3 Basics of Calculating the Value of a Product or Service
For a business organization, the value of any product or service is based on how it affects financial performance. The best definition of value in a B2B setting is the total monetary worth of the benefits that a company obtains by purchasing and using a product or service. A product or service can create value for a business in three basic ways. It can enable a business to:
· reduce existing costs,
· avoid future costs, or
· increase revenues.
The value of MAM marketing solutions is based on the same principles and will be explored in this four-part blog series.
Part Two: Marketing Fulfillment Automation Efficiency Benefits
Marketing Asset Management solutions as part of a distributed marketing management platform enable companies to implement new processes for creating and fulfilling marketing materials. A marketing asset management solution will completely eliminate your need to perform some processes, either because they are outsourced to the MAM solution provider or because they are rendered unnecessary. In other cases, it will replace manual, inefficient digital asset managementand marketing fulfillment processes with automated and efficient workflows. In both situations, the marketing asset management solution will enable you to reduce existing costs or avoid future costs. These cost savings will usually represent a significant part of the value of the MAM solution, and therefore it’s critical to identify and quantify these cost savings for your business case.
Consider the Whole Life Cycle of Marketing Materials
A marketing asset management solution will affect almost every aspect of your distributed marketing platform. So, to ensure that you identify all of the benefits the proposed MAM solution will produce, it’s important to consider the whole life cycle of marketing materials from content creation and marketing collateral customization through campaign execution.
Supply Chain Efficiency Benefits
Not all companies will obtain the same benefits by implementing a marketing asset management solution. However, there is a core group of supply chain efficiency benefits in virtually all MAM implementations. Those core benefits are content creation, procurement, marketing fulfillment, and marketing workflow.
Once you’ve identified the benefits that your company will obtain by implementing a marketing asset management solution, the next step is to estimate the value of those benefits.
Estimate the Value of Automating Repeatable Tasks
In the first blog in this series, we looked at cost savings from the content creation process including how a MAM marketing approach can help maintain brand consistency, brand compliance andbrand control. In this blog, we will dive deeper into how marketing fulfillment automation and the elimination of repeatable processes can dramatically lower costs.
Often content creation is but a small sliver of the cost of executing a campaign. Campaign planning, vendor selection, trafficking content to vendors, budget management, and other campaign coordination tasks are all time consuming and expensive.
Local marketers are especially challenged by the tasks surrounding a campaign, as they are often both unfamiliar with the processes required and the options available to them. But even experienced local marketers find campaign coordination challenging, as implementing small campaigns can consume just as much time and resources as management of large national efforts.
Marketing fulfillment automation is a great time and money saver in these situations. Instead of leaving coordination, vendor selection, and project management options up to the local marketer, distributed marketing management systems often streamline these processes for the local marketer to simply require campaign or asset selection, local versioning, ordering, and paying for media placement.
Behind the scenes, all campaign coordination is automated. Files are routed to the media outlet or printer, file formats are selected, distribution lists (text, email or mail) are delivered to the fulfillment provider, payment is routed to each of the vendors involved (email distributor, printer, list provider, postal service, etc.) and more.
Most importantly, the campaign executes with no involvement from the local marketer, and that translates into huge time savings. Simply coordinating and placing a single print ad in a local publication often requires a couple of hours. Printed projects often take up to five hours to coordinate from start to finish, while full cross-media campaigns can take 10 hours or more. These time demands can starve local marketers to the point where marketing projects often don’t get done. Add the time requirements across a distributed network and the cost savings from automation, albeit soft costs, become dramatic.
The worksheet to the right can provide a glimpse into the savings available from marketing fulfillment automation both for the corporate and local marketer. It is from the Saepio whitepaper, Assessing Your Cost Savings Opportunities with Distributed Marketing Management Platforms.
Next week we’ll look at time and cost savings for the corporate marketing team. Subscribe to the Saepio blog now to ensure you receive this and other helpful information.
© This document contains copyrighted materials from PointBalance, Inc. Saepio also contributed to the content creation and editing.
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