What have we learned during this Great Recession? Particularly, what lessons have we learned that will allow us to position ourselves so we are better prepared for the next economic downturn?
Speaking personally, one of the greatest lessons I’ve learned was that the customer votes daily with their trust and their business. They vote on whether we’re supporting and executing their marketing objectives in a way that generates real value for them and their organizations.
Yes, we still have those customers who are pinching their pennies and incessantly worried about price. But, we also have those clients who realize that it isn’t about price at all, but about value and return on investment. We love those clients!
You can argue that price is important and getting the lowest price is your job and the best way you can serve your employer. But, let me ask you this question. If you execute a mail campaign that is static (no personalization or targeting), spend $5,000 on the campaign and get the typical 1.7% response rate, is it worth it? Or, would you have been better off spending 20% more and adding a PURL or a QR Code to the piece and getting a 7% response rate? Take it one step further – would it have been better to spend less, segment your database and send a direct mail piece that is highly relevant to the target and get an even higher response rate?
Of course, you would need to know many things. Such as, how many of those respondents you are likely to convert into customers, the value of each new customer, the cost of each campaign and then perform an ROI calculation. This formula would clearly show you which campaign would get you the best results for the money spent. So, you can clearly see that it’s not about price, but value that should be driving your decisions.
Are you working with partners who can help guide you in your decision-making and provide the tools necessary to make sure that your marketing campaigns are truly adding value and not just wasting money? Are you working with partners who take the time to provide educational material, webinars and seminars to help educate you and your co-workers on the new technologies available to execute your marketing strategy in the most effective manner? If not, I’m betting that at some point in the near future you’ll be voting with your feet by finding a new partner who can truly bring a measurable value to you and your organization.