Marketing executives and managers have certainly been taking it on the chin over the last three years. The hangover of the late '90s spending party and the sobering effect of a drawn-out market downturn have left marketers, and the companies they work, for reeling.

Not to worry, all signs point to a strong and steady recovery. It won't be long now before budgets start to loosen up and we can return to the business of marketing for opportunity versus marketing for survival. The question is, What have we learned this time, and what can we take with us to avoid some of the hazards we will no doubt encounter again in the future?

What can we do to protect the integrity of our marketing campaigns, and maintain a strong and consistent presence in the market, while minimizing the effects of budget fluctuations? One CEO believes that tying management pay to marketing and sales performance is, at the least, part of the answer. This issue's dilemma asks, Should the compensation of executives and middle management be tied to the success of marketing and sales efforts?

Not one to discuss the issue of compensation in public? Let us know what keeps you up at night. What dilemma do you take with you when you leave the office? Your peers would love to help. Write to us and ask our SWOT Team about your dilemma. Tap into the collective strength, wisdom and experience of this group. It works, and you could win a free copy of our book, A Marketer's Guide to e-Newsletter Publishing.

Revisit our previous dilemma—read below for your peers' best advice on managing the many variables of Web site conversion rates.

Unite and make a difference!

This Issue's Dilemma

SWOT Category: Internal Strength

When considering compensation, should results matter?

Our small, international software company has suffered declining or stagnant revenues over the last ten quarters. I'm sure many companies can relate. We are forecasted to see an increase in sales this quarter and a slow, but steady climb over the next three quarters. Having just come through this slow period, our executive board is considering implementing a new remuneration plan that ties compensation to results.

Our marketing and sales management teams would feel the greatest effect of any changes made in this area.

Can SWOT Team members shed some light on the advantages and pitfalls of implementing such a program? Experiences from both sides of the line would be helpful.

—CEO, International Software Company

Previous Dilemma

SWOT Category: Internal Weakness

Confused about calculating conversion rates

We are a micro-business that sells information products entirely online. We rely on both search engine optimization and search engine marketing to attract visitors to our site. I originally began tracking and calculating conversion rates based on the total number of visitors to our site who made a purchase on the first visit.

After three months, I realize that many of our site visitors convert on a second or third visit, and seem to be interested in two or three other pages on our site that provide free information but do not require a specific action. There seems to be so many variables to consider, and I want to have a clear measure of effectiveness before making changes to my budget or the overall campaign.

Can the SWOT Team provide tips on what to track in order to measure the effectiveness of my current site?

—Anonymous Business Owner

Summary of Advice Received

Anonymous, your dilemma is increasingly important and complex. Bearing in mind that what you measure defines your success, SWOT Team members offer insight into the process of considering and managing the many variables inherent in Internet marketing.

Online sales follow an incremental process or cycle, much the way traditional sales do. The challenge is to clearly define a sales path through your site that keeps visitors on a fairly narrow click pathway. Monitoring how visitors use the site now will help. With a sufficient amount of site visitors and activity data about them, you'll be able to identify and hone in on the actions, pages, incentives and campaigns that most often lead to successful conversions, and how many visits it takes. With this insight, you can better define your sales path to increase conversion rates.

Your peers offered the following wisdom:

1. Track all of the activity.

2. Tie activity results back to the source.

3. Capitalize on your expertise.

4. Test, test, test.

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ABOUT THE AUTHOR

Hank Stroll (Hank@InternetVIZ.com) is publisher at InternetVIZ, a custom publisher of 24 B2B e-newsletters reaching 490,000 business executives.

Yvonne is a “customer engagement coach” and President of EVE Consulting, helping companies achieve sustainable market leadership through the power of customer engagement.