Numbers Marketing, Sales Analysis & Albert Einstein's Definition of Insanity

Yesterday’s post touched on the two sides of good marketing: the creative side and the numbers side. And I put forth the view that too often the numbers side of marketing gets short-shifted. Let’s look at just one area to start: sales analysis.

“Doing the same thing repeatedly and expecting different results.” —That’s Albert Einstein’s definition of insanity. Well, insanity must rage at many-a-U.S. companies and organization because time and again we hear of sales going down in a clear, consistent trend and leadership wanting to see sales rise and market share grow—but no one is willing to make significant change.

This is all too true in the publishing industry, where sales analysis often means merely forecasting and setting sales projections (if that). What is needed is an investment in one's infrastructure to produce some high-quality sales reports and customer data—if these systems aren't already in place—and a strong dose of reality based on a good hard look at the numbers. By this I mean that marketers should be looking at not only what the numbers are saying (“sales are flat or going down”; “this product didn’t turn a profit”; “these customers are buying less of this”) but also at what is often called “the story” behind the numbers.

This begins with asking pointed questions and expecting actionable answers. For instance: What the trends…? (ex. …of the clarity and strength of your brand? … of your competitors’ sales, when available?, ... of your industry as whole?, … in the tastes and sensitivities of your customers?) How well are your brand attributes represented in your products…? (ex. …those that are selling well? ..those that selling poorly?) Where are the opportunities…? (ex. …for cross-selling?, …for partnership building?, …for realigning of a product mix or bundling certain products together at better price?, …for offering a service product that supports a strong-selling physical product?).

Or, if a significant customer or group of customers is buying less of something—Why? For this question, in most cases, you’ll have to go ask your customer to find the answer. Notice that *gasp!* emanating from those who always want to do more the same (safe) thing or who secretly fear giving up their power, hunches, and own sense of World Order by handing power back to the customer. Yes, you will have ask—either anecdotally, through quantitative research, or, ideally, both. And when you ask, don’t settle for the usual surface answers that you knew or could have guessed from the start. Like, “The economy.” Or, “I gave my business to ____.” Ok, sure. But when a customer tells you this, remember to follow-up by asking, again, Why? Why did your customer favor your competitor’s product or service this time? What was their deciding factor?

Assuming you have built trust with the customer, if you ask this question right you should learn where you customer’s priorities are right now, their key motivating factors, and what problem are they really trying to solve. I guarantee you there’s always something deeper going on than just a cheaper price.

This kind of numbers-based marketing is essential, lest you throw good energy after bad, focus good creative marketing efforts into wrong areas, and—as Einstein says—sadly, expect a different result.