Stevenjeffes: Customer Experience, Marketing, CRM, Corporate Innovation Blog

The Marketing ROI Calculator – The Simple & Proven Formula for Calculating True Marketing Cost, Value and ROI

November 10, 2017 Leave a comment

The Marketing ROI Calculator – Best Practices in the Measurement of Marketing Program and Campaigns

Put Your Marketing Team & Your Marketers on Notice! Your company will start using this proven formula to measure true marketing ROI !!

Introducing…The Marketing ROI Calculator – The Simple & Proven Formula for Calculating True Marketing Cost, Value and ROI !!

Having trouble figuring out the value of your marketing efforts?
Need a proven formula to calculate true marketing ROI?
Want to continue marketing efforts that work and provide net income and abandon those efforts that are a net loss?
Seeking to implement an improved world-class and six sigma marketing process to increase your marketing effectiveness while decreasing your marketing costs?

If you answered “yes” to any one of these questions, read the rest of this blog that delivers the true marketing ROI formula to help develop measured ROI driven marketing!

{Note: this is just one of many formulas variants I have developed for calculating marketing ROI and the actual one to implement will depend on the type of marketing you are performing}.

**John Wanamaker & His Famous Marketing & Advertising Quote**

X

The following blog content is focused on introducing the proven formula, in use by some advanced marketing companies across the US, for calculating marketing and campaign ROI designed to drive sales orders. The marketing ROI formula will be broken down in sections and then by individual fields. We will cover how the formula is used, what internal six-sigma marketing processes need to be put in place to support the population of this formula and how each field is calculated or derived.

Introducing the Tried and True Full Marketing ROI Formula:

Complete Marketing ROI Formula

This formula consists of a pre-launch campaign section illustrated in yellow above and a post-launch campaign section for the entry/update of actual campaign post-launch effectiveness and ROI.

Let’s now review each section in detail as follows: Pre-Launch ROI formula section:

**Campaign Pre-Launch Marketing ROI Formula**

x

The first column of the pre-launch marketing ROI formula (“Campaign Number”) should be a uniquely identifiable campaign number or code being updated from your marketing automation system and the 2^nd column (“Campaign Description”) should be the main goal of the marketing campaign (Customer: acquisition, retention, up-sell, cross-sell, branding or awareness, urgent business alert of crisis communication, etc.).

The 3^rd column of the pre-launch marketing ROI formula (“Campaign Quantity”) is the campaign quantity being delivered to your customer audience (i.e. number of e-mails being delivered, mail, texts, etc.)

The 4^th column of the pre-launch marketing ROI formula (“Materials and Labor Cost”) is critical to the ROI formula and will likely require a few marketing process changes, as well as IT system changes. A true six-sigma structured process marketing environment will require your company to track all labor hours and materials cost associated with the planning, development and launching of any and all campaigns. This requires that you create a work breakdown structure (WBS) to appropriately track hours and materials associated with each campaign you conduct. By doing this you will finally have the fully loaded cost for each campaign such as creative hours spent, strategy planning time, cost of materials (for direct mail, outsourced text or e-mail, etc.). The cost shown is the per-unit cost to send the campaign or 34 cents for each delivered campaign item.

The 5^th column of the pre-launch marketing ROI formula (“Total Mktg. Cost”) is merely the unit cost expanded out to the total cost of the campaign (10,000 x. 34). If your delivered item is a single unit campaign quantity like web landing page, your campaign cost simply becomes the total labor hours used to develop this page and you can skip both columns 3 & 5.

x

The 6^th and last column of the pre-launch marketing ROI formula (“Plan Campaign Dates”) is the expected campaign execution dates that the orders (shown in the post campaign section) will be tracked against this particular campaign.

**Planned Campaign Dates (that orders will be tracked against)**

x

Let’s now review the last section of the marketing ROI formula in detail as follows: Post-Launch ROI formula section:

The first column is the actual campaign dates that the campaign executed in order to compare it to the planned campaign dates

To obtain the 2^nd column of the post-launch marketing ROI formula (“# of Orders”) will require your company to develop the process of direct campaign attribution so that when customers order an item based on a campaign, those customers are incented to provide the campaign code (e.g. in exchange for a small discount) they viewed that drove them to order the item. By making this marketing process change, you have a direct way to track which campaigns drove which orders, by how much, etc. Car rental companies are excellent at this since every coupon is tracked with an encoded code such that they know exactly where the coupon was obtained, what campaign it was associated with, etc.

Number of Orders Associated with Campaign — **# of Orders**

x

The 3^rd column of the post launch marketing ROI formula (“Actual RR %”) is the redemption rate (RR) or simply the number of orders driven by the campaign, divided by the campaign quantity launched (column 3 of the pre-launch form).

Rate of Return for Campaign — **Rate of Return**

x

The 4^th column of the post launch marketing ROI formula (“Avg. Order Sold”) is the average order sold which is populated by your order system and is simply the total value of all orders divided by the number of orders. In this case the total of all orders is equal $2,175 (this becomes the 4^th column, “Bookings”) divided by 15 orders = $145 average per order.

Average Order Sold (AOS) $$ — **Average Order Sold $$**

x

The 5^th column of the post launch marketing ROI formula (“Bookings $$”) is simply the number of orders multiplied by the average $ per order or, in this case, 15 orders x $145 per average order = $2,175.

x

The 6^th column of the post launch marketing ROI formula is the Average Cost of Goods Sold (“COGS %”). In this case, the company has calculated that, historically, the cost of an average order is approximately 30% of an orders value. Another way to state this is that average margins are 70% and 30% is the cost to produce an order.

x

The 7^th column of the post launch marketing ROI formula (“COGS $”) is simply the COGS sold percentage (30%) multiplied by the total bookings $$ value ($2,175 x 30%) = $652.50

x

The 8^th column of the post launch marketing ROI formula (“Contribution $$”) is where we finally calculate the total ROI of the campaign via this simple 2 step process:

Add the cost of the labor to produce the campaign as calculated in column 5 of the pre-launch formula to the cost to produce the orders that the campaign specifically drove.
Subtract the total value of orders from #1 above.

Using the example shown in the full marketing ROI formula above, we first add the pre-launch materials and labor cost of $3,400 to a Cost Of Goods Sold (COGS) cost of $652.50 = ($3,400 + 652.50) = $4,052.50 We then subtract this total campaign cost from total bookings value of $2,175 = -$1,877.50.

The 9^th and final column of the post launch marketing ROI formula (“Cost Per Order”) is simply the total number of orders divided by column 7 (“Contribution”) to determine how much each order is benefitting or costing the company when produced. In this case it is a contribution of -$1,877.50 divided by 15 = -$125.17.

Per the last section, it is important to note that, the greater the number of orders, the more likely the cost will go from a negative contribution to a positive. This occurs because you have generated enough bookings $$ to exceed the cost of the overhead associated with the labor cost to develop and launch the campaign.

Break even for this campaign would be to sell at least 34 orders where the contribution finally turns positive of $51 and the cost per order becomes +$1.50. Selling beyond 34 orders becomes pure profit for the campaign and adds to the bottom line contribution.

