Sales and Marketing Management

Satisfied customers are essential to success in business. However, today’s customers have never been more aware of their freedom of choice and access to competitive offerings - making customer retention as pressing a goal on the CEO agenda as customer development.

Business models are strongly affected by customer management strategies, branding initiatives, channels, marketing and sales efforts, service, and after-sales programs. All companies, including traditional product and engineering-driven organisations, must recognise - and embrace - the value of a comprehensive customer management strategy. Supported by appropriate technologies, it is key to growth and success.

Booz & Company’s Sales and Marketing Management (SMM) advisory service develops and implements client-specific integrated, multifaceted programs for all customer-related activities.

With more than half a century of experience in customers, channels, and marketing management, Booz & Company has helped hundreds of leading corporations globally improve their marketing, sales, and customer relationship programs.

Booz & Company’s SMM expertise includes:

Brand value management and brand portfolio development
Return on marketing investment
Customer profitability management
Sales force effectiveness
Pricing strategies
Channel strategies, management and distribution effectiveness
Customer lifecycle value management
Customer facing and post-sales capability enhancements

Brand Value Management and Brand Portfolio Development:

According to a 2004 Booz & Company Executive Study on brand management, more than 90% of executives - a two-fold increase over 1999 - identify ‘brand’ as the key element of their companies’ success. And research demonstrates that corporations driven by brand achieve margins about twice as high as their non-brand-guided peers.

Brand-guided companies measure business success more rigorously than other companies and demonstrate sounder budgeting, planning, and decision support systems.

These companies are driven by two simple but essential principles:

They ‘live and breathe’ the brand
They think like their customers

Brand-guided companies have a strong understanding of their brand portfolio and how to optimise this portfolio for above average profitability contribution.

Return on Marketing Investment:

Today’s marketing challenge is to improve ROI by simultaneously increasing return and conserving investments.

In the past, return on marketing investment was measured against qualitative metrics, such as customer satisfaction or awareness. Today, quantitatively measurable outcomes are routinely expected. Marketing expenses are scrutinised for returns. A comprehensive evaluation of the entire marketing value chain, with a goal of improving effectiveness of marketing investments, can significantly improve marketing ROI. This is particularly relevant in the current market which is challenged to maximise performance across both traditional and new forms of media.

Customer Profitability Management:

In saturated markets, it is essential to maximise the value of the existing customer base by shifting corporate focus from customer acquisition to customer profitability. This requires sophisticated analytics such as:

ROI measured by event and by customer-effective pre- and post-event modelling tools
Flexible segmentation
Incentives based on usage and buying behaviour

Data collection must be institutionalised, employ flexible analytical engines, use a well-designed data warehouse architecture, and have the ability to capture data on value-related parameters. Success parameters in marketing must be defined according to ROI targets to which the organisation is aligned.

Sales Force Effectiveness:

As competition increases, a company’s sales force becomes critical to its success. Customers must be targeted effectively and efficiently. Coordinated processes, systems, and structures are essential to ensure seamless interfaces across the organisation.

Account management, best practices in selling, appropriate tooling, structural alignment (i.e. selling, customer service, order taking) and reinforcement (via metrics, incentives, and compliance) should be supported by a strong sales management and leadership infrastructure to strengthen and support fundamentals.

Pricing Strategies:

Developing and implementing value-based pricing schemes over the lifecycle of products is central to long-term market success.

Pricing decisions have complex marketplace consequences. They must be undertaken in the context of the broader marketplace (including customers and competitors) in order to model their impact and determine any necessary adjustments. Pricing strategies must also be aligned with channel strategies. Since the impact of pricing differs significantly by channel, it can have serious, unintended consequences on customer relationships and volume if not managed appropriately.

Channel Strategies, Management and Distribution Effectiveness:

Many industries face formidable change in their distribution systems as they mature. Emerging channels cannibalise existing ones, creating conflicts and driving cost of sales. Organisations must develop a comprehensive strategy based on the shift in business models and the behaviour of their customers. Properly managing channels and identifying the best customer-to-channel mix is critical.

Customer-centric strategies that tailor product and channel offerings to customer segments are often the most effective. Channel planning and management must be based on customer segments and channel economics to maximise revenue and minimise distribution cost. Successful companies regularly monitor changes in customer purchase and ownership requirements and, when appropriate, adapt channel strategy accordingly.

Customer Lifecycle Value Management:

Early customer relationship management (CRM) initiatives were often driven from a technology perspective without a clear business and market-back strategy and objective.

CRM, however, is the most effective means to leverage deep customer insight and manage the customer throughout the entire marketing lifecycle. CRM strategy and objectives form the backbone of the sales and marketing organisation, They create the processes and incentives necessary to achieve a customer-centric focus. Supporting technology must be designed and implemented along these goals. CRM implementation then can be driven by clearly defined metrics (such as ROI and customer retention) to realise true financial benefits.

.......................................................................................................................................................................................................

For more information on sales and marketing management services, contact Vanessa Wallace on +61 2 9321 1900 or email anzsea.enquiries@booz.com.