What is Operational effectiveness?

Operational effectiveness is an umbrella term that describes the ability to carry out activities better than competitors, to automate processes, to reduce defects, and to improve performance. It is also an indicator of the health of a marketing strategy. However, operational efficiency is not always easy to gauge. Nevertheless, businesses can benefit hugely from high levels of operational effectiveness.

The key to efficiency is to prioritize the desired outcomes. For example, a marketer may focus on increasing conversion rates, maximizing the ROI on a campaign, and increasing the CLV of the campaign. A good indicator of the effectiveness of a campaign is the cost of acquisitions. If the cost of acquisitions is higher than the revenue from sales, the campaign is likely not effective.

High operational effectiveness is a positive factor that can help companies gain a position in the market, broaden their assortment, and gain competitive advantages. In a competitive environment, it is essential to develop a robust, scalable, and fast operating model. This allows marketers to operate at pace and meet the needs of the market. However, many organizations lack the tools and systems necessary to operate at this level.

Among the factors that inhibit marketing effectiveness are corporate cultures, internal constituencies, and change-resistant processes. Marketing is also considered the most fragmented of all industries. Marketers are tasked with handling the go-to-market strategy, lead development, product development, customer service, and customer support. Despite these responsibilities, many marketers find it difficult to align these departments. Similarly, they report conflicts between their internal constituencies. Hence, marketers need to implement a solid governance structure to ensure that their marketing policies are followed.

One of the biggest challenges faced by global marketing executives is the lack of a corporate-level mandate for integrating and aligning marketing strategies and operations. Consequently, the industry is undergoing a major overhaul. Ultimately, marketing is moving toward a more targeted, communications-focused approach. Additionally, it is shifting from an in-house approach to a more collaborative one, which involves engaging with customers across the entire customer lifecycle.

Marketing operations are critical to achieving this goal. In order to be effective, an organisation must address three key components of marketing operations: process, planning, and performance management. We work with clients to improve their operational effectiveness through team structure, process and platform and using our specialist marketing knowledge to put them on the road to growth