This sample below shows the equation using break even orders (“# of Orders”) of 34:

I have helped numerous companies across the US implement, not only the marketing ROI formula/equation, but an entire world class & six-sigma marketing process that accompanies the ROI formula. Implementing this six-sigma marketing process includes implementing a marketing and campaign work breakdown structure (WBS), campaign tracking codes, a set of governing marketing performance metrics and benchmarks and much more.

Once this six sigma process architecture is in place, companies are able to implement a full closed loop marketing process and enable full marketing ROI and effectiveness tracking for any/all marketing initiatives and programs as well as the associated marketing campaigns. In addition to those benefits, companies experience an increase their marketing process repeat-ability and predictability as well as automation of numerous manual marketing tasks, leading to decreased marketing costs and decreased marketing cycle time.

For a additional information on targeting Marketing ROI and Marketing ROI Calculator, please reference the following references:

A Simple Guide to Marketing ROI (Formula & Examples)
HubSpot’s Marketing ROI Guide
Drive Better ROI with Google Analytics
Google Analytics ROI & Attribution Guide

Filed under CRM, Customer Profitability, Marketing Tagged with annual campaign planning, annual campaign plans, annual marketing budget, average orders sold, best practice campaign process, campaign acquisition, campaign benchmarking, campaign best practices, campaign bookings, campaign closed loop, campaign closure process, campaign comparisons, campaign contribution, campaign cost calculations, campaign costs, campaign crisis communications, campaign cross-sell, campaign development, campaign disasters, campaign driven awareness, campaign driven orders, campaign execution, campaign execution planning, campaign gross margin, campaign gross profit, campaign launch, campaign launch planning, campaign mid-course adjustments, campaign net loss, campaign net profit, campaign orders, campaign phases, campaign planning, campaign planning analytics, campaign profitability, campaign rate of return, campaign redemption rate, Campaign ROI, campaign ROI calculations, campaign ROI formulas, campaign success analysis, campaign success stories, campaign tracking codes, campaign up-sell, campaign WBS, campaign win-back, cash flow, closed loop marketing, cost of goods sold, cost of goods sold percent, cost of goods sold percentage, cost per order, CRM Blog, Customer Strategy Blog, EBIDTA, John Wanamaker advertising quote, John Wanamaker marketing quote, leading marketing companies, lean marketing process, Marketing Analysis, marketing benchmarking, marketing bottom line, marketing break even, marketing cash, marketing cash flow, marketing cost, marketing cost benchmarking, marketing excellence process, marketing fixed cost, marketing generated cash flow, marketing income, marketing loss, marketing materials and labor cost, marketing measurement, marketing optimization, marketing order analysis, marketing overhead cost, marketing process optimization, marketing profit, marketing profitability, marketing resource management, Marketing ROI Calculations, Marketing ROI calculator, marketing ROI formula, marketing ROI formulas, Marketing ROI mathematical calculations, marketing ROI process, marketing six-sigma process, marketing spend analysis, marketing success measurement, marketing WBS, marketing work breakdown structure, MRM, net order margin, post campaign analytics, post campaign insights, post campaign results analysis, post campaign ROI analysis, product campaigns, proven marketing ROI, sig sigma programs, Six Sigma, six sigma marketing, six sigma marketing process, six sigma process, top campaigns, top marketing companies, total marketing cost, unprofitable campaigns, value based marketing, value-driven marketing, world-class marketing process

The Basic S4 (S**4) Building Blocks to Creating and Implementing an Effective Customer Strategy

June 23, 2017 Leave a comment

Customer Strategy Best Practices

4S – Customer Strategy Building Blocks

What are the basic building blocks of an effective customer strategy ecosystem?
What is the function of each process in this customer delivery ecosystem?
What are the critical questions that must be answered by each function in this ecosystem?
How can you develop an effective customer strategy that delivers maximized customer satisfaction simultaneous to maximized profitability?
What is the checklist to ensuring your customer strategy and delivery is effective?

The Building Blocks of the Customer Strategy Life Cycle

Above are the basic building blocks to delivering an effective customer experience. Each process is designed to work in an ongoing continuous ecosystem (loop) in order to deliver a personalized customer experience that matches the customer’s current and future needs, preferences, etc.

Let’s examine each process and how it supports the overall infrastructure model.

Segment – the analogy for the segment process is that the more and differentiated customer knowledge you have, the better you will be able separate customers into unique needs groups in order to deliver a unique experience that they truly value.
Separate – Once you have effectively segmented your customers and prospects into unique needs groups, you can then start to separate them in order to deliver differentiated and 1-on-1 treatments that are uniquely valuable to each of those customer segment groups.
Satisfy – The next step in the process is to deliver content and programs that deliver value, not only to the needs of the overall segment group, but also delivers value to every customer sub-segment within the overall segment group via program sub-segment delivery structures. This is accomplished by delivering customized 1-to-1 customer programs that effectively leverage the unique customer insights gathered (history, needs, preferences, likes, dislikes, previous pain points, etc.).
Stratify – The last step in this foundational process is to develop program that migrate customers from low value segments to ever increasing higher value segments. The goal of this process to increase customer’s overall spend, overall share of wallet with the company and overall loyalty and brand ‘stickiness’ such that migrating to a competitor and defecting becomes increasingly difficult. In addition, the migration of customer to higher value segments should also increase the customer’s brand advocacy ranking such that there is a correlation between higher value customer segments and their likelihood to be more likely brand super-advocates {see blog on this topic titled “Achieving Market Leadership by Effectively Managing Customer Loyalty and Advocacy ” : Achieving Market Leadership by Effectively Managing Customer Loyalty and Advocacy }

The 4S Customer Capabilities

Critical Questions Answered by Each Process in the Above Customer Delivery Ecosystem:

Segment – What specific data elements and insights can we leverage or collect to increase our ability to develop unique customer treatment groups.
Separate – Which customer groups does it make sense to develop and deliver differentiated treatment strategies based on profitability models?
Satisfy – What are the optimal customer treatment strategies that can simultaneously optimize customer profitability, loyalty, brand advocacy and customer growth objectives?
Stratify – How do we deliver a progressive and tiered customer program to differentiate ourselves vs. our competitors and grow our market share?

Summary: You might read many complex articles on what a good customer strategy should be based on, but the above basic foundational building blocks are a simple way to start thinking about your customer ecosystem and what corporate capabilities need to be put in place to deliver effective customer and market success.

For Additional Information on This Topic

An effective customer strategy requires more than understanding customer needs. It requires aligning people, processes, technology, and organizational objectives around delivering value to customers. Organizations that successfully implement customer-centric strategies are often better positioned to improve customer satisfaction, increase customer retention, strengthen loyalty, and achieve sustainable business growth.

Building a successful customer strategy also requires a clear understanding of customer expectations, customer journeys, and the factors that influence purchasing decisions. By combining customer insights with strategic planning and execution, organizations can create differentiated experiences that drive long-term competitive advantage.

For additional information on customer strategy and customer-centric business practices, review these resources:

Customer Experience Strategy: A Practical Guide
Qualtrics Customer Experience Strategy Guide
Customer-Centricity: The Key to Growth
McKinsey Customer-Centricity Insights

Organizations that place customers at the center of their business strategy are often better equipped to improve customer relationships, increase loyalty, and achieve long-term success in increasingly competitive markets.

