An entrepreneur is a risk bearer; an entrepreneur aims at maximizing profits. This foundation is very important no matter the sophisticated evolution that technological innovations have brought to the lamplight. This goes especially to the private sector where we have the formation of several small businesses (startups) networks almost on a daily basis. When a group of shareholders comes together to establish an enterprise, be it micro and macro, their most important focus goes in the direction of how to reach out to the market. This is an important reflection considering the fact that there may be many business organizations competing for the same product. Most of the mega US multi-national corporations having branches in different parts of the world greatly take into account the area of marketing before investing in a site. A plan of action in this direction is what gives a company a definite track to run on.
Looking at the big US enterprises like the Macdonald, you would realize that hundreds of million dollars is spent annually in the customer service department on result or performance marketing strategy. Marketing experts are hired by companies to draft out marketing strategy that is directed to producing results, to reach out to the population and made known the quality of their products and services. This is because, no matter how organized a business organization is, if the marketing department is not seriously considered, it is most certainly going to bring down that company. For these reasons, therefore this article is created by paying much attention on showing you some result based marketing strategy that could help enhance sales in your organization.
a). What is Result based marketing strategy?
It is just what it sounds like, which is being able to get results or meet your goals from your marketing effort. A question often asked by CEO’s and business owners on how to regain what is being spent. Except you can directly obtain back your marketing dollars back to the sales they generate, your marketing strategy is not producing results, or in other words, you are not implementing results based marketing strategies. Therefore asking what is result based marketing strategy; it should be aligned in this direction. Marketing is just a cost center for you. The focus is to know in advance the estimated outcome of the marketing before you invest a single penny. It forces you to envisage marketing as a business investment much like any other investment: stocks, bonds or real estate. Therefore contemplating on what is result based marketing strategy implies it has to go in this direction. Top marketing people, like top investors, don’t speculate or trade, they make investments they know are proven to make money, by attracting customers and being able to sell products, services or ideas. As such the question on what is Result based marketing strategy, calls for stopping all marketing activities that do not generate revenue, and replacing them with ones that do. Spending money on non-revenue-generating marketing is like spending money on assets or people that do not perform. Therefore, when we talk of result-based marketing strategy, it entails cutting inefficient and ineffective marketing activities, replace them with ones that perform, and the impact is immediately seen on the top line. That is, such result based marketing should be able to put back the money puts into the Marketing. It turns the front-end of your business into an efficient revenue-generating machine, and is based on the fact that the revenue-generation process can be managed and controlled.
b). Tips for Result or Performance based marketing strategy
When we talk about performance based marketing strategy, we are not just talking about a kind of a disorder marketing that is not objective and well-paced. What is our focus here is on a marketing strategy that is planned by an expert with an objective and expectation.
i). Budget for Success
Make sure you have allocated enough resources (people and money) to accomplish your company's goals for the year. The size of your marketing budget will also depend on how much you have available to invest, and how quickly you want to see results. If you got a great idea or a working budget, you will be disappointed by your lack of results, and your team will be frustrated by their inability to meet your expectations. This point is most strategic when it comes to one of the tips for result based marketing strategy.
ii). Review and update your ideal customer profile and personas
Look back at your best customers and identify the characteristics that make them profitable and enjoyable to work with. Make sure your ideal client profile and buyer personas are accurate and update them as necessary to reflect the kinds of customers who will help you reach your growth goals. This is one of the most pertinent tips for performance based marketing strategy. In understanding business and society, what every business owner and every employee must and should know is that behind every potential customer lies several other customers. Therefore, old customers should be treated in the best of ways alongside some other basic incentives that incites them take initiative on their own to do prospect and get many more customers without being told to do so. This explains why the issue of personas is very significant in performance marketing strategy.
iii). Confirm Your Differentiators
Make sure you are clear on what makes you different from your competitors. Discuss with some of your clients and find out why they chose to buy from you and what could make them switch teams and buy from your competitors instead. Big business networks around us are striving because they think beyond where they are actually and invest in making a difference which comes at times through consulting and dialoging with their ideal potential clients.
v). Review and Organize Your Marketing Collateral
Make sure that your printed and digital marketing materials are written and designed to attract your ideal customers and communicate your company’s unique qualities to prospects and clients. Ensure that copyright dates are updated, that your style principles are being followed, and that everyone on your marketing team is using the right version.
v). Review your website and online marketing
Take a look at your website and social media channels to make sure they are designed to attract and educate your personas. Is your messaging and branding persistent? Are you engaging with the appropriate target audience? Is your content educational and compelling?
