Dear CMO – suggestions for navigating the turnaround
Dear CMO,
You have weathered the economic storm. You were probably caught flat-footed by the recession, but now you sense the light at the end of the tunnel. Business and consumer confidence indices are improving although the US unemployment rate is still high. There is optimism in the air. You have cleared deadwood within your organization. You have outsourced whatever you can outsource to reduce payroll. Remember that recessions are not unusual – happened over time (1980, 1987, 1991/1992, 2000/2001, 2008/2009) and across geographies (Japan in the ‘90s, East Asia in late ‘90s, Germany/France during mid 90s) – and we can use a few strategies and tactics that worked in the past as our guide.
Treat every dollar as your last
Your marketing and advertising budget probably shrank in the last 18 months. In tandem with your competitors, you migrated dollars to more “measurable” channels and new media – because you were focused on short-term performance.
The last time the CFO asked for ROI for each marketing and advertising tactic, you couldn’t quantify the impact and so the CFO controlled the conversation and the purse. Don’t go back to the CFO for increase in budget now. Instead tell your CEO and CFO what you will deliver by changing your budget or allocating it more optimally across media, geographies, target market segments and marketing tactics.
Hire analytical talent
You probably read the book “Competing on Analytics” and wondered how to bring similar rigor to your organization and decision-making processes in order to maximize marketing ROI. Take this opportunity to upgrade your talent pool while mixing right-brained and left-brained individuals. Let the magic happen.
Optimize your marketing communications
Are you getting what you want from your marketing and advertising services partners? How did your partners guide you through the recession? How are you planning to change the conversation with your prospects and customers? Now is the time to launch an aggressive marketing effort and get to your customers as their wallets thaw. Ensure that your brand stands for the one thing that matters to your target audience.
Don’t forget your employees
Another area where your company probably cut back: reduction in customer service personnel, training, etc. If the service you provide is an integral component of the brand experience, assess the components of the service that are indeed valued by your customers prior to making across the board investment increases.
Don’t let your brand falter
During the first spending reductions you cut back on brand building as your CFO wanted to take cost out of “everything.” Not just advertising, but also customer service, innovation, customer experience and more. You insisted on the value of brand building but couldn’t quantify the value of the brand on long-term performance. Maybe your competitor did not follow your budget cuts and instead maintained or increased spending during the recession. You may have to work smarter and be more surgical.
Take risks
Try to be the first mover in emerging media – mobile, video, social, iPad, and more – if you think that your customers and prospects are hanging out in these venues. Don’t be afraid to try unproven tactics, but adopt a disciplined test & learn approach to know the unknown and manage the risks. If your agency hasn’t proposed treading the untested waters yet, consider firing your agency!
Recession and economic recovery favor the prepared organization. Are you prepared? Now is the time for disciplined, deliberate, and thoughtful actions.
