How HP Reduced Marketing Spend by 15 Percent
After Hewlett-Packard (HP) merged with Compaq in 2002, the technology powerhouse had a whopping 86 marketing organizations worldwide. Adding to the complexity: Each group had its own resources, systems and budget. Processes and languages differed; even the metrics used to execute, track and measure campaigns were different from organization to organization.
“Continuity was poor. Corporate marketing initiatives were not always aligned with field programs and campaigns. It was critical that we be able to build on all of the customer touchpoints and present a common view of HP,” recalls Mike Winkler, HP’s chief marketing officer, in the whitepaper Hewlett-Packard Company Reinvents Marketing and Reduces Spend by 15%. The report, published last summer by Oracle, outlines the process that helped HP gain the continuity and insights it needed. Following are the key strategies HP employed.
In 2003, HP began using a marketing resource management solution that now helps the tech giant plan, budget, execute and measure the effect of its worldwide marketing initiatives. According to the whitepaper, the solution provides HP’s 2,500 end users with a common marketing language, analytics and business processes that improve communication, efficiency and effectiveness of marketing campaigns.
The solution supports HP’s marketing processes—from planning, budgeting and customer segmentation through to direct and e-mail marketing, response capture, lead qualification, reporting, and analytics, note the whitepaper’s authors. While the data were available before HP implemented the CRM solution, the information was not always used effectively. “The solution helped HP unlock the information value hidden in its system, leading to direct improvements in forecasting, program and campaign effectiveness, and marketing return on investment,” note the authors, who add that Winkler felt it really helped improve HP’s marketing discipline.
These and other tactics—including implementing a business analytics solution—have enabled HP’s marketing department to contribute in a tangible and visible way within the company. According to the whitepaper’s authors, HP’s three-year plan is “now driven by marketing rather than by the company’s planning or finance organizations—a direct result of the marketing team’s discipline and track record of performance.”