Getting over the hurdle

There are two main hurdles in the world of marketing. And, they both have to do with a Return on Investment.  

The first hurdle creates value for the company.  It’s an expected rate of return calculation.  If I were a client side marketer, I would tell every agency pitching my business that my internal hurdle rate is 20%. Then I would instruct these same agencies to pitch an integrated campaign that clears this hurdle i.e. yield incremental dollars in the form of lifetime customer value. For simple calculation, if my budget was $100, then I expect to hear ideas that will cause future cash flows in excess of $120.  And I would expect these ideas to not only create emotional bonds with my audience, but also leverage company assets like technology, supply chains partners, strategic alliances, and channel partners.

The second hurdle creates value for the customer. The question that must be answered is -- what does the customer receive in return for spending money with you? The hurdle for many customers to choose you doesn't revolve around an internal rate of return; instead it's more like an on/off switch with the variables being yes or no.  I believe a yes response to the following questions provide a Reason for your customer to put you in their consideration set.

1. Clique. Does brand secure affiliation with or strengthen connections between members of a clique?
2. Scarcity. Does brand allow people to share a privileged story with others?
3. Worldview. Does brand make people feel better about their beliefs?
4. Aspirin. Does brand solve a pain in the customer’s life?
5. Convenience. Does brand save money or time?

How are you getting over the hurdle? 

Image by: Foxtongue