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© 2006 Forte Consulting. All Rights Protected and Reserved.
Viewpoint
Making Most Out of Economic Downturn
5 Weeks Marketing and Sales Action PlanNovember, 2008
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 2Forte Consultancy Group
Financial crises should be considered cycles within business world, with five key stages with different action priorities
No Crisis
Pre-Crisis
Beginning of Crisis
Mid-Crisis
Post-Crisis
Build Trust
Steal from Competition
Win-Back
Get Commitment
Avoid Loss
Financial Crisis Cycle & Priorities
Current stages of focus
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 3Forte Consultancy Group
Refine targets and strategies for achieving them under new conditions
Revise proposition mix based on changing customer needs and demand
Reallocate operational resources based on changing transactional demand
Cater for channel motivation and retention
Closely monitor profile changes and interact with customers
Towards reaching crisis stages, companies need to adapt their marketing and sales activities to turn downturn into an opportunity
Strategies
Propositions
Operations
Channels
Customers
Area Adaptation
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 4Forte Consultancy Group
Week 1 Week 2 Week 3 Week 4 Week 5
We recommend a 5-weeks action plan to fine-tune marketing and sales activities as well as channels in order to make most out of an economic downturn
Motivating and Reassuring Employees
Launching Retention Operations
Revising Targets and Objectives
Developing Retainer Promotions and Programs
Analyzing Customer Value, Behavior and Risk in Downturn
Aligning Product and Media Mix
Attacking Weak Spots
This is an aggressive plan since no time should be wasted in times of financial crisis. Companies should take a highly pragmatic
approach in these actions and dedicate enough resources.
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 5Forte Consultancy Group
Revision of targets and objectives is necessary due to drastic changes in market risks, opportunities demand and competitive landscape
Revision of strategic objectives and key targets (e.g. sales volume, customer retention) assessing and
forecasting impact of economic downturn
Description
Realigning organization towards new goals under new conditions
Avoiding organizational frustration due to now invalid targets during market distress
Resetting focus on business areas with more opportunities during economic downturn
Objectives
Assessment of actualizations to date
Analysis of downturn impact on market
Analysis of changing competitor practices
Revision of SWOT under new conditions
Revision of strategic priorities and objectives
Revision of targets based on new facts
Reallocation of targets across organization
Key Tasks
Revising Targets and ObjectivesAction
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 6Forte Consultancy Group
For companies who do not have a good understanding of its customers, it is time for taking actions, and for those with in-depth insights, changing market conditions could make them obsolete
Modeling of customer value, segments and churn risks which change due to economic downturn and
require new analysis
Description
Understanding changing profile and preferences of customers
Adjusting customer analytics models which became obsolete due to drastic changes in the market
Gaining ability to focus limited resources on the most valuable and high churn risk customers
Objectives
Downturn Customer Valuation
Definition of customer value
Evaluation of value of all customers
Value change analysis
Downturn Customer Behavior Analysis
Definition of behavior important
Evaluation of behavior of all customers Changes and migrations
New segments and niches identification
Downturn Churn Risk Prediction
Analysis of new factors and churner profiles
Development of predictive models
Evaluation of churn risk of all customers
Key Tasks
Analyzing Customer Value, Behavior and Risk in DownturnAction
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 7Forte Consultancy Group
Retention and win-back operations are already critical for any business, but with increasing churn risk, they become vital during an economic downturn
Developing and launching operations to retain customers requesting or is expected to churn
Description
Decreasing amount of customers lost during downturn with effective offers and operations
Sustaining relations with customers during economic downturn, who can create further value afterwards
Preparing for future win-back, collecting the right information from churners
Objectives
Re-active retention offer development
Retention processes design
Retention organization set-up
Information needs definition for future win-back
Workaround systems development
Key Tasks
Launching Retention OperationsAction
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 8Forte Consultancy Group
Tailored promotions and programs increase ability to retain customers during downturn, serving their changing needs and expectations
Designing and developing promotions and marketing programs to retain high risk and valuable customers
Description
Decreasing risk of churn providing better value for money during downturn
Building long term customer commitment ensuring long-time revenue stream
Addressing challenges customers facing with during downturn to serve changing needs and increase loyalty
Objectives
Assessment of churn factors and customer needs
Definition of key guidelines for offers
Design of campaign offers for retention
Design of long-term commitment programs
Design of offers addressing financial distress
