Know Your Numbers
Smart marketers know their numbers: How much a customer is worth, what they can afford to spend to get a customer, and the Return On Investment for each ingredient in their marketing mix.
Marketing projects / dollars must be measurable and accountable for ROI just like every other aspect of your business.
If you called up your stock broker and said "how much is IBM selling for today?" what would you think if he said "Oh, it’s been doing really well," but dodged your questions every time you wanted a specific answer? You’d fire him in a heartbeat. You want to know exactly how much the stock is worth, in dollars and cents. That’s the only way you know if you’re making money or not. The same applies to the operation of any aspect of your business – production, sales and customer service.
The Numbers You Must Know to Be a Smart Marketer
Well if you want to make your marketing just as accountable as your stock portfolio, you’re going to have to answer tough questions. How much does it cost to get a new customer? How much does it cost to get a sales lead? How much does it cost to send a salesman to an appointment? How much did you spend on your advertising, direct mail and literature fulfillment and what was your Return On Investment?
You may have heard the phrase, "I know half of my advertising dollars are wasted, I just don’t know which half." A company like Coca-Cola that does image advertising of a mass marketed consumer product may have no choice but to accept that answer, but you can do much better than that.
Many people are afraid to answer these tough questions, so they just ignore them. But getting down to the truth is very liberating, not only because it prevents you from wasting money, but it also tells you where your money is doing the most good, and where you should put more of it.
A symptom of the problem is what happens to advertising budgets during lean times: They get slashed.
Now does that make any sense at all? If advertising is where contact with new potential customers is initiated, why would you stop when business is slow? Wouldn’t you want to advertise even MORE? This should be a blazing red flag to everyone, a warning that they don’t know whether their advertising works or not.
The Money-Making Secret of Having One Good Ad
Here’s a secret that people in the mail order business have known for decades: One really good ad in the right place can earn you money for years, with no changes or alterations. And when you use rigorous methods to identify advertising formulas that work, then you’re going to do as much of it as you possibly can. Maybe even more if you’re in a recession.
Fundamentally what you’re looking for is advertising and marketing mechanisms that give you $2 for every $1 you put in. If advertising is the great hidden waste in corporate America, effective advertising is one of the great success secrets. It’s just like that website I mentioned earlier that sells for me all the time, even though I haven’t changed it in three years.
Tapping this goldmine is a huge subject that gets extensive treatment in the system. And when you have a bunch of different media working for you – website, trade journals, direct mail, postcards and more – it’s ridiculously easy to make money.
A surprising number of my clients have made the following statement to me: I hired a marketing consultant and spent $50,000, and he never really did anything."
There are probably a zillion possible reasons for this, but I believe it all comes down to the client not having a clear mandate that marketing must be held accountable for concrete results. How much money does it cost us to get a sales lead or a new customer? And how many more can you get by spending that money again? And what can you tweak so the results are even better next time?
You Will Sell Yourself the Same Way I Sell Myself
It’s very important to point out that I teach my clients how to market themselves and their businesses the exact same way I market myself and my business. I use the same systems, the same mechanisms, the same techniques and the same criteria.
How did you get to this website? Either you found out about it through some kind of media or someone told you about it, but in any case it probably happened through means that can be replicated in other businesses and situations. My company didn’t contact you; you contacted my company. What you’re reading right now is not a thinly disguised promo. It’s productive information that you can work for you starting right now.
I teach you to market yourself the same way I market myself: With results-accountable, response based marketing. And someday when we meet in person, you’ll respect me because you found me and I didn’t hunt you down, and because what I teach and what I do are consistent with each other.