As with every function in your organisation right now, marketing needs future-proofing. But, in a very uncertain world, trying to prepare for ‘what’s coming next’ is really tough. How do we identify and manage our greatest risks? And how do we spot and invest in your biggest opportunities? Marketing needs particular attention in your strategising and planning because it requires significant and ongoing investment, and is (or should be!) a key driver of revenue. In a recession, marketing becomes even more important. According to a 2020 Harvard Business Review article: Companies that have bounced back most strongly from previous recessions usually did not cut their marketing spend, and in many cases actually increased it. But they did change what they were spending their marketing budget on, and when, to reflect the new context in which they operated. #1 Why should I do a marketing audit? The question you should NOT be asking yourself right now is “How can I cut my marketing spend?”. The CORRECT question is “What marketing investments should I be making – to survive and thrive?” To answer this question, you probably need a marketing audit. A marketing audit helps you ensure your marketing approach and investments fully support your business strategy. A well executed audit focuses attention on the data points and benchmarks that show you what’s working, what isn’t, and where your key opportunities are to bring more efficiencies, economies of scale and effectiveness into your marketing function. #2 How should I approach a marketing audit? To have impact, a marketing audit needs to be rigorous, and based on an analytical, evidence-based approach. A marketing audit should consist of the following distinct stages: Stage 1: Definition of objectives and scope Stage 2: Information and data gathering Stage 3: Analysis and benchmarking Stage 4: Delivery of findings and recommendation – including an operational plan to ensure the right investments are made in the right areas, at the right times, and with the required measures in place to ensure a good ROI. #3 What should I include in a marketing audit? The following elements of marketing should be reviewed within a marketing audit: Your overall business strategy and goals. It is essential your marketers have a thorough understanding of what you are aiming to achieve as a business, otherwise your marketing efforts won’t be well focused. Your target market, especially their profile, size (total addressable market, aka TAM), and your current penetration of TAM. Your TAM should ideally be divided into market segments that are then prioritised. The value proposition of your brand(s) and product portfolio(s). What are the ‘problems to be solved’, or ‘jobs to be done’ that mean your highest priority target market segments need and value your product? Your competitors, and your positioning against your key competitors, with a focus on your core differentiators and USP(s). These should relate directly to the ‘problems to be solved’ and ‘jobs to be done’ – as per above point. Your marketing objectives, and how success against these objectives is measured and visible at all times. Remember that these need to line up behind your business goals, with marketing metrics that should tie clearly and directly into financial results. A ‘warts and all’ SWOT analysis of your marketing function – incorporating an evaluation of: Insight on your customers i.e. what 1st party data you hold on customers, starting with the most basic information stored in your database about your TAM (see point 2 above), and also covering the most advanced useful information you have about levels of engagement and propensity to purchase. Your marketing systems and integrations for data flow i.e. martech platforms, digital marketing platforms, analytics tools, etc. Your brand assets i.e. visual branding, messaging, consistency of touchpoints, customer experience of your brand. Marketing channel and tactics deployed to date, and how these have been optimised to date and how they have performed so far. Your marketing processes i.e. manual and automated, within your marketing function, between your internal marketing function and external partners (e.g. marketing agencies) and between marketing and other business functions. This includes how marketing strategies and plans are created, and how campaigns are managed and executed. Your marketing people i.e. overall level of internal resources, skills and team structure (also considering that some ‘marketing tasks’ may be done by people not in the marketing department); external resources/expertise you rely on for marketing to work; and how your marketing function communicates/integrates/collaborates with key external parties and other functions for overall synergies, Key activities a marketing audit process should include are: 1-2-1 interviews with key stakeholders Group Q&A sessions to gather all the information (sometimes called ‘workshops’) Review of relevant documentation and reports, including org charts, job descriptions, financial data, customer survey findings, process maps, supplier agreements, samples of collateral and content, etc. Review of system set ups and relevant data within systems (via direct access into systems) #4 Who should conduct a marketing audit? There is no escaping personal and/or confirmation bias if someone ‘internal’ conducts a marketing audit. Therefore, a marketing audit should be conducted by a suitably qualified ‘3rd party’ i.e. someone not involved in the day-to-day of a business (or business unit), but with a strong background in marketing, in a similar kind of organisation, with a similar business model or product set. This 3rd party could be a central marketing resource within a large organisation, or a trusted external partner. #5 What should I expect the output to be? The party conducting the audit should present findings and recommendations within a comprehensive report, including: Executive summary For every relevant area of marketing (as above) – key findings and recommendations, with clear link between recommendations and ROI to be expected from implementing these. These pages should link to detailed appendices, examples, templates, and analysis as relevant. A recommended investment plan for filling gaps and ensuring marketing is set up for success. A high level recommended operational plan, or ‘roadmap’, on how recommendations should be executed in terms of priority, sequence and timeline. Be prepared: conducting a marketing audit will in itself require investment and time as it needs to be approached skilfully, and with a good level of rigour. A ‘half baked’ audit will probably do more harm than good, but a well conducted audit should give you incredibly valuable insights, and help you make good decisions about how to invest well in marketing – which should pay for itself many times over. If you’d like to have a chat about how best to approach your marketing audit, please drop us a note on [email protected].