. Developing outcome-based metrics and reporting capabilities to demonstrate their
accountability

3. Employing and developing analytical skills

4. Investing in the infrastructure, processes, and systems to support their work

5. Building collaborative alliances with Finance, IT, and Sales colleagues.

They also recognize that deploying those best-practices is only part of the equation for boosting their performance and measurement competencies. They realize that playing a more strategic role takes added muscle, which they build by…

  • Embracing strong talent, balancing creativity with science derived from valuable customer and market insights
  • Emphasizing innovation for all aspects of marketing—related to strategy, implementation, processes, and so on.

Every organization can benefit from adding such power and muscle to their marketing team:

Image

Take a look at  the most recent 2013 Marketing Performance Management Report: Executive Summary (FREE DOWNLOAD) or Purchase the Full Report at the VisionEdge Marketing Online Store!

Measuring Relevancy: A Three Step Approach for Linking Content and Behavior

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Various studies over the years have examined the relationship between content relevancy and behavior. Almost everyone would agree that content must be relevant. But what is relevance? According to Wikipedia: “Relevance describes how pertinent, connected, or applicable something is to a given matter.” A thing is relevant if it serves as a means to a given purpose.Image

In the context of this discussion, the purpose of content is to positively influence customer or employee behavior, such as increasing purchase frequency, purchase velocity (time to purchase), likelihood to recommend, productivity, etc.

When we ask marketers and others how they measure content relevancy, we often hear, “We base it on response rate.” If the response rate meets the target, then we assume the content is relevant; if response doesn’t meet the target, we assume it’s not relevant.

Clearly there is a relationship between relevance and response. Intuitively we believe that the more relevant the content, the higher the response will be. But measuring response rate is not the best measure of relevancy. Many factors can affect response rate, such as time of year, personalization, and incentives. Also, in today’s multi-channel environment, we want to account for responses or interactions beyond what we might typically measure, such as click-throughs or downloads.

So, what is the best way to measure relevancy?

The best-practice approaches for measuring relevancy are many, and many of them are complex and require modeling. For example, information diagrams are an excellent tool. But marketers, who are usually spread thin, need a simpler approach.

The following three steps provide a way to tie interaction (behavior) with content. It’s critical
that you have a good inventory of all your content and a way to define and count interactions, because once you do, you’ll be able to create a measure of relevancy.

The process and equation include the following:

1. Count every single piece of content you created this week (new Web content, emails,
articles, tweets, etc.). We’ll call this C.

2. Count the collective number of interactions (opens, click-throughs, downloads, likes,
mentions, etc.) for all of your content this week from the intended target (you’ll need to
have clear definitions for interactions and a way to only include intended targets in your
count). We’ll call this I.

3. Divide total interactions by total content created to determine Relevancy: R = I/C
To illustrate the concept, let’s say you are interested in increasing conversations with a particular set of buyers. As a result, this week you undertook the following content activities:

• Posted a new whitepaper on a key issue in your industry to your website and your
Facebook page
• Tweeted three times about the new whitepapers
• Distributed an email with a link to the new whitepaper to the appropriate audience
• Published a summary of the whitepaper to three LinkedIn Groups
• Held a webinar on the same key issue in your industry
• Posted a recording of the webinar on your website, SlideShare, and Facebook page
• Held a tweet chat during the webinar
• Tweeted the webinar recording three times
• Posted a blog on the topic to your blog

We’ll count those as 17 content activities.

For that very same content, during the same week, you had the following interactions:

• 15 downloads of the whitepaper from your site
• 15 retweets of the whitepaper
• 15 Likes from your LinkedIn Groups and blog page
• 25 people who attended the webinar and participated in the tweet chat
• 15 retweets of the webinar
• 15 views of the recording on SlideShare

That’s a total of 100 interactions. It’s likely that some of these interactions are from the same people engaging multiple times, and you may eventually want to account for that likelihood in your equation. But, for starters, we can now create a content relevancy measure:

R= 100/17 = 5.88.

Using the same information, had we measured only the response rate, we might have counted only the downloads and attendees—40 responses—so we might have had the following calculation:

R = 40/17 = 2.353

As you can see, the difference is significant.

By collecting the interaction data over time, we will be able to understand the relationship between the relevancy and the intended behavior, which in this example is increased “conversations.”