vi). Review and document your sales process
Is your sales process set up to close the quality and quantity of customers you need to reach your company’s growth objectives? Does everyone on your sales team pursue the same process for qualifying and building prospects? Is your process registered? Is your CRM (Customer Relationship Management) system set up to support your process efficiently and effectively? Could you be using any automated to make your process more efficient? Document any issues you uncover while you are reviewing your collateral, templates as well as processes. Investigating for “dark pools” areas of your process where prospects or customers get lost or ignored due to lack of time/energy/resources.
vi). Track your progress and evolve your tactics
Make sure you have defined metrics for assessing success, and have delegated individual team members to be accountable for solving each difficulty. Establish regular meetings to review progress sort and solve matters, and delegate activities across teams. Derives lessons from your mistakes as well as victories, and alternate your tactics as required to maintain your traction.
vii). Be consistent
Most business owners try a promotion once or twice and then abandon. Of all the conditions for result based marketing strategy explained, it should be said here that to be consistent is one of the most important tips for result based marketing strategy.
c). Benefits of result based marketing strategy
There are a lot of benefits that companies will derive by operating performance based marketing. The benefits of the result based marketing strategy are numerous and business owners often rely solely on their intuition to make business decisions. A performance based marketing strategy will help you define business goals and develop activities to achieve them.
i). Creates alignment
The biggest benefit of result based marketing strategy is building a bridge between the vision of the organization and the marketing and sales of products and services. At the strategic (higher management) dimension, business enterprises have a mission as well as a vision. This mission and vision have to be forwarded from the executive team to all internal and external stakeholders. This is known as alignment, or having every stakeholder (along with the organization) on the same page. Performance marketing strategy is particularly useful in aligning the vision with the brand, as well as guaranteeing that what is delivered to potential customers is accurate and meaningful to the core target market.
ii). Provides market data
Performance based marketing strategy is largely research driven, at most, in the elementary phases of development. In order to build a marketing strategy that matches the needs of the market, the business structure will invest in acquiring research and data on the behaviors, opportunities, needs, and threats of the external market milieu. Important basis to look into for this are the PESTEL framework (that is, political, economic, social, technological, environmental and legal…this is an analytical tool used to identify key drivers of change in the strategic environment), and the SWOT analysis (that is strength, weakness, opportunity, and threat. It is equally critical to carry out a competitive analysis in order to understand the organization's position relative to key competitors.This requires investment in prospect research. Prospect research should be qualitative and quantitative, matching the strength of the firm with the opportunities offered in the market. Erecting a 'fit' between the organization and the market requires understanding both through research. As such this is one of the most important benefits of the result based marketing strategy.
iii). Helps brand building
With a strong research-oriented understanding of the market, and alignment across the firm in terms of mission and vision, the firm can now create a brand that represents the vision while addressing core needs in the market. Through interaction the firm’s competitive advantages with a given need in the marketplace, the firm can start building a brand within a target market(s).
iv). Mitigates risk
In nearly all contexts, this is one of the most important benefits of the result based marketing strategy, which is a great tool for getting rid of risks. The easiest way to avoid making an error is considering all potential options, evaluating the opportunity costs, as well as choosing the option with the least risk and/or the highest return (the optimal risk/return ratio). Result based marketing strategy enables the research required to consider the risks and returns of various departments, equipping the firm with the knowledge to mitigate risk and capture opportunities.
d). Implementing Result based marketing
Choosing and implementing a rock-solid marketing strategy is probably the single most important factor contributing to the long-term sustainable success of any business venture. Yet, most businesses don’t have one. Even a business that does have a strategy often do not implement it one hundred percent. However, business organizations that have the vision to create a dynamic, customer-result based marketing strategy, and the determination to put it into practice, usually have the competitive edge. Implementing Result based marketing include:
i). Set the right expectations.
In implementing Result based marketing it is important to remember that marketing is not an instant fix. If you expect your marketing labor to be successful, it is important to remember that this is a marathon, not a sprint. Companies are often told that it takes 6-12 months before you start to see the return on your marketing efforts. Think of it like rolling a snowball down a hill. The snowball is stationed at first and it needs a lot of work to kick off. However, immediately you get going, the momentum grows and it gets a lot easier for it to grow. Marketing works much the same way. It will require some time and effort to set up the right foundation for your efforts. Immediately you do, you’ll begin to see the advances you’re looking for in your business. Because marketing success requires time, it’s vital to make sure your business leadership and team understands that. Building those expectations up front will help everyone understand
ii). Build the team and secure resources.
