SlideShare a Scribd company logo

How To: Grow a Business Wihout the Guesswork - Marketing Results Guaranteed

Tired of guessing how best to spend your marketing dollars? Forget that! Use this approach by BringShare.com to build a marketing performance model that will allow you to scale up your marketing with predictable results!

1 of 12
Measure It or Forget It!
How to grow a business without the guesswork.



BringShare.com
The Evolution of Marketing
Name Options
“In the beginning, there was print.”

The marketing world has always followed consumer eye balls.
    In the beginning, print was the only way to reach
    consumers and marketers spent millions putting ads in
    front of consumers - hoping for an overall increase in
    sales. This took months if not years to measure and
    required spending thousands of dollars just hoping for
    results.

Then came radio followed by television. Both mediums allowed
   for more exact measurement of eye balls but still
   marketers had no way of knowing exactly how many
   people saw the ads and what results could be directly
   attributed to the ads.
The Internet Is Born
Name Options
“Awww… look how cute he is.”

Then all of a sudden, the world’s largest companies started adding domain names to all their TV
   commercials. It wasn’t long after that all businesses began to experiment with the internet as a way
   to provide information to consumers.

Today the internet has become the nervous system of most companies. It is not only a way to share
   information with consumers but it’s also a way to sell more products, build relationships with
   customers and provide a better customer service experience overall.

So what does this mean when it comes to the way companies market their products and reach
    consumers?
Now There is Data
Name Options
“Impressions are for the birds.”

It means that the old way of marketing no longer applies to small and medium-sized businesses.
    Marketers no longer have to spend thousands of dollars buying eye balls and then waiting until all the
    money is spent to determine if it worked.

The new mantra of small and medium-sized businesses:




               M e as u re i t
               o r fo rg e t i t!
Say Your Goodbyes
Name Options
“It’s not me, it’s you.”

Say goodbye to the Yellow Pages sales
    representative. Send a farewell letter to the
    billboard sales girl. Start avoiding calls from that
    TV account executive and stop entertaining the
    local newspaper sales team. Let them cry.

It’s a new world and growing a business is no longer
      guesswork! Risk should be minimized and
      everything should be measured. The following
      pages are the definitive guide to growing a
      business… without the guesswork.
Step 1: Know The Numbers
Name Options
“I don’t like math unless it involves money.”

Knowing what numbers matter is the essential first step to growing a business without the guesswork.
   With these metrics, it will be easy to determine how the marketing needs to perform in order to grow
   a business profitably.

The essential metrics:

        Average Transaction Value:
        This is the dollar amount of the average transaction
          a company has with a customer.

        12 Month Customer Value:
        Unlike lifetime value, this is the dollar value an
          average customer is worth over the 12 months
          following the first transaction with that customer.
          This is important to know because the goal is to
          scale a business up quickly and the investment
          in acquiring a new customer should be returned
          within 12 months so it can be reinvested.

        Gross Margin:
        This is the percentage of profit created after
          subtracting the cost of goods sold from the
          average transaction value.

Recommended

Investment Optimization for Execs at Dell using Big Data
Investment Optimization for Execs at Dell using Big DataInvestment Optimization for Execs at Dell using Big Data
Investment Optimization for Execs at Dell using Big DataNatalie Kortum
 
Morgan Stanley Global Consumer & Retail Conference
Morgan Stanley Global Consumer & Retail ConferenceMorgan Stanley Global Consumer & Retail Conference
Morgan Stanley Global Consumer & Retail Conferencefinance7
 