I strongly encourage you to consider relevancy as a key measure for your content marketing. By tracking relevancy, you will be able to not only set benchmarks and performance targets for your content but also model content relevancy for intended behavior.

Does Your Marketing Team Have the Right Stuff?

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The 
Right 
Stuff,
 a
 1979 
book 
by 
Tom
 Wolfe, 
chronicled 
the 
sequence
 of 
events 
bridging 
the 
breaking 
of
 the
 sound
barrier 
and 
the 
Mercury 
space
 expeditions.
 The 
book 
(and 
subsequent
 movie)
 explored
 why
 the 
Mercury 
astronauts
 accepted 
the
 danger
 of
 space
flight,
 as 
well
 as 
the 
mental
 and 
physical 
skills
 required 
of 
them 
to 
do 
their 
job—in 
other 
words,
 the 
”right 
stuff.”Image

Recent 
studies 
suggest
 the 
need 
for 
many 
marketing 
professionals to
 re‐skill
 and 
re-tool.
 Only 
about 
5
 percent 
of 
marketers 
surveyed 
in 
a 
recent 
CMO 
Council 
study 
are 
highly
 satisfied 
with
 their 
levels 
of
 accountability, 
operational
 visibility,
 and 
marketing 
output. 
Most 
see 
plenty
 of 
room 
for 
improvement.

So what skills
 and 
tools
 are 
needed for 
your 
organization 
to 
have 
the 
right stuff?

Regardless
 of 
company 
size 
and 
industry, marketing 
teams 
(whether
 a 
team
 of
 one
 or 
more) 
are under 
increased
 pressure 
to
 drive 
top‐line
 growth 
and
 profitable 
revenue. 
For 
many
 organizations
 this
 means 
acquiring new
 skills 
related
 to 
marketing
 performance 
measurement
 and 
management,
 analytics, 
benchmarking,
 and
 customer
 engagement. 
 Let’s review 
these 
four 
specific
 skills
 every
 marketer
 should 
have 
under 
their 
belt:

• 
Metrics
 and 
performance 
target‐setting. With
 greater
 demand
 for
 marketing 
to 
be 
more
 accountable,
 solid 
metrics, 
performance 
target‐setting,
 measurement,
 and 
reporting skills  
are
 crucial.
 Participants 
in 
numerous
 studies 
comment
 on 
the 
importance 
of
 being 
able 
to 
set
 measurable 
goals
 and 
track 
results. 
These
 skills
 will 
be 
in 
vogue 
for 
a 
long 
time 
to
 come.

•
 Analytics.
This 
is 
the 
ability 
to 
derive 
insights 
from 
data. 
If
 growing 
valuable 
customer relationships
 and 
being
 able 
to 
forecast
 sales 
from 
future
 marketing
 activities 
are 
important,
 then 
analytics 
ought 
to 
be 
on 
the 
top
 of 
your 
skills‐to‐acquired 
list.

•
 Benchmarking.
This 
is 
the 
process
 of
 comparing 
what
 your
 company 
does 
to
 another 
that
 is 
widely 
considered
 to 
be
 an 
industry 
standard 
or 
best 
practice. 
The aforementioned
 CMO 
Council
 study 
indicated
 58
 percent 
of 
respondents 
have 
nominal 
or no 
benchmarking 
capabilities. 
If 
you 
don’t 
know 
what
 the
 standard 
is,
 how 
will 
you 
know 
what
 to 
strive 
for 
when 
it 
comes 
to
 such 
things 
as
 win/loss 
ratios, marketing 
key performance 
indicators,
share
 of 
preference,
 product
 adoption 
rates, and 
so
 on?
 Benchmarks
 are 
essential 
to
 any organization 
that
 believes 
continuous 
improvement
 is
 critical 
to 
the 
pursuit 
of excellence.

•
 Customer 
experience 
management. 
If 
business 
exists 
to 
produce 
and
 serve 
a
 customer,
 and 
marketing’s 
job 
is 
to 
create,
 communicate, and
 deliver 
value 
to 
customers, 
then
 marketing 
is
 your
 organization’s 
ultimate 
steward 
of
 the 
customer
 experience.
 Marketers 
need 
to 
be
 sure 
they 
have 
the
 skills 
necessary 
to 
improve 
customer
 engagement
 and
 touch-
point 
effectiveness. 
They
 also 
must respond 
to 
changes in 
the 
buying
 cycle
 and
 conduct
 voice‐of‐customer 
research in
 order 
to 
retain
 customers, 
create 
loyalty,
 and 
transform 
customers 
into
 advocates 
for the
 company.

