CMO Guide to Maximizing Customer Marketing Performance & ROI

Marketing Pro?tability Management Series | Volume 1
CMOGUIDEto
Maximizing Customer Marketing Performance & ROI
prepared by
Deeper Insights.
sponsored bySmarter Marketing.
More Pro?table Performance.Marketing ROI - the process of measuring and managingmarketing's ?nancial return on investment - is a critical priorityfor Chief Marketing O?cers who are under pressure to deliverpro?table growth while defending budgets and demonstratingaccountability to the CEO and CFO. Developing greater marketingROI capabilities and discipline involves embarking on a journeyof both challenges and opportunities.
This white paper is part of our Marketing Pro?tability Manage-ment Series, which is intended to provide CMOs and their teamof marketing managers to build a deeper understanding of howmarketing ROI insights can guide strategic and tactical decisionstoward higher performance and pro?tability.
We are thankful to have Citrix® Online's GoToWebinar® as thesponsor of this white paper. There are many missed opportunitiesfor marketing to grow current customers that result from nottaking the time to know customers and tap into the intelligencewith quality analytics, measurements, and ROI analyses. Amongother bene?ts, GoToWebinar® can contribute to customer growthwith a cost-e?ective solution for educational engage-ment andintelligence on customer needs and interests.
Best Regards,
Jim LenskoldPresident of Lenskold Group, Inc. and author of the award-winning book,"Marketing ROI: The Path to Campaign, Customer & Corporate Pro?tability"
IN THIS ISSUE. Why current customer marketing has greater pro?t . How trigger analytics guide marketing timingpotential than acquisition marketing . What measurement methodologies are. How better customer intelligence creates advantages needed to assess e?ectivenesfor marketing . Where ROI analyses go wrong for current. How to improve targeting of high-value, high- customer marketing and how it di?ers fromconversion segments with analytics acquisition marketing ROI
®Citrix® is a registered trademark of Citrix Systems, Inc. in the U.S. and other countries. Citrix GoToWebinar® is atrademark of Citrix Online, LLC, in the United States and other countries. All other trademarks and registeredtrademarks are property of their respective owners.
©010 Lenskold Group. All rights reserved. Marketing Pro?tability Management Series | Volume 1
EXECUTIVE SUMMARY
We've all read how marketing to existing customers is less expensive and morepro?table than acquiring new ones. It certainly makes sense that existingcustomers would be the best source of new sales, since they have (hopefully) hada generally positive experience with your company and because your marketingand sales teams have a depth of knowledge about these customers that they canleverage to generate additional business. Why, then, do marketing teams tend todevote the bulk of their attention, and budget, to acquiring new customers?
The reasons are understandable. Acquisition marketing is easier to manage - often
In order to capture more value through traditional shotgun campaign approaches - and easier to measure, basedfrom existing customers, CMOs on the incremental sales lift that results from a speci?c program. Compare this tothe complexities of relationship marketing, which relies on deeper insights intoshould seek to leverage insights customer potential and more reliable measures of marketing's ability to in?uencenew purchases and customer value growth.into behavior analytics, implement Maximizing the return on investment (ROI) from marketing to existing customersreliable measurements, and assess requires more than simply knowing which customers have spent the most moneyon your products or services. The key to this type of insights-based marketing isROI potential to guide strategies knowing which customers are ready to buy again - and when. Why invest heavilyand deliver higher-performing in campaigns targeted at customers who are not likely to buy? Marketing to existingcustomers is an opportunity to leverage customer-speci?c insight to create highermarketing. pro?t potential that is not viable with acquisition e?orts to unknown buyers.
Marketing teams may already know who their "best" customers are, but betterintelligence supported with ROI analysis can help prioritize lower-tier segmentswith the greatest growth potential. Targeted marketing p... [download for more]