The question of Return on Investment has always been of key importance to marketing, but this is even more true today. With all the frenetic activity of the modern marketing department — content creation, social media, SEO, paid ads, email marketing — it’s natural for people, and particularly upper management, to ask, “is all this activity paying off?!”
The great thing about having your marketing analytics really dialed in is that it enables you to more precisely track what is otherwise very difficult to track. Key to this idea is that at different stages of the marketing funnel, you likely have different goals.
- What are 10,000 actively interested website visitors who have read through your company’s white paper worth to you?
- What are an additional 100 leads per month worth to you?
- What are 10 repeat customers worth to you?
This is well exemplified by our Growth Formula. One important component of our Growth Plan is the Buyer’s Journey Funnel, which helps to move customers from early-stage awareness through conversion.
The Lead Magnet is something of value that you’re offering for free in return for something like contact info. The Entry Point Offer is the first time you’re asking the customer to commit, such as paying $10 for a demo or consultation with you. The Core Offer is your main product — what you hope to ultimately convert the customer to.
Each of them represent increasing awareness and familiarity with your company, and each is a small “conversion” of sorts. It’s incredibly valuable to break down the stages in this granular fashion instead of just looking at the middle of the funnel as “general stuff the customer does before ultimately converting”. Each of these stages have their own conversion rates, and a big part of your marketing strategy will be figuring out how to maximize conversion rates at each step.
When you measure all of these components, you should be able to find some benchmarks for your business (which, of course, you’ll be aiming to improve). For example, you may figure out that you can reasonably expect:
- 26 out of 100 visitors to take up your Lead Magnet
- 10 of the 26 to go for your Entry Point Offer
- 6 of the 10 to ultimately convert to your Core Offer
Knowing this is very empowering because you can then move the levers to impact your business. If you know your Core Offer conversion rate from Visitors is 6%, you can then ask what it would cost to double your Visitors next month and what relationship would that have to your Core Offer conversions?
At Little Jack Marketing, we focus on one thing: creating clear and straightforward marketing systems that take the guesswork out of growing your business. Contact us today to discuss how we can help your business grow!