Marketing 
operations 
refers 
to 
infrastructure — that 
is,
 the 
tools, 
systems, 
and
 processes in 
place 
to 
facilitate 
customer‐centricity.
 Forty‐four
 percent
 of
 the
 respondents in the CMO 
Council
 study 
are looking 
for 
way 
to 
lower
 costs 
and 
improve 
go‐to‐market 
efficiencies. 
For
 many 
organizations,
 achieving these 
operational
 efficiencies 
requires 
infrastructure changes 
and 
improvements.

With 
limited 
resources, 
where 
can
 you 
get the 
best
 bang
 for 
your
 buck?
 Here
 are 
four
 areas
 for 
investment 
consideration:

1. Operational
 process 
alignment.
 When 
was 
the 
last 
time
 you 
mapped 
your 
operational 
processes 
and 
verified 
marketing 
alignment
 with 
the
 sales,
 product,
 service,
 and
 other 
parts
 of
 the
 business?
 All 
of
 us 
get 
into 
routines 
and 
habits.
 Reviewing 
processes 
and
 updating 
them 
may 
be 
time consuming, 
but 
if
 you 
are 
looking 
for
 ways 
to
 reduce 
inefficiencies 
internally, 
this 
is a
 necessary step.

Many
 years 
ago,
 when 
I
 was 
in 
the
 semiconductor 
industry,
 we
 needed 
to 
find
 a 
way 
to 
reduce 
the 
time 
from 
order 
to 
delivery
 of
 product.
 It
 was 
just 
taking 
too 
long 
to 
get
 product 
to 
customers,
and
 we
 didn’t
 know 
why.
 When 
we calculated 
the 
time 
it 
took 
for
 the 
individual
 steps 
of
 order 
placement, 
manufacturing,
 testing ,
assembly, 
and
 shipping, 
the 
time 
didn’t
 add 
up 
to 
what 
it
 actually 
took.

So
 we 
mapped
 the 
process, 
counting 
the 
time 
product
 was 
”in‐transit,”
 whether 
physically 
or 
in
 some
 other 
way.
 Lo
 and 
behold, 
the 
in‐transit
 time
 was 
off
 the 
charts.
 The
 mapping 
process 
enabled 
us 
to 
identify 
the 
inefficiencies,
 label the white spaces,
and 
put 
in 
new
 processes 
to 
reduce
 and
 even 
eliminate 
them.

2.Market/Business 
intelligence. 
There 
is 
an 
art
 and
 science 
to 
using 
external 
information 
for 
driving 
business 
strategy. 
Business 
intelligence 
applications 
enable 
the
 collection,
 integration,
 analysis, 
and
 presentation
 of
 competitive,
 channel, 
product,
 and 
customer 
information 
to 
derive 
trends 
and 
insights.
 The 
value
 of
 having
 such 
a 
tool 
is 
that, 
when 
used 
properly, it
 enables 
you 
to 
begin 
conducting
 scenario 
analyses
 and
 anticipating 
the
 future.
 With 
the 
insights
 derived
 from 
business 
intelligence,
 there 
is 
the
 potential 
to 
anticipate 
the 
development 
of
 new
 markets, technological
 turning 
points,
 and 
how 
the 
competitor 
will react.

3. CRM. 
If 
the 
marketing
 organization 
is 
responsible 
for 
the 
relationship 
between 
the
company 
and
 the 
customer,
 then 
it
 stands 
to 
reason 
the 
organization
 needs 
tools 
to 
facilitate 
this 
relationship.
 As 
you 
know, 
there 
are 
a
 range
 of
 CRM 
tools
 out
 there,
 so 
selecting
 the 
right
 one
 can 
be 
a
 daunting 
task.
 Even
 so,
 in 
today’s 
environment
 a
 company
 can’t
 afford
 to 
operate
 without 
a
 formal
 approach
 to
 customer
 relationship 
management.
 Of
 course,
 once
 you 
have 
the 
tool
, the
 next
 biggest
 hurdle 
is 
using 
it.

