HOW TO CONVINCE CEO & CFO?

Benefits for you and your firm

Marketing management system is a tool that helps marketers to run smooth and effective campaigns, communicate with the team and agencies and respond to Clients’ reactions in any channel we’re communicating with our Clients.

It is the heart for any marketing department, which pumps content  and the brain, which manages it.

The benefits, which it brings to an organization are exactly the same as a human brain (well oxygenated and supplied with blood) to a human being. Additionally, as every, mindfully programmed application, it automates marketing processes, eliminating redundant manual work. To put it short – ir replaces your mailbox , knowledge repository and galley revision. It is your PA with 4 heads and eight arms, that works 24 hours a day. Within a blink of an eye, we’re going to translate these benefits into time and money savings. Why? Because, it matters how efficient you are – not only how comfortably you work. This can be the greatest value for a corporate CEO, not your comfort 😉

How to convince your CEO, that he can also benefit from a marketing management system ?

There are many  Marketing Resource Management or Marketing Process Automation systems on the market. One needs to spend anywhere between €10,000 and €300,000 annually to become a happy user.

Certainly, it’s not a cost but an investment with payback period. There are good investment in systems, where the payback comes as soon as 3 months after the launch (!), but more frequently the average ROI on such an investment ranges between 1 to 3 years. Quite a time… What decison would a CEO take? S/he would approve “necessary” investment that would directly support sales. Whereas, any investment in marketing management platforms would go to a “freezer” for unlimited freeze time. And this all happens despite, that marketing budget efficiency might go up by dozens of percentage points!

What would a Marketing Director need in this case to get a buy in for an investment in tools that would help him/her in everyday work: cut down on administration, increase marketing budget efficiency, decrease campaign costs, cut time-to-market and position marketing as profit center?

I need a compelling business case!

You shall ponder what is the source of the issue today.  It might occur, it’s the increasing number of  campaigns that you have to manage, multiplying commmunication channels, mounting segmentation and micro-targetting, vendors’ and deadline management. On top of this you must look after the entire department, manage staff, collect results and other data, benchmark against competitors and when it comes to management reports – prove that money was wisely spent and there’s a visible return in marketing investments. Poof … hard manage it all in excel and the mailbox – our primary management tools.

By this line, you already know what you  need to do to boost your efficiency, help your company spend money better and affirm the CMO’s (it is yours) position within the company.

Now, you need arguments and figures  which will catch the president’s ear. Here there are:

  1. Higher productivity, thanks to effective creative process, lean campaign management and shortened time-to-market.

    Shorter creative and approval process for all marketing assets plus swifter communication with agencies mean lower campaign production costs by  20%.

    Improve productivity by starting more campaigns

    By centralizing the communication and approval process and working with your agencies within a common platform,  time-to-market gets slashed by 50%-75%

    Improve productivity by reducing time spent on compliance issues

    The approval process is so clear now, that you will spend 5% to 10% of time you used to.

    Reduce Agency fees by streamlining processes

    Shorter production timeand better communication with vendors are calculated into  20% savings on campaign production budget.
  2. Lower costs. Thanks to central  repository of digital assets  that can be re-used many times, you can cut the production costs by 80%.

    When you give system access to your vendor’s employees, their productivity will also increase by at least 50%- 60%, which favorably impacts your costs too.

    Fewer iterations, quicker acceptance process (both on the agency and  Client’s side) translate into 15% – 20% lower agency costs.

    Reduce rework costs

    The central repository of assets that can be re-used on many markets or in many campaigns you can cut production costs by 80% 

    Increase Agency Accountability

    By inviting your Agency to collaborate with you through the  system, you will help the most their productivity by 60%, which will further decrease your costs.

    Reduce overall Agency spending

    Fewer iterations, quicker approval process translates into lower agency fees by 15%-20%
  3. Higher efficiency of activities, thanks to a better use of the budget, high adherence of carried activities with the brand strategy and better targeting of brand communication.

    On-line data related do your digital campaigns, reach and engagement statistics and Best Practice (benchmarked activities) will reduce your campaign costs by 20%.

    Better planning and results controls will add up another 10% squeeze on overall costs.

    The Consistency Index helps adjust any campaign to the brand strategy or campaign objectives which in turn pays off in  90% lower costs on mis-founded creations.

    Reduce spending on low performing campaigns

    Real time data on carried campaigns, penetration statistics and  Best Practice will reduce campaign costs by 20%.

    Reduce unnecesary spending

    Better planning  and  effects constrol add another 10% on the saving side.

    Reduce spending not aligned with your goals

    Consistency Index allows for a perfect match  between any campaign and brad strategy, which eliminates  90% of cost on mis-founded creations.
  4. Higher ROI. Brand Oriented allows for benchmarking of own campaigns vs. competitors’ results on-line, measures the production time and costs, streamlines and automates processes, cuts down administrative chores, which consume 40% of our working time. This all allows for boosting your marketing ROI by 100%.

