When as a whole and its performance

considering the above statement a manager should not use such words as ‘dumb’,   as you are belittling another department of
your own organization. Although you work in a different department, the
marketing department is part of the company. There should be unity among
departments and especially among department managers, as you have to be the example
and role model to your subordinates as well as your colleagues. When there is
too much dispute, (some dispute is healthy) among managers as well as departments,
that is when it affects the company as a whole and its performance as well as
decisions.  When you look into the details of the statement, it is
clear that a proper plan was not set up before the campaign. Research of how
many customers could be reached out to was not fully understood. There was a
lot of assumptions and not a proper strategy in place. If a proper strategy were
set-up then maybe the company would have been able to get more new customers than
what was received with the investment of $1M.  It is evident
that no research was conducted to understand what the campaign would bring for
the company. Maybe, the head of marketing, who made the decision, assumed by
spending $1M that they would get a very high return of new customers; it might
have worked in the past for the decision maker in another company or through
past experience. Each company’s marketing strategy should and would be
different, and the methods used in one company to attract new customers won’t
be the same on another. It is quite evident that there was a lack of research done
before the campaign was run. Maybe time was a factor of doing the research and
understanding the best strategy before the campaign and therefore, it resulted
in many assumptions.  The campaign
was not a total success but it wasn’t a complete failure either. Although its return
from the investment was not what was expected, yet the company did receive 1000
new customers. A proper plan, research and execution should have taken place
before the campaign was run. Also, before the campaign was run it should have been
discussed among other departments as well, as getting new customers requires
the collaboration of all departments and their inputs. For future, an analysis
should be run to understand what went wrong and what methods and steps should
be taken to maximize investments done against campaigns to get new customers.  Most of all,
the company needs to concentrate on the 1000 new customers that was introduced
into the company. It was stated that most of the customers stay only for a
year; to get the maximum of the investment, the company needs to take steps to
keep those 1000 customers more than a year. This should be the next step the
company should look into, not to dwell in the negativity or the lack of new
customers but to learn from the downfall and go forward and make the most of
the 1000 customers.  Customer
lifetime value (CLV) is the amount of value a customer contributes to the
business over the time the customer is with the company. Looking at CLV can
help the company define clear marketing goals and sales strategies. By doing so,
the company can reduce its acquisition costs, improve retention and encourage
existing customers to spend more during the time they are a customer with the

The company
can use different concepts to strengthen the CLV such as:

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If the company doesn’t have a loyalty program create
one or if there is an existing one, try to enhance the program to give
additional benefits to the customers to encourage the customer to remain loyal
to the company.  Improve customer relationship management. Offering
better customer service and a consistent good experience will keep the
customers satisfied and lengthen the time the customer will remain with the
company. This will also, allow the company to recognize opportunities for
upselling and cross selling.  Target your most valuable customers in your
organization. You can identify the most profitable customer type when CLV is
calculated and with that information, it can be used to improve the CLV of the
company in the future. Also, will give you the information to refine the
marketing plan/strategy to target the high value customers, who will more
likely make repeated and higher purchases through the customers lifespan.

through the calculation of CLV the company will be able to figure out through
data the value of the 1000 new customers. With figures and data in front of
decision makers you could justify the investment of $1M, was not a total
failure and some return is present. With calculation of CLV the organization
will have a better picture of the value of the 1000 new customers, this won’t
be able to be viewed if you do not have data such as CLV presented to you
because all you will see is for $1M you got only 1000 customers. In the long,
run that 1000 customers are valuable to the company and they will bring a
return if you strategize correctly. The campaign was not a total failure but a
somewhat of a success.


The manager
who made the statement, his or hers view can be changed. When data along with
figures are presented to any manager or decision maker it is difficult for you
to dispute decisions or out comes. It is hard to argue when you have facts and
figures in front of you. With calculations, that itself is a justification for
the reason such a campaign was run and how it was not a failure or that the marketing
department does know what they are doing.

It will be
shown clearly to the manager that with the help of CLV that the company is in a
better position to analyze the situation and therefore, to assist in making
decisions accordingly. Example CLV will give you a picture on what customers
should be marketed and meet their needs accordingly, Return on Investment, how
to retain the customers, acquisition as well as the profitability for the


Clearly, you
could see that there is a lack of communication with the marketing department
and the other departments. Hence, the reason such a statement was made by the
manager of another department. When there is a break in communication this
result in many problems for the organization. Especially as a marketing department,
communication should be a vital key in the strategy. Therefore, the following
steps can be taken to improve the communication:

Involve and collaborate with other department when campaigns
or new initiates are taking place and encourage departments to get along. Get
their inputs as well when making decisions. Share the marketing plan with other departments, for
e.g. what events that are planned to be organized or attended.Have other departments give their inputs and let them
feel that they have a voice when it comes to marketing, as their departments
are important too and not only the marketing department. Conduct internal meetings on a regular basisEstablish team bonding with different departments and
managers with team activities or outingsCreate performance and sales base incentivesUse technology and internet such as the intranet,
blogs, Yammer, notice boards to spread the message within the organization.