The weeks leading up to Labor Day are a good time for the CMO to evaluate where he/she stands relative to meeting annual goals and objectives. Since, in many companies the last four months constitute the bulk of the year’s sales, there is time for the CMO to tactically adjust programs and activities to achieve targets.

The proverbial “crystal ball” is broken, making any analysis and forecasting impossible.  Depending upon who you read or listen to, the economy is either getting better, not getting any worse, fragile or ready to turn down.  A consensus is that any recovery is going to be long and slow.

Accepting a position that the economy will remain flat for the 3^rd and 4^th quarters of 2009, as well as the first two quarters of 2010, the push for CMOs should be to gain market share, as strong organic growth is probably several quarters away.  This holds for market-share leaders as well as market-share followers.

The trick in gaining market share, when everyone else is trying to do it, is a combination of offensive and defensive moves.

1. Protect and cultivate your current customers.  Losing a key customer to a competitor not only reduces revenue; it gives the competitor a weapon to go after your customers.  It is harder (more costly) to get a new customer, and very costly to lose an old customer.  To make sure that your customer base is protected, keep your customers happy.  Make them understand that their needs are being met and help them understand your goals, Remember, any additional sales, upgrades, migrations, etc. that you make to the installed-customer base is less costly than selling to a new customer.
2. Hone your value proposition message.  Today’s environment reflects fear and uncertainty.  A company’s value proposition should address these concerns, by merging the differentiated message (faster, easier to use, longer lasting, etc.) to creative financial offerings that enhance or increase the ROI… in a few words that are clear, memorable and always visible.
3. Enhance your value by offering more at the same price. This is not a recommendation to cut prices, but rather a recommendation to augment the product/service offering with more value.  Free shipping, free installation, lower cost training, extended warranties, no-cost upgrades, etc. can be tied to the basic value proposition to make a more compelling story.  Each of these tactical moves can be limited by time, or tied to volume, so that when the economy picks up they once again become chargeable items.
4. Understand your demographics.  If you have had success in a specific vertical, geography or segment, continue to push each and every part of that area.  Having success in the education market doesn’t automatically mean that you will be successful in Financial Services.  You might find it easier in a growing economy but trying to convince buyers in today’s economy is difficult…especially when competition is protecting their turf.
5. Increase your visibility.  Traditional ways of communicating your message/value proposition are changing.  The reach of print media is down, fewer people are attending trade shows and seminars, direct mail, both snail and email, appears to be less effective, traveling road shows aren’t getting the audiences they have in the past, etc.    Increasing your visibility in this environment requires the pragmatic integration of applicable social networking tools to an expanded program.  For example you might:

• • Create and maintain a transparent blog that adds value.  This could be augmented by a series of podcasts.
  • Monitor and be responsive to comments about your company in blogs, tweets, and on social networking sites such as facebook.
  • Provide articles for the print media that covers your industry.
  • Ensure that you have speaking spots and/or seats on panels at industry conferences.
  • If possible tie your company’s products and actions to current topics, e.g.,

i.      What are you doing that is “green?”

ii.      Can you cut health care costs?

iii.      Is there something that you are doing that result in happier employees?

iv.      Etc.

Delivering increasing revenue over the next year is going to be difficult.  Gains will come from beating competitors for any new business or by displacing them in existing situations.  Implementing a series of tactical plans in the next month should help meet 2009 targets, as well as provide a solid footing for 2010.

As the CMO, can you spell out the new plans and programs you are going to implement after Labor Day?

RHM  9/1/2009