marketing by the numbers

MARKETING BY THE NUMBERS

HOW MUCH SHOULD YOU SPEND ON MARKETING?

• Start with Questions–What is a customer worth?–What is the rhythm of your

business?–What is your closing rate?–Where do your leads come from?–What is your market concentration?

• Measure Results– Traffic, Leads, Conversion, Sales

WHAT IS THE AVERAGE CUSTOMER WORTH?

• Annual Sales• Gross Margin• # of Years• Present Value of Money– http://www.investopedia.com/calculator/

EXAMPLE:

• $1,000 = Annual Sales • $300 = 30% Gross Margin• %1,500 = Projected 5 Year Revenue Stream• Present Value varies based on interest rate– $ 1,175 = 5% – $1,295 = 3%– $1,428 = 1%

BUSINESS RHYTHMDaily, Weekly , Monthly or Annually

HOW MANY CUSTOMERS?

10

CLOSING RATE

10

25%

WHERE DO LEADS COME FROM

10

25%

40 3010

HOW CONCENTRATED IS YOUR MARKET

10

25%

40 3010

1%

3,000

BREAKING THROUGH THE CLUTTER

10

25%

40 3010

1%

3,000

10

30,000

WHAT HAPPENS IF YOU CLOSE MORE?

CLOSE MORE

10

50%

20 1010

1%

1,000

10

10,000

CLOSE MORE

• Improve sales skills• Drive more qualified prospects• Increase referrals

HOW MUCH CAN YOU AFFORD TO SPEND?

• LTV: $1,295 • $388 = 30% for advertising• 10 New Customers• $3,880 advertising budget

HOW DO MAKE 30,000 IMPRESSIONS WITH $3,880

10

25%

40 3010

1%

3,000

10

30,000

INCREASE REFERRALS

10

25%

40 2020

1%

2,000

10

20,000

MEASURE WHAT YOU SPEND

• Social Community – Mentions Not Fans• Web Traffic• Downloads• Calls• Proposals• Sales

LORRAINE BALL

lorraine@roundpeg.biz | 317.569.1396@roundpeg | @lorraineball | www.facebook.com/roundpegIndy