Category

Technology & your business

Return on Investment image

Marketing streams and ROI

By Marketing Performance, Strategic Planning, Technology & your business

Return on Investment imageAm I spending too much on my marketing?

Whilst this is the question people ask, it is not quite the one they mean. Money invested in marketing should always be circular, i.e. the more you pour in the more that will come back around.

You can NEVER spend too much on marketing, but you can spend it on the wrong marketing, so the question becomes: Are you spending your marketing budget poorly?

To work this out, we need to look at your marketing ROI (return on investment)

Working out marketing ROI

The first thing you will need is a robust tracking system. Ensure you have a way of tracking which leads are coming from where and how profitable they are. This can be done through google analytics or software like CANDDi.

You’ll then need to work out your ROI for each of your marketing streams. You will probably have:

  • Social Media (this requires splitting down into each platform, Instagram, Twitter etc.)
  • E-mail blasts and newsletters
  • Blogs
  • Your website
  • Networking
  • Paid adverts
  • Others specific to you

For each of your marketing streams there are a few calculations that you will want.

How to calculate cost per lead

(Gross profit–Sum of Investment) / Number of leads = Cost per lead

This tells you how much it is costing you to bring in an average lead (the lower the better)

How to calculate ROI

Gross profit / Sum of investment = Return on investment

This formula tells you how much of your investment is coming back as profit, as long as your return on investment is higher than your total costs, then you are safe. You want your ROI to be as high as possible.

Your marketing activities have different aims and should be treated as such. Split your campaigns in two, brand awareness and lead generation. Brand awareness campaigns may only boast small ROI’s on their own but should drive traffic towards lead generation. Remember, your total marketing budget should never equal or exceed the value of its returns.

Review your marketing streams

Once you have worked out your ROI’s you’ll easily spot which channels are producing the most leads and conversions and which are performing the worst. You can now make informed decisions about which to keep and which to alter. Keep in mind no one knows your marketing channels better than you, so don’t make rash decisions that you know are counter productive even if the ROI scores aren’t what you expected. A channel might have a low ROI despite bringing a lot of traffic to your website, in which case it isn’t the marketing stream that needs to change but the conversion process.

Look at the difference between your best performing marketing channel and your worst. Find what separates them, don’t delete a channel just because it performed badly for a week. Learn as much about your audience as you can from their habits and then change up your marketing accordingly.

Is there other marketing you should consider?

There is always more to be done with marketing, new channels to explore, new angles to see, and campaigns to run. You should always consider that there maybe other more efficient ways to do your marketing. If you are unsure, reach out to others in your sector or a marketing agency that can help build your marketing strategy.

Re-Balance and go again

Once you have analysed your results and made the necessary adjustments, it’s time to run the campaigns again. That question of ‘Am I spending too much on my marketing’ could apply here for those just starting up. Don’t spend massive capital on your marketing strategies if they are guesses. Build up a bank of information about which channels resonate best with your target market before slowly increasing the budget to expand your horizons.

Measure again

This is not a once and done task. Your marketing department (that could just be you in a different hat) should review your marketing performance regularly. Maximising the amount of sales produced by your marketing campaigns requires constant changes and tweaks. This can be off-putting as it seems like a lot of work, but keeping records as you go is the key to keeping it simple.

If you would like to discuss your marketing performace and where to go next, give us a call.

Tel: 020 8634 5911

SME Needs is a Mailchimp Partner

Mailchimp’s New Customer Journeys

By A Helping Hand, Delivering your marketing, Small Business Marketing, Strategic Planning, Technology & your business

screenshot image for Mailchimp Customer Journeys

At Last!

Customer Journeys, from Mailchimp goes live from today and will be available to all Mailchimp customers by the 7th August. It is something that we’ve been waiting for, for a very long time. Here is why.