Development and targeted launch of offers
Key Tasks
Developing Retainer Promotions and ProgramsAction
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 9Forte Consultancy Group
Economic downturn creates challenges for all players in the market, which create opportunities to attack competitors less prepared or trusted
Developing propositions and communications in order to acquire customers from competition by
leveraging their weaknesses
Description
Growing size of customer portfolio for immediate and future customer value
Increasing market share with targeted messages and communications
Decreasing power of competitors during economic downturn to benefit during and afterwards
Objectives
Analysis of competitor weaknesses
Development of offensive crisis strategies
Design of offensive value propositions
Development and launch of propositions
Identification of weaker competitor customers
Identification of customers lost to weaker earlier
Targeted communications to identified customers
Key Tasks
Attacking Weak SpotsAction
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 10Forte Consultancy Group
As demand shifts towards more affordable products, companies need to realign their product investments while increasing efficiency of media mix used for their promotion
Revisiting product portfolio across channels and media utilized to ensure alignment with changing
customer needs and budgetary constraints
Description
Creating better and faster response rates using less media budget
Decreasing cost of inventory and increasing shelf-space effectiveness as well as return from product investments
Aligning product portfolio with the changing market demand and customer needs
Objectives
Product Mix
Prioritization of products for new market needs
Readjustment of channel inventory (if applicable)
Realignment of product marketing for priorities
Minor revisions on products (if necessary)
Quick new product launches (if necessary)
Media mix
Media investment and impact analysis
Reallocation of media budget based on insights
Restructuring of media & communications plan
Refinement of marketing messages
Key Tasks
Aligning Product and Media MixAction
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 11Forte Consultancy Group
Economic downturn has substantial impact on lives of employees as well, with possible implications for their motivation, which can effect quality of service if not handled effectively
Communicating effectively with employees in order to avoid possible fears and loss of motivation
Description
Ensuring retention of high performing employees during economic downturn
Minimizing risk of decreased service quality due to demoralized customer facing employees
Decreasing risk of negative word of mouth within organization on unfounded grounds
Objectives
Understanding of employee moral and needs
Identification of target internal audience
Definition of key messages to be communicated
Preparation of internal communications plan
Development of communications materials
Definition of responsibilities for motivation
Execution of communications activities
Key Tasks
Motivating and Reassuring EmployeesAction
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 12Forte Consultancy Group
Companies need a special financial crisis management task force for these adaptation activities in sales and marketing areas
Forte can assist you in this adaptation process, allocating experts in each of these activities and collaborating with your internal resources in execution.
Please contact info@forteconsultancy.com for more information on these activities and how we can provide our support.
Human Resources, ChannelsMotivating and Reassuring Employees
Marketing, Merchandising (if applicable)Aligning Product and Media Mix
Marketing, SalesAttacking the Weaker
MarketingDeveloping Retainer Promotions and Programs
Marketing, Channels, ITLaunching Retention and Win-Back Operations
Business Intelligence, MarketingAnalyzing Customer Value, Behavior and Risk in Downturn
Strategic Planning, Marketing, SalesRevising Targets and Objectives
Key Parties to be InvolvedAction
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 13Forte Consultancy Group
Forte Consultancy Group is a fact-driven consulting company, with consultants specializing in customer strategies and actions withextensive experience in loyalty programs
Global Experience of Team
Forte Consultancy Group provides its functional expertise to companies across industries, including authorities in different industries as subject matter experts in
its projects.
Turkey Office
UAE Office
© 2008 Forte Consultancy Group. All Rights Protected and Reserved. 14Forte Consultancy Group
Forte can provide end to end solutions during adaptation, with fact-based and executable designs, which aim balanced impact in both short and long term
Voice of the Market Voice of the Customer Voice of the Business Voice of the Employee
“We talk the language of analysis, we
measure success with numbers”
“We value short term accelerated benefits while heading towards full impact results”
“We create solutions to be implemented,
we engage for it”
Data Driven
Design for Execution
Balanced Impact
Forte Consultancy Group | Istanbul Office
Dereboyu Sok. Sun Plaza Kat:13 Maslak, Istanbul - Turkey
@ info@forteconsultancy.com
+90 212 366 02 66
The information contained in this document, much of which is confidential to Forte Consultancy Group, is for the sole use of the intended recipients. No part of this document may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of Forte Consultancy Group.
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