Aligning Market Insights & Trends to Customer Strategies & Priorities

April 28, 2017 Leave a comment

Customer Strategy Best Practices, Tools, Techniques, Examples

What is the size of the potential pool of new customers and which are the best customers to acquire?
Which customers are your most profitable and how do you get other customers to grow and become part of your top ( and most profitable) customer segment group?
What is your current customer share of wallet (SOW) as compared to your competitors and what does driving small incremental increases in your customer SOW do to your overall revenue?
What are the shifting attitudinal and behavior patterns of your customer market and how do you develop a strategy that ‘gets in front of’ these trends?
What are the shifting customer demographics of your marketplace as well as the underlying shift in spending habits
What are the changes in customer preferred marketing channels as well as trends that might impact customer loyalty strategy

Market Insights and Trends Drive Customer Strategy, Programs

The chart above (left side) details the trends for new customers by segment as compared to current customers.

The chart above (right side) illustrates which customers drive the current percentage of revenue in order to understand how customer priorities and strategy should be defined.

Critical Insights: Top Customer, Top Profitable Customers and Customer Share of Wallet vs. Competitors

Market Spend Insights Can Be Transformational in term of goal setting

Customer Attitudinal Trends Insights Are Critical to Customer Strategy

Understanding your market & customer behavior insights is crucial to your company’s survival

The above graphic demonstrates a deep understanding in the shifting attitudinal and behavior patterns of the customer market

Customer Market Buying Power Insights are Crucial For Developing a Coherent Customer Strategy

The above chart illustrates a company capability to understand shifting demographics as well as the underlining shift in spending habits per demographic group

Understanding Key Customer Behavior & Preferences is a Customer Strategy Imperrative

The above chart illustrates a company capability to understand the changes in marketing channels as well as trends that might impact customer strategy

Customer Strategy: An Alignment of All Customer & Market Insights to Maximize Market Dominance & Profitability

Once Customer and Market Insights are fully embraced, an Effective Customer Strategy can be developed that includes optimizing market channel selection, as well as contact and loyalty strategy program components

Blog Summary: In order to achieve the above insights, your company must develop and deploy the following strategic capabilities and delivery programs:

Market sizing & trend insights
Customer revenue and profitability insights analysis
Customer share of wallet and competitor spend insights delivery capability
Market trend & consumer attitudinal and behavior change longitudinal analysis
360° customer needs and preference cultivation that enables a personalized customer experience strategy and delivery (i.e. preference portal customer selection of preferred channels, content types, offer types, frequency of content delivery by content type.)

Below is a list of companies where I have helped develop these programs and are considered world-class in Customer Strategy practices:

Johnson & Johnson
Capital One
Amazon
American Express
Kelloggs

For Additional Information on This Topic

Organizations that successfully align market insights with customer strategies are often better positioned to anticipate changing customer needs, identify emerging opportunities, and develop more effective business strategies. Market trends, customer behaviors, competitive activities, and industry developments can provide valuable information for refining customer priorities and improving decision-making across the organization.

The most successful organizations continuously monitor their markets and use customer insights to guide strategic planning, product development, service delivery, and customer experience initiatives. By combining market intelligence with a deep understanding of customer expectations, organizations can create more relevant value propositions, strengthen customer relationships, and improve long-term business performance.

For additional information on market research, customer insights, and strategic decision-making, review these resources:

What Is Market Research?
Qualtrics Market Research Guide
Market Research and Competitive Analysis
https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis

Organizations that consistently align market insights, customer priorities, and business strategies are often better equipped to improve customer satisfaction, strengthen competitive positioning, and achieve sustainable growth.

Filed under CRM, Customer Profitability, Marketing Tagged with 1:1 marketing, active customers, ad-hoc marketing, affinity marketing, attitudinal data, available customers, baby boomer buying power, best customers, brand affinity, brand affinity programs, brand image, brand perception, cable advertising, changes in spending habits, competitive analysis, Competitive Intelligence, competitor share of wallet, consumer buying power, consumer communication channels, consumer isolation, consumer politics, Consumer trends, content delivery optimization, content management best practices, content management programs, CRM, CRM Blog, current customer base, customer 1-to-1 strategies, customer age insights, customer analytics, customer attitudes, customer attitudinal shift, customer behavior, customer behavior patterns, customer behavior shift, customer behavior trends, customer brand identification, customer brand preferences, customer buying power, customer channel optimization, customer communication channels, customer data warehouse, Customer Deciles, customer demographics, customer disintermediation, customer goal setting, customer growth, customer information database, customer insights, customer insights driven decisions, customer longitudinal analysis, Customer Loyalty, customer loyalty programs, customer loyalty strategy, customer market potential, customer market sizing, customer market trends, customer needs, customer needs and preference cultivation, customer politics, customer pool, customer preference portal, customer preference settings, customer preference trends, customer preferences, customer preferred content, customer preferred marketing channels, customer priorities, Customer Profitability, customer profitability insights, Customer Relationship Management, customer revenue, customer revenue insights, customer segment growth, customer share of wallet, customer social media, customer spend segments, customer spending habit trends, customer spending habits, customer strategy, Customer Strategy Blog, customer strategy components, customer strategy development, Customer Trends, customers drive GDP, demographic group changes, demographic groups, developing customer loyalty, direct marketing, driving customer loyalty, Hispanic buying power, keeping up with the Joneses, lapsed customer analysis, local print, localized events marketing, loyalty credit card, loyalty program best practices, loyalty programs, loyalty strategy components, luxury brands, market goal setting, market insights, market priorities, market sizing, market spend insights, market trend insights, market trends, marketing reach, marketplace trends, micro marketing, minority spending, most profitable customers, new customer acquisition, newspaper inserts, number of US households, opt-in preferences, opt-in strategy, pay gap, personalized customer relationships, personalized marketing, politics and brand image, politics influence on spending, public relations, public relations best practices, purchasing decisions, revenue vs. profitability, rewarding customer behavior, satellite marketing, seniors, shifting demographics, shotgun marketing, spending habits, spending vs. GDP, strategic customer decisions, top brands, top customer brands, top customers, top loyalty programs, tween buying power, wealthy consumers, wealthy customers, women’s pay gap, word of mouth marketing

Turn Customer Feedback & Complaints into Market Leadership, Dominance, Max Profitability

March 24, 2017 Leave a comment

Leveraging Customer Complaints as Strategic Assets

Turn Customer Insights & Complaints into Market Leadership, Dominance, Max Profitability

Research has shown that customers are willing to donate their time (approx. 5-10 hours per week) to become a company and brand partner to help your company grow and become more successful

Key Customer Questions to Grow Your Market Share, Profitability

Golden Questions to Win New Customer, Expand Your Business with New Products & Services

Customer Feedback Reveals Strategic Opportunities: Customers are your best source for insights to help grow and improve your business – if you don’t ask, then you are ignoring valuable feedback that your competitors potentially could exploit to your detriment

Customer Complaints Can Be Turned Into Gold with the Right Approach

Treat Customer Feedback and Complaints not as annoyances but rather as gifts to the company and brand(s)

Transform Customer Complaints into Company Expansion Plans and Customers into Brand Advocates

A carefully constructed customer-partner system will simultaneously cultivate great customer business expansion ideas as well as customer advocates and partners (Research has shown that, by enabling customers to provide continuous feedback and insights, customer longer-term loyalty has correspondingly increased)

For Additional Information on The Topic of Customer Feedback and Complaints

Customer feedback and customer complaints are among the most valuable sources of business intelligence available to any organization. While many companies view complaints as problems to be resolved, market leaders recognize them as opportunities to improve products, services, processes, and customer experiences. Organizations that effectively capture, analyze, and act on customer feedback are often better positioned to increase customer satisfaction, strengthen loyalty, reduce customer churn, and create sustainable competitive advantages.

