Category Archives: MARKETING

BUSINESS, MARKETING, SALES

2 Key Metrics To Monitor With Your Customers – Everything Else Is A Distraction

A client recently bemoaned that she was investing as much as she possibly could in marketing her business, often times at the expense of her drawing a salary. When we asked her how much new business was coming from these marketing campaigns, she shrugged her shoulders.

“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” ~ John Wanamaker, Advertising Pioneer

Today we have mounds of data on everything from customer acquisition to customer retention and while this information is designed to create efficiencies and improve the way we do business, it actually only serves to create more confusion. Studies show that having a bunch of information doesn’t necessarily help you solve the problem.

When it comes to getting and keeping customers, there are two key metrics that every business owner should know:

Customer Acquisition Cost (CAC)

If you have an expense line item for marketing and advertising campaigns, then you should be tracking how much new business is coming in as a result of those campaigns so that you can measure its effectiveness. One client had invested $6,300 over a three year period with a glossy magazine that gets drop shipped into a geo targeted area. The seductive pitch of it landing on the desk and countertops of 30,000 of her ideal customers was too good to pass up.

Since she tracks in her CRM how her new customers find her business, it was a simple matter of pulling a report that revealed it was a wasted investment. She didn’t receive even one new customer from that campaign. Further, when you put it in perspective that if she had acquired, for example, 3 new customers as a result of that campaign, her CAC would have been $2,100 (that’s $2,100 for each new client!). Can you get a new customer for less than that? Absolutely! You can get leads for a few dollars in Facebook all day long.

Every marketing campaign should be measured against your CAC. Simply break apart your marketing line item and understand how much is being allocated for each campaign, query your new customers as to how they found you, monitor the results, make decisions as to whether the results are in alignment with your goals then slash and burn what’s not measuring up.

Customer Lifetime Value (LTV)

Walk into any bookstore, go to the business section and what you’ll find is that the vast majority of them are written about customer acquisition. While acquiring new customers is essential, Gallup estimates that businesses are only doing ⅓ the business they should be doing with their existing customers. That means if you’re doing $1 million in sales, there is a full $2 million in low hanging fruit that is going unpicked. If you want to pull the profit lever in your business, this is the metric to dial down.

The key to increasing profits is to get your existing customers to come more often, buy more and tell others.

Businesses that focus extending customer engagement beyond the first transaction have a higher probability of creating greater customer loyalty, which equates to higher profits.

The benefits of knowing your LTV:

1. You can increase LTV by extending your product and service offerings.

2. You can put parameters around what you would be willing to invest to recover that customer should things go off the rails

3. You now have an understanding of how much to invest to acquire a new customer. For example, if your LTV is $1,500, you can make an investment decision based on real numbers, not guessing. A good rule of thumb is 5:1 ratio (LTV to CAC).

While it’s easy to get bogged down in the process of getting and keeping customers, keep it simple and focus on the two metrics that tell you the true story of your customers. Manage and monitor your campaigns closely so that you can determine your CAC and make swift decisions if they fail to deliver results. Cautiously enter into long term advertising agreements that don’t give you an exit if it’s not performing to your metrics. Keep your finger on your LTV as it is the True North that will guide your increased profitability.

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Pam-250-x-250Pamela Herrmann & Patty Dominguez are the Co-Founders of CREATE Buzz, committed to helping small businesses get customers and keep customers by taking the overwhelm out of technology, thus creating sustainable thriving businesses that are relevant. They co-host The Morning Would Show bringing the latest in marketing tips and strategies.

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AUTHORS, BUSINESS, MARKETING, SALES

Tim Matthews: How to get from Can’t to Can If…

Joined on the show today by Tim Matthews, the Vice President of Marketing for Incapsula!

Discussion guide from my conversation with Tim Matthews:

Tim Matthews1. Sales vs. marketing.

2. And why there needs to be a healthy tension between the two!

3. Need to get from CAN’t to CAN IF…

4. What’s it like running a marketing team at a high-growth cloud software company? What are the challenges?

5. Give us a sense of what’s really going on these days in Silicon Valley?

6. You write a lot about marketers from the past, in one case from the 1800’s. Why?

7. What’s one marketing development you are really excited about?

8. What drove you to write “The Professional Marketer”? And what’s this I hear it had something to do with your wife’s being a chef?

About Tim Matthews:

Tim Matthews is VP of marketing at cloud service Incapsula and author of The Professional Marketer.

Tim was born in New York City and grew up in a nearby leafy suburb before taking the long route to Silicon Valley through Tokyo. He has worked in high tech for twenty years and managed marketing teams at six companies. When not writing or poring over marketing texts, he golfs, crosswords, and tries to keep up with his wife on a standup paddleboard. He has long wondered which is harder: crossing the chasm or a 200 yard carry over a water hazard.

