Category Archives: engaging customers

Marketing Metrics Makeover

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marketing metrics
A few weeks ago we discussed marketing metrics that impress your boss: customer acquisition costs, the marketing percentage of customer acquisition costs, length of time to recoup those costs, customer lifetime value, number of customers marketing has acquired, and the number of customers nurtured by marketing. While presenting these metrics to your boss is sure to impress, what happens if the actual numbers are disappointing? Once you have benchmarks in place, give your marketing metrics a makeover by improving them. Here’s how to fix disappointing metrics.

      • Customer Acquisition Costs – Does it cost too much to acquire a new customer? Look at the sales cycle to see if you can shorten or streamline it. Work with the sales team to define the criteria for qualified leads, examine marketing campaigns to identify those that have the highest return on investment, and focus on using higher ROI campaigns to reach the most targeted, qualified prospects.
      • The Marketing Percentage of Customer Acquisition Costs – If the percentage of your marketing budget that goes toward customer acquisition costs has gone up, that’s a signal that it’s time to reevaluate your strategy. Again work with sales to ensure a cohesive approach. Examine conversion rates, look for areas of underperformance, and find ways to qualify leads more efficiently.
      • Length of Time Required to Recoup Customer Acquisition Costs – Does it take an excessive amount of time before customers become profitable? A three-pronged approach can shorten this timeframe. Start by revisiting your pricing structure, possibly requiring higher payments upfront in order to become profitable sooner. Next, maximize the value of each customer by identifying upselling and cross-selling opportunities. Finally, evaluate the nurturing and sales process to find ways to shorten it which reduces acquisition costs in the first place.
      • Customer Lifetime Value (CLV) – This is related to the above, but it also stands alone. Again, you will need to evaluate your sales cycle and acquisition costs in an effort to reduce those. Finding additional opportunities can also increase CLV. In addition, reducing “churn” should also be prioritized. Churn refers to customers who are dissatisfied and leave your business. Evaluate product quality, customer service, renewal processes, and other areas that affect churn and address areas that need improvement. By reducing turnover, you can increase the number of profitable customers and increase CLV as a whole for each segment of customers.
      • Number of Customers Directly Acquired by Marketing – If the number of customers directly acquired by marketing has gone down significantly, reevaluate your lead management process. Are leads being nurtured properly? Are they being given the right information at the right time in the sales and nurturing cycle? While it’s tempting to buy more leads, it’s not helpful if your lead management system isn’t working to move them through the funnel toward a favorable buying decision.
      • Number of Customers Nurtured by Marketing – This metric involves the number of customers that the marketing department has assisted. If this metric goes down, it means that marketing is becoming less involved in the process once a lead has been turned over to sales. It’s smart for sales and marketing to work together to nurture leads, not as separate entities. It may be time to realign sales and marketing to ensure that leads are both generated and nurtured efficiently.

As with most performance measures, these marketing metrics will fluctuate. When the metrics above change suddenly or dramatically, it could be a red flag that needs your attention. Even without dramatic changes, you may want to work on improving each of these metrics to ensure a shorter customer acquisition cycle and a faster time to become profitable.

Internet Marketing: CRM, Marketing Tactics and IT Alignment

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Internet marketing and sales strategyInternet marketing continues to evolve, becoming both more viable and more complex. Customer relationship management software (CRM) has become a must due to the complexity. It plays an important role at all stages of the sales funnel. With a solid CRM system in place, your Internet sales and marketing teams can more effectively manage contacts whether they’re in the engage, convert, or nurture stage. Where the sales funnel was once the realm of the sales and marketing team, today’s Internet marketing strategies require a robust CRM solution – and IT involvement.

To add to the complexity of CRM and the Internet sales funnel in general, social media has emerged as a major channel for customer service, tech support, sales, and marketing alike. Integrating social media into your Internet marketing CRM program allows everyone to see the larger picture. For example, is a contact complaining about your service? Is she raving about your products? Has a contact expressed a need that your company can fill? By tapping into these channels, your sales, marketing, customer service, and tech support teams can respond appropriately.

Opinions vary on the best approach to CRM with some Internet marketing experts favoring a single, shared database for both marketing and sales and others preferring separate databases to ensure that leads are managed properly according to where they are in the Internet sales funnel. Other experts advocate using marketing automation software to first clean up the sales funnel data before importing it into CRM software.

