How to Drive Profitability with Your Strategic Marketing Plan
In the world of business, growth is one thing, but profitable growth is an entirely different animal.
As evidenced during the recent economic downturn, it’s certainly feasible to grow a company without increasing profits. In fact, many firms have spoken publicly about how they feel like they’re “doing more than ever” but getting paid less for their efforts.
To avoid falling into this trap, use these five strategic marketing approaches to drive profitable growth for your company:
1. Set quantifiable objectives.
By establishing key performance indicators (KPIs) that are aligned with your company’s overall mission, you can find new ways to raise revenues by working smarter, better, and faster. Use metrics to measure your success, and then tweak your KPIs accordingly.
2. Tune up your strategic marketing team.
Strategic marketing in and of itself doesn’t always deliver revenue, but it should certainly be a key component of your overall profitability goals.
Make sure your marketing team is in tune with the rest of the organization when creating new online and offline campaigns, for example, and keep this vital department up to speed on the effectiveness of its contribution to the overall organization.
3. Give your customer base a good, hard look.
You’ve heard the saying that 80 percent of your business comes from 20 percent of your customers, right?
Now is the time to assess your overall client base and determine what more you can do for that 20 percent. Sort through the rest to focus only on those companies that are true profit generators.
4. Diversify, diversify, diversify.
Chances are, the clients that carried your organization through the economic boom times aren’t the same ones that are supporting it right now.
Things are different, which means if you haven’t already diversified into new markets and new customer segments, you’re missing the boat. Now is the time to develop that new niche or go after that client base that your competitors are overlooking.
5. Use comprehensive measurements and analysis.
You can’t get a handle on your firm’s profitability if you don’t measure the results of your strategic marketing efforts.
To outsmart the competition and get your organization moving in the right direction, keep close tabs on the measurable strategies—strategic marketing, business development, online advertising, customer service, and so on.
Provide employees and managers with performance feedback on a regular basis and instill a culture of accountability and measurability. Then, use the metrics to make solid business decisions