The main reason why I have always been passionate about marketing is because I believe that when it is done well, it can be an engine for hyper growth for an organization, large or small. This is why I started my own marketing company, FullEffect International, Inc., where we strive to empower the small and medium sized business with outcome-driven marketing solutions. As Peter Drucker insightfully suggested, when repurposed and / or reimagined, it is marketing that can create sustained value for the organization.
“Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.” — Peter F. Drucker
But what does “FullEffect” even mean? One of the reasons why I used this play with words was to create a new term that could capture when marketing was producing outcome-driven results. In an effort to break this down further, below are 4 key areas that we examine when talking to new and existing clients. We believe these to be the building blocks of “FullEffect” marketing.
The “3 Rs” Effect: You have customers who not only keep coming back and repeat purchasing your product but also recommend it to others. And finally, these repeat customers rave about it in their social and professional circles online.
Data to Measure: Percent of Repeat Business
The Profitability Effect: After all is said in done with your marketing programs, you are consistently operating profitably. This is attained because you have smart efficiencies in place to keep your cost per customer acquisition low. Furthermore, you are constantly looking at ways to creatively reduce your marketing expense where you can while not compromising value. Moreover, your best customers are compelled to buy your most profitable products driving a higher average selling price.
Data to Measure: Customer Acquisition Cost (Average Revenue per Customer)
The Quality Top Funnel Effect: You are able to bring in quality leads at the top of the funnel such that your sales teams are able to be more efficient at closing deals in less time.
Data to Measure: Sales Win Ratio (Converted Leads)
The Global Scale Effect: Assuming your product or service has been tested and their is a product market fit overseas, your company has successfully entered a new market with a strategic, tailored go-to-market plan for that geography. As a result, your product has achieved scale that generates incremental value for your business, brand, and company culture.
Data to Measure: Market Segment Share Trends by Geography
In conclusion, how is your marketing performing today? Is it creating value for your bottom line? Are you satisfied with the outcomes that your marketing team is delivering? To answer these questions thoughtfully, one would be remiss not to look at the above areas thoroughly. This is why I believe these to be the most critical areas when evaluating a company’s marketing performance. Of course there are other areas such as brand equity but when it comes to creating and sustaining value for an organization, the aforementioned 4 factors can do so fairly quickly.
Michael Campbell is the Founder of FullEffect International, Inc. a consulting firm that provides small and medium size businesses outcome-driven marketing services focused on growth in less time and at less cost. You can contact him here if you have an inquiry: info@fulleffectinsiliconvalley.com