Category Archives: sales

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.

The Convert Phase of the Video-to-Lead Funnel: A Detailed Look

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Continuing our discussion about the three phases of the video-to-lead funnel, let’s explore the second phase: convert. As you know, prospects move through the video-to-lead funnel from the top at the “engage” phase, move down through the “convert” phase, and finally enter the “nurture” phase.

Once you’ve engaged your prospects with videos that help solve your prospects’ problems, present tips and best practices, expand upon an event, or otherwise engage your prospects and build trust, the next step is to convert them from casual visitors with a passing interest into legitimate leads with a genuine interest in your offer.

The convert phase provides you with the perfect opportunity to showcase your company, product, or service as well as prove that you can deliver upon your promise. Videos well suited for this phase of the video-to-lead funnel fall into the following three general categories: overviews, demonstrations, and testimonials.

Video Overviews

Video overviews are short Web videos that show case your company, product, or service. Remember, your prospects have already been engaged by viewing earlier videos. At this point, you may have solved a problem, shared interesting ideas, or interviewed a key leader; in short, you’ve earned a degree of trust with your visitors. They’re now much more open to learning more about you and your offerings. A video overview showcasing your company, such as a company tour, or your products and services typically increase prospects’ time on a website by four times over baseline. Not only that, your customer is now much more informed when entering the sales cycle.

Video Demonstrations

Engaged prospects may actively seek additional information as they begin forming their buying decisions. For example, if you’ve discussed a problem in a Web video and mentioned that your product was designed as a solution to this problem, an engaged prospect may look for a demonstration video to see the product in action. Demonstration videos educate and inform prospects about the product or service, reinforce benefits, and serve as proof of concept. Sure, you can say that your widget sets up in less than 10 seconds, but the real proof is in actually seeing the widget being set up – in less than 10 seconds as promised. Web video can do that. These video demos also position you as an expert who understands the challenges and problems prospects face, and they show that you have the best solution.

Video Testimonials

Video testimonials are particularly powerful. Again, you say how wonderful your product is all day long but your word isn’t nearly as trustworthy as that of a prospect’s peers. Video testimonials show proof that your product or service has served others extremely well. For example, which of the following is more credible: “Our widget will save you $1000 per year in utility bills” or “This widget paid for itself in the first month and saved me over $1000 last year on my electric bills”? Video testimonials serve as an accelerated, and effective, form of word-of-mouth advertising.

The video-to-lead funnel’s convert phase is an important phase where you can build upon the trust you’ve already earned with your prospects.

The Engage Phase of the Video-to-Lead Funnel: A Detailed Look

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Earlier, we talked about the “video-to-lead funnel” with its three phases:Engage, Convert, and Nurture. This funnel represents a strategy for using Web video to guide and convert prospects. The broadest part of the funnel is the Engage phase. In order for a prospect to convert, that prospect must first be engaged. How do you use video to engage prospects? Let’s explore.

In general, videos that add value engage your site’s visitors. Examples of engaging videos include:

  • Interviews with thought leaders on topics of interest to your site’s visitors. This type of video typically increases engagement by two and a half to three times over baseline.
  • Videos consisting of tips or best practices of interest to your site’s visitors. These videos typically increase engagement by two and a half to three times over baseline.
  • Videos that contain solutions to your prospects’ problems.

Promotional videos can also engage your site’s visitors. For example:

  • A video spokesperson that guides your visitors to specific Web pages is much more engaging than a text link.
  • Videos embedded in reports and white papers can bring the material to life and engage your prospects.
  • Video links in newsletters add interest while also driving your prospects to specific pages on your website. In addition, video links in newsletters have been shown to reduce opt-out rates.
  • Videos positioned on landing pages increase landing page conversion rates by one and a half to two times over baseline. They also encourage follow through on your call to action by reinforcing the benefits of your offer.

Videos related to an event are another terrific way to engage your prospects. In fact, you can use videos before, during, and after an event, adding value and engaging prospects each step along the way. For example:

  • Before the event – Use video to promote your event and increase attendance. This strategy typically results in an improvement of two to four times over baseline.
  • During the event – Video displays during the event engage attendees and add another dimension to your presentation while recording the event itself ensures that you have footage to share afterward.
  • After the event – The possibilities for using video after an event are vast. You could post highlights from the event on your website for those who couldn’t attend, thereby engaging prospects after the fact. You could edit the footage to include detailed excerpts from speakers and post it on your website. You could use excerpts from the event as you promote the next event in the series. You could create an event follow-up video with a special offer which typically results in a follow-up response of 22% to 35%. Each of these post-event videos allow you to keep the conversation going and reach attendees and non-attendees alike. They also strengthen your position as an expert.

