Podcast ¦ CX Files: Joanne Morrison – Outmarket – Modern Marketing For CX Brands

Key Take Aways

1. Investment in marketing within BPO and CX sectors remains significantly underfunded relative to benchmarks, often receiving less than 1% of gross revenue, whereas typical budgets range between 2% and 8%.
2. Underfunding of marketing resources constrains strategic growth and hampers the ability to create an impactful presence in a highly competitive marketplace.
3. Organisational familiarity with historical budgets—notably those from 2005—continues to impede the adoption of modern, lead-generation-driven marketing strategies.
4. BPO organisations need to diversify their marketing activities rather than relying heavily on a limited set of initiatives, minimising risks of tactical failure.
5. Effective post-event follow-up is crucial; significant value is often lost due to insufficient engagement after trade shows and conferences.
6. Data-driven decision making, particularly around event investments, can prevent misallocation of resources based on organisational assumptions or emotional attachments.
7. Price for engagement and community-based participation in events tend to yield higher returns compared to larger, less personal trade shows.
8. Cultivating a risk-taking culture within marketing teams—encouraging employees to experiment and learn from failures—is vital for innovation and visibility.
9. Utilising AI beyond content creation, especially in back-end functions such as research, website coding, and process optimisation, can significantly enhance marketing velocity when implemented thoughtfully.
10. Differentiation remains a challenge, as many organisations produce similar messaging and presence; therefore, risk-taking and innovation are necessary to stand out.
11. There is a prevalent misconception that AI’s potential is limited to content writing; economic utilisation of AI in strategic back-end operations offers substantial competitive advantages.
12. High-performing marketing teams require experienced personnel capable of directing AI usage, developing tailored prompts, and reviewing outputs to ensure quality and depth.

Key Statistics

• The benchmark marketing budget for B2B services firms is between 2% and 8% of annual gross revenue; average reported is approximately 8.4% (Gartner).
• The typical marketing budget for BPOs is often much lower than 1% of revenue.
• Historical reference: in 2005, BPO marketing was largely comprised of proposal management, website maintenance, and employee recruitment, with little focus on lead generation.
• AI tools such as chat GPT and alternatives can reduce the time required for complex tasks like wireframing from a full day to about an hour, demonstrating operational gains through AI.

Key Discussion Points

• The importance of aligning marketing budgets with industry benchmarks to fuel growth and competitiveness.
• The impact of underfunding on marketing effectiveness and perception of underperformance.
• The necessity for organisational recalibration around modern marketing practices, especially those involving AI and digital channels.
• Risks associated with limited activity scope and the value of a diversified marketing approach.
• Critical steps for optimising event ROI, including effective follow-up and engagement strategies.
• The significance of hard data over anecdotal evidence in decision-making concerning campaign or event expenditure.
• The benefits of community-focused event participation over large, anonymous trade shows.
• Cultivating a culture that promotes experimentation and accepts failure as a growth mechanism.
• The expanded role of AI in marketing functions beyond content creation, such as research, predictive analytics, and coding.
• The challenge of differentiation in a crowded market and the need for organisations to innovate their messaging and engagement tactics.
• Common misconceptions about AI’s role, especially its perceived limitations to content generation.
• The importance of experienced personnel to develop, manage, and interpret AI outputs effectively.

Podcast Description

This podcast explores strategic and operational insights into the contact centre and outsourcing industry, with emphasis on marketing practices and organisational growth. It features expert perspectives on budget optimisation, the role of AI, event management, and innovation in a highly competitive landscape. The discussion provides senior managers, particularly within financial services, with practical advice on enhancing marketing effectiveness, fostering a culture of risk-taking, and leveraging emerging technologies to sustain competitive advantage.