I had a great chat the other day with Elana Anderson, the former Forrester Research superstar analyst who has gone out on her own with her (relatively new) company, NxtERA Marketing. The company offers advisory and consulting services to marketing organizations and providers of marketing services and technology.
We were discussing a new study that her company worked on with marketing solutions provider Responsys.
The main gist of the study–called Marketing Beyond the Status Quo–is that as customer response to broadcast messaging steadily declines and as the percentage of prospects and customers giving permission to market to them decreases, marketers must increase the relevance of their multichannel communications or risk falling short of revenue expectations from the C-suite.
“The data shows – and marketers generally agree – that brands have reached a point where they must invest more time and money in improving the relevance of their communications,” said Anderson.
The report also unveiled the MSQ Model to help marketers determine their relevance maturity and develop a realistic action plan to become a more customer-focused marketer.
The four-point MSQ Model assesses the four fundamental competencies required for marketing relevance: strategic (how customer-focused are your marketing efforts?), analytical (how strategic and actionable is your customer insight?), technical (how well-suited is your infrastructure to support customer-focused marketing?) and process (how collaborative, efficient and error-free is your marketing organization?).
Each competency is weighted and combined to yield an overall Relevance Maturity Score which defines a MSQ Level ranging from 1 (broadcast) to 5 (integrated). Marketers can use the model in conjunction with the MSQ Self-Test to pinpoint their MSQ Level as well as identify the steps they must take in order to successfully move to the next level.
Other key findings and strategies from the study include:
1. Response to one-size-fits-all messaging is declining steadily. The report found that one retailer increased revenues by 500 percent by dividing its e-mail list into four segments and customizing the message to each group. In addition, a comparison of aggregate response data from companies leveraging broadcast tactics versus those using a highly targeted approach showed that the latter delivered significant improvement in open rates, clickthrough rates and clicks per open.
2.Marketers who want to increase marketing relevance must think outside in – from the perspective of the customer. The first step to relevancy requires marketers to clearly define relevancy to include timely response to customer actions, cross channel integration and a programmatic approach, the study found. Marketers must then develop a realistic action plan based on their current relevancy competency as assessed by the MSQ Model and measure and test every step of their program improvements.
3. Without the right technologies, relevant marketing is impossible. Technologies that increase marketing relevance should be made for marketers, and include functionality for automation, collaboration and integration – with little or no IT expertise needed. The report identifies emerging software-as-service options are a boon for marketers looking for lower up-front investment costs, to reduce IT involvement and to decrease time to market.
To receive a full copy of the Marketing Beyond the Status Quo report, visit www.responsys.com/beyond.
Check it out!