Well done, panel ;-)
Helmar
X: Date: 30 Jan 1996 14:23:04 -0800
X: From: Gert Blij <gert@itst.co.za>
X: Subject: Return on Investment (WAS: Forrester Research Study?)
X:
X: One problem I have over here in South Africa though: when I discuss figures
X: like these with my clients, I get these horrible questions about Return on
X: Investment and all that.
The problem here lies solely in the location - South Africa. Because
it was isolated from world happenings for so long, and also suffered
from a severe brain drain , most companies haven't come to grips with
marketing reality. (Incidentally, during SA's brain drain, not a
single politician left the country ;-))
ROI seems to be paramount, but is hardly seen in the context of
long-term customer satisfaction, which is obviously closely linked to
it. In SA, as Gert will know, ripping people off is next to Soccer,
Cricket and Rugby, national sport number 4. Everybody is working into
his/her own pocket, and very little genuine interest in customer
matters is actually displayed. The customer is still more a nuisance
than the originator of all income (incl. salaries)
So, basically, the attitude is wrong.
Asking about ROI is not a sacrilege, but you only get a RETURN if
your INVESTMENT is not just an expense. Most companies, however, get
on the Net to be "in"; to be fashionable is very important here.
Subsequently, the content of these pages is usually very poor, and
because of the lack of involvement and commitment to serving
customers (Net surfers) needs, so is the RETURN. That starts with
ISPs and ends with big banks and insurance companies. So how do they
expect a ROI when there is no investment, no commitment and no
involvement?
Remedy: change top managements attitude towards customer
communication, of which Web "presence" is an integral part!
X: Does the report mention anything about that? and if not, are there any ideas
X: on this list how and/or from where clients can expect ROI on a $1.3 or $3.4
X: million investment in a Web site? or for that matter on any Web site, other
X: then the cheap electronic ad put up to be able to say "we are on the Web".
Here we have another major problem. Marketing in South Africa is
still Advertising and Sales Promotion, both of them rather limited
means of marketing, and by no means means of communication, which by
definition implies dialogue and feedback.
Companies, - because they aren't interested in a genuine information
exchange with the customer, and because this (called Database
Marketing and Relationship Management) is far too much trouble
compared to writing a brief for an advertising agency -, lack the
vision of an integrated marketing strategy.
They are not mentally ready for a database-centered marketing
operation, and even less for database-driven changes, be it in any
element of the marketing mix.
But by sheer nature, communicating with customers via the Net, and
benefitting from it in the long-term, is a one-to-one process. Now
ask yourself how many companies pursue this approach of one-to-one
customer communication in their daily business operation, and you
have an answer to how many will actually get a RETURN on their
INVESTMENT.
I've been trying for two years now to convince companies to use
one-to-one communication principles, based on a marketing database as
the central tool and resource for marketing decision-making, but even
today I have extreme difficulty in even educating them in the basic
principles and benefits.
This notwithstanding, I thought Marketing magazines would be more
open to a new methodology - how wrong I was. They are even more
behind than business. Sad, but true.
A change of heart is required, but that only comes through
enlightenment, which, at times, is a result of competitive threats
and attacks.
Not only in SA, only those who are prepared to provide content, who are
committed to an ongoing dialogue and feedback process, who take
customer matters seriously, and who use all the more or less advanced
technologies at their disposal to create a mutually beneficial
relationship will succeed on the Net. For all others it will be hip
to be seen, but I doubt they will ever see a ROI.
Hope that answer's Gert's question and is an example to all those
shallow web sites out there in cyberspace.
Did I sound cynical? Well, maybe that happens if you are exposed to
such an huge amount of ignorance, but I haven't given up yet. ;-)
Helmar
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Helmar Rudolph WWW: &lt;a href="<a href="<a href="http://os2.iafrica.com/canopus/">http://os2.iafrica.com/canopus/</a>">http://os2.iafrica.com/canopus/</a>"&gt;http://os2.iafrica.com/canopus/&lt;/a&gt;
The Canopus Marketing Corporation Email: helmar@iafrica.com
8 Airlie Place - Constantia 7800 - RSA Tel./Fax: +27-21-794-3414
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"The customer is a holy cow; you don't milk it, you worship it!" - JFR
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