You can find Tim Matthews’ book here:

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BUSINESS, CONTRIBUTORS, MARKETING, SALES

5 Skills That Create A Front Line Dream Team

Front line employees are the lynch pin to sales growth for any organization. It’s most typically the first person your customer sees when they arrive, and the last they see when they leave. They are your most powerful employees because they can influence a customer’s decision to come back, buy more and tell others.

The only difference between you and your competition is the experience your team delivers. Fortunately, the customer experience is one of the most difficult things for your competitors to copy. Why? Because experiences are wholly dependant on the individuals delivering them. The conundrum is that most often these individuals are your lowest paid employees who are only with you for a short amount of time.

If you want your customers to have an exceptional experience every time, that is consistently delivered upon by 100% of your staff, then it begins with a powerful question your front line employees may be thinking, and you must be prepared to answer:

“What’s in it for me?”

WIIFM — You may be familiar with this commonly used marketing acronym to determine what would compel someone to take a desired action. When you understand the answer to WIIFM as it relates to your employee, you’ll unlock the secret to their motivations and help drive their actions to perform for your business at their highest.

What all employees want is to earn more money. How they earn more income throughout their career is by developing skill, knowledge and experience that adds greater value to an organization.

The Life Skills Toolbox Concept

If you want your employees, regardless of their pay scale, to be exceptional, then The Life Skills Toolbox Concept is one that you will want to share with them during the hiring process. It is a mutually agreed upon set of expectations that 1) You will teach them skills that will increase their value and can be added to their toolbox to be used throughout their career, and 2) In exchange, they agree to perform their duties as your brand ambassador using these skills consistently.

The following are 5 critical skills that belong in every toolbox for success that will ensure your employees are taking exceptional care of your customers:

1. Honor the hospitality zone. This is all about making the customer feel welcome and acknowledged. Smile at 10 ft. and greet at 5 ft. Speak first and speak last. Acknowledge those customers standing in line even when assisting others.

2. Personalize and enhance the experience. Individualize the experience by using the customer’s last name whenever possible, add friendly comments, offer products and services based on need. Anticipate their needs and offer upsells.

3. Communicate professionally. Take a cue from the hospitality industry and replace, “No problem” with “My pleasure”. Body language says a lot, train your employees to make theirs positive and open. Keep side conversations out of customer earshot.

4. Take ownership. If you want customers to feel like they are a priority to you then offer assistance, don’t wait to be asked. Find a way to offer options without saying “no”. The customer’s problem is your problem until you can find a resolution.

5. Protect the brand. Your employees are a direct reflection of your company’s brand. While individuality should be encouraged, set guidelines for your employees to follow so that they are proudly representing the brand. Your employees should demonstrate pride of ownership, and your store should be an environment that proudly hosts customers as your guest.

The quality of your customer experience will never exceed the quality of the people delivering it.

The Life Skills Toolbox is a value exchange that every employee should get behind, and if they can’t or worse, won’t, then they’ve just self sorted out. You don’t want that person on your team. The enormous benefit of this agreement to you is that it affords you a system to train against, a way to measure and monitor their performance along the way and your customers will immediately recognize the difference between you and your competitor.

The best way to improve the economy of your business and the economy of our country is to move low wage workers up the income ladder. Regardless of whether they are a part time employee over the summer or with you for the long haul, what employees require is skill development so that as they advance through their career, they have collected skill, knowledge and experience that gives them opportunities to add increasing value to their employers. Investment in your employees’ toolbox creates happier customers, higher profits and employees who are highly engaged, loyal and demonstrate attributes of true brand ambassadorship.

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Pam-250-x-250Pamela Herrmann & Patty Dominguez are the Co-Founders of CREATE Buzz, committed to helping small businesses get customers and keep customers by taking the overwhelm out of technology, thus creating sustainable thriving businesses that are relevant. They co-host The Morning Would Show bringing the latest in marketing tips and strategies.

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BUSINESS, HR, MARKETING

HR Latte: Digital Disruption – HireVue’s User Conference

Guest Scot Sessions, Sr. Marketing Director at HireVue
iHR logo

HR Latte, episode 87

Series: Digital Disruption

HireVue kicks off its 3rd Annual User Conference Digital Disruption today. In this Quick Hit Podcast, Scot Sessions, Senior Marketing Director of HireVue, talks about this fabulous opportunity for HireVue to connect with its users, company growth, and the impact developing a user conference.

HR Latte launches this new series to discuss how digital has changed the human side of our work, and how it will continue evolve.