4.
 Performance 
management.
 The 
ability 
to 
use 
analytics, 
reporting, 
and
 dashboards 
to 
assess
 marketing’s
 effectiveness, efficiency, 
financial
 contribution,
 and
 progress 
toward
 achieving 
pre-determined
 goals 
is 
performance 
management. 
In 
the 
end, 
marketing
 must
 demonstrate 
its
 value, 
which 
lies 
in
 how much you are “moving 
the 
needle.” This 
necessitates 
reporting
 on
 performance, impact, 
and
 ROI from
 the
 program 
level 
up.

Progress 
doesn’t
 come 
without
 missteps,
 misfires,
 and failures.
 Winners 
look 
for
 ways to overcome
 challenges
 and
 continuously 
improve.
 They
 seek
 outside 
help,
 new 
ideas,
 and new 
skills.
 While
 attending 
a
 Webinar,
 reading 
a 
book, 
or
 going 
to
 a
 conference 
helps, consider 
looking
 for
 ways 
that
 will
 enable 
the 
whole 
team 
to 
be 
on 
the 
same 
page
 at the
 same
 time. 
There are 
plenty 
of 
on-site
 and 
online 
programs
 offered 
by 
professional
 organizations 
and 
institutions, as 
well
 as
 by 
firms 
specializing 
in these 
areas.

In 
Wolfe’s 
story, 
the 
national 
heroes 
of 
the 
Mercury 
space 
program 
were 
not
 necessarily 
the 
truest 
and
 best. 
What 
they
 possessed
 was 
the 
right
 stuff, the
 skill
 and 
courage 
to 
”push 
the
 outside 
of
 the
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Embracing Sustainability to Boost Sales

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Sustainability. Green. Environmentally-friendly. However we refer to it, it is top of mind.Sustainability is about how your company and its products are affecting, and trying to achieve balance within the economic, social and environmental systems. This isn’t just an issue for the “big” companies. Regardless of size, every company and its leadership team needs to be exploring what green and sustainability means for the company and its products. Because strategic planning incorporates opportunity identification, risk management, talent development, and financial strategies, all of which fall within the domain of the C-suite, sustainability which affects all of these should be the concern of the company’s leadership team. Practical green and sustainable solutions can help reduce risk, meet compliance, and create market opportunities.

There are many ways for a company to integrate green into their strategic plan.Image For example in October of 2007, P&G announced a corporate strategy around three goals: developing and marketing $20 billion in sustainable innovation products; improving the environmental footprint in operations; and the social sustainability area of increasing the number of children in need that they reach. Fast forward 6 years-the results? $52 billion in sustainable product sales as of 2012, a 68% reduction of waste disposed, and over 400 million children helped that were in need.

Goals are good, but implementation is where the rubber meets the road. So how did they accomplish surpass their goals set in 2007? P&G has a VP of Global Sustainability responsible for operationalizing each of these goals. Companies have found that this issue
is important enough to appoint someone as a champion of their sustainability initiative.

Green encompasses many factors. These factors can range from developing and manufacturing new green products, to looking at ways to make existing products more “green” by reducing their carbon footprint whether that’s in terms of the raw materials they source, the suppliers they use, how the product is packaged, the energy the company uses during production to the types of lights in the office. Whatever your approach, as you explore your company’s route to sustainability you should also discuss marketing the “green” aspects of your company to your customers

While being green is quite appealing, the journey takes time, investments, resources and commitment. You will want to establish performance targets and success metrics to help monitor the return on this investment. Is it worth the investment? The research suggests that it is. Sustainability is beginning to impact a company’s reputation. According to the firm, Conscientious Innovation, more than 70% of consumers link social responsibility to a company’s environmental behavior. Given the trend, sustainability in all its forms is becoming a necessary part of the way a successful company does business. And a recent study by Forrester revealed that 63% of US adults claim that they are concerned about the environment as a whole, and these concerns translate into spending changes. As this trend continues it will be important for every company to have a green marketing strategy designed to boost sales and increase loyalty. These two metrics – sales and loyalty – should be used to determine the success of your efforts and the return on your investment.

To get started you will want to create a roadmap to “sustainability” that identifies the strategies and tactics you will deploy.This roadmap should be integrated into your strategic, operational, and marketing plans. It might help to provide some examples of companies who have already embarked on the journey and what they are doing.