馬卡巴嗨創意踩街嘉年華
馬卡巴嗨創意踩街嘉年華馬卡巴嗨創意踩街嘉年華
馬卡巴嗨創意踩街嘉年華oxoxox
 
誠品06
誠品06誠品06
誠品06oxoxox
 
小野柳
小野柳小野柳
小野柳oxoxox
 

More Related Content

Viewers also liked

誠品05
誠品05誠品05
誠品05oxoxox
 
台東東河北源遺址
台東東河北源遺址台東東河北源遺址
台東東河北源遺址oxoxox
 
台東成功三仙台
台東成功三仙台台東成功三仙台
台東成功三仙台oxoxox
 
台東卑南小黃山
台東卑南小黃山台東卑南小黃山
台東卑南小黃山oxoxox
 
卑南王家三合院(國本農場)
卑南王家三合院(國本農場)卑南王家三合院(國本農場)
卑南王家三合院(國本農場)oxoxox
 
臺東縣池上鄉客家文物館
臺東縣池上鄉客家文物館臺東縣池上鄉客家文物館
臺東縣池上鄉客家文物館oxoxox
 
台東東河都蘭新東糖廠
台東東河都蘭新東糖廠台東東河都蘭新東糖廠
台東東河都蘭新東糖廠oxoxox
 
台東市台東鐵道藝術村
台東市台東鐵道藝術村台東市台東鐵道藝術村
台東市台東鐵道藝術村oxoxox
 
臺東縣鹿野鄉武陵綠色遂道
臺東縣鹿野鄉武陵綠色遂道臺東縣鹿野鄉武陵綠色遂道
臺東縣鹿野鄉武陵綠色遂道oxoxox
 
台東東河水往上流
台東東河水往上流台東東河水往上流
台東東河水往上流oxoxox
 
台東東河金樽陸連島
台東東河金樽陸連島台東東河金樽陸連島
台東東河金樽陸連島oxoxox
 
台東卑南原生應用植物園
台東卑南原生應用植物園台東卑南原生應用植物園
台東卑南原生應用植物園oxoxox
 
台東成功八嗡嗡
台東成功八嗡嗡台東成功八嗡嗡
台東成功八嗡嗡oxoxox
 
臺東縣長鄉北迴歸線
臺東縣長鄉北迴歸線臺東縣長鄉北迴歸線
臺東縣長鄉北迴歸線oxoxox
 
台東縣商業會羅理事長參與南島文化節開幕式活動
台東縣商業會羅理事長參與南島文化節開幕式活動台東縣商業會羅理事長參與南島文化節開幕式活動
台東縣商業會羅理事長參與南島文化節開幕式活動oxoxox
 
臺灣省商業會暨臺東縣商業會慰問蘭嶼綠島天秤颱風受災會員活動相片
臺灣省商業會暨臺東縣商業會慰問蘭嶼綠島天秤颱風受災會員活動相片臺灣省商業會暨臺東縣商業會慰問蘭嶼綠島天秤颱風受災會員活動相片
臺灣省商業會暨臺東縣商業會慰問蘭嶼綠島天秤颱風受災會員活動相片oxoxox
 
台東池上大坡池
台東池上大坡池台東池上大坡池
台東池上大坡池oxoxox
 
臺東關山親水公園
臺東關山親水公園臺東關山親水公園
臺東關山親水公園oxoxox
 
國立台灣史前文化博物館
國立台灣史前文化博物館國立台灣史前文化博物館
國立台灣史前文化博物館oxoxox
 
臺東縣長鄉八仙洞
臺東縣長鄉八仙洞臺東縣長鄉八仙洞
臺東縣長鄉八仙洞oxoxox
 

Viewers also liked (20)

誠品05
誠品05誠品05
誠品05
 
台東東河北源遺址
台東東河北源遺址台東東河北源遺址
台東東河北源遺址
 
台東成功三仙台
台東成功三仙台台東成功三仙台
台東成功三仙台
 
台東卑南小黃山
台東卑南小黃山台東卑南小黃山
台東卑南小黃山
 
卑南王家三合院(國本農場)
卑南王家三合院(國本農場)卑南王家三合院(國本農場)
卑南王家三合院(國本農場)
 