The most successful organizations establish formal processes for collecting customer insights and transforming feedback into actionable improvements. By listening carefully to customer concerns and addressing root causes rather than symptoms, companies can improve operational performance, enhance customer relationships, and create experiences that encourage long-term loyalty and advocacy. In many cases, the voice of the customer can become a powerful driver of innovation, growth, and profitability.

For additional information on customer feedback and customer experience improvement, review these resources:

Customer Feedback: The Complete Guide
Qualtrics Customer Feedback Guide
The Value of Customer Experience, Quantified
Harvard Business Review Article
A Complaint Is a Gift: Recovering Customer Loyalty When Things Go Wrong: https://books.google.com/books/about/A_Complaint_Is_a_Gift.html?id=CCvVguKs6Z8C

Organizations that systematically transform customer feedback and complaints into business improvements are often better equipped to strengthen customer relationships, improve retention, increase profitability, and achieve long-term market leadership.

Filed under CRM, Customer Profitability, customer service Tagged with brand perception, continuous customer improvement, continuous improvement, CRM Blog, Customer Advisory Groups, customer advocate, customer ambassador, customer analytics, customer approach, customer benchmarking, customer benefit, customer brainstorming, customer brand partner, customer brand partners, customer brand perception, customer commitment, Customer Complaints, customer continuous feedback, customer crowd sourcing, customer detriment, customer disdain, customer feedback, Customer focus groups, customer generated ideas, customer goals, customer golden insights, customer golden opportunities, customer golden questions, customer ideas, customer improvement opportunities, customer improvement programs, customer information, customer innovative, customer innovators, customer insights, customer insights sharing groups, customer loyalty groups, customer loyalty increase, customer market share, customer needs, customer negative feedback, customer partner program, customer partner system, customer partners, customer perception, customer pet peeves, customer pilots, customer point of view, customer points of light, customer preferences, customer product previews, Customer Profitability, customer questionnaire, customer remediation, customer service pilots, customer SLAs, Customer Strategy Blog, customer surveys, customer transformation, Customers first, frequent customers, ignoring customer feedback, ignoring customer trends, long-term loyalty, loyal customers, Market Dominance, market erosion, Market Leadership, market trends, Maximized Profitability, Most Valuable Customers, mystery shoppers, new customer products, new customer services, trend spotter, voice of customer

Change Management Best Practices & World-Class Change Deployment Methodology

February 24, 2017 1 Comment

For additional change management guidance and research, refer to Prosci’s Change Management Resource Center: https://www.prosci.com/solutions/training-programs/change-management-certification-program. The Change Management Methodology offered here can help support your organisational transformation efforts.

Any Change Management initiative should employ a proven & world-class change management implementation framework

Change Management methodology for defining change goals — **Best Practice Change Management Project Approach & Plan – Define Goals, Obtain Buy-In**

Change Management Methodology: Any change initiative should employ a proven & world-class change management implementation framework. Best Practice Steps to Define Change Goals and Obtain Buy-In for the Change

Change Management planning approach — **Best Practice Change Management Project Approach & Plan – Design Change Approach**

Change Management Methodology: Best Practice Steps to Designing a Solid Change Approach

**Best Practice Change Management Project Approach & Plan – Develop and Deploy Change**

Change Management Methodology: Best Practice Steps to Developing and Deploying Change

Change Management deployment process — **Best Practice Change Management Project Approach & Plan – Deliver Change Results**

Change Management Methodology: Best Practice Steps to Delivering Change Results

Change Management results framework — **Management’s Crucial Role In Supporting Change**

Management Must Have Clearly Articulated Roles in Facilitating and Supporting any Change

Change Management leadership roles — Organizational Change Alignment Possible Outcomes

The graphic above depicts the various change outcomes possible. Following a solid change methodology can ensure the optimal state of “total alignment”

Change Management Initiative Analysis Techniques — **Change Initiative Ranking Analysis Techniques**

A best practice change approach includes proven methods and techniques to evaluate potential change initiatives to undertake

Change Management Roles — **Typical & Critical Change Initiative Roles & Organizational Structure**

A world-class change approach includes mapping out change roles and delivering sufficient training and role change orchestration. This approach ensures that aspect of the organization is pulling together in synergy on every level following the implementation of the change.

Change Management Executive Sponsorship — **Change Management Initiative Resource Plan**

A world-class change approach includes mapping out a change implementation organization including the organizational inter-relationships, special committees and groups as well as specific roles and responsibilities.

Change Management middle management strategy — **The Role of Middle Management in Change Management**

A world-class change approach must include middle management inclusion strategies

**Managing & Mitigating Organizational Change Resistance**

Careful Considerations must be made to anticipate and mitigate change resistance, including from middle management

**Executive Support for Change Management**

A world-class change approach includes planning how executive support will be applied during any change initiative

**Change Management Strategies for Institutionalizing Change**

Best practice change methodologies and strategies can mitigate the pitfalls associated with not institutionalizing a change which risks, over time, organizational drift away from the desired change state.

Customer Emotions that Drive Buying Behavior

February 3, 2017 1 Comment

Consumer Behavior Sales Best Practices – Tools, Techniques, Examples

Find out why most companies miss the mark in terms of focusing on generating positive consumer behavior

Solutions to Problems AND Good Customer Emotions Need to Exist for Long-Term Loyalty

Good products and services are only part of the equation in terms of generating customer repeat business, loyalty, long-term retention

Some Customers Will Work to Destroy Your Business While Others Are Willing Partners in Helping You Grow, Be More Successful

Some customers will actually work to kill your company and brand(s), namely dissenters and defectors, while others will work tirelessly to bolster your sales, reputation, customer acquisition efforts, etc.

Guidelines for Generating Positive Customer Emotions and Relations

It is essential that all of your customer facing team members are representing the company and brand well, and that they adhere to your stated customer principles

Sample Steps to Developing an Environment Where Customers Are Motivated to Buy from Your Company

Your customer facing team members need to develop a customer interaction playbook that is consistent with your brand and customer mantra

Alignment of the customer delivery ‘value chain’ is Crucial

Every aspect of your customer delivery ‘value chain’ needs to be synchronized to deliver a highly consistent and high quality (emotional) experience as rated by your customers

A Chief Customer Officer’s (CCO) role is to Advocate for the Customer within the CxO suite

** Refer to previous blog article on the 5 R’s of customer loyalty – https://goo.gl/L4IA3q

If you rate customer satisfaction and loyalty as a high company priority, then they must be represented by a Chief Customer Officer (CCO) that will truly advocate for customers and set the customer standards that drive positive consumer behavior

Consumer Behavior Summary: The following points summarize the content of this blog as follows:

In order to develop customer loyalty you must have both great products and services as well as the ability to generate positive customer emotions (customer delight, feeling connected to the company)
Segments of your customer base will work to destroy your attempt at market success while others are your partners in helping your company become even more successful.
In order to drive positive consumer behavor and convert your customers into advocates and super-advocates, you must develop an internal customer relations playbook (develop customer vision, code of customer interaction conduct, etc.)
Every aspect of your customer delivery ‘value chain’ needs to be in-synch in order to deliver an end-to-end superb and fulfilling customer experience
Every company should have the equivalent of a Chief Customer Officer (CCO) in order to set the customer vision and standards and be the ultimate advocate for all of your customers.

