Linking engagement with profitability: other evidence

May 13, 2010

Marketing Week, May 13th, 2010

Prophet's "State of Marketing 2009" (MW, 17 December 2009) research suggests that those marketers seen as "visionary" are more likely to have an awareness of how marketing initiatives affect their company's overall business performance.

According to the study, 60% of visionary marketers collaborate with the CEO or COO and 31% work with the CFO. Prophet senior partner Scott Davis says that board sawy maketers need to develop strategies that will help drive the whole business, not just their own objectives. Corporate growth strategies and marketing strategies need to be perfectly aligned.

Consultancy Lippincott's recent "Brand Legends" study (MW, 15 April) suggests that brands that tie their marketing stories to their customers' real-life experiences will increase their bottom line.

It divides companies into "brands legends", which have succeeded at matching the strength of their communications with the delivery of a distinctive, positive customer experience, and "brand myths" - companies that have rested on the laurels of their reputations for too long. The legends are likely to retain profitability longer than the myths.

Targetbase Claydon Heeley's study (MW, 18 February) claims that only 24% of brands are investing "heavily" in engagement, although 82% claim to have a customer engagement strategy in place.

Seventy-eight per cent believe their programmes are effective, with 7% soliciting customer feedback, 18% carrying out two-way customer conversations and 13% keeping in regular contact with cusotmers as forms of measurement.

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