臺東縣池上鄉客家文物館
臺東縣池上鄉客家文物館臺東縣池上鄉客家文物館
臺東縣池上鄉客家文物館
 
台東東河都蘭新東糖廠
台東東河都蘭新東糖廠台東東河都蘭新東糖廠
台東東河都蘭新東糖廠
 
台東市台東鐵道藝術村
台東市台東鐵道藝術村台東市台東鐵道藝術村
台東市台東鐵道藝術村
 
臺東縣鹿野鄉武陵綠色遂道
臺東縣鹿野鄉武陵綠色遂道臺東縣鹿野鄉武陵綠色遂道
臺東縣鹿野鄉武陵綠色遂道
 
台東東河水往上流
台東東河水往上流台東東河水往上流
台東東河水往上流
 
台東東河金樽陸連島
台東東河金樽陸連島台東東河金樽陸連島
台東東河金樽陸連島
 
台東卑南原生應用植物園
台東卑南原生應用植物園台東卑南原生應用植物園
台東卑南原生應用植物園
 
台東成功八嗡嗡
台東成功八嗡嗡台東成功八嗡嗡
台東成功八嗡嗡
 
臺東縣長鄉北迴歸線
臺東縣長鄉北迴歸線臺東縣長鄉北迴歸線
臺東縣長鄉北迴歸線
 
台東縣商業會羅理事長參與南島文化節開幕式活動
台東縣商業會羅理事長參與南島文化節開幕式活動台東縣商業會羅理事長參與南島文化節開幕式活動
台東縣商業會羅理事長參與南島文化節開幕式活動
 
臺灣省商業會暨臺東縣商業會慰問蘭嶼綠島天秤颱風受災會員活動相片
臺灣省商業會暨臺東縣商業會慰問蘭嶼綠島天秤颱風受災會員活動相片臺灣省商業會暨臺東縣商業會慰問蘭嶼綠島天秤颱風受災會員活動相片
臺灣省商業會暨臺東縣商業會慰問蘭嶼綠島天秤颱風受災會員活動相片
 
台東池上大坡池
台東池上大坡池台東池上大坡池
台東池上大坡池
 
臺東關山親水公園
臺東關山親水公園臺東關山親水公園
臺東關山親水公園
 
國立台灣史前文化博物館
國立台灣史前文化博物館國立台灣史前文化博物館
國立台灣史前文化博物館
 
臺東縣長鄉八仙洞
臺東縣長鄉八仙洞臺東縣長鄉八仙洞
臺東縣長鄉八仙洞
 

Similar to How To: Grow a Business Wihout the Guesswork - Marketing Results Guaranteed

Building a predictable marketing model 02.21.12
Building a predictable marketing model 02.21.12Building a predictable marketing model 02.21.12
Building a predictable marketing model 02.21.12Suzy Bureau
 
Building a predictable marketing model 02.21.12
Building a predictable marketing model 02.21.12Building a predictable marketing model 02.21.12
Building a predictable marketing model 02.21.12Suzy Bureau
 
The SaaS business model
The SaaS business modelThe SaaS business model
The SaaS business modelDavid Skok
 
Keith Gutierrez & David Weinhaus - Selling Value (Not Points)
Keith Gutierrez & David Weinhaus -  Selling Value (Not Points)Keith Gutierrez & David Weinhaus -  Selling Value (Not Points)
Keith Gutierrez & David Weinhaus - Selling Value (Not Points)Keith Gutierrez
 
Act api marketing-gamification-bau201511
Act api marketing-gamification-bau201511Act api marketing-gamification-bau201511
Act api marketing-gamification-bau201511Ercan Altuğ YILMAZ
 
CO2 2019 | Dan Gordon | Budgeting for Growth
CO2 2019 | Dan Gordon | Budgeting for GrowthCO2 2019 | Dan Gordon | Budgeting for Growth
CO2 2019 | Dan Gordon | Budgeting for GrowthCoalmarch
 
Tpmg Manage Cust Prof Final
Tpmg Manage Cust Prof FinalTpmg Manage Cust Prof Final
Tpmg Manage Cust Prof FinalJohn Tyler
 
Social Media ROI - Scott McAndrew
Social Media ROI - Scott McAndrewSocial Media ROI - Scott McAndrew
Social Media ROI - Scott McAndrewTerralever
 
Financial Tools for Product Managers
Financial Tools for Product ManagersFinancial Tools for Product Managers
Financial Tools for Product ManagersSVPMA
 
Marketing Math: Key Metrics to Maximize Marketing Dollars
Marketing Math: Key Metrics to Maximize Marketing DollarsMarketing Math: Key Metrics to Maximize Marketing Dollars
Marketing Math: Key Metrics to Maximize Marketing DollarsKaren Marchetti
 