What do all of the above videos have in common? They engage prospects.

How have you used Web video to engage your site’s visitors? Share your ideas in the comments section below.

Video-to-Lead Funnel: Guide Your Prospects to the Sale

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Leveraging Web video to generate sales leads requires more than glitter and technology, you need a strategy to guide your visitors through the process. First, visitors must land on your website. Once, there, you’ll need to shape their buying decisions. One of the best ways to transform your prospects into qualified leads is to use the “video-to-lead funnel.” Here’s a look at what it is and how to leverage it.

video to lead funnelWhat is the Video-to-Lead Funnel?

Like a traditional funnel, the video-to-lead funnel is wide at the top, tapering down to a small spout.

Prospects fall into your video-to-lead funnel at the top where you’ll have the opportunity to engage them through informative videos, promotional videos, event videos, and other videos that add value. Video content that adds value, encourages follow through on calls to action, or adds interest is ideal in this phase of the funnel.

As prospects move down the funnel, you’ll need to convert them to qualified leads with videos that educate prospects about your company, products, and services. Typical videos that aid in the conversion process include demonstrations, product overviews, and testimonials. Because prospects have experienced engaging videos earlier, they know that you offer something of interest to them. Now, they need proof of concept in order to convert. Videos such as company overviews, product or service demonstrations, and video testimonials accomplish this vital task.

After going through the engagement and conversion processes, your prospects approach the spout of the funnel where the nurture process begins. At this point in the funnel, you have the opportunity to make a connection with your prospects, send follow-ups, and present solutions. All along, your videos have been preparing your prospects to get to this point: the point where they’re no long prospects who happened by your website but qualified leads who are genuinely interested in what you have to offer. Your videos at this point can arrive after requests for information, as email follow-ups, or through deeper links within your site.

What Can the Video-to-Lead Funnel Do for You?

When successfully implemented, a video-to-lead funnel improves conversion rates and shortens the sales cycle. At the top of the funnel, engaging videos can increase conversion by 20 to 200 percent. In the middle of the funnel, conversion videos increase engagement two to four times. As these prospects progress through the bottom of the funnel, you’ll likely see an increased close rate and a shorter sales cycle.

Putting the Video-to-Lead Funnel to Work

Simply embedding a few YouTube videos on your website or blog isn’t a strategy and knowing that the video-to-lead funnel exists isn’t enough. You must actively plan, implement, and manage your funnel. This involves the production of professional, well-crafted videos and effective calls to action for each section of the funnel. Like water moving through a funnel, prospects go through the video-to-lead funnel from the top to the bottom. Plan your strategy so that each section (Engage, Convert, and Nurture) logically leads to the next and you’re sure to see improvement in conversion rates.

Attract Traffic and Boost Sales with Short Web Videos

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The latest research from PewInternet.org shows what many marketers already know: More Americans are watching and sharing online videos – dramatically so. According to Pew’s State of Online Video 2010, 69 percent of adult Internet users have used the Internet to watch or download video. These numbers are but part of the story. While Web videos are popular with users, they can also drive traffic to business websites and boost sales conversions.

Typical business websites act as online brochures, showing customers and prospects what the business has to offer. Early designs were relatively static with brochure-like text and contact information. Today, most business websites provide far more than a sales pitch and contact information. Now, informative articles, blogs, and interactive content are website standbys. With more Internet users willing to watch videos online, adding 60 to 90 minute Web videos makes sense. After all, video is an effective medium to convey messages.

In addition to being a terrific way to communicate, Web videos can actually drive traffic to your website, build trust and credibility, and boost sales conversion. First, all of the major search engines include video results in their search results pages. Not only do video results now appear in general search results, separate video categories exist where users can specifically search for sites with videos.

