[Return on] Investment Strategy: Balancing Long- and Short-Term Goals
Posted: 8/5/2009 3:13:48 PM by
Diane Knoepke | with 0 comments
I was in my early 20s when I first sat in on a financial seminar given by a company’s 401k provider. I remember being very relieved that I had 40+ years to work to build up the amazing retirement I was sure to have–I have to admit I was almost gloating as I looked around the room at some of the folks who were my parents’ age. I wondered if they had been as smart as I was going to be.
But then as I started to really look at the different investment strategies they spoke of (conservative, moderate, aggressive), I realized what made sense to me intellectually (be aggressive, be-e aggressive!) was in direct conflict with what I felt like on an emotional level (savings bonds? hide it in the mattress?!). Thankfully after talking to my parents—trust me, I wasn’t gloating anymore—I found the right balance for me.
I’m reminded of this because I see our industry struggling to find the same balance for return on investment strategy. My colleagues and I have counseled many organizations in the last twelve months that they need to increase their sales focus on the short-term rights and benefits that will affect consumer/customer behavior—drive sales, traffic, or trial. But then we have to prevent them from creating an imbalanced portfolio as some of the aspects of long-term return on investment strategy may not get the attention they deserve—building loyalty, enhancing credibility, differentiating.
Here are two examples—one a property’s sponsor recognition and the other a company’s non-traffic-driving retail activation—that speak to finding that balance. All of the parties here want to sell, but they are balancing that with the long-term pay-off of telling a worthwhile story.
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Crate & Barrel Congratulates the Art Institute of Chicago
This spring, The Art Institute of Chicago opened its spectacular Modern Wing. Crate & Barrel, a Chicago company (that happens to sell modern furniture), positioned itself as a Chicago icon by celebrating the opening via window displays and signage at its Magnificent Mile store.
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Filed under: arts, associations, evaluation, negotiating, packaging, selling, sponsorship measurement, sponsorship ROI, activation