ROI is not a trendy business buzzword. It’s fundamental to marketing success. And who knows return on investment better than direct and digital marketers?
We keep hearing about big data. Marketers are (finally) delving into their customer files to learn what really works. They are using direct marketing unique predictive abilities and running the numbers on their programs before they even launch them.
But even when the numbers pencil, you have more work to do to create a truly efficient selling machine.
You need to crunch through the back-end analysis, looking at every point of conversion before the sale. What numbers were expected? What did you really get? If you could fine-tune one particular sales step, which would have the most impact on net profit?
Would it be smartest to take some of the cost out of the program? Maybe. But maybe not. If you’re selling a very complicated product, you may get a higher response if you add more steps. If the response rate is phenomenal, what about the percentage of responders taking the next step -- say a product trial or demo? Is there a way to boost that number? How much would it take to make a big difference in net sales? After the demo, perhaps there’s a sales call. Do the numbers show a problem there? Take a look at benchmarks for your industry. And then take action.
If you’re not looking at all the ways to maximize your return, then you’re not getting the most out of your marketing. Just a small increase in efficiency at each step of the sales process can have an enormous impact on the effectiveness of your marketing budget and your company’s bottom line.
Want more details about looking at every point of conversion? Here’s a classic article by my boss, Spyro Kourtis, on working backward from the point of sale.