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Class Session 3
1. Marketing:
Get Started. Get results.
Get better. Get better results.
2. Marketing Cycle and LEAKS…
Each arrow represents a point at which customers or prospective customers are lost
3. Session 2 review …
Buying Customers …
Allowable acquisition cost – the amount you can
invest that will be recovered the first time a
customer buys from you
“Branding” or long-term acquisition cost – a
marketing investment that will not be fully recovered
from the first time a customer buys from you –
requires a long-term customer relationship
4. Homework example:
Measuring the immediate ROI of a campaign…
Cost of the marketing campaign: $1,000
Number of leads generated: 100
Number of buying customers: 40
Cost of a buying customer: $1000/40 $25
Total sales from campaign: $4000
Average sale per customer: $4000/40 = $100
Average margin per custom @ 40% margin: $40
Current ROI / customer: $40margin - $25cost = $15
Total current ROI: $15 x 100 customers = $1500
Net current gain on investment: $1500 - $1000 = $500
(Net 50% return on investment)
5. Homework example:
Measuring the annual ROI …
Average number of annual transactions/ customer: 12
Average margin per customer transaction: $40
Total annual margin per customer: 12 x $40 = $480
Number of new customers from campaign: 40
Annual margin ROI from campaign: 40 X $480 = $19,200
Total cost of campaign = ($1,000)
Net annual gain on investment = $18,200
(1820% return on investment)
11. Soooo…
• What caught your attention?
• What are they offering?
• Do you care?
• What is the target market?
• What are the benefits? (not features)
• What do they want you to do?
• Why should you do it?
• When should you do it?
• HOW COULD THIS BE BETTER?
13. Seven seconds…
• What caught your attention?
• What are they offering?
• Do you care?
• What do they want you to do?
• Why should you do it?
• When should you do it?
• HOW COULD THIS BE BETTER?
14. Session 3…
• USP – Unique Selling Proposition
• Guarantee
• Your Offer
• Discounts and Price Increases
18. What are the 3
biggest and worst
frustrations people
have when buying
from you … ?
19. Your OFFER…
• What is it?!
• What time do they have to act?
• More for the same, not the same for less.
• Discounting – do you know the effects of
discounting on you profits?