Can a single CRM solution handle everything your Internet sales and marketing teams need? The answer varies from company to company. In most cases, sales and marketing need to work with the same data and contacts; however, they tend to interact with that data differently.

Integrated CRM solutions that include marketing automation and email marketing software may be the optimal choice by allowing sales and marketing to access shared data without duplication or conflicts. For example, with an integrated Internet marketing CRM platform, when an email subscriber unsubscribes from an email marketing campaign the contact will be removed from the mailing list and relevant information appended to the contact’s record.

No matter which option makes the most sense for your Internet marketing strategy, one thing is clear: you need IT support. With multiple databases, automation software, and lead sources (such as cold calling, opt-in lists, special events, and social media channels), managing the sales funnel requires software and systems that perform to their fullest potential.

While many Internet marketing platforms are offered as “software as a service” and imply that minimal IT intervention will be required, aligning marketing with IT is essential. While installation, updates, and support tasks may be minimal with cloud-based Internet sales solutions, IT should be involved in selecting the solution to make sure it is compatible with existing systems along with the company’s security and privacy policies. If your CRM solution includes social media information from contacts based in European Union countries, stricter privacy regulations may apply.

By including IT in the Internet sales and CRM conversation, you’ll benefit from a broader perspective that extends beyond the sales funnel and better aligns with the organization’s objectives. In addition, IT professionals tend to have more experience in purchasing software. Thus, they may be better equipped to evaluate the terms and conditions and negotiate the contract.

No matter which CRM solution you use to nurture prospects through the sales funnel, stronger Internet sales require alignment between your Internet marketing, sales, and IT teams.

Video Viewers: Tips for Converting Your Video Viewers

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You’ve done it – you’ve engaged your site’s visitors with video. They like your products, they trust what you’ve told them so far, and they’re engaged. Now it’s time to move them out of the engage phase and convert them into customers. You can do this by creating videos designed to prompt viewers into performing a specific action.

Before you can do so, you need to know exactly what specific action you want your viewers to perform. This may sound obvious, but it’s often overlooked. Without clear instructions telling viewers to “download a trial version,” “subscribe now,” or “order by midnight,” your viewers may continue on their way oblivious to your offer. No matter what topic your conversion video addresses, make sure that it ends with a strong, clear call to action.

Earlier, we talked about identifying your target audience. You did that with your engaging videos. Now that your audience relates to your company, products, and services, take that relationship a step further by introducing your offer. You’ve earned your audience’s trust and your viewers are ready to learn more. By posting online videos that educate viewers about your products and services, you are building toward the ultimate conclusion where you’ll ask the viewer to perform an action such as “order now.”

Just as you tailored your earlier videos to a specific audience, you’ll want to keep this same audience in mind as you create online videos designed to convert. In these videos, you’ll want your product or service to be the star. Show your product or service in action and the benefits it delivers. Remember, while features are neat, benefits are what sells a product. People don’t buy razors because they have five blades; they buy them for a closer shave and softer skin. They don’t buy picture frames because they measure eight by ten inches, they buy them to keep their memories alive.

The following video types lend themselves to converting online visitors into customers:

  • Product demonstration videos – If you’ve ever spent time in the gadget exhibit hall at your county fair, you’ll understand the power of product demonstrations. After all, the kitchen knife demonstrator showed that his knife could chop, slice, and dice unlike any other.
  • Product or service overview videos – Closely related to product demonstrations, overviews allow the viewer to see your product or service in action. Think of these online videos as commercials that highlight the benefits the viewer will enjoy by purchasing your product or service.
  • Video testimonials – Hearing how other people have successfully used and benefitted from your products or service is motivating. By posting online video testimonials on your website, you are providing viewers with proof. With people just like them raving about how wonderful your products and services are, your viewers will feel reassured. If you’ve already built credibility through your other videos and online content, video testimonials can give you an added boost and convert visitors into customers.

Online videos can convert viewers if you’ve built credibility, targeted your audience, and tailored your message to match with a strong call to action at the end. Make sure you know exactly what you want to accomplish and produce a video that converts.