CBE16 - Advanced Strategies to Predict Digital Marketing ROI
CBE16 - Advanced Strategies to Predict Digital Marketing ROICBE16 - Advanced Strategies to Predict Digital Marketing ROI
CBE16 - Advanced Strategies to Predict Digital Marketing ROICraftBev
 
E-commerce for the Imaging Supplies Industry: Part 2 of 3
E-commerce for the Imaging Supplies Industry: Part 2 of 3E-commerce for the Imaging Supplies Industry: Part 2 of 3
E-commerce for the Imaging Supplies Industry: Part 2 of 3dconstan
 
1 Composing Effective Titles One of th.docx
1 Composing Effective Titles  One of th.docx1 Composing Effective Titles  One of th.docx
1 Composing Effective Titles One of th.docxtarifarmarie
 
Translating Lift into Dollar Value & Tracking Revenue in Optimizely
Translating Lift into Dollar Value & Tracking Revenue in OptimizelyTranslating Lift into Dollar Value & Tracking Revenue in Optimizely
Translating Lift into Dollar Value & Tracking Revenue in OptimizelyOptimizely
 
Using the Marketing Measuring Tape
Using the Marketing Measuring TapeUsing the Marketing Measuring Tape
Using the Marketing Measuring TapeWerkshop Marketing
 
Implementing Technology with an Eye on ROI
Implementing Technology with an Eye on ROIImplementing Technology with an Eye on ROI
Implementing Technology with an Eye on ROIKarlyn Borysenko
 
Secret to Accountable Marketing
Secret to Accountable MarketingSecret to Accountable Marketing
Secret to Accountable MarketingElement Three
 
Block71 Saigon_Unit Economics_new.pptx
Block71 Saigon_Unit Economics_new.pptxBlock71 Saigon_Unit Economics_new.pptx
Block71 Saigon_Unit Economics_new.pptxLuan37730
 

Similar to How To: Grow a Business Wihout the Guesswork - Marketing Results Guaranteed (20)

Building a predictable marketing model 02.21.12
Building a predictable marketing model 02.21.12Building a predictable marketing model 02.21.12
Building a predictable marketing model 02.21.12
 
Building a predictable marketing model 02.21.12
Building a predictable marketing model 02.21.12Building a predictable marketing model 02.21.12
Building a predictable marketing model 02.21.12
 
The SaaS business model
The SaaS business modelThe SaaS business model
The SaaS business model
 
Keith Gutierrez & David Weinhaus - Selling Value (Not Points)
Keith Gutierrez & David Weinhaus -  Selling Value (Not Points)Keith Gutierrez & David Weinhaus -  Selling Value (Not Points)
Keith Gutierrez & David Weinhaus - Selling Value (Not Points)
 
Act api marketing-gamification-bau201511
Act api marketing-gamification-bau201511Act api marketing-gamification-bau201511
Act api marketing-gamification-bau201511
 
CO2 2019 | Dan Gordon | Budgeting for Growth
CO2 2019 | Dan Gordon | Budgeting for GrowthCO2 2019 | Dan Gordon | Budgeting for Growth
CO2 2019 | Dan Gordon | Budgeting for Growth
 
Tpmg Manage Cust Prof Final
Tpmg Manage Cust Prof FinalTpmg Manage Cust Prof Final
Tpmg Manage Cust Prof Final
 
Social Media ROI - Scott McAndrew
Social Media ROI - Scott McAndrewSocial Media ROI - Scott McAndrew
Social Media ROI - Scott McAndrew
 
Financial Tools for Product Managers
Financial Tools for Product ManagersFinancial Tools for Product Managers
Financial Tools for Product Managers
 
Marketing Math: Key Metrics to Maximize Marketing Dollars
Marketing Math: Key Metrics to Maximize Marketing DollarsMarketing Math: Key Metrics to Maximize Marketing Dollars
Marketing Math: Key Metrics to Maximize Marketing Dollars
 
CBE16 - Advanced Strategies to Predict Digital Marketing ROI
CBE16 - Advanced Strategies to Predict Digital Marketing ROICBE16 - Advanced Strategies to Predict Digital Marketing ROI
CBE16 - Advanced Strategies to Predict Digital Marketing ROI
 
