Posts Tagged ‘recession’

The ROI of Putting on Pants

November 18th, 2008

When the economy is down and your budget is slashed, you might be forced to prove every investment. Your CEO or manager might want to see the ROI of every effort — from direct mail to responding to comments.

And who can blame them, really? Times are tight. All signs are pointing south. They want to make sure that money isn’t being wasted. You might feel the same way: you don’t want to waste part of a shrinking budget on anything that’s not guaranteed to work.

But that might not be the best way to market. Alan Scott, CMO, Dow Jones certainly doesn’t think so. Scott’s strategy is to measure every investment and interaction with the customer that he can, and to make sure overall revenue numbers are solid, he says. Getting too granular in your ROI analysis can become a distraction.

“It’s very difficult to understand the cause and effect of every individual component and make a meaningful decision,” he says. “I heard at a conference not too long ago, someone said ‘What’s the ROI of putting on pants?’ Your probably could calculate it somehow. But you have to do it [anyway].”

That’s a great line: “What’s the ROI of putting on pants?” Remember it when you’re thinking of changing a successful marketing plan just because you cannot calculate the return on every portion of it. If it works overall, why change it? Granted, it’s worth the time and effort to tweak and test, but don’t slash and burn your pants because you’re not sure how much money they make.

Sequoia Capital Advises CEOs to Rely on Marketing to Survive Downturn

October 20th, 2008

The heads of Sequoia Capital gave a CEO-only presentation on Oct. 7 that I can describe only as the ‘PowerPoint of doom’. The cover slide even had a tombstone on it.

Last week, private equity firms (e.g., Benchmark Capital) and other major investors (e.g., Ron Conway) followed suit, sending a flurry of doom-laden advisory emails to hundreds of CEOs. Read more…

Digital Coupons Can Help Hold Customers During Tough Economy

April 16th, 2008

Should the US slip into a dreaded recession, 67% of US consumers said they’d be more likely to use coupons, according to an ICOM survey. If you’re looking to hold customers through the storm, maybe a coupon strategy can help.

If your eyes just rolled, you might be surprised to hear how coupons are changing. Cell phones are taking them out of the Sunday paper. Consumers are receiving and redeeming coupons straight from their phones.

Read more…