It’s a common problem for most organizations – large and small. With all this data on our customers, prospects and their behaviors, what can we report on and what can give us insight to make sound decisions? Most marketers are tasked with this balancing act. Management wants to see justification for your spending – as most executives have not fully embraced that marketing is a revenue generating department. Your team needs strategy insight from the data.
Case In Point
Minimizing customer churn is a big focus today as conservative studies show that it costs three times more to find a new customer than it does to sell to an existing customer. There are studies that state up to 15 times greater. The issue stems from not having consistent, quantifiable data from both marketing and sales that produces clues of potential churn. While executives would love this information, prioritization of this analysis usually comes after it’s too late. It doesn’t help that the account managers are reluctant to assist marketing identify these events as it could cast their performance in a bad light.
Root of the Problem
Until sales executives proactively hold account managers accountable (read: commission) to entering data into fields that their CRM can measure we will be severely limited as to what we can both report on and predict.
Crocodiles and Starfish
It takes steady feet and thick skin to be a marketing executive. When sales are down, marketing is told to generate more leads. The budget isn’t increased, but we know that we probably need 3-15 times more money to achieve this goal. Sales is told to close more deals, so funnels get padded. Account management is often the best place for growth to occur quickly, but like all acquisition marketing and sales they plan takes time, money and effort. It’s like watching a starfish. They are moving, but it’s hard to see immediately unless you have good data.