Mari Khattar is Chief Marketing Officer responsible for global branding and marketing at Keysight Technologies .
Marketing should be a central part of any M&A strategy. At every stage of a deal, from pre-announcement review to deal closing, marketing plays a critical role in minimizing uncertainty and instilling enthusiasm for the future among all stakeholders.
The best way to overcome the fear, uncertainty and hesitation associated with M&A is to develop a marketing plan that focuses on active and transparent communication. When all viewers have the information they need and quick answers to their questions, they can focus on progress and performance.
The following areas represent four key ways to ensure an effective M&A marketing strategy is implemented:
1. Develop a thoughtful brand change plan.
Rebranding after the M&A deal is not limited to updating the logo. This is a very real change, reflecting the new direction of the combined company. The decision to maintain an independent brand, use an existing brand, or create a completely new brand should be based on market research that takes into account the recognition, loyalty and value of each brand.
Customers, employees and the public react very strongly to the slightest change in the logo. When announcing the name change, be clear about the purpose and how it defines the new direction of the combined company.
Develop an adoption plan to complete the brand transition. Establish a phased approach to working with all marketing assets, starting with key public channels like your website and social media profiles, then focusing on other external digital assets like landing pages, digital ads, blog content and help centers .
Work with IT and Human Resources to update internal branding (such as e-signatures, intranet, and presentation templates) and physical assets such as banners, flyers, and equipment. Don't forget to work with the engineering team to update the product yourself and rebrand software and hardware. It's hard to find all examples of traditional brands in the wild, but as Deloitte recommends, "avoid branded Frankensteins that dilute the power of traditional brands."
2. Engage and motivate employees.
Mergers and acquisitions announcements can be alarming for employees, who may ask, "What does this mean to me?" Key issues include job security, changes in job benefits, organizational updates, and future career opportunities. Marketers can work with HR to build employee support and make team members feel valued, heard, and excited about the future.
Develop internal communications plans for each phase of operations. When making an announcement, emphasize that nothing has changed today and employees must continue to achieve their current goals. Clarify the prospective employee's role in signing contracts and highlight career opportunities for high-performing employees most at risk of being fired.
Make sure that the company employees involved feel welcome during the onboarding process and are transparent about any changes in management or organizational structure. Create systems to capture and process employee feedback and work closely with HR to create a culture of transparency and trust at every stage.
3. Create trust and enthusiasm among customers.
For the deal to be successful, both companies' clients must be on board. Develop messages to customers that clearly describe the new value proposition of the combined company: how the product, price and support will change, as well as the timing of key milestones.
Highlight the benefits of the merger or acquisition for customers: they can access a wider range of products and solutions, better customer service, simplified pricing, or faster innovation. Once completed, communicate changes ahead of time and provide tools and support to minimize potential disruptions.
Develop a white-glove strategy to maximize customer retention and loyalty. In addition to a comprehensive opportunity program (more on that below), consider ways to convince key customers to stay. For example, you can let them test new products, access executives, or influence product development plans.
4. Strengthening the client-oriented team.
In an M&A transaction, the sales, customer service and support teams are at the forefront of dealing with affected customers. Marketers can develop sales support materials such as FAQs and scripts to communicate consistent messages and reassure frontline employees. Set up customer war rooms to quickly resolve issues with important customers and encourage sales reps to update risk accounts.
Once the deal is closed, work with your sales manager to determine which products will be available for each customer segment and identify cross-selling opportunities. Develop guidelines for sales reps to emphasize the value of combined product offerings. Achieving quick results through additional revenue will help demonstrate to investors and analysts the success of the transaction.
Harness the power of M&A marketing.
Mergers and acquisitions provide opportunities for acquiring new customers and increasing market share, provided the agreement is supported by a sound marketing strategy. Engaging marketing leaders early in the M&A process helps ensure consistent messaging with internal and external audiences, thoughtful brand transitions, and a comprehensive sales support program to help create a brighter future.
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