Single Routing

Mailchimp’s products have a huge number of positives and that’s why we’re a Mailchimp Certified Partner. The Automation function meant that we could set up email campaigns, for our clients and ourselves, to go to people based on specific criteria, whether this was information in certain contact fields or Tags. But after that first email went out, Automations only gave you limited options:

  • Send the next email if they clicked
  • Send the next email X period afterwards

If you wanted to have multiple options, you had to set up multiple automations, based on the actions your contacts took from the previous email.

Single Starting Points

A single starting point also limited your options, or complicated matters as you built multiple Automations. Multiple automations increased your chances of doing something not quite right, which could upset your contacts.

As you can see from the image, that is now changing…

image showing Mailchimp Customer Journeys

Simplified Marketing

With the opportunity to use multiple triggers and multiple branches, it definitely means that email marketing will become a little simpler. I definitely see it as a time saver and it will save our clients some money, as we are not building large numbers of automations.

First Impressions

Even as a Mailchimp Partner, we haven’t got this functionality on our accounts yet; it goes live today. We will be spending quite some time looking in more detail at how Customer Journeys works and the benefits it can bring for us and for our clients. As soon as we have had a “play”, we will report back on our first impressions.

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7 ways Google Analytics can help your small business

By A Helping Hand, Technology & your business

Google Analytics is a godsend for all small businesses. But, so many either don’t know it exists or don’t use it.

In January I delivered a marketing workshop to about 60 small business owners. Less than half of them put their hands up, when asked if they had Google Analytics on their website.

Let’s spend just a few minutes looking at why we believe EVERY small business with a website should have Google Analytics installed and what you can learn from it.

Read More

Tracking isn’t just for rednecks

By Customer Understanding, Marketing Performance, Social Media, Technology & your business
  • A broken twig
  • fresh footprints
  • Frightened birds
  • Canddi return trigger!?!

All are signs a tracker will use when hunting their prey.  Knowing where their prey is through tracking is key for the hunter if they want to eat tonight.

The same goes for the your business (with the last one on the list only really for businesses).  Knowing who is looking at you and your online presence can really help you to grow your business. It’s key to be tracking your marketing

Let’s split this into two: you and your business.

Who’s looking at you?

As the owner or director of the business, you are a figurehead for the business.  People will look at you as an indicator of what the business is all about. There’s a few places people will go to in order to look at you:

LinkedIn

Both your personal and company profiles are likely to be looked at.  Are you happy they portray you well?  The good thing about LinkedIn is that you know who is looking at you and when they looked.  This means you can return the favour and then make a decision about what to do next.  Are they a potential client, a possible supplier or simply someone who could be a useful person to network with.

Twitter

To an extent, this depends on whether you tweet as you or as the business, but they’re still going to look. Keep it consistent and interesting. Most of all make sure you’re interacting.

Who’s looking at your business?

There are many tools you can use to check out your website’s performance, starting with good old Google.

Google Analytics

An oldy but a goody.  At the most basic level, you can see how many unique views you get, where they came from, how many pages are being looked at and what pages are liked/disliked (check out the bounce rate).  At the other end of the scale, you can see whether viewers are following the path you expect them to, what they are spending and what your demographics look like.

Check out Audience/technology/network as well.  You can see the names of some of the companies checking you out!

Canddi

No, I haven’t mis-spelt it, there are 2 d’s.  There are a number of more advance web analytics tools out there, including Trovus, Lead Forensics and IDFingerprint.  My favourite at the moment is Canddi.  Not only have they agreed to a free trial for all my clients, they won’t tie you in for a long-term contract and you can set it up to tell you when people return to your website.  Would you like the next conversation you have with a prospect to be timely and absolutely relevant?

I could go on forever about the various tools you can use to track who’s watching you online, but let’s save the 1984 bit for another time.   The simple truth of the matter is that keeping an eye on who is looking at you means you get a chance to interact with them, you know what they are interested in and you can have both a highly relevant conversation and one at the right time.

I wonder if your competition are doing the same thing?

Need a hand tracking your marketing performance? Call us on 020 8634 5911 or click here and we’ll call you.