Who will be on your marketing implementation team? It’s necessary to contemplate through whom you will need to help with this effort. Sometimes, that will include employees at your company – such as members of your marketing department (if you have one), sales team or client service sector. Other times, that means bringing in an outsourced marketing partner or a number of vendors to help you. Either way, make sure you know who needs to be on your team to implement the effort. Also, look at what other resources you need. Are there tools, materials or education that you need to begin? If so, make sure you acquire those resources in place too.
iii). Communicate the plan.
Once you have built your marketing team, be sure to disseminate the marketing strategy to this group and help them know the goals. Be sure every member of your marketing team understands the role they plan in the implementation effort and how they will contribute to your success. In addition to communicating the plan to your core team, you should equally give the rest of your firm an overview of your efforts. This will enable create happiness about your efforts and make your entire organization feel they are part of what is happening and consequently implementing Result based marketing.
e). Challenges of Result based marketing strategy
In as much as result based marketing strategies should be what any business venture seeks to put through, nevertheless there are some challenges of Result driving marketing consisting of the following:
i) Generating traffic and leads
Generating enough traffic and leads was the top marketing setback, as raised by the 2017 State of Inbound report. Clearly, marketers are struggling with producing enough demand for their content. And as the year’s progress and competition tighten, this will only get truer. With several options of platforms for marketers to publish their content and even more ways to promote it, it is difficult to know where to place your efforts. When it comes to creating content that produces enough traffic as well as leads, marketers should be able pose two questions to themselves: Are you truly creating high-quality content, the kind of content, individuals would pay for? Moreover, do you know the kind of content your audience actually wants? Once you know you are creating the type of content your audience wants, the attention shifts to facilitating it in a way that makes your audience take observed. Now than ever before, a handful of individuals are being flooded with content. Consumers do not have to operate a search engine to find answers. Rather, articles saturate their news feed or buzz in their pocket via mobile notification. Needless to say, the content promotion playbook is not the same as it was five years ago. To be sure your lead numbers as well as traffic continue to rise, check out this understandable guide to content promotion.
ii) Providing the ROI of your marketing activities
Measuring the ROI (return on investment) of your marketing activities has remained one of the top challenges of result or performance marketing strategy over the years. But, it also continues to be a vital way for marketers to understand the effectiveness of each particular marketing campaign, piece of content, etc. Proving ROI often goes hand-in-hand with making an argument to increase budgets: No ROI tracking, no exhibit able ROI. No ROI, no budget. But tracking the ROI of every single marketing activity isn't always easy, particularly if you don't have dual-way communication between your marketing activities and sales reports. When it comes to providing ROI, there's a strong case to be set up for laying off time and resources to establishing links between marketing activities and sales results. We have found there is no better combination than having an SLA and doing inbound marketing. Following this year's report, inbound businesses with SLAs are 3X more likely to rate their marketing strategy as effective compared to outbound organizations with misaligned marketing and sales teams. (Use this ROI calculator to simulate the potential ROI you could realize by conducting inbound marketing.)
iii) Securing enough budget
Securing more budgets is one of the challenges of result based marketing strategy. And often, getting more budgets is easier said than done, especially for smaller organizations that aren't working with sizable nor flexible marketing spend. But the key to securing more money for your team might not be that complex. Here’s what you can do. The key to unlocking budget lies in being able to prove the ROI of your marketing efforts. Prior to our report, businesses that can calculate ROI are more likely to receive higher budgets. Again, success with inbound marketing also plays a large role in driving greater budgets. Knowledgeable strategies normally produce results, and our data demonstrates those who feel confident in their marketing strategy are more than 2X as likely to get higher budgets for their marketing teams. But recall that, inbound marketing is a prolonged game. If you get off to a slow take off, you don’t have backed off. As such, you might consider doubling down.
4) Managing your website
Managing a website has been one of the biggest challenges of Result based marketing for marketers in 2017. The possibilities are that, your website's capacity is high on your list of priorities. It is an asset that works around the clock to attract in visitors, convert them, and assist you hit your goals, after all. Issues with website management include a variety of different factors, from writing as well as optimizing the content to designing beautiful web pages.
Apart from these challenges of Result based marketing raised in this article, there are equally a whole lot of challenges of Result based marketing that should be searched for and gotten rid of. We trust this article helps put you into perspective and provide some vital information that will ginger the sales of your company’s product through the execution of Result based marketing that wins on the market.