Download - 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
[email protected] | 317.569.1396@roundpeg | @lorraineball | www.facebook.com/roundpegIndy