For Additional Information on The Topic of Consumer Bahavior

Customer emotions play a significant role in influencing buying behavior and purchase decisions. While product features, pricing, and convenience remain important factors, emotional connections often determine which brands customers trust, recommend, and remain loyal to over time. Organizations that understand the emotional drivers behind customer behavior are often better positioned to create meaningful customer experiences, strengthen brand loyalty, and improve long-term business performance.

Research continues to demonstrate that purchasing decisions are influenced by both rational and emotional factors. Successful organizations seek to understand customer motivations, reduce purchasing barriers, build trust, and create positive experiences throughout the customer journey. By aligning products, services, messaging, and customer experiences with customer needs and emotions, companies can improve engagement, increase customer satisfaction, and strengthen competitive differentiation.

For additional information on customer emotions and buying behavior, review these resources:

What Is Consumer Behavior in Marketing?
Qualtrics Consumer Behavior Guide
The New Science of Customer Emotions
https://hbr.org/2015/11/the-new-science-of-customer-emotions

Organizations that better understand the emotional factors that influence customer decisions are often better equipped to improve customer experiences, strengthen customer loyalty, and drive sustainable business growth.

Filed under CRM, Customer Profitability, customer service Tagged with acquire competitor’s customers, acquire customers, angry customer, brand advocates, brand ambassadors, brand management best practices, brand reputation, buying environment, Chief Customer Officer, competitor’s customers, CRM, CRM Blog, crying customers, customer advocate, customer advocates, customer anger, customer attrition, customer base, customer care agents, customer code of conduct, customer concern, customer defection, customer emotions, Customer executive, customer feedback, Customer focus groups, customer fulfillment, customer golden rule, customer good feelings, Customer Loyalty, customer management best practices, customer playbook, customer problem solving, customer ratings, customer relations, Customer Relationship Management, customer respect, customer service best practices, customer service call scripts, customer service nightmare stories, customer service pitfalls, customer service playbook, customer service representatives, customer strategy, Customer Strategy Blog, customer tactics, customer vision statement, customer voting, delighted customers, expand customer base, glad customers, grow customers, happy customer, high quality customer service, indifferent customer, leading customer service programs, loyal employees, loyalty program best practices, loyalty programs, pissed off customers, Positive customer emotions, problem customers, scared customers, steal competitor’s customers, Steven Jeffes, top customer service programs, upset customers

Win a Customer for Life by Employing the 5 R’s of Customer Loyalty

January 20, 2017 1 Comment

The how to guide to Win a Customer for Life by Employing the 5 R’s of Customer Loyalty

The 5 “R’s” of Customer Loyalty

Ensure Your Company is 5 “R” Customer Compliant

Following the 5 R’s of Customer Loyalty Will Enable Your Company to Attract and Keep Customers for Life

Ensure Your Company is Customer R-Reliable

Top Steps to Ensuring Your Company is R-Reliable

The First “R” of Customer Loyalty Is Setting High Quality Customer Standards (External) and Goals (Internal) and then Delivering on that Customer Promise for Each and Every Customer Interaction as well as the overall & long-term customer relationship

Example of How a Company Demonstrates Customer R-Reliability

Example of How a Company Demonstrates Customer R-Reliability (continued)

Ensure Your Company is Customer R-Responsive

Top Steps for Your Company to Become Customer R-Responsive

The 2nd “R” of Customer Loyalty Is Ensuring That Customer’s Expectations Are Met: Needs, Concerns, Quality, Cycle Time Expectations, etc.

Example of How a Company Demonstrates Customer R-Responsiveness

Example of How a Company Demonstrates Customer R-Responsiveness (continued)

Ensure Your Company is Customer R-Recognizable

Top Steps for Your Company to Become Customer R-Recognizable

The 3rd “R” of Customer Loyalty Is Ensuring That Your Brand and Company has Distinctive and Positive Characteristics such that it drives positive emotions (driving repeat business, customer referrals, word-of-mouth adverting, etc.

Example of How a Company Becomes Customer R-Recognizable

Example of How a Company Becomes Customer R-Recognizable (continued)

Ensure Your Company is R-Relationship Oriented

Top Steps for Your Company to Become Customer R-Relationship Oriented

The 4th “R” of Customer Loyalty Is Ensuring That Your Brand and Company develops a high quality and mutually beneficial relationship with your customers based on mutual respect, customer insights, an ongoing and open dialogue and a model that encourages a partnership between your brand & company and your customers

Example of How a Company Demonstrates That It Is Customer R-Relationship Oriented

Example of How a Company Demonstrates That It Is Customer R-Relationship Oriented (continued)

Ensure Your Company is Customer R-Rewarding

Top Steps for Your Company to Become Customer R-Rewarding

Example of How a Company Demonstrates Customer R-Rewarding

Example of How a Company Demonstrates Customer R-Rewarding (continued)

Is Your Company Ready to Take the 5 “R” Pledge?

SUMMARY: If you take the pledge above to adhere to the 5 R’s of customer loyalty, you will enhance your ability to attract and retain customers for life. Key to this is developing the capabilities to be best in class for each “R” and ensuring that you are (cost effectively) maintaining a major qualitative advantage in each customer R vs. your competitors.

For addition information on this topic, consult the following resources:

Qualtrics: Customer Loyalty: Good overview of what customer loyalty is, why it matters, and how companies build it. Link: https://www.qualtrics.com/experience-management/customer/customer-loyalty/
Harvard Business Review: The Value of Keeping the Right Customers. Strong strategic perspective on retention, loyalty, and long-term customer value. Link: https://hbr.org/2014/10/the-value-of-keeping-the-right-customers

