MARKETING BY THE NUMBERS
HOW MUCH SHOULD YOU SPEND ON
MARKETING?
• Start with Questions
– What is a customer worth?
– What is the rhythm of your bu...
WHAT IS THE AVERAGE CUSTOMER WORTH?
• Annual Sales
• Gross Margin
• # of Years
• Present Value of Money
– http://www.inves...
EXAMPLE:
• $1,000 = Annual Sales
• $300 = 30% Gross Margin
• %1,500 = Projected 5 Year Revenue Stream
• Present Value vari...
BUSINESS RHYTHM
Daily, Weekly , Monthly or Annually
HOW MANY CUSTOMERS?
10
CLOSING RATE
10
25%
WHERE DO LEADS COME FROM
10
25%
40 3010
HOW CONCENTRATED IS YOUR MARKET
10
25%
40 3010
1%
3,000
BREAKING THROUGH THE CLUTTER
10
25%
40 3010
1%
3,000
10
30,000
WHAT HAPPENS IF YOU CLOSE MORE?
CLOSE MORE
10
50%
20 1010
1%
1,000
10
10,000
CLOSE MORE
• Improve sales skills
• Drive more qualified prospects
• Increase referrals
HOW MUCH CAN YOU AFFORD TO SPEND?
• LTV: $1,295
• $388 = 30% for advertising
• 10 New Customers
• $3,880 advertising budget
HOW DO MAKE 30,000 IMPRESSIONS WITH $3,880
10
25%
40 3010
1%
3,000
10
30,000
INCREASE REFERRALS
10
25%
40 2020
1%
2,000
10
20,000
MEASURE WHAT YOU SPEND
• Social Community – Mentions Not Fans
• Web Traffic
• Downloads
• Calls
• Proposals
• Sales
LORRAINE BALL
lorraine@roundpeg.biz | 317.569.1396
@roundpeg | @lorraineball | www.facebook.com/roundpegIndy
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Marketing by the Numbers

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When it comes to marketing it is not how much you spend, but how well you spend it. In this slide deck we look at the numbers you can use to measure your marketing.

You can also view the webinar supporting these slides here https://attendee.gotowebinar.com/recording/6074757016934590978

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Marketing by the Numbers

  1. 1. MARKETING BY THE NUMBERS
  2. 2. HOW MUCH SHOULD YOU SPEND ON MARKETING? • Start with Questions – What is a customer worth? – What is the rhythm of your business? – What is your closing rate? – Where do your leads come from? – What is your market concentration? • Measure Results – Traffic, Leads, Conversion, Sales
  3. 3. WHAT IS THE AVERAGE CUSTOMER WORTH? • Annual Sales • Gross Margin • # of Years • Present Value of Money – http://www.investopedia.com/calculator/
  4. 4. EXAMPLE: • $1,000 = Annual Sales • $300 = 30% Gross Margin • %1,500 = Projected 5 Year Revenue Stream • Present Value varies based on interest rate – $ 1,175 = 5% – $1,295 = 3% – $1,428 = 1%
  5. 5. BUSINESS RHYTHM Daily, Weekly , Monthly or Annually
  6. 6. HOW MANY CUSTOMERS? 10
  7. 7. CLOSING RATE 10 25%
  8. 8. WHERE DO LEADS COME FROM 10 25% 40 3010
  9. 9. HOW CONCENTRATED IS YOUR MARKET 10 25% 40 3010 1% 3,000
  10. 10. BREAKING THROUGH THE CLUTTER 10 25% 40 3010 1% 3,000 10 30,000
  11. 11. WHAT HAPPENS IF YOU CLOSE MORE?
  12. 12. CLOSE MORE 10 50% 20 1010 1% 1,000 10 10,000
  13. 13. CLOSE MORE • Improve sales skills • Drive more qualified prospects • Increase referrals
  14. 14. HOW MUCH CAN YOU AFFORD TO SPEND? • LTV: $1,295 • $388 = 30% for advertising • 10 New Customers • $3,880 advertising budget
  15. 15. HOW DO MAKE 30,000 IMPRESSIONS WITH $3,880 10 25% 40 3010 1% 3,000 10 30,000
  16. 16. INCREASE REFERRALS 10 25% 40 2020 1% 2,000 10 20,000
  17. 17. MEASURE WHAT YOU SPEND • Social Community – Mentions Not Fans • Web Traffic • Downloads • Calls • Proposals • Sales
  18. 18. LORRAINE BALL lorraine@roundpeg.biz | 317.569.1396 @roundpeg | @lorraineball | www.facebook.com/roundpegIndy
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