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Royal Premium Marketing Approach

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Results-oriented marketing ties the goals and costs of marketing projects to measurable results that significantly change customer profitability.

  • Services needed by customers are identified and measured
  • The impact of the project on achieving this outcome will be assessed
  • The time and resources that must be used by customers and consultants are calculated and agreed upon
  • Uncertainty and risk are used to determine unexpected circumstances that need to be considered
  • Project costs are associated with achieving results

The advantages of this approach include:

  • The clear definition of project objectives at the outset relates to positive business impacts
  • Align marketing goals with customer business goals – everyone will share success

An Example

In some cases, it is easy to implement results-based marketing. For example, a customer wants to increase sales by winning more customers. At present, 10% of leads are converted to sales, each with a profit of £ 5,000. A marketing project was launched to produce new customers of the same quality. If the company converts these new customers at normal prices, each of them increases the total range of £ 500. The company and the advisor then agree to pay for new leads as a percentage of the margin they must carry.

Please note that the example above is intentionally simple to illustrate this principle. In practice, additional sales can result in higher or lower profits because additional costs can vary and payment of tin can be set on a sliding scale depending on the total amount of tin produced. Payments can also vary depending on the quality of the tin or payment period.

Most cases are more complex. For example, strategic marketing projects can be used to identify potential profit impacts, making project results more difficult to determine. In addition, in many cases consultation will only be one factor that will lead to an increase in the results required. An example could be a marketing project to enhance the company’s message. However, if it depends on management and sales, use the message to increase sales.

marketing consultancy
marketing consultancy

Give and take

For results-oriented marketing to work, both consultants and customers must be involved.

Consultants are only paid if the desired results are achieved.

The customer must in turn commit to the agreed goals, in turn provide the necessary resources (eg information, support for deployment, access to the system) and have a measurement of current activities and results as the basis for making this improvement. to measure.

In many cases, advisors take the risk that even if the work is carried out to a high standard after a short result that is well defined, the end result may not be achieved due to other obstacles in the client, or it may take time to do it to achieve. For this reason, wage structures can include

  • Minimum time-based costs, such as changing customer priority insurance or internal restrictions that prevent implementation
  • Prizes are important for significant success in considering the risks involved and delaying payments until evaluating their impact on the business

Five factors determine the final payment for a project:

  1. Project contribution to the overall measured outcome
  2. Skills needed to complete the project
  3. Other risk factors outside the scope of the consultation can hinder the achievement of the required results
  4. Schedule for achieving results
  5. The main economic benefits for customers

Practical

Although results-based marketing that links project costs to profitability or higher growth cannot always be carried out, it must always determine the way the project is made.

If uncertainty about current measurements, external variables or other customer priorities makes pure implementation impossible, it is my policy to get the project as far as possible.

Divide the project into steps at a fixed price and check the results after each step. With these reviews, you can change the following steps as needed to get the business results you need. Thus, customers are not involved in large projects with uncertain results
Link payments to intermediate goals when the final goal is difficult to measure, e.g. Paying for increased offers, there is no increase in margins for new sales

Discussing and measuring objectives, as well as marketing and other actions needed to achieve these goals, are important ways to build a consultant-client relationship and are willing to pay for your marketing skills and efforts, if both parties feel that they are honest.

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Copyright 2020. All rights reserved.