Nowadays, it’s more important than ever to carefully allocate marketing spend to achieve a strong return on investment – but effective communications are not merely the realm of the advertising department. The wise marketer takes counsel from his accounting counterparts to make sure the numbers add up….Lisa Entwistle-Evans, Chartered Marketer and Partner at Evans Entwistle, explains why…
“In this challenging economic environment it can be difficult to acquire new customers…but in doing so, be sure not to overlook the loyal ones you already have – retention strategies are increasingly forming a large part of an organisation’s marketing activities and research has shown that it is in fact five times more cost effective to retain a customer than it is to acquire a new one.
Ensure you concentrate your efforts on the most profitable customers when developing your marketing plan by undertaking an in-depth review of your client portfolio. At Evans Entwistle we bring together both accounting and marketing professionals to undertake a “Customer Lifetime Value Analysis” of a client’s customer base. This enables us to identify the most profitable customers, develop a picture of their buying habits and highlight upsell / cross sell opportunities. Meaningful data gleaned from the exercise – such as increased revenue from a particular sector, business size, promotional campaign / period, etc – is used to inform the marketing plan and communication messages and timings are subsequently tailored accordingly.”
For those who nevertheless wish to pursue an acquisition strategy, do make sure you “target-target-target” effectively – a scattergun approach to client acquisition is simply not going to achieve the desired results. Segment your audience carefully, depending on whether it is a consumer or business you are targeting – for example, in consumer markets you may wish to target a particular social grade whereas in business markets, a particular sector.
Make it your mantra not to waste time or money on prospects who are clearly not going to purchase and concentrate your efforts instead on those who will bring real profitability. And remember, a marketing plan should be a living document that is continually evolving over time – ensure that marketing activities are regularly monitored and evaluated and adapted to market conditions, as they arise”
For further insights into business development and strategic marketing planning, contact Evans Entwistle
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