    Process automation, elimination of waste and redundant campaigns, reduction of in-house and agency’s costs plus high adequacy of communication vs campaigns goals make the ROmI grow by 100%.

    All of a sudden, we have a business case, which shows real value of a system to the firm. We just need to convince the CFO and our own team, besides the CEO. The mere ROI increase by 100% does not say all. Neither about the implementation costs (a case for the CFO) nor about its timeline (a case for the internal team). Let’s begin with our own folks – as it’s the Team thaw will cherish the biggest operating benefits after the system implementation.

    Increased ROI

    Process automation, reduction of superfluous campaigns, reduction of internal and extetrnal cost base and adherence to brand strategy will boost ROI by 100%

How to convince the team?

Most od people fear changes – especialy those induced by implementation of new tools. But, if you are a Marketing Director,the world expects you to think forward (not your team) and take decisions that will take you there. You need to communicate changes artfully to your employees. There are 3 most important factors to be considered while preparing for the roll-out:

  1. Safe proof of concept. There are many systems that will allow that. The best example is the Quick Start® methodology by Brand Oriented, which allows for safe implementation in 2 steps.  Digital media (Social Media – to be precise) allow for the most frequent activities, quicketst feedback and the largest number of engaged and identified brand followers. It is also the place where the industry sees the quickest increase in media budgets. It is there, where you can find low hanging fruits, which we want to rip off, to convince our team and the financial watchdog to go for implementation. It is cheap, quick and safe. A pilot on a restricted area. The training ground is small but very promising.

    PHASE I

    Proof of Concept – it’s a 4-weeks customised implementation. During that time, we can test brand activity, time and money savings and the internal team + the Agency get familiar with the new tool and test the functionality. Nota bene: we’re piloting on real data, real Clients, real budget. The benefits and savings are real as well.

    PHASE II

    After completion of PHASE I, we wrap up, summarizing the effects and  gather arguments for all outside of the marketing team. Outside, because our team have just been fully convinced.

    Having experienced the Proof of Concept on Social Media, we can decide to enter the contract  and purchase full license to Social Media and expand to All Media – ONLY if we are  100% satisfied with the  benefits we’ve obtained so far. The benefits, we’re offering to our Clients must be substantial, since none of our Clients have resigned from full licensed implementation after the Proof of Concept.

  2. Time savings from the very beginning. Before we embark on the Proof of Concept, your Project Manager will ask, how much time s/he needs to devote to this. We like this question, as we can prove another advantage of our platform called  Quick Start®. We need 2 meetings x 2 hours = 4 hours of Project Manager’s time.  Process mapping, liasing with the Agency, customisation of the deployment, i.e. tailoring the platform to fit the Client’s needs are carried by Brand Oriented without unnecessary fuss for the Client. Trainings as well.

  3. Small Steps & Quick Wins. So, we’re throwing a two-step implementation. Each step can be concluded with measurable results. Calculable for time and money. These are the types of arguments, we’re giving to each CMO’s hand.

How to convince your CFO?

Each business case ends with costs, aka capital expenditures. To make a CFO’s mind, you ned to show quick return on investment. Otherwise you’re gone among other capital strategies. Good investments are those that yield  2 x higher interest than treasury bills, with comparable risk free rate. Today, it can be around 5% -6% per annum. Majority of IT system offer much better ROI, that yield 20% p.a. which means we’ll get our payback within 5 years. The best systems systems yield 30%-100% p.a. giving 100% ROI, which means that our investment will pay back within 1-3 years

There are some systems, like Bynder, which can pay off within just 1 year. BrandOriented’s DNA is 3 months ROI. Let’s have a closer look at the latter.

If you are the CFO, Brand Oriented will become your best investment. The ROI is below 3 months which means  400% payback per annum.

The Marketing Director is often afraid that s/he will not find money in this year’s budget,  so s/he would defer he implementation for the next year. At the same time s/he is depriving the company savings yet this very budgetary year. The CFO would not be so extravagant 😉

That shows, that  if a company decides on investing in September, it is still capable to show positive cashflow on this investmet yet in Q4 of the same year. What it means in practice? It is cheaper to implement Brand Oriented than hire a half time assistant  – leaving aside long-term benefits.

Implementation costs

  1. One-off process mapping and configuration costs.

    This means all costs related to process mapping  within the marketing team inside and outside of the company (its agencies) plus all customisation cost, tailoring the platform to fit specific requirements of every Client. It covers system implementation, localization, matching the channels and markets for all brands, taxonomies and API installation.

  2. Licence costs

    After configuration of the  environment and deployment of the platform and verification of access rights the only cost borne by the Client is annual license fee for unlimited number of users. It covers technical support, help desk and dedicated client account who will take care of all Client’s queries along the journey. License fee for the Proof of Concept, can go down to zero.

  3. Training costs

    The training costs is a part of implementation costs (one-off)  and does not bear any additional costs for the Client.