Savvy market insights professionals understand that the CFO is the ultimate budget decision-maker and, as such, merits outreach by the head of market insights to show the value-add market insights provides. But does your CFO get market insights? Or does he or she see your department as a discretionary cost center? Reach out and share with him or her how market insights contributes to the business:
- Market insights influences top-line growth.By identifying client needs, competitive gaps, cross-sell correlations, and new market opportunities (among other deliverables), market insights helps the company identify and optimize revenue growth potential.
- Market insights influences bottom-line growth. By identifying lower-cost (and acceptable) ways to meet customer needs (e.g., replacing phone support with IM chat support) and by identifying better competitive delivery methods (among other deliverables), market insights helps the company reduce the cost of key functions, which improves the company’s bottom line.
- Market insights influences brand value and market cap growth.By fueling high customer satisfaction, loyalty, and willingness to recommend as well as identifying messages that help the company own high-value brand attributes (among other deliverables), market insights helps the company build its brand perception, which can fuel improvements in brand equity and market capitalization.
Not tangible enough still for a CFO who is all about the numbers? Forrester’s reports on Monetizing Market Insightsand Achieving ROI-Aligned Research And High Valueshow you how to identify and measure your value-add. Below are some real-life examples of how market insights has provided tangible and measureable improvements to the business:
- 5,000x 1-year ROI.One company conducted a study on competitive channel partner payment programs that showed how it could substantially cut payments (without giving business away to competitors) and save around $250 million per year.
- 30% lower cost of delivery.Another company did a study on nearshore delivery locations that identified talent-rich secondary cities where overhead and salary costs resulted in a 30% savings for a company that spends hundreds of millions of dollars on delivery in the region.
- 10% price (margin) increase.A study on competitive pricing at another organization identified the potential to increase price by 10% and still maintain a competitive pricing advantage on multi-year deals worth typically between $50 million and $500 million.
Do you have a similar story to tell about the value-add of market insights? Please comment below (or send me the story and I’ll post it without any identifiers). It would be very helpful to your colleagues who are looking for ways to convince their CFO that market insights contributes to the business’ financial success!