 Gaby Awad - “Buying Customers” S4 Episode 4: Meeting Marketing Targets Introduction My name is Gaby Awad AKA The Coach on Wheels (you have to watch my YouTube channel to know why 😉), and I am your host for the BUYING CUSTOMERS radio show 🔥🔥🔥 It would be awesome if I could hear from you in real time during the show. If you’re listening live or to one of the recordings, you can always connect and interact with us on Facebook, Instagram, LinkedIn and Twitter at IBGRNetwork. Listen LIVE every Wednesday 12:00 pm to 1:00 pm: GMT Show Objectives Your marketing objectives are your brand’s clear-cut, defined goals. Beyond this, you can look at your marketing objectives as a way to provide clear direction for your team members to follow. Without defined goals, there’s no clarity on what needs to be accomplished, what numbers are we trying to meet, and your brand will struggle to reach its potential. By implementing a straightforward marketing plan, your company will have the goals it wants to achieve and the execution plan to meet those marketing objectives. You’ll be far more likely to reach your goals when they are defined, outlined, and compiled into a clear list of measurable marketing objectives Key Issues With bid data and the digital age, it is sometimes difficult to measure our marketing impact.
What You Need to Know
What You Need to Do The SMART approach allows your department to manage marketing activities better and be able to determine how successful new objectives can be. Then follow these 5 steps to further narrow and specify your objectives. Step 1 Start by recording your sales goal in total dollars or as a percentage increase. For example, you might decide that in the next year, you will achieve gross sales of $1 million. You can also aim for a 25 percent increase in sales. As part of your objective regarding sales, you can include the strategy you will use to reach the objective. For example, a marketing objective could be: “We will increase sales 25% by identifying a market segment we have not explored.” Step 2 Decide on the number of customers you need to achieve your sales targets. This requires you to know average value of sales. For example, if the average customer spends $200, you will need 10 customers for every $2,000 you want to increase sales. It costs money to acquire customers, so make sure you have the budget to reach your objective. You could do something like, “We will acquire 100 new customers through LinkedIn paid ads by the end of this year.” Step 3 Next, you should choose a percentage increase for each customer value of sale. If, for example, your customers currently spend $200 per purchase, choose a percentage you would like to add to that. You would write out this marketing objective as: “We will increase the average customer purchase by 12% by suggesting additional products at checkout – cross selling.” Step 4 Here you want to set price targets. Review your current prices to determine how they position you in the marketplace. Your marketing objectives depend on effective pricing. For example, a limited-edition wine could justify a high price to appeal to well-to-do connoisseurs. On the other hand, local IT services might have to be priced to compete with neighboring businesses. The goal is to set a price target that leaves you a profit margin yet makes you competitive. Reaching this price objective might take several small steps, such as increasing prices 10 percent per year. Step 5 Finally, you should combine all of your key objectives into one summary paragraph, so you can see whether they work together. For example, if your summary states, “We will increase sales by 15 percent and lower our prices by 20 percent,” you can see that you have two objectives that work against each other. An effective summary of your key marketing objectives might say, “We will achieve sales of $1 million, which will give us a 15 percent market share. We will increase the number of customers by 20 percent, and increase the average purchase by 10 percent. Also, we will increase our prices by 5 percent over the next three years. Key Performance Indicators Assign relevant KPIs that will help you assess and measure the output of your work. Here are some examples of the big buckets that matter most in tracking and the KPI options under each. Lead Generation KPIs
Website Metrics
Market Share Numbers To find your market share, consider the total revenue and market size of your industry or geographic location. Then divide your business’s total revenue by the total revenue of the market. This calculation will give you an estimate of the percentage of the market your brand controls. Social Media Engagement
New Customer Acquisition
Lifetime Value of a Customer
SEO Performance
Conversion Rates Conversion rates are the percentage of people who perform the desired action when presented with an option to act. Track conversion rates for all of your landing pages, website opt-ins, email links, free trial sign-ups, or any other call-to-action in your marketing campaigns. These examples are just the tip of the iceberg. If you need more examples, make sure to download the show notes where I share a link to 70 Digital Marketing KPIs for Small to Midsize Businesses. [https://uhurunetwork.com/digital-marketing-kpis/] Return on Investment To calculate ROI: Marketing ROI = (Sales Revenue – Marketing Cost) / Marketing Cost It’s important to note here, that this formula makes the assumption that all sales growth is tied to marketing efforts. In order to generate a more realistic view of marketing impact and ROI, marketers should account for organic sales. Then a better formula would be: Marketing ROI = (Sales Revenue - Organic Sales Growth - Marketing Cost) / Marketing Cost This will roughly indicate the profitability of each source. Combining revenue and marketing spend from all sources will generate an overall ROI. Marketers can also calculate ROI through customer lifetime value (CLV), which sheds light on the value of each individual customer relationship with a brand. This formula helps assess long-term ROI across the consumer’s lifecycle. To do this, marketers can use the following formula: Customer Lifetime Value = (Retention Rate) / (1 + Discount Rate/ Retention Rate) Action Plan Considering the overarching formulas marketers can use to measure impact, along with the common pitfalls to avoid, it’s important to take the following steps in order to measure the impact of marketing accurately: 1. Establish Clear Goals In his book What Sticks: Why Most Advertising Fails and How to Guarantee Yours Succeeds, Rex Briggs coined the term "ROMO" for Return-On-Marketing-Objective. This term uncovers the notion that there can be more to a campaign than just ROI, such as changing brand or perception. With this in mind, it’s crucial for marketers to establish clear goals that indicate what external factors make up their ROMOs, as well as how these unique factors can be measured (and subsequently applied to marketing impact calculation). Consider leveraging measurements like brand awareness strategy surveys, social platform engagements, or the ratio between MQLs and SQLs. 2. Set KPIs to Each Goal Select 3 to 4 KPI to each marketing goal. Don’t over measure or else you become overwhelmed with the measurement process itself and you miss on the big picture. KPIs should be easy to calculate, automated if possible and cover the whole marketing objective that we are trying to accomplish. 3. Establish Costs Establishing marketing costs like creative development, personnel, agency fees, overhead, among others, can help marketers clearly formulate their marketing impact measurement strategies and decide on what metrics to include in their calculations. 4. Use the Right Measurement Models Utilizing the right attribution models and marketing measurement strategies works wonders to track consumers across all channels, leading to clearer holistic and granular results. 5. Marketing Analytics Platforms Invest in and focus on a marketing technology platforms with the capability to unify different attributions with a mix of online and offline measurements. Armed with software analytic tools, marketers will have clearer insights to use in their formulas—leading to more efficient and accurate measurements. If you need help determining what your marketing objectives should be and are looking for a framework to follow, schedule a consultation with me or any of our talents by visiting IBGR.Network or booking time with me (https://www.goodsession.me/picktime). Our consultants review your current marketing goals, help you create an action plan and see if your execution plan aligns with hitting those goals. Shows
Written by Gaby Awad As a Business and Executive Coach, Gaby helps business owners, leaders, and teams grow and achieve their goals through alignment, business re-education, coaching, and mentoring. He has more than 25 years of experience in executive positions and transforming businesses. Currently he is the Franchise Owner of ActionCOACH in Lebanon and in this position he also coaches Business Owners, CEOs and other top level executives. Gaby holds international accreditations as certified coach from ActionCOACH, Marshall Goldsmith, The John Maxwell Team, and Jeffrey Gitomer Sales Academy. Gaby is also the founder of Good Session Coaching, an online learning platform for executives and business professionals where leaders can go through self-paced learning. You can connect with Gaby on any of his seriously social platforms Connect on LinkedIn Follow on Twitter Follow on Instagram Like on Facebook Send an email: gabyawad@actioncoach.com C2.04.4PM
0 Comments
Leave a Reply. |
new choice for BUSINESS SEARCHAll IBGR Shows Notes are available for download
Authors- (NA) North American Radio Hosts Archives
June 2021
Categories
All
|
RSS Feed