We all know about strategy, and many people talk about strategy, but in our experience, many organisations don’t employ the long term discipline needed to plan, implement and measure strategic initiatives. This is largely due to people changing jobs more frequently, but also, the need to deliver shareholder value at the end of the financial year outpaces the need for long-term growth.
Strategy should always be the first step in planning effective marketing, because how else do you know if what you’re doing is working at achieving your objectives?
How else do you know how to respond to ideas and opportunities that pop up in the marketing mix throughout the year, how can you make fast decisions on how relevant ideas are to your business objectives?
A strategy not only gives you a clear path to follow, it helps you directly measure your achievements against your objectives. Making internal reporting accountable and clear.
Establishing the marketing and direct mail strategy:
In terms of marketing, you need to start thinking about your business priorities. A good place to start is where you want to focus your marketing energy the most. At Callimedia our strategic approach focuses on how we help customers prioritise the following growth activities:
- Customer Engagement
- Customer Acquisition
- Customer Retention
For example, your organisation may have an objective of 20% growth year on year. You, as Head of Marketing, will need to determine where that growth could come from in terms of existing customers versus new customers.
This could then translate to a prioritisation as follows:
- Engagement – 20% of activity
- Acquisition – 30% of activity
- Retention – 50% of activity
The thinking behind that split could be that getting more business from existing customers is cheaper than acquiring net new customers so you can leverage your budget to achieve that growth. You can then work out how much you need/can assign to awareness and net new customer acquisition, and work out a cost per acquisition.