marketing by the numbers
DESCRIPTION
When it comes to marketing it is not how much you spend, but how well you spend it. In this slide deck we look at the numbers you can use to measure your marketing. You can also view the webinar supporting these slides here https://attendee.gotowebinar.com/recording/6074757016934590978TRANSCRIPT
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