Marketing Doesn’t Drive Revenue and Other Myths
Gone are the days when marketing didn’t have a budget. Wait! Is that still true today for your company?
There’s a myth out there among upper management that when the belt needs to be tightened, one of the first things to cut is marketing because it has no bearing on revenue. According to the 2017-2018 Gardner CMO Spend Survey, of those 300 US and UK companies surveyed, marketing had 11.3% of the overall budget in 2017, and many are anticipating a decrease in marketing spending in 2018 due economic factors. That’s not good for sales.
It’s true that marketing drives revenue and if your company is cutting your marketing budget, it will eventually reflect in low sales numbers. In our short attention span lives, the companies (and their salespeople) that are always front and center are the ones we remember. Regardless of how persistent a sales rep is they can’t be in front of customers 24/7. If you aren’t reminding your customers who you are, why they like doing business with you, and what problems you are solving for them, they are likely to leave. The role of the marketer is to engage customers and prospects in a cost-effective, inclusive manner while providing the sales department with a continual stream of leads and retaining customers you already have.
The second part of this story is that CMOs have to justify their purchasing decisions by showing they can deliver the return on MarTech spending and that they too have marketing talents. The changing role of the CMO is not only to direct marketing initiatives but to participate as a creative asset in working alongside their team. In short, big salaries are requiring justification. CMOs will need to search out MarTech solutions that provide deliverables in multiple areas. Simply put, the more revenue brought in, the more the marketing department gets to spend. Cost-effectiveness and sticking to budgets (just like other departments) is crucial to CMO survival.
The lie that marketing and sales have nothing to do with each other, as people and as departments couldn’t be further from the truth, especially at successful companies. Marketing departments that ‘talk to’ the sales department and are aware of what the sales side of the business needs and assists them has a proven record of marketing success and increased revenue. A good example of ‘cross-teaming’ for sales growth is in the real estate industry. Because they operate in smaller franchises, many hire their own marketing team under a corporate hub. They can arm their sales people with marketing options to drive sales and grow their company because they interact with them. Perhaps we have been a bit too complacent and controlling in the financial services industry to realize we are behind a decade or two.
Another myth with no merit is that all marketing initiatives at a company should be in-house. There are many product and service-oriented agencies that specialize in the financial services industry. Companies that find talent through agencies that specialize in what they lack, find themselves ahead of the competition. If you’re looking for a specialized marketing person or a team of people, I urge you to look outside and hire an agency, MarTech provider, or a contractor to help drive sales revenue upward in 2018. Your job depends on it.
Most Read IRIS Articles of the Week: Feb 19-23
Here’s a look at the Top 11 Most Viewed Articles of the Week on IRIS.xyz, Feb 19-23, 2018
Click the headline to read the full article. Enjoy!
I’d like to introduce you to Peggy. Born in 1956, Peggy will be 62 in 2018. She has worked in retail her whole life, the past twenty-five years spent in management. Peggy divorced from her husband 14 years ago, is still single and has no children. — Dana Anspach
This week the markets shrugged off last week’s fears and went back to the slow and steady melt up, despite economic news that looked likely to once again rock the boat. — Lenore Elle Hawkins
Themes established in 2017 across a wide range of markets and factors continued to resonate through the fourth quarter. Economic growth was strong and supportive of equity markets across the globe, a range of volatility measures reached all-time lows, and business and consumer sentiment remained elevated. — Yazann Romahi and Garrett Norman
Advisors and investors that feel they are hearing more and more about commodities and the corresponding exchange traded products in recent months are right. That is a natural result of dollar weakness and yes, the greenback is floundering again in 2018. — Tom Lydon
As the industry works to cope with new regulation, wades through an outpouring of new products, learns to satisfy investors’ shifting priorities and manages the active-passive debate, the viability of business units will be questioned, and at times radical measures will be taken. — Peter Hopkins
My hope is that this article points out some opportunities for you to make more money and serve your clients at a higher level and that you decide to do something about it. — Bill Bachrach
Whether the market is flying high or taunting your emotions with new lows and some bumpy volatility, here are four things every investor should keep in mind ... — Lauren Klein
Why financial advisors NEED to understand much more clearly the power of good digital market. With tools like AdvisorStream, it’s easier than ever to get the content you need to drive leads and referrals today! — Kirk Lowe and Matt Halloran
How do some firms and ideas go from nowhere to everywhere in a few short months? All of a sudden a restaurant becomes popular, a gas station gains a cult following, or a Broadway show becomes too popular to get a ticket for years. — Maribeth Kuzmeski
"Worldwide, $27.4 billion poured into fintech startups in 2017, Accenture reports, up 18% from 2016. With so much in play, it’s not surprising that 22 companies are new on this, the third edition of our list." — Chris Skinner
Many sensational headlines have been written the past few weeks about market declines, but two things have increased for sure: the viewership and the ad revenues of financial media organizations — Preston McSwain
- 1 of 2493