Results from Marketing with Impact Survey - February 2014

1,263 views

Published on

We have conducted an European survey among more than 300 commercial managers with the purpose of understanding:

How they allocate and measure the return on their commercial investments and what characterises the companies that perform better than the average in their industry.

This presentation gives you an executive overview of the results

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,263
On SlideShare
0
From Embeds
0
Number of Embeds
496
Actions
Shares
0
Downloads
31
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Results from Marketing with Impact Survey - February 2014

  1. 1. Making Commercial impact Results from European Sales and Marketing study ComEx Copenhagen, February 2014
  2. 2. 2 Introduction Motivated by clients’ statements ” We know our marketing and sales activities, but we do not know their real impact on sales and also do not know how we measure it and improve.” ” We have to reduce our sales and marketing costs, but we do not know where and what activities are critical to success.” ” We do not have a company-wide, transparent overview of all of our marketing and sales activities and the related costs.” ” We need to generate more business from our marketing and sales budget.” Purpose We have conducted an European survey among more than 300 commercial managers with the purpose of understanding ... How they allocate and measure the return on their commercial investments What characterises the companies that perform better than the average in their industry This presentation gives you an executive overview of the results 1 2
  3. 3. 3 Content 1. Key conclusions 2. Detailing of best practice and relevant assessment questions 3. Detailing of survey results
  4. 4. 4 We have identified four key characteristics of companies that excel at making commercial activities accountable Source: Implement Consulting Group Sales & Marketing survey 2013 Companies that perform better than average in their industry have certain characteristics Conclusion Fact They measure and know optimal level of sales and marketing investments across markets, segments, channels and customers of high-performing companies measure some or all of their sales and marketing investments 69% They allocate sales and marketing resources based on a systematic and fact-based approach of high-performing companies have a structured and controlled process for resource allocation 52% They coordinate the allocation of resources and budgets in an integrated process with sales and marketing of high-performing companies have a common decision process between sales and marketing 62% There is a clear link between sales and marketing performance and the individual as well as team incentive structures of individual and 50% of team performance assessments are linked to return on sales and marketing investments 54%
  5. 5. 5 Content 1. Key conclusions 2. Detailing of best practice and relevant assessment questions 3. Detailing of survey results
  6. 6. 6 A majority of the high-performing companies know the optimum level of investments and the impact of these activities Conclusion • 69% of high performers know the impact of marketing and sales activities on revenue. Furthermore, they know the optimum level of all or some of their marketing and sales activities • Impact is measured frequently and more often when an activity is implemented for the first time • In general, optimal level of investment and impact are known if it is for a select and a few number of activities that drive value Source: Implement Consulting Group Sales & Marketing survey 2013 Key questions to consider • What is the return on investments for your largest cost drivers within sales and marketing? • Are there segments or markets where it would be more effective to reduce sales resource and increase marketing investments – or vice versa? • Does sales and marketing make a common business case for developing the most attractive markets, segments or customers? Best practice elements • The return on investment for the largest resource pools, i.e., salespeople, sales support, campaigns, advertising, etc., is known and documented • As a consequence, the optimum marketing and sales resource level across markets and segments is defined High-performing companies know the optimal level of sales and marketing investments
  7. 7. 7 High-performing companies have a structured and fact-based approach for allocating sales and marketing resources Source: Implement Consulting Group Sales & Marketing survey 2013 Key questions to consider • How are roles and responsibilities for allocating sales and marketing resources? • Are your sales and marketing budget and distribution across markets and segments also relative stable – even though the markets and customers are changing? • How do you ensure that allocation of sales and marketing resources is not a continuation of last years budget – but a structured process driven by sales and marketing together? Best practice elements • Sales and marketing have a common and structured approach which ensures that allocation of resources is based on an objective qualification of where the return on investment is highest – and not how the budget allocation was last year • Impact is measured and used for re-allocation if needed Conclusion • 52% of companies performing above market average have a systemic and structured approach for allocating sales and marketing resources • Only 29% of the market performing or below market performing companies had a systematic and structured approach High-performing companies have a structured and controlled process for resource allocation
  8. 8. 8 High-performing companies are more likely to allocate resources in a joint decision-making process between marketing and sales Key questions to consider • Is the budgeting process a joint process between sales and marketing? • Is allocation of sales and marketing resources (number of salespeople, advertising, campaigns, etc.) decided by sales and marketing together? • Does sales and marketing have a common impact case for the return on their investments across segments? Best practice elements • Sales and marketing have a common overview of the potential sales and marketing levers and the potential effect of these • Allocation of sales and marketing resources across segments is a joint decision process Conclusion • High-performing companies have more collaboration between marketing and sales when allocating financial and human resources (62%) whereas companies with lower performance do it to a lesser extent (41%) • Also high-performing companies are more proactive using, e.g., impact evaluation and contribution to strategic targets as factors for allocation High-performing companies have a common decision- making process between sales and marketing Source: Implement Consulting Group Sales & Marketing survey 2013
  9. 9. 9 High-performing companies link the performance assessment of the organisation with the return on marketing and sales activities Key questions to consider • Is there a link between the performance within sales and marketing and the team and individual incentives? • Does the incentive structure support optimal allocation of resources across sales and marketing? • Is there a culture and incentive to cooperate between sales and marketing in defining the optimal level of investments? Best practice elements • The incentive structure on team as well as individual bases is directly linked to the return on investments within own function – as well as the performance across the value chain Conclusion • 54% of individual and 50% of team performance assessments are linked to the actual return on marketing and sales activities, for companies performing above market average • The equivalent figure for average or below market performing companies are only 29% Individual and team performance assessments are directly linked to return on sales and marketing investments in high-performing companies Source: Implement Consulting Group Sales & Marketing survey 2013
  10. 10. 10 Content 1. Key conclusions 2. Detailing of best practice and relevant assessment questions 3. Detailing of survey results
  11. 11. 11 Overview of key findings What characterises the best? On par with or below market average growth Above market average growth +/- They ... Know what they do in terms of marketing and sales activities 29% 46% 17% Know what they invest 49% 67% 18% Measure the impact of the investment 54% 69% 15% Know the optimum level of investment 36% 56% 20% Measure the synergy between sales and marketing activities 28% 44% 16% While the process is … Based on joint decision process between marketing and sales management 41% 62% 21% One of the top 5 most important processes in marketing 17% 32% 15% A structured and controlled process 29% 52% 23% Done in collaborating environment that involves all top managers 9% 27% 18% And the ability to deliver return on marketing is part of the assessment of ... The person responsible 29% 50% 21% And his/her team 29% 47% 18% Source: Implement Consulting Group Sales & Marketing survey 2013
  12. 12. 12 Get in touch Learn more about Implement Consulting Group on www.implementconsultinggroup.com Join The Commercial Excellence Forum We invite you to participate in 4-5 events each year in the form of after-work meetings, conferences etc. with organic growth as the recurrent theme.

×