HireVue will be LiveStreaming various Digital Disruption sessions throughout the conference, check out http://www.hirevuedisruption.com/ for more details and follow the hashtag #VueDD16 for details.

Discussion Points for this episode:

  • How the Digital Disruption User Conference came about
  • The Evolution of Marketing
  • What to Expect this Year
  • Live-Stream
  • #VueDD16

    On Twitter

    @ScotSessions
    @Ray_anne
    @HRLatte
    and @intrepid_NOW

    *Click here for past Episodes 1-66

    HRLatte is made possible by:

    Dovetail Software logoDovetail Software delivers web-based solutions & help desk programs that enable organizations to reduce administrative & support costs, diagnose & resolve complex business problems, and increase efficiency, while improving support.

    Rayanne loves hosting talk radio and continues to hone this craft in every way possible by creating and hosting several educational and promotional radio shows, hosting & moderating webinars and podcasts, as well as a featured host on intrepid.media.

    For more information about how you can use online radio or podcasting to educate your target audience or customer, compliment your marketing efforts, and grow your brand recognition, feel free to message Rayanne on Twitter, LinkedIn, or via email at rayanne@intrepid.media.

AUTHORS, BUSINESS, MARKETING

Pamela Herrmann: Customer’s feelings are fact

Joined on the show today by Pamela Herrmann, the co-founder and Chief Storyteller of CREATE Buzz!

Discussion guide from my conversation with Pamela Herrmann:

1. What is the actual failure rate of small business? And why?

2. “Feelings are fact.”

3. “Devotion to someone…”

4. Do you know the actual cost to acquire a new customer? And do you know the lifetime value of your current customer(s)?

Hint: Most do not…

5. We discuss Pamela’s book, The Customer Manifesto….

6. Pamela explains the THREE MARKET FORCES: Economics, Social, and Technology…

7. Closing the gap between companies AND customers…

Pamela Herrmann

Get Pamela Herrmann’s book right here:

About Pamela Herrmann:

Pamela is a best selling author, host of the daily video series, “The Morning Would Show” and a national keynote speaker on the subject of creating uncommonly awesome connections with your customers, both online and offline.

A short list of her clients include jetBlue, State of Colorado Economic Development, North Caroline Main Street Alliance, New Jersey Main Street Alliance, and Oklahoma Main Streets…

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BUSINESS, MARKETING

Geoff Wilson: Startup thinking for corporate enterprises

Joined on the show today by Geoff Wilson, the president and CEO of 352 Inc.

About 352 Inc: Their passion is turning great ideas into compelling websites, apps and software. They build dedicated teams around every client to get you to market quickly, so that they can learn, iterate and grow your audience.

Discussion guide from my conversation with Geoff Wilson:

1. Corporate Innovation: 352’s approach to digital product development via agile methodologies.

2. Lean Startup mentality: prototype to successful product.

3. “Barely manage to lead…”

4. We discuss The Enterprise Entrepreneurship Series at Tech Square Labs for corporate innovators.

5. We discuss “Traction Marketing,” aka lean principles applied to marketing.

6. Geoff shares a few SCRUM/UX best practices.

7. We discuss the upcoming 352inc annual Hackathon, which will take place around August/September of 2016.

Geoff Wilson

About Geoff Wilson:

President and Founder of 352 Inc., Geoff Wilson is a tech entrepreneur, investor and mentor who found his passion for business at an early age. After starting a successful computer store in high school, Geoff began building websites in his college fraternity house room and 352 Inc. was born. 17 years later, his digital product development agency has grown to more than 85 employees with offices in Atlanta, Tampa and Gainesville, FL. 

As 352 grew, Geoff began to focus on the powerful impact of lean and agile methodologies. Geoff implemented these principles into 352 by reorganizing the agency into cross-functional teams and turning managers into servant leaders. Free to focus on a single project at a time, his teams’ quality of work, productivity and morale dramatically increased. Good client relationships became great ones, and 352 began down a path of unprecedented growth. Geoff calls his management philosophy “Barely Manage to Lead” and speaks at conferences about how this approach can improve any type of business.

Geoff and his wife, Kim Wilson, also have built and sold a highly successful digital product, SocialNewsDesk. SocialNewsDesk is an online social media management platform for newsrooms, and is currently being used by 85% of the television newsrooms in the United States to manage their social presence. SocialNewsDesk was acquired in 2014 by a Fortune 500 company, Graham Holdings.

Geoff’s success lead him to be named one of America’s Top 30 Young Entrepreneurs by INC Magazine, and the University of Florida Warrington College of Business’ Entrepreneur of the Year.

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