Steps every company can take:

1. Establish a Chief Sustainability Officer or a similar position to head your effort. For Mitsubishi, this is their President and CEO, Ken Kobayashi. When the CEO is the Chief Sustainability Officer, it signals the important of environmental and green considerations within the company. At P&G, Len Sauers serves as the Vice President of Global Sustainability.

2. Create a cross-functional team. Herman Miller has what they call an Environmental Quality Action Team (EQAT) which is composed on employees from across the company who address all the multiple components of the green strategy.

3. Assess your carbon footprint. The first thing the team should do is assess your current carbon footprint. The carbon footprint is a way to measure the impact your organization’s activities on the environment in terms of the amount of greenhouse gases produced. Every aspect of your carbon footprint needs to be inventoried from activities having to do with how the company uses energy or the quality of your customer database in order to reduce direct mail waste. For example, Gwen Migita, Director of Corporate Social Responsibility recently reported that at Harrah’s Entertainment, which operates 51 casinos worldwide, and significantly leverages direct-mail after a substantial database cleaning efforts was able to cut its mailings to the 40 million customers in its database, saving the company $3.5 million. Often one of easiest ways to start down the sustainability path is by focusing on how to reduce your environmental impact from the extraction of raw materials, the production of goods, the use of those goods and management of the resulting wastes.

4. Develop new opportunities: Reducing your carbon footprint is one side of the equation the other is developing new initiatives. These new initiatives can take the form of new products, which is what Home Depot is doing around their Eco Options products or be in the form of take back programs where companies will for example take toxic chemicals back. If new initiatives are not something you can tackle solo, consider looking for a partner or making an acquisition, which is what Clorox did by buying Burt’s Bees.

5. Integrate your strategy into your business. The best way to approach green is to look for ways to integrate it into what you already do. For example, Armstrong International, Inc., is looking a number of ways to modify what they do today. This includes exploring how to return hot condensate to be reused, installing double-pane windows and low-fluorescent lighting, using gas fired hot water heaters to heat their buildings, monitoring air quality in the welding area, reducing trash by 10 percent annually, increasing the amount of recycling, eliminating the use of Styrofoam cups, reducing storm/sewer water discharge, and saving carbon dioxide by replacing travel with videoconferencing.

6. Develop a Plan: The carbon footprint reduction is a good measure of progress but the ultimate goal is to have these investments result in cost savings and revenue growth. Trying to tackle everything can quickly become overwhelming. Apply the concept of Pareto analysis in your decision making. Select a limited number of things you can address that will produce the most significant overall effect – things that will increase sales, garner more customer and employee loyalty and the right return on investment. Develop the plan to address these items and how you are going to:

A) Communicate this plan and status internally.

B) Communicate this plan and your achievements to customers, prospects and other external stakeholders.

C) Measure and report on results.

This means your sustainability officer and the company’s marketing leadership will need to join forces. While the sustainability officer/department may be looking into the processes, practices and products that enable the company to become “more green” and manages the technical expertise; it is the marketing organization that is responsible for building and communicating the strategy. Your marketing organization needs to communicate how the end-user can be environmentally sustainable through the use of your products as well as the company’s progress with its sustainability initiatives.

7. Establish a company culture and align the business plan. All the best laid plans can go awry if the company’s business values and culture don’t support the effort. Part of the process will require you to set policy, implement changes, review successes and failures. Hold periodic sustainability milestone meetings to demonstrate your commitment, address issues, and measure progress. CEO Mike Duke of Wal-Mart takes this approach. Wal-Mart’s sustainability department runs lean with the focus on integrating sustainability into the overall business.

8. Measure and report results: Sustainability and green are new ways for a company to
demonstrate its social responsibility and serve as good community citizens. However, companies and organizations are in business to see a financial return. So where should you expect to see the results of your green investments and marketing initiatives? On the increase sales side your efforts should pay off in faster product adoption rates and an increase in the rate of growth in your category. And on the customer loyalty side of the equation, you should expect to see increases in share of wallet and referral rates. Using your performance today as your baseline, monitor the changes in these numbers as you ramp up your sustainability efforts and your promotion of these
efforts to track the degree of impact.

In summary, getting your customers to use your sustainable products to help them become more sustainable themselves achieves three key things. First, it boosts your sales and helps build stronger brand loyalty. And it helps your customers become more sustainable in return, creating a ripple effect making your efforts extend beyond just your company