E-commerce for the Imaging Supplies Industry: Part 2 of 3
E-commerce for the Imaging Supplies Industry: Part 2 of 3E-commerce for the Imaging Supplies Industry: Part 2 of 3
E-commerce for the Imaging Supplies Industry: Part 2 of 3
 
1 Composing Effective Titles One of th.docx
1 Composing Effective Titles  One of th.docx1 Composing Effective Titles  One of th.docx
1 Composing Effective Titles One of th.docx
 
ROI Article
ROI ArticleROI Article
ROI Article
 
Translating Lift into Dollar Value & Tracking Revenue in Optimizely
Translating Lift into Dollar Value & Tracking Revenue in OptimizelyTranslating Lift into Dollar Value & Tracking Revenue in Optimizely
Translating Lift into Dollar Value & Tracking Revenue in Optimizely
 
Using the Marketing Measuring Tape
Using the Marketing Measuring TapeUsing the Marketing Measuring Tape
Using the Marketing Measuring Tape
 
Implementing Technology with an Eye on ROI
Implementing Technology with an Eye on ROIImplementing Technology with an Eye on ROI
Implementing Technology with an Eye on ROI
 
Secret to Accountable Marketing
Secret to Accountable MarketingSecret to Accountable Marketing
Secret to Accountable Marketing
 
Block71 Saigon_Unit Economics_new.pptx
Block71 Saigon_Unit Economics_new.pptxBlock71 Saigon_Unit Economics_new.pptx
Block71 Saigon_Unit Economics_new.pptx
 
How store here brings value
How store here brings valueHow store here brings value
How store here brings value
 