Filed under CRM, Customer Profitability, customer service, Marketing, Uncategorized Tagged with attract customers, best customer programs, best practice customer programs, best practice customer service, brand ambassador, brand characteristics, brand promise, brand statement, brand vision, company win-win, CRM, CRM Blog, customer acquisition, customer ambassador, customer analytics, customer bi-directional conversation, customer competitive, customer content, customer content management, customer cost competitive, customer cross-sell, customer cycle time, customer defection, customer delivery, customer delivery excellence, customer dialog, customer dialogue, customer dislikes, customer engagement, customer feedback, customer goals, customer information system, customer insights, customer interactions, customer lifetime value, customer long-term, customer long-term relationship, customer longevity, Customer Loyalty, customer loyalty programs, customer metrics, customer mutually beneficial, customer needs, customer partners, customer persistence, customer positive emotions, customer preferences, customer processes, customer ratings, customer recognizable, customer referrals, Customer Relationship Management, customer relationship oriented, customer relationships, customer reliability, customer reliable, Customer Repeat Business, customer respect, customer responsive, customer responsiveness, customer retention, customer rewarding, customer rewards, customer rewards system, customer service, customer service employees, customer service level agreement, customer service principles, customer service promise, customer service team, customer share of wallet, customer SLA, customer SLAs, customer spend, customer standards, customer strategy, Customer Strategy Blog, customer tactics, customer touch points, customer up-sell, customer vision, customer vision statement, customer win-back, customer win-win, customer word of mouth, delighted customers, effective customer service, gold customer, graduated customer rewards, happy customers, how to delight customers, irate customers, leading brands, leading customer programs, pissed off customers, platinum customer, retain customers for life, Ritz Carlton, silver customer, Steven Jeffes, top customer service companies, win customers for life, win customers from competitors

Customer Loyalty: The Formula for Creating a Positive Chain Reaction with Your Customers and Clients To Win & Keep Them for Life

January 2, 2017 1 Comment

Customer Loyalty Best Practices

Introducing the Theory of Customer-Relativity

Theory Of Customer Relativity

Danger – Critical Mass With Your Customers Ahead !

Relativity – Treat Customer Like Family

Customer Loyalty: Differentiated Treatment Strategies

Treating customers, clients and guests like your close relatives will create lasting customer loyalty lasting many generations.

Memorable Guest Experience Formula

Critical Mass Formula for Customer Excellence

Derived Benefits from the Customer-Relative Relativity Formula

Following the customer theory of relativity formula can net your company a distinctive customer competitive advantage

Family Like Customers

Critical Mass Formula for Customer Excellence

Listen Intently – Family & Customers

Listen intently to your customers for improvement gifts in order to improve upon your product and service delivery

Welcome – Family & Customers

Fulfill Special Requests – Family & Customers

Discovering and fulfilling unmet customer needs is a golden opportunity for you to grow your business

Made to Feel Welcome – Family & Customers

Customer Loyalty Programs – Insights

Leveraging gathered insights can help you surprise & delight your customers by anticipating and pre-delivering (without having to be requested) on customer needs and preferences

Gather & Leverage Needs & Preferences to Surprise & Delight Your Guests

Make Your Guests Feel at Home – Family & Customers

Delivering on a company environment that drives a feeling of belonging, contentment, ‘connectedness’ will endear your customers to your company and brand and make them loyal for life

Customer Loyalty Treatment Strategies

Ensure the end-to-end guest experience ‘chain’ is optimal, memorable, etc.

Mapping, analyzing and applying continuous improvement to the end-to-end guest experience on an ongoing basis will ensure each step of that experience chain is high quality and optimal

Hire & Maintain World-Class (1-in-10,000) Customer Ambassadors who treat customers like family

Summary

Top 3 Keys to Delivering an Exceptional Customer Loyalty & Customer/Client Experience

Hire passionate ‘customer ambassadors’ and empower them to drive your customer & client experience. These ambassadors are typically extremely difficult to find and are generally a 1-in-1,000 find, but if you know you have found one when many of your public reviews mention this person by name as delivering exceptional (family like) customer service.
Adopt a customer/client first set of policies and practices that empower your entire team to make right any customer perceived imperfection, unmet need, etc. in the delivery of your products and/or services. This is similar of how you would go out of your way to ensure your relatives are comfortable when visiting as guests.
To support #2 above, develop a listening & learning system to collect, retain and then deliver on expressed customer/client needs, wishes, preferences, etc. Ritz-Carlton does this extremely well with their guests and it shows in terms of attained customer satisfaction levels.

Customer Loyalty Summary:

By employing an E=MC² formula and treating your customers comparable to your relatives, you will create a positive chain reaction experience unlike any other and enable your company to leapfrog your competitors. This formula has worked for numerous companies employing those 1-in-a-thousand customer ambassadors who care about customer with all their heart as they do they own relatives.

For Additional Information on This Topic

Creating a positive chain reaction with customers begins by consistently delivering value, building trust, and exceeding expectations throughout the customer journey. Organizations that focus on customer satisfaction, customer loyalty, and customer retention often benefit from stronger customer relationships, increased referrals, and higher lifetime customer value. When customers have positive experiences, they are more likely to become repeat buyers, recommend the organization to others, and serve as advocates for the brand.

A customer-centric approach requires more than simply meeting customer expectations. Leading organizations actively seek opportunities to improve customer experiences, strengthen engagement, and cultivate long-term relationships that benefit both the customer and the business. By focusing on relationship building rather than transaction management, companies can create a self-reinforcing cycle of loyalty, advocacy, and growth.

For additional information on customer loyalty and customer experience, review these resources:

The Value of Customer Experience, Quantified
https://hbr.org/2014/08/the-value-of-customer-experience-quantified
Customer Loyalty: What It Is and How to Build It
Qualtrics Customer Loyalty Guide

Organizations that consistently create positive customer experiences are often better positioned to improve retention, generate customer advocacy, and achieve sustainable long-term growth.

Filed under CRM, Customer Profitability, customer service Tagged with acquire customers, best in class customer management, best practice customer strategies, brand ambassador, client acquisition, client acquisition strategies, client ambassador, client experience best practices, client loyalty, client management, client management best practices, client management programs, client retention, client satisfaction, client satisfaction best practices, client satisfaction programs, client success stories, client surprise and delight, client testimonials, clients for life, companies that customers love, consumer loyalty, consumer management programs, consumer retention, consumer satisfaction, consumer satisfaction best practices, consumer satisfaction programs, consumer success stories, consumer surprise and delight, consumer testimonials, consumers for life, customer acquisition strategies, customer ambassador, customer best practices, customer defection, Customer Loyalty, customer management, customer management best practices, Customer Management Programs, customer metrics, customer retention, customer satisfaction, customer satisfaction best practices, customer satisfaction programs, customer success stories, customer surprise and delight, customer testimonials, customers for life, excellence in customer service, guest experience, guest experience optimization, Guest management, guest management best practices, guest management programs, guest of the day programs, guest service programs, guests welcome, how to keep a client for life, how to keep a consumer for life, how to win and keep a customer for life, how to win customers, killer customer strategies, leading client satisfaction companies, leading consumer companies, leading customer management companies, leading customer management practices, leading customer service companies, lifetime consumers, lifetime customers, make customers feel at home, make customers feel welcome, memorable client service, memorable customer service, memorable guest service, new customer strategies, Ritz Carlton customer programs, Steven Jeffes, top customer companies, top notch customer service, visitor management, visitor management programs, welcome customers, welcome guests, welcoming customer companies, win a customer for life, winning customer strategies, world-class consumer strategies, world-class customer management

The Top 3 Myths (vs. Reality) Associated with Customer Loyalty and Customer Loyalty Programs

April 15, 2016 Leave a comment

Customer Loyalty Programs Best Practices – Myths vs. Reality

Achieving High Degrees of Customer Loyalty is Even More Elusive Than Ever

Customer Loyalty is Declining Across the Board for Many Industries

Why Customers are Defecting to Other, Competitor Companies

What Factors Drive Customer Loyalty The Most

Customer Satisfaction is Only One Insight in Determining both Short-Term and Long-Term Customer Retention — **Customer Satisfaction is Only One Insight in Determining both Short-Term and Long-Term Customer Loyalty**

