McKinsey & Company | Why it’s still a world of ‘grow or go’

imgres-1In a challenging environment, growth matters more than ever.

Growth is magic. It makes it easier to fund new investments, attract great talent, and acquire assets. But the environment for growth has been difficult since 2008, and while there are signs that the Great Recession is at last receding, significant challenges remain. Real-GDP growth in the United States remains below historical averages; the economies of most European countries are still sluggish; and growth in emerging markets, particularly the BRICS countries—Brazil, Russia, India, China, and South Africa—is slowing down.

For more than a decade, we’ve been building and mining a global-growth database containing hundreds of the largest US and European companies. Recently, we’ve been revisiting some of the core analyses in the 2008 book, The Granularity of Growth,1 to see if the challenging environment of recent years has shifted the picture of fundamentals we painted before the financial crisis. The answer is no, though the economic context arguably has increased the importance of an effective growth strategy.

Survival rates

Healthy growth boosts corporate survival rates, which was true in 2008 and remains true in the United States and in other developed markets. From 1983 to 2013, for instance, roughly 60 percent of the nonfinancial companies then in the S&P 500 were acquired—it’s grow or go, and they have gone. Consider these findings over that period:

  • Sixty of the 78 S&P 500 companies that generated top-line growth and improved or at least maintained their margins outperformed the S&P 500.
  • Companies with deteriorating margins performed less well, even if these companies were growing; just 8 out of 30 outperformed the index.
  • A higher percentage (56 percent) of companies that grew slowly, but also aggressively distributed cash to shareholders, outperformed the S&P 500.

As analysis of these companies’ total returns to shareholders (TRS) suggests (Exhibit 1), growth is only a means to the ultimate end: creating value. Not all growth opportunities are equal. Still, there’s no escaping the fact that growth is a critical driver of performance as measured by total returns to shareholders. And TRS under performers are far more likely to be acquired.

Continue reading this article via the source: Why it’s still a world of ‘grow or go’ | McKinsey & Company

The Ecosystem CMOs Need To Build Now – CMO Nation

The marketing world has undergone a dramatic shift: digital now touches nearly every customer interaction. Marketing has become a technology-powered discipline, with the two areas so interwoven that chief marketing officers are projected to spend more on technology than chief information officers by 2017.

The rise of digital has led to the emergence and explosion of marketing technology (MarTech) applications and platforms. Marketers can now collect and analyze large and disparate volumes of data—and make their insights actionable with a degree of precision just years ago was only a dream. This gives more power to the CMO, who constantly aims to address the basic question of marketing: how to engage and acquire customers for the long term by making engagement and acquisition more attainable and measurable.

Source: The Ecosystem CMOs Need To Build Now – CMO Nation

When to Buy Data

Have your investments in data generated ROI? Do you have a data strategy? Are you performing quarterly data assessments? Have you ever completed a gap analysis?

When to Buy Data

The quality of a company’s data will have a direct impact on the performance of its people, process and technology. Maintaining the quality, timeliness, and completeness of a company’s data will often require working with external data suppliers.

The decision to buy data should only happen after a data assessment, gap analysis and cost benefit analysis have been completed…

The Data Assessment – is an iterative process that aligns to company’s data strategy and go to market plan, and involves:

  • Identifying all data sources
  • Reviewing the data collection procedures
  • Interviewing those responsible for data and analysis
  • Analyzing sample data for quality
  • Setting segmentation based on personas
  • Documenting business process

 

Data assessments provide qualitative and quantitative insights into data’s…

  • Reliability – Data provides stable and consistent collection processes and analysis
    methods.
  • Validity – Data should clearly and adequately represent the intended result.
  • Timeliness – Data should be available at a useful frequency, should be current, and should be
    timely enough to influence management decision making.
  • Precision – Data have a sufficient level of detail to permit management decision making.

 

Gap Analysis – A gap analysis will identify missing, incomplete or inaccurate data through the data assessment process. Below are examples where data may need to be acquired:GapAnalysis

  • Information missing pertains to specific individuals (i.e. email addresses, phone numbers,etc.)
  • Behavioral information like purchasing patterns, memberships and affiliations, technologies used, etc.
  • Credit score and risk rating
  • Online search history unavailable (cookies, device information, etc.)

 

cost_benefit_analysisCost Benefit Analysis – Justifies the decision to buy data using the findings from the gap analysis and data assessment. It is a comparison of the costs of all options against their total anticipated benefits.

DataQualityWhen to buy data | Cleanse, Enrich, Acquire?

Quality data continues to be a challenge for companies today, and buying data does not guarantee its quality. When using purchasing data from a new supplier start small, inspect the data, and test performance.

Work with major data vendors that are known suppliers of quality consumer and business information. Major suppliers like D&B, InfoGroup, Experian, Equifax, TransUnion, Acxiom, and TeraData are able to provide consumer or business level intelligence that includes their interests, spending patterns, financial information, demographics, firmographic information, and so on.

 

Location Based Marketing | What CMOs need know

In a 2014 study SCORE reported that mobile apps had propelled mobile devices ahead of desktop computers in total time spent consuming digital media. In an article on May 6, 2015, CNET.com reported that according to Google more searches were happening on mobile devices than on desktop computers. 2015 might very well be remembered as the year mobile technology reached its tipping point.

Mobile Marketing | What CMOs need to know

Location Based Marketing (LBM):

Quick history: Location based marketing (LBM) predates mobile by over a decade. In the 1990’s, it was common practice for direct marketers to run proximity matching in their data processing in order to deliver personalized offers via direct mail. The main difference between the direct mail era and now is that marketing was only outbound then. Today LBM serves both an inbound and outbound purpose.

How effective is mobile marketing?

Mobile marketing is the most effective channel to engage with consumers that are often ready to buy…

“Nearly 80% of local searches on a mobile phone end in a conversation” – Neustar.biz

How to be successful at mobile marketing?

Like all channels of marketing, channel and data integration are keys to success. The more complex of the two is in the data. If you’re immersing into the world of mobile or location based marketing, familiarize yourself with location data management (LDP). To start read SIM Partners white paper “The CMO’s Guide to Location Data Management.”

Location, location, location!

CX | Collaboration | How to win a fight

There are three areas where people must be aligned for their organization’s success and survival in an increasingly competitive world:

  • Innovation
  • Transformation
  • Collaboration

Communication is paramount and the manner in which companies manage their internal communications will eventually carry over to how they communicate with their clients.

Your customer’s experience is influenced by how well your organization collaborates and how quickly teams mobilize around the priority shifts and changing demands of your clients.

Take a setp in the right direction and create an annual internal social/PR campaign about your customers, the market and sales initiatives. Set and communicate the goals and milestones reached over the course of the year. Constantly ask for feedback and ideas and recognize anyone that shares. Communicate successes, gaps or areas that need improvement. Run, wash, repeat.

Transparency is paramount! Collaborators always win.