How To: Grow a Business Wihout the Guesswork - Marketing Results Guaranteed

  • 1. Measure It or Forget It! How to grow a business without the guesswork. BringShare.com
  • 2. The Evolution of Marketing Name Options “In the beginning, there was print.” The marketing world has always followed consumer eye balls. In the beginning, print was the only way to reach consumers and marketers spent millions putting ads in front of consumers - hoping for an overall increase in sales. This took months if not years to measure and required spending thousands of dollars just hoping for results. Then came radio followed by television. Both mediums allowed for more exact measurement of eye balls but still marketers had no way of knowing exactly how many people saw the ads and what results could be directly attributed to the ads.
  • 3. The Internet Is Born Name Options “Awww… look how cute he is.” Then all of a sudden, the world’s largest companies started adding domain names to all their TV commercials. It wasn’t long after that all businesses began to experiment with the internet as a way to provide information to consumers. Today the internet has become the nervous system of most companies. It is not only a way to share information with consumers but it’s also a way to sell more products, build relationships with customers and provide a better customer service experience overall. So what does this mean when it comes to the way companies market their products and reach consumers?
  • 4. Now There is Data Name Options “Impressions are for the birds.” It means that the old way of marketing no longer applies to small and medium-sized businesses. Marketers no longer have to spend thousands of dollars buying eye balls and then waiting until all the money is spent to determine if it worked. The new mantra of small and medium-sized businesses: M e as u re i t o r fo rg e t i t!
  • 5. Say Your Goodbyes Name Options “It’s not me, it’s you.” Say goodbye to the Yellow Pages sales representative. Send a farewell letter to the billboard sales girl. Start avoiding calls from that TV account executive and stop entertaining the local newspaper sales team. Let them cry. It’s a new world and growing a business is no longer guesswork! Risk should be minimized and everything should be measured. The following pages are the definitive guide to growing a business… without the guesswork.
  • 6. Step 1: Know The Numbers Name Options “I don’t like math unless it involves money.” Knowing what numbers matter is the essential first step to growing a business without the guesswork. With these metrics, it will be easy to determine how the marketing needs to perform in order to grow a business profitably. The essential metrics: Average Transaction Value: This is the dollar amount of the average transaction a company has with a customer. 12 Month Customer Value: Unlike lifetime value, this is the dollar value an average customer is worth over the 12 months following the first transaction with that customer. This is important to know because the goal is to scale a business up quickly and the investment in acquiring a new customer should be returned within 12 months so it can be reinvested. Gross Margin: This is the percentage of profit created after subtracting the cost of goods sold from the average transaction value.
  • 7. Step 2: Apply The Numbers Name Options “You can handle the truth.” Once the numbers are figured out, it is easy to understand how much can be spent to acquire a customer and still breakeven. In the example below, the company should set a goal of spending equal to or less than $47.50 to acquire each new customer. The company also knows that if it costs up to $142.50 to acquire the customer, that is still okay… just not ideal. Example metrics: How much can I spend to acquire a customer – Average Transaction Value: $95 and breakeven right away? – 12 Month Customer Value: $285 Average Transaction Value - (Avg Transaction Value * 50%) – Gross Margin: 50% $47.50 How much can I spend to acquire a customer and still breakeven within 12 months? 12 Month Customer Value – (12 Month Customer Value * 50%) $142.50
  • 8. Step 3: Know How The Company Site Performs Name Options “How YOU doin’?” Regardless of what online marketing opportunities are used, all of them will drive traffic to the company website. Therefore it is important to know how well the site will convert traffic to customers. This number is called a conversion rate and is the percentage of all traffic that makes a purchase while visiting the site. A Typical Conversion Rate is 2%.
  • 9. Step 4: Build a Marketing Performance Model Name Options “Put your money where your mouth is.” With all of this data assembled, a marketing performance model can be created that makes evaluation of potential marketing opportunities very simple. All that is needed is an estimated cost per visitor for each marketing opportunity to be evaluated. In this example, the company is spending $0.75 for each visitor and making a $.20 profit on every visitor right away! ($20 profit per 100 visitors) How to Calculate A Cost Per Visitor $0.75 You enter How to Get Cost Per Visitor Data: B Conversion Rate 2% You enter Paid Search: use average Cost Per C Cost Per 100 Visitors $75.00 100 * A Conversions Click estimate D (Transactions) 2 100 * B Display Ads: ask for expected click- E Cost Per Transaction $37.50 D/C through rate (CTR). Then multiply the Average Transaction F Value $95 You enter CTR by the number of impressions G Total Sales $190.00 F*D you are buying. Then divide how H Gross Margin 50% You enter much you are spending by that Gross Profit (Sales - number to get your cost per visitor. I Gross Margin) $95.00 G - (G * H) J PROFIT $20.00 I-C
  • 10. Don’t Forget 12-Month Value Name Options “Show me the money.” Keep in mind that even if the profitability after the first transaction isn’t that great, there are 12 more months to get money out of that customer. In this example, the company is spending $.75 for every visitor and making a $2.10 profit per visitor over 12 months! How to Calculate A Cost Per Visitor $0.75 You enter B Conversion Rate 2% You enter C Cost Per 100 Visitors $75.00 100 * A Conversions D (Transactions) 2 100 * B E Cost Per Transaction $37.50 D/C Average 12 Month F Value $285 You enter G Total Sales $570.00 F*D H Gross Margin 50% You enter Gross Profit (Sales - I Gross Margin) $285.00 G - (G * H) J PROFIT $210.00 I-C
  • 11. Step 5: Scale It Up Name Options “We have lift off!” Once a marketing performance model is built and proves to be working, it can be considered “predictable.” This means more money can be spent safely and the amount of profit it will generate is almost a guarantee. This allows a company to grow more quickly and without risk. In this example, the company is spending $7,500 per month and making $21,000 in profit over the following 12 months. So every month, they make $21,000 more profit in the next year. Imagine how that builds! How to Calculate A Cost Per Visitor $0.75 You enter B Conversion Rate 2% You enter Cost Per 10000 C Visitors $7,500.00 100 * A Conversions D (Transactions) 200 100 * B E Cost Per Transaction $37.50 D/C Average 12 Month F Value $285 You enter G Total Sales $57,000.00 F*D H Gross Margin 50% You enter Gross Profit (Sales - I Gross Margin) $28,500.00 G - (G * H) J PROFIT $21,000.00 I-C
  • 12. Are you growing? Name Options “If you’re not moving forward, you’re moving backward.” Growing a company can be the most challenging task anyone can be assigned. It can also be the most exhilarating. Making investments that feel like guesses are buzz kills that cause anyone to lose sleep at night. Luckily, the internet has changed the game and with this approach to marketing, sleeping well is as easy as counting money.