Holistic Insights You Must Have to Drive Effective Customer Loyalty Programs – Part 1

Customer Satisfaction is Only One Insight in Determining both Short-Term and Long-Term Customer Retention- continued — **Customer Satisfaction is Only One Insight in Determining both Short-Term and Long-Term Customer Loyalty – continued**

Holistic Insights You Must Have to Drive Effective Customer Loyalty Programs – Part 2

Effective Customer Loyalty Programs (CLPs) Are Highly Tailored Based on Multi-Dimensional Customer Loyalty Insights Shown Above

Effective CLPs is Multi-Dimensional in Their Approach and Focus on Many Program Objectives

Customer Loyalty is Everyone’s Responsibility within the Company

The Real Key to Customer Loyalty Programs

One of the biggest mistakes organizations make is assuming that customer loyalty programs create loyalty. In reality, loyalty programs are often most effective when they support an already positive customer experience. Customers become loyal because they consistently receive value, convenience, trust, and positive interactions. Rewards and incentives can strengthen those relationships, but they rarely compensate for poor service, inconsistent experiences, or a lack of customer focus.

Successful organizations view customer loyalty as the result of a well-designed customer experience strategy. They understand that customer retention depends on more than points, discounts, or promotional offers. It depends on delivering relevant experiences that make customers feel understood and valued at every stage of the customer journey.

Research from Harvard Business Review has shown that improving customer experiences can lead to measurable business benefits, including increased retention and stronger customer relationships. Likewise, Forrester has long emphasized the connection between customer experience quality and customer loyalty, advocacy, and revenue growth.

For organizations looking to maximize the return on their customer loyalty investments, the objective should not be to create a better loyalty program. The objective should be to create a better customer relationship. When companies consistently exceed expectations, loyalty becomes a natural outcome rather than a program-driven objective.

Marketing Master Calendar Development Best Practices

February 12, 2016 Leave a comment

Best Practices in the Development of a Marketing Master Calendar

Best Practices in Marketing Master Calendar Development: Master Marketing Planning Calendar — **Integrated Marketing Planning Calendar**

Having developed numerous marketing master calendars for Fortune clients world-wide, here are top 10 lessons learned & best practices for developing a marketing planning master calendar:

1) All involved marketing & supporting departments must have input into the development of, and be fully represented on the master marketing calendar.

2) All the departments represented on the calendar in must understand their responsibilities, deliverables, due dates, inter-dependencies with other departments as well as the metrics that they are being held accountable for in each step in the process.

3) Process Service Level Agreements (SLA’s) shall be in place for each process handoff such that the overall calendar timeline retains tactical delivery integrity.

4) The calendar must be chronologically intuitive (flow left to right for each sequential major marketing event).

5) Process details must be developed for each major milestone represented on the marketing calendar.

6) A process step owner must be identified for each process step with clear articulation of their responsibilities.

7) Calendar post-event reviews must capture marketing event & campaign lessons learned, planned vs. actual metrics, customer feedback, etc.

8) An actively managed marketing best practices knowledge base must be maintained to capture & propagate captured calendar relevant & other best practices & lessons learned to all stakeholders.

9) Marketing executive sponsors & steering committee members must play a role in the development & execution of the master marketing calendar.

10) Periodic calendar process reviews must be conducted to ensure the calendar & critical processes on the calendar are as efficient & effective as possible.

The following are Master marketing calendar and planning best practices examples that I developed for several Fortune 500 clients as represented by this one (of several examples):

Best Practices in Marketing Master Calendar Development: Annual Master Marketing Planning Calendar — **Integrated Marketing Planning Calendar**

A Best Practice Master Marketing Calendar Represents All Major Events, The Critical Timeline and Major Calendar Development Participants and Stakeholders

**Assessment of Current Marketing Capabilities**

A Very Honest Assessment of the Current State Marketing Capability along with Gaps and Development Needs is Critical for Future Process Improvements

IBest Practices in Marketing Master Calendar Development: Long and Short-Term Calendars — **Integrated Marketing Planning Solution**

A Future-State Solution Vision Must Be Established in Order to Achieve Future State Capabilities

Best Practices in Marketing Master Calendar Development: Business Outcomes — **Marketing Business Outcomes Meeting Summary**

For Each Meeting on The Marketing Master Calendar, Critical Outcomes must be determined for each Calendar Development Meeting Along with Identification of the Meeting Key Owner

Marketing Master Calendar Development Stakeholder Responsibilities

Every Stakeholder and Responsible Leader Must Be Represented on Marketing Master Calendar Development Meeting Master List

Best Practices in Marketing Master Calendar Development: Marketing Channel Strategy — **Marketing Planning Event Cadence Map**

Clearly Defined Responsibilities and Outputs Must Be Defined for Each Marketing Calendar Channel

Best Practices in Marketing Master Calendar Development: Marketing Roles & Accountability — **Marketing Roles & Accountability**

Clearly Defined Accountability Must Be Defined for Marketing Calendar Development

Best Practices in Marketing Master Calendar Development: Roles & Accountabilities — **Marketing Roles & Accountability for Each Functional Area**

Clearly Defined Accountability Must Be Defined for Marketing Calendar Development

Clearly Defined Accountability Must Be Defined for Each Functional Area (left Blue Boxes) in the Marketing Calendar Development Process

Best Practices in Marketing Master Calendar Development: Critical Success Factors — **Marketing Critical Success Factors**

Critical Success Factors Must Be Identified in the Master Marketing Calendar Development Process

Best Practices in Marketing Master Calendar Development: Plan Summary & Next Steps — **Marketing Meeting Summary & Next Steps**

Summary Actions & Next Steps Must Be Identified in the Master Marketing Calendar Development Process

For Additional Information on this topic reference the following:

American Marketing Association Planning Resources. URL: https://www.ama.org
Content Marketing Institute Editorial Calendar Resources. URL: Content Marketing Institute

← Older posts

Newer posts →

Stevenjeffes: Customer Experience, Marketing, CRM, Corporate Innovation Blog

The Marketing ROI Calculator – The Simple & Proven Formula for Calculating True Marketing Cost, Value and ROI

Put Your Marketing Team & Your Marketers on Notice! Your company will start using this proven formula to measure true marketing ROI !!

Introducing…The Marketing ROI Calculator – The Simple & Proven Formula for Calculating True Marketing Cost, Value and ROI !!

Having trouble figuring out the value of your marketing efforts?

Need a proven formula to calculate true marketing ROI?

Want to continue marketing efforts that work and provide net income and abandon those efforts that are a net loss?

Seeking to implement an improved world-class and six sigma marketing process to increase your marketing effectiveness while decreasing your marketing costs?

If you answered “yes” to any one of these questions, read the rest of this blog that delivers the true marketing ROI formula to help develop measured ROI driven marketing!

{Note: this is just one of many formulas variants I have developed for calculating marketing ROI and the actual one to implement will depend on the type of marketing you are performing}.