For example, if you have a well optimized Web page discussing “how to attract butterflies to your garden,” your page could conceivably appear on the first page of Google’s search results. If that same site had a video discussing the topic, not only might your page be listed in general, the video would appear as a separate search result. That’s two links attracting traffic. Now, what if the user was specifically looking for videos about attracting butterflies? If you don’t have a Web video on your site, your site won’t appear in the search results no matter how well you optimized the text. By including Web videos on your pages, your site should get more exposure than without.

Attracting more visitors can lead to increased conversions based on numbers alone. However, adding Web video is more than a simple numbers game. By producing informative 60 to 90 minute videos, you are adding value to your site and building trust with your site’s visitors. No matter how a visitor arrives to your site, a sale won’t take place unless the visitor sees value and trusts you to deliver.

Because value and trust are crucial to winning sales, it’s vital that these short Web videos project these characteristics. Consider a business website, one with a professionally produced Web video and one with an amateur Web video. Which one would you be more likely to buy from? Which one is more likely to be around several years from now to honor any warranties? Web visitors make subconscious judgments like these based on what they experience. Strong production values can sway these judgments in your favor.

There’s more to Web video than a pretty picture; your content needs to build trust as well. Is the video informative? Does it add value? Does it give site visitors are reason to select your company over others? If your Web video promises to show how to attract butterflies but is merely a picture of butterflies flitting around, it has failed no matter how beautiful it may be. On the other hand, if it presents a useful technique or product, then it has lived up to its promise and added value.

A solid Web video strategy can drive traffic and boost sales. As you begin forming your online video strategy, keep value and trust in mind and you’re sure to start seeing results!

Enhance the Internet Sales Conversion Process with a Virtual Spokesperson

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Have you encountered a virtual spokesperson on a website yet? If you have, then you know that virtual spokespeople add a new, dynamic element to static Web pages. A video overlay of a real person walking onto the screen and speaking directly to site visitors helps personalize websites. However, there’s more involved than a friendly face; a virtual spokesperson can translate into increased conversions.

No matter what your website’s goals may be, using a virtual spokes model strategically can ensure that those goals are met. For example, do you have a landing page on your site designed to collect opt-in email addresses? While “click here” links and peel away banners entice users to click their way to the landing page, a virtual spokesperson can gently guide the visitor to the desired page. As the virtual spokesperson directs attention to the pages that you’d like the user to visit, she can also explain the benefits of doing so as well as thank the user for taking the desired action after the fact.

One of the most profound effects that virtual spokespeople have on site visitors is that of credibility. Because the spokes model looks, sounds, and acts like someone the visitor relates to, trust is built. Who do consumers buy from? People that they trust. Well written website content, a professional website design, and a real, albeit virtual, spokesperson work together to build trust.

This doesn’t mean that you should simply dress an actor in a lab coat and tell him his name is Dr. Smith. It means that you need to select a spokesperson who can build trust with your audience. Wardrobe choice is important, but it’s not the only priority. For example, if your site sells healthy living books, a number of spokes model characters could be effective such as a motherly type, yoga instructor, or athlete. Consider who your audience is and what type of role models resonate the best with site visitors. From there, select a virtual spokesperson with the qualities that your audience respects.

So, you have a professional website with a credible virtual spokesperson welcoming and guiding your site’s visitors. While you’ve been able to direct visitors to specific areas of the site and build trust along the way, nothing happens until the visitor takes action. If you’ve been involved in traditional sales, you know that the simple act of asking for the sale is one of the most powerful tools in your sales toolbox. Phrases such as “Would you like to place an order?” and “Can I schedule overnight delivery or standard delivery for you?” prompt users to make a decision. A virtual spokesperson can improve the sales conversion rate of your website simply by asking visitors for the sale.

Though some companies will suggest that incorporating a virtual spokesperson into your website is easy and inexpensive, the process is more complicated than cutting and pasting a few lines of code into an HTML editor. Among the many steps are: selecting the right actor or actress for your site, writing a script (or several scripts if the virtual spokesperson will be used extensively), choosing the wardrobe, shooting and editing the video, and overlaying the final composition over your site. Look for a video production company with an understanding of the nuances of Internet marketing as well as high production values.

Virtual spokespeople enhance the sales conversion process by building trust, guiding visitors, and asking for the sale. What have your virtual spokesperson experiences been like so far? Have you made a purchase decision based on a virtual spokesperson’s recommendation? Has your site seen improved conversions since adding a virtual spokes model? We’d love to hear from consumers as well as website owners.