This week we’re going to talk about the next few sections in your best, most effective, incredible marketing plan ever!
1. Calculations: ROI, CPC, CPL and Conversion %
If math makes you want to cry, don’t worry, you’re not alone, and this math is SIMPLE and SO REWARDING! First, we are going to use your data from the last year (or a period you choose) to see how many leads and how many customers came to us from each source: ie Facebook, radio, Google reviews, current client referral, etc. Then, we are going to look at our advertising and marketing expenses for the same period, to see how much money we spent on making each of those sources work for us. How much did you spend on Facebook ads, radio spots, referral programs, etc. Make sure to include the wages of people you paid for time to do those things as well. Now that you have all of that information, you will have no problem calculating the following. *NOTE* if you’re not currently asking EVERY lead and customer “how did you hear about us?” and “where else have you seen/heard us?” you MUST START NOW!!!!
ROI (the simplest version): income from that source of lead – investment in that source. Example: if you got 10 customers at $100 each from Facebook, you earned $1,000 from Facebook – the $100 you spent on Facebook ads = $900 ROI.
CPC: Cost per customer: take the amount you spent, and divide it by the number of customers you got from that source. Example: you spent $100 on Facebook, you got 10 customers = $100/10 = $10 per customer
CPL: Cost per lead: same as above, but with LEADS, not just customers. Example: You spent $100 on Facebook, and got 100 leads, $1 per lead
Conversion rate %: the number of leads that converted to customers divided by the total number of leads. Example: 10 clients out of a total 100 leads = 10% conversion rate
If you don’t calculate all 4 of these very important numbers, you could be making mistakes in your marketing. Do yourself a favour and do the work! The insights will be WELL worth it, I promise!
2. Ideal Customer segments & characteristics
If your ideal clients range more than 5-10 years in age, you will want to separate your target audience into segments. What that means is you should market to 25-29 year olds differently than you do to 30-35-year-olds. The reason for this, is that when we are speaking specifically, directly, and relatable to a 35-year-old, it probably doesn’t land for a 25-year-old, because they’re at a different stage of life, with different needs and preferences. You’ve probably heard it said that if you try to speak to everyone, you reach no one. That is exactly why we separate our marketing strategies into segments. So, how do we do it? You start by surveying/interviewing your TOP 10% of clients. If you have 1000 clients, survey 100 of them. Now only you can decide who your “top clients” are, but I do have a few suggestions for selection criteria: Who pays your prices without complaining because they recognize your huge value? Who pays on time, every time? Who is a DELIGHT to work with? Who makes you feel LIT UP after working with them? Involve your team if you like, and select the very best 10% of your clients. Once you’ve selected your top 10%, interview them to find out why they buy from you, their hobbies, their marketing medium consumption, their demographics, and anything else you can use to find out: 1. what to say and 2. where to say it. You will use their feedback to choose where to spend your marketing dollars and what to say when you’re advertising there.
Make sure you amalgamate the feedback before making decisions, you don’t want to use one person’s answers to make major decisions, you only want to use common themes – things that are the same for the majority of your ideal clients.
AND, this is where you need to remember that you may be separating your ideal clients into 2 or more segments, based on their ages. In that case, you’ll be looking for common themes in answers from only one age group at a time, rather than all 10% of them at once.
3. Your Marketing Budget
Ideally, you’re going to spend 0 dollars on marketing. Most of our clients spend close to 0 dollars on marketing and advertising, after working with us one on one, for a period of time. This is a direct result of AWESOME MARKETING PLANNING. You use all of your data to analyze and decide on what the most effective use of your time and money is, and you STOP doing the things that don’t work. For example, many of our clients use Google reviews, and current client referrals to fill their pipeline with leads. The number one key to having FREE lead generation is to do a FANTASTIC job of setting and achieving client expectations. These should always be your first two steps – set proper expectations and do a GREAT JOB for your clients!
If you feel you need some help increasing your profits, contact TMH Business Coaching and Consulting today for a confidential, free, no obligation consultation to propel you forward. Also, please feel free to add yourself to our weekly coaching tips email!