Choosing Software Allies for the Online Marketing Wars

Here are some questions to ask in evaluating potential software partners:

*Do they share the institution’s objectives? The bank – and its customers – must know that information is provided in a spirit of mutual interest. Bank-sponsored promotions must not be confused or diluted by other influences. With software companies beginning to compete with their clients for customer dollars – witness Intuit Inc.’s venture into credit cards and mutual funds – banks must screen software providers carefully and must protect themselves and their customers from arrangements that have the potential to divert assets and potential assets to the vendor.

*Do they provide interactive, value-added applications that give customers compelling information? The best software capitalizes on the opportunity to support customer decision-making in an engaging way, with plenty of room for interactivity and personalization. The key is superior education and advisory capabilities, so that the customer comes to rely upon your site and your institution for assistance with financial product and service needs.

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How We Brought Teamwork to Marketing (continued)

When division managers designate a customer as less critical now but having the potential to evolve, we add “virtual members” to the teams — in effect, inside consultants from nonparticipating divisions who gather information and freely voice their opinions and concerns.

Adopt flexible measures of success. We pay our marketing people on the basis of performance — hardly a revolutionary idea. But we found it’s not enough for senior management to designate rigid performance measures based on simple revenue goals. Now we tie compensation to measures that we negotiate with the teams. Such a system allows us to balance the goals of the corporation, the divisions and the customers. We gauge team performance on milestones the division itself determines (25% of the total), revenue benchmarks (25%) and measures of customer satisfaction (50%).

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How We Brought Teamwork to Marketing

In our initial blitzkrieg, we clearly had more resources than organization. In the space of three days, five marketing and sales people were wandering around our biggest customer’s offices independently, bumping into each other and calling on the same people two and three times. No wonder we seemed unfocused.

Then we tried another approach, which didn’t work any better. Wanting to show “one face,” we set up account teams for each major customer that included key people from each product division — such as engines, technical services and environmental controls — that did business with that customer. In theory, members of these teams reported to headquarters; in practice, their true loyalty remained with their divisions. They saw the teams as just another way we were trying to control the divisions; in classic marketing jargon, they complained that headquarters was keeping customers out of their “line of sight,” so the divisions couldn’t monitor their own progress.

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Tips for Marketing in Europe (continued)

– A two-pronged management structure keeps decisions close to the customer yet retains a Europe-wide scope. There will be two kinds of jobs in the new Europe: product-centered jobs with responsibility for the product across Europe, and geographic jobs responsible for national sales. The first assures that manufacturing and marketing is efficient at the European level. The second hones in on specific markets and assures success at the micro-level. Household product managers, for example, know their product category from Sweden to Spain, while subsidiary chiefs covering one country are close to the consumer and are responsible for implementing the Eurobrand locally.

– Set up teams of local, national and regional managers. “Euroteams,” as they are sometimes referred to, are ad hoc teams of multi-disciplined managers from various countries that convene for a specific mission. Euroteams foster (often neglected) communications between central and local managers and give team members valuable insights into other national markets. European business centers (EBCs) are another increasingly popular way to ensure coordination at the European level. EBCs are used to market products and manage profitability from a single base. Locate your EBC where its base is strongest: near a major market or close to a key customer zone.

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Tips for Marketing in Europe

Below are some useful guidelines for adapting marketing operations in a Europe that, while increasingly open, is still a collage of widely differing local markets.

– Simplify manufacturing sources and selling units across Europe. Until recently, a product with the same brand name was sourced from seven or more factories in Europe, resulting in a varying product sizes. In France, for example, products are cased in multiples of 12, whereas in Germany cases comprise units of 10. So a case of toothpaste may include 48 tubes in France and 50 in Germany, complicating cross-border trade.

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