In part one I looked at the reasons AR programs fail and what you need to do before speaking to analysts. In this post we look at some metrics you should consider measuring and a few questions you need to ask yourself to maximise the impact AR has on your marketing. This should help create the right foundation on which to build an effective AR programme.
Metrics to measure
If you don’t know your key marketing and sales metrics, how do you know what needs to improve? And if you don’t know what needs improving, then what is the point of doing AR? Typical metrics you need to know include:
1. Number of enquiries for a product or service;
2. Number of referrals made by existing customers or partners;
3. Percentage of enquiries and referrals converted into RFPs;
4. Typical lead response times;
5. Number of RFPs that convert into actual sales;
6. Number of active customers;
7. Total spend per active customer;
8. Customer churn rates;
9. Gross revenue;
10. Gross profit;
11. Marketing costs;
12. Marketing costs per enquiry;
13. Marketing costs as a % of gross profit;
14. Cost of sales (i.e. cost of converting RFPs into actual clients);
Once you have this information and can pass it along to your analysts, it is easier for them to compare you with competitors and work with you to identify specific activities or messages that need to be improved. Tap into their knowledge of industry go-to-market, partnership and channel strategies. Use their unique insight into competitor or industry-wide metrics to test how well you are doing. Most of the time, all you have to do is position your company more clearly in your target markets. If the analysts don’t believe your messages resonate with the needs of your prospects, you will need to keep tweaking;
The key marketing metric take-away is this: analysts can only help you improve your marketing and sales metrics if you measure them properly in the first place.
Is what you say you do what people think you do?
The key consideration here is that in order to develop an accurate representation of your company’s technology or services, you must first get the right feedback from customers, independent influencers and your employees.
To do this properly, you need to have a well-defined process in place to ask the right people the right questions, store the answers and provide easy access to anyone developing marketing strategies.
When approaching customers for feedback, you need to try and get them to do so based on a full understanding of the key competitive options available. You need to understand why they bought from you but might not do so again, or what their biggest frustrations are with vendors in your sector(s). Finally, you must understand where they look for information and how they make purchase decisions as this can help you direct resources to the most appropriate channels.
The feedback from your employees should be consistent across the various teams. There is nothing worse than having the sales and marketing teams disagree on the best action to take to generate leads or because of internal feuds.
Finally, all this feedback needs to be independently analysed or verified. This is where analysts are important. They should be used to sanity check feedback and company-led competitor research. They will compare it with opinions they get from end-users or your competitors. Based on this, they can advise you on how to use the feedback to change your product or service strategies.
Are you talking to the right people?
This is all about marketing to specific niches / target markets so that you maximise your marketing resources.
The people you target should want what you offer and be actively looking for a solution to specific problems that you can provide. More importantly, they should have the money to buy from you and be easily reached by your marketing efforts.
TAnalysts have a good knowledge of potential target markets and will give you advice on how best to reach out to them. They know the drivers and trends that impact purchase decisions. Though bound by client confidentiality, their inside knowledge should be tapped to re-focus your marketing messages and tactics. Analysts also monitor regulatory and industry trends and will suggest markets to consider that you might have ignored.
Post script: These three AR posts have proved pretty popular. So we’ve put them together, ripped out the fluff, given it a bit of structure and turned them into a whitepaper, which you are welcome to download here: