Start at the end……..
An Olympian doesn’t train just to see how they will perform, they already know the “end goal”.
An Olympian knows the time they need to beat, or the distance they need to jump, or the score they need to achieve.
In essence, an Olympian works backwards, they start with the end goal in mind and implement the steps to achieve it.
Once they work out what they want to achieve they organise their training regime, their diet plan, the gym workouts, coaches and mentors, all with the end goal in mind.
To ensure they meet their goal, an Olympian tracks their performance to make sure they’re hitting the necessary milestones.
Be like an Olympian.
Marketing in your business should be the same as the process an Olympian goes through; write down the end goal and then work backwards from there.
Why just throw your hard-earned money at a marketing campaign if you have no idea what you want or need out of it?
If you are approached by a marketing agency trying to sell you advertising, try not to focus on the “price” or the “cost”, marketing should always be an investment and not an expense.
If your advertising is a cost to you, cancel it immediately. If your advertising is cost neutral or gains you a positive return on your investment, it is working.
Work out what you would need as a return from your investment, and then work out the minimum return that would justify you investing in advertising again.
Let’s look at an example where a glass pool fencing company invests $1,000 in a paid Facebook advertising campaign. Use the mindset of, how much you would be willing to buy a new customer for?
Let’s break it down.
Average dollar sale of a pool fence – $3500
Conversion rates from a written proposal – 25%
Conversion rate from enquiry (phone call, email, landing page opt-in etc) to an onsite measure/quote – 50%
No! You don’t just want your $1,000 back as this only covers the investment needed for your marketing campaign, at the very least you also want to cover your costs to actually do the job!
If the end goal from a $1,000 investment is a minimum of 5 jobs at $3,500, then the end goal is a $17,500 turnover.
The steps to achieve are quite simply broken down as follows –
- 5 sales with a 25% closing rate would mean you need a minimum of 20 onsite quotes.
- 20 onsite quotes are achieved by receiving a minimum of 40 enquiries (phone calls, emails, website opt-ins etc…. based on 50% enquiry to onsite measure and quote statistic).
Now you have the numbers to work with and you know exactly what to track.
Opinions are great and everyone has one, but you shouldn’t judge how your campaign is going based on a gut feeling……
You may get half-way through the campaign and realise you are smashing the numbers, or you may see that you are not quite on track? Without tracking your campaign, how would you know?
Now you have the option to tweak the campaign to achieve even better results or even invest a little more if the returns are there.
Once you see a good return it will alleviate any issues you had with investing further in marketing, because you know it works; you will actually enjoy investing in your marketing!
I believe there are 3 certainties in life; death, taxes and that advertising will increase your sales.
Google Ads have increased 117% over last year
Facebook Ads have increased 163% over last year
Work on your numbers.
Why be happy with a $3,500 average sale? Do you think McDonald’s is happy selling you a regular meal deal? No, they make millions in extra revenue just by asking if you would like to upsize, or if you would like fries with that?
Your $3,500 average sale could increase by simply asking the question, I know you have been looking at a semi-frameless pool fence, but have you considered a frameless pool fence? Or, would you like to add a cleaning kit to your order?
Why be happy with your conversion rates from enquiries to measure / quotes, or quotes to sales? Perhaps your sales team could do with some sales training, or your appointment setters could work on some strategies to increase how many quotes they can confirm.
These numbers are often overlooked in small business and can be worth thousands in lost revenue.
Should you ever want to chat about small business marketing and lead generating, the team at BeLocal Today would love to help.