"Up the impact in communication" - Interview with Jouni Epper
Why is it that even today, SMEs still know too little about the impact of their marketing and communication, and thus are likely failing to tap into a significant portion of their potential? We spoke with Jouni Epper about why this is the case and what can be done about it. He is familiar with the problem from his own career and has been advising and supporting companies on this topic for over twenty years.
"Half the money I spend on advertising is wasted. The problem is, I don't know which half." This pithy statement by marketing pioneer John Wanamaker is still familiar today - more than 100 years later.
Is that justified, Mr. Epper?
Jouni Epper: For the most part, I would say yes. Although most SMEs are not flying blind, we know from studies that over two thirds of small and medium-sized companies have insufficient knowledge about the impact of their marketing and communication. And of the companies that do have data, two thirds have difficulties using the information effectively. These results are entirely consistent with the practical data we have.
What do you think is the reason for this?
The reasons for this shortcoming are of course manifold, but often point to three points. Firstly: insufficient or unclear objectives. This means that the desired effect of the marketing and communication measures is defined too imprecisely or that the communication goals set are not in line with the overarching corporate goals. Secondly, limited resources and a lack of know-how that do not allow for optimal planning and control. And thirdly: a lack of measurement and documentation of all measures. Companies that take action here often receive valuable qualitative and quantitative information in the short to medium term in order to increase their impact.
That sounds interesting. Can you explain to what extent communication goals are relevant and what SMEs can do here?
It is essential for every company that the communication goals are derived directly from the corporate goals. In practice, however, we very often see that this is not always the case. The objectives must also be formulated clearly and simply. This is the only way they can be understood throughout the company and by agencies. This also increases the chance that all senders communicate with one voice and the same key messages.
What do you mean by sender? Isn't it a company that communicates?
The sender refers to all departments and people who communicate internally and externally. In other words, from the CEO and management to marketing, communications/PR, HR, sales, etc. In practice, we very often see that the communication goals and key messages are already unclear at C-level and that P&L managers and departments are often guided by their own goals.
Shouldn't all communication measures be controlled by the communications department?
That was certainly the case in the past, when communication from the company to the outside world was still traditional. However, the fact that everyone has been carrying a smartphone for the last 15 years has turned communication around 180 degrees. Today, it is the customers and stakeholders who find out about a company or a product. And they do so at any time and via all channels. This inbound communication has massively increased the relevance of shared goals and key messages. Customers do not appreciate it if they come across unclear or divergent statements or evaluations.
What about the resources and expertise you mentioned? What do you need to consider here?
In the SME world, you usually live with limited financial and human resources. And companies that can afford agencies usually use them for creative work or implementation. In practice, we therefore often see what we call "copy/paste" marketing. Budgets and activities from the previous year are copied into the new one. Sometimes supplemented by minor trend adjustments or observations of the competition. Or a routine change of communications agency. But this is negligent. Because without clear objectives and measurements, much is left to chance and even the most serious efforts often end up as a "shot in the dark".
You also mentioned the measurement and documentation of the measures. What is this all about?
The overview is central. All of a company's marketing and communication activities should possibly be measured or at least made comprehensible and visualized via a return on objectives (ROO). A pure Excel communication plan is not sufficient. It does not offer the possibility of mapping the entire landscape, nor can it be used in an understandable and motivating way on a day-to-day basis.
That seems like a lot of effort?
Experience has shown that this is really not the case. Even a simple drawing of such a landscape gives you a picture of what you are achieving throughout the year and where you are heading. And by recording key information and figures, important lessons can be learned after just two years that would otherwise go unused. Clear visualizations also serve as good management and leadership tools, e.g. at strategy and planning meetings, during the induction of new employees and staff handovers or at agency briefings.
What advice would you give an SME on how it could take the first steps towards increased impact in communication?
To get started, you need a responsible person who has sufficient expertise and an overview of the marketing and communication landscape. Even an initial visualization of this landscape usually leads to important insights that can be used as "low hanging fruits". For example, an overview of a consolidated budget that reveals duplications or ineffective or unmeasurable measures. I would also always bring in an external expert. Because they see things from a different perspective and can coach. I always draw a bridge here to top-class sport, where Roger Federer & Co. would never think of being on the road without a coach.