X

Introducing the Tried and True Full Marketing ROI Formula:

This formula consists of a pre-launch campaign section illustrated in yellow above and a post-launch campaign section for the entry/update of actual campaign post-launch effectiveness and ROI.

Let’s now review each section in detail as follows: Pre-Launch ROI formula section:

x

The 3rd column of the pre-launch marketing ROI formula (“Campaign Quantity”) is the campaign quantity being delivered to your customer audience (i.e. number of e-mails being delivered, mail, texts, etc.)

x

The 6th and last column of the pre-launch marketing ROI formula (“Plan Campaign Dates”) is the expected campaign execution dates that the orders (shown in the post campaign section) will be tracked against this particular campaign.

x

Let’s now review the last section of the marketing ROI formula in detail as follows: Post-Launch ROI formula section:

The first column is the actual campaign dates that the campaign executed in order to compare it to the planned campaign dates

x

The 3rd column of the post launch marketing ROI formula (“Actual RR %”) is the redemption rate (RR) or simply the number of orders driven by the campaign, divided by the campaign quantity launched (column 3 of the pre-launch form).

x

x

The 5th column of the post launch marketing ROI formula (“Bookings $$”) is simply the number of orders multiplied by the average $ per order or, in this case, 15 orders x $145 per average order = $2,175.

x

x

The 7th column of the post launch marketing ROI formula (“COGS $”) is simply the COGS sold percentage (30%) multiplied by the total bookings $$ value ($2,175 x 30%) = $652.50

x

The 8th column of the post launch marketing ROI formula (“Contribution $$”) is where we finally calculate the total ROI of the campaign via this simple 2 step process:

Add the cost of the labor to produce the campaign as calculated in column 5 of the pre-launch formula to the cost to produce the orders that the campaign specifically drove.

Subtract the total value of orders from #1 above.

Using the example shown in the full marketing ROI formula above, we first add the pre-launch materials and labor cost of $3,400 to a Cost Of Goods Sold (COGS) cost of $652.50 = ($3,400 + 652.50) = $4,052.50 We then subtract this total campaign cost from total bookings value of $2,175 = -$1,877.50.

Break even for this campaign would be to sell at least 34 orders where the contribution finally turns positive of $51 and the cost per order becomes +$1.50. Selling beyond 34 orders becomes pure profit for the campaign and adds to the bottom line contribution.

This sample below shows the equation using break even orders (“# of Orders”) of 34:

Share this:

Like this:

The Basic S4 (S**4) Building Blocks to Creating and Implementing an Effective Customer Strategy

The following blog article will succinctly and effectively answer the following questions as related to developing and deploying an effective customer strategy:

What are the basic building blocks of an effective customer strategy ecosystem?

What is the function of each process in this customer delivery ecosystem?

What are the critical questions that must be answered by each function in this ecosystem?

How can you develop an effective customer strategy that delivers maximized customer satisfaction simultaneous to maximized profitability?

What is the checklist to ensuring your customer strategy and delivery is effective?

Above are the basic building blocks to delivering an effective customer experience. Each process is designed to work in an ongoing continuous ecosystem (loop) in order to deliver a personalized customer experience that matches the customer’s current and future needs, preferences, etc.

Let’s examine each process and how it supports the overall infrastructure model.

Segment – the analogy for the segment process is that the more and differentiated customer knowledge you have, the better you will be able separate customers into unique needs groups in order to deliver a unique experience that they truly value.

Separate – Once you have effectively segmented your customers and prospects into unique needs groups, you can then start to separate them in order to deliver differentiated and 1-on-1 treatments that are uniquely valuable to each of those customer segment groups.

Critical Questions Answered by Each Process in the Above Customer Delivery Ecosystem:

Segment – What specific data elements and insights can we leverage or collect to increase our ability to develop unique customer treatment groups.

Separate – Which customer groups does it make sense to develop and deliver differentiated treatment strategies based on profitability models?

Satisfy – What are the optimal customer treatment strategies that can simultaneously optimize customer profitability, loyalty, brand advocacy and customer growth objectives?

Stratify – How do we deliver a progressive and tiered customer program to differentiate ourselves vs. our competitors and grow our market share?

For Additional Information on This Topic

Related Reading

Share this:

Like this:

Aligning Market Insights & Trends to Customer Strategies & Priorities

Does Your Company Ever Grapple with how to answer the Following Questions related to the market you operate in and your customers?:

What is the size of the potential pool of new customers and which are the best customers to acquire?

Which customers are your most profitable and how do you get other customers to grow and become part of your top ( and most profitable) customer segment group?

What is your current customer share of wallet (SOW) as compared to your competitors and what does driving small incremental increases in your customer SOW do to your overall revenue?

What are the shifting attitudinal and behavior patterns of your customer market and how do you develop a strategy that ‘gets in front of’ these trends?

What are the shifting customer demographics of your marketplace as well as the underlying shift in spending habits

What are the changes in customer preferred marketing channels as well as trends that might impact customer loyalty strategy

The above charts illustrate why it is critically important to have clear and accurate insights into your new customer market potential/pool as well as the current customer base and their share of wallet.

The chart above (left side) details the trends for new customers by segment as compared to current customers.

The chart above (right side) illustrates which customers drive the current percentage of revenue in order to understand how customer priorities and strategy should be defined.

Market Spend Insights Can Be Transformational in term of goal setting

The above graphic illustrates how share of wallet changes drive bottom line revenue as well as converting customers into more loyal top customers.

Understanding your market & customer behavior insights is crucial to your company’s survival

The above graphic demonstrates a deep understanding in the shifting attitudinal and behavior patterns of the customer market

The above chart illustrates a company capability to understand shifting demographics as well as the underlining shift in spending habits per demographic group

The above chart illustrates a company capability to understand the changes in marketing channels as well as trends that might impact customer strategy

Once Customer and Market Insights are fully embraced, an Effective Customer Strategy can be developed that includes optimizing market channel selection, as well as contact and loyalty strategy program components

Blog Summary: In order to achieve the above insights, your company must develop and deploy the following strategic capabilities and delivery programs:

Market sizing & trend insights

Customer revenue and profitability insights analysis

Customer share of wallet and competitor spend insights delivery capability

The 3^rd column of the pre-launch marketing ROI formula (“Campaign Quantity”) is the campaign quantity being delivered to your customer audience (i.e. number of e-mails being delivered, mail, texts, etc.)

The 6^th and last column of the pre-launch marketing ROI formula (“Plan Campaign Dates”) is the expected campaign execution dates that the orders (shown in the post campaign section) will be tracked against this particular campaign.

The 3^rd column of the post launch marketing ROI formula (“Actual RR %”) is the redemption rate (RR) or simply the number of orders driven by the campaign, divided by the campaign quantity launched (column 3 of the pre-launch form).

The 5^th column of the post launch marketing ROI formula (“Bookings $$”) is simply the number of orders multiplied by the average $ per order or, in this case, 15 orders x $145 per average order = $2,175.

The 7^th column of the post launch marketing ROI formula (“COGS $”) is simply the COGS sold percentage (30%) multiplied by the total bookings $$ value ($2,175 x 30%) = $652.50

The 8^th column of the post launch marketing ROI formula (“Contribution $$”) is where we finally calculate the total ROI of the campaign via this simple 2 step process: