Refine Your Strategy
Spending too much time on marketing?
Figure out which tactics are doing the heavy lifting, and which are just tagging along for the ride.
Understanding Your Marketing’s Actual ROI
For most small and medium sized businesses, the money spent on marketing is considered to be doing it’s job so long as the business isn’t hurting for customers. But most businesses don’t really know which things that they spend marketing dollars on are actually leading them to make that money back (and then some).
If that sounds like you, don’t worry. It’s incredibly common — even at companies that make tens of millions of dollars a year. But it doesn’t have to be that way.
Tracking your marketing dollars can help you determine which channels (or methods) are working best, so you can choose to spend more money in those ways, and which are less effective, so you can spend less. But how do you measure that success?
The Danger of Vanity Metrics
When it comes to marketing, a lot of people focus on “vanity metrics” — that is, numbers that look good, but really probably don’t mean a whole lot. It’s easy to feel good when a Facebook post gets dozens of likes or when your Instagram suddenly gets a ton of new followers.
But it’s important to remember that while it can be fun to track those things, numbers only matter if at the end of the day you can point to how they helped you land new customers.
So, what should you track?
The metrics you actually want to track are often called Key Performance Indicators or KPIs. A healthy marketing strategy is one with tactics at each stage of the funnel — and so we’ll want KPIs for each stage of the funnel too.
To start, you’ll want to determine which step each of your current marketing activities fall into; then you can compare them against other marketing activities in that same stage of the funnel.
Let’s look at PPC ads for a moment as an example. PPC stands for Pay Per Click — these might be ads on Facebook or on Google. In either case, they are called Pay Per Click because you pay a small amount every time someone clicks on your ad. Basic PPC ads usually fall into the “attract” stage of the funnel. So how do we decide of they are a good marketing investment or a waste of money?
Let’s say we have a very simple marketing funnel for our ad — we are offering puppy classes, and advertising on Google for people who search “Puppy Classes in Raleigh, North Carolina.” When people click on the ad, we take them to a page on our website all about our awesome puppy classes, and on that page we have a form for them to sign up to get a puppy training guide, and a call from one of our trainers to answer any questions they may have.
Our KPIs for this particular “path to purchase” might be clicks on the ad that led people to visit our puppy page (attract), number of people who filled out the form on that puppy page and the percentage or ratio of people who visited to people who filled out the form (convince), and then finally the number of people who, after filling out that form, decided to sign up for the class (convert).
A Basic Marketing Funnel
Step 1: User Clicks Ad
Let’s say 100 people see the ad and 50 people click. Our KPI for this step is “clicked on ad.”
Step 2: User Visits Puppy Page
Of those 50, maybe 10 fill out our form. Our KPIs would be “Filled out form” and we’d say we have a 20% conversion rate.
Step 3: User Fills Out Form for Guide + Free Call
Of those 10, 5 decide to sign up and take the class. Our KPIs are class sign ups and a 50% sales conversion rate!
Step 4: User Signs up for Class
Our max class size is 6 students, so having 5 students sign up via just this one marketing channel is quite good!
Once we know our KPIs for each stage of the funnel, and can figure out how many people we need to put into the top of the funnel to get the number we want out the bottom of the funnel, we can look at how much money PPC is costing us per click. This is our cost per lead (CPL).
Multiplying that by the number of people we need to add to the top of the funnel to get 1 person at the bottom of the funnel gives us our customer acquisition cost (CAC).
Repeating this process for each channel will let you compare apples to apples, so you can decide which channels are working are the most effective.
Today, I want to share a hard truth. Here it is — are you ready?
Not everyone who visits your website is going to become a customer.
in fact, not everyone who visits your website is going to fill out a form or call you. Not everyone who fills out a form or calls will decide they want to work with you. And not everyone who decides they want to work with you will be ready to do that right now.
That’s why you need a marketing strategy.
Upcoming Online Class
Do you run your own pet-related business?
If you’re a dog trainer, groomer, or another pet professional with your own business and you struggle with marketing your business, this class is for you.
If you’re new and trying to figure out where to start, together, we’ll create a marketing strategy that’s right for your business.
Over the course of 6 weeks, we’ll work through the process of getting that plan up and running so that you can begin to see real results.