Vlog: Calculate your Digital Marketing ROI: a parallel of the St. Elmo Lewis’s AIDA sales funnel applied to Digital Marketing.
Calculate your own Digital Marketing ROI.
Transcript:
all right today we’re going to talk
about digital marketing ROI how to get
the best return on your investment from
if you were yet in your digital
marketing and as you may or may not know
why do you exists to help growing
organizations leverage web technology to
help solve business problems and one of
the biggest business problem that we’re
faced with when working with clients is
they’re the coming to us for help with
revenue not making enough sales I’m not
getting enough from the website or web
properties etc and so revenue seems to
be a driver of many business problems
and then also can be the solution to
many business problems so we when
working with clients we often go back to
the sales funnel and so you’re probably
familiar with this but the sales funnel
was invented or develops more than a
hundred years ago 1898 by a guy named
st. elmo lewis and his lesser-known
works were you know this some kind of
brand of fire with rob lowe of emilio
estevez and and then this one a child’s
toy Sukhumi st. elmo is kind of a flop
but but this is one of the better known
works sales model and we’ve got four
steps in here so we’re nice interest
decision action and awareness is you
know do people know you exist or do they
know they have a problem do they know
that they have a problem that you can
solve and so it’s visibility really are
you out there do you have enough
presence to allow people to know that
they have a problem that you have a
solution interest is do they even care
is it a big enough problem to warrant
them and giving you money to solve is it
is it a big enough problem to to give
them the enough concern that they’re
going to act urgently and the decision
is you know how easy is it how easy do
you make it to work with you it’s the
point where they decide yes I know I
have a problem I know I haven’t found
the solution and and I want to do
business and the action is actually the
sale you know after the sale how you
deliver what your product or service is
and so that’s kind of the the sales
funnel model that has been around for
more than hundred years like I said it’s
the foundation for my
of marketing and and how decisions are
made today by companies large and small
but we can replace those words so we can
run in parallel with these words for
digital marketing we’re attracting we’re
informing we’re converting with
delighting so attracting again it
follows that parallel how are we drawing
people to our web sites our web
properties our social media etc how are
we getting content out there that is
going to be effective in informing our
would-be buyers and and then how do we
convert them qualify convert them to
become clients and that’s that client
stages we’re we delight them while them
you know do more than they ever thought
were imagined for them and if we were
probably familiar with one of these you
know child stories income and it’s
called a labyrinth and through a
combination of knobs you can work a
silver ball through a maze if you will
without falling in the hole and that’s
kind of a parallel for digital marketing
and you’re tweaking different knobs
you’re tweaking ad spend and you’re
tweaking content and tweaking process
you know are we getting answering
inquiries in you know enough time to be
relevant etc but so we’re kind of
tweaking these things constantly you
know marketing can’t be left alone it’s
always got to be evolving as the market
is evolving but so as you’re working
with these knobs and you know parallel
back to to marketing in our sales funnel
here each one of these stages has knobs
that you can work into and tweak and try
to improve and the the goal here is
optimal conversion at the end of the day
so but through tweaking each area here
you’re working on attracting am I
getting the right traffic am I using the
right keywords to get that right traffic
am i producing the right content that’s
going to be motivational for somebody to
be motivated to buy or is our conversion
process does it take too much of my
team’s time to deliver what so we say
we’re going to provide all of those
things can be tweaked to provide that
optimal result
and we’re going to again replace these
words with our sales stages right so
we’ve got visitors coming to the website
they may or may not be getting what
they’re looking for word from a site but
assuming they are they may trigger an
inquiry they may request information
maybe they’re requesting information
that is not applicable to you not
applicable to a service or product that
you provide so there we’re going to
qualify those needs once we’ve qualified
them then we’re going to call them a
prospects right there there have an
actual need that you can actually
fulfill and there’s actually a chance of
doing business and once they convert if
they convert then they becoming a client
and that’s that opportunity for you to
fulfill your you know what your service
or products offers you’re also probably
familiar with one of these an ancient
calculator and this is actually we do a
lot of work leveraging web technology to
help people make buy decisions and so
online calculators is one way of making
this happen
and we have a digital tool that allows
prospects or you know all the way back
up
visitors leads prospects really
determine what their need is what the
impact to our service on that need is
and so we’re highlighting those
questions here and through that process
of asking these questions answering
these questions somebody’s going to be
able to figure out is this a something
that I’m going to have opportunity to to
get ROI from this is something that I
need to you know work on so you engage
with so I want to walk through these
five questions and and then give you
opportunity to do so for yourself
so I used for the purpose of this
exercise I used some numbers that that
we are that we have and we’ll see how
they apply how the formula works but
monthly website visitors I’m using the
number of $28.99 I pulled this from
Google Analytics and you can see the
column the pageviews here and I just
exported that Google makes that super
friendly
so Google Analytics is an extremely
useful tool a powerful tool if your web
company does not give you access to web
analytics absolutely ask for that
because you you deserve that but we
exported that we totaled past several
months and I don’t know how many but we
calculated the total and average per
month to put into that field monthly
website visitors so next we’re gonna
look at monthly leads how many enquiries
are you getting from somebody that is
looking for something they’re looking
for a solution to their problem it may
or may not be a service for a product
that you offer but they’re at least
inquiring this may be done via web form
is may be done a phone call called email
a chat whatever is going to be relevant
to your market so how many leads how
many enquiries are you getting we’re
gonna use the number 63 and we just
pulled that from our CRM and here’s a
simple you know copy/paste calculation
and got that in here but next not all
leads are good leads they may be looking
for something that you don’t even
provide they may be a spammer they may
be looking for something that you know
we’re budget then is one to be
profitable for you so you’re going to
qualify that lead once they’re qualified
you’re going to become a prospect but
we’re using the percentage 60% of
there’s going to be qualified they have
an actual need which will in an actual
budget which will support that solution
to that need and again we pulled this
number from our CRM as well and it’s you
know again copy and paste super easy for
us to get that number and then close
rate how many of those deals how many of
those leads slash prospects are actually
becoming clients a we can again use data
from our CRM and we’re calling 34
percent close rate which you know is not
bad could be better you know whatever
but we’re pulling that out of the the
CRM at of reporting and we can see you
know make that an average across total
months that you know maybe we’re getting
34% and then last question is lifetime
value of a client this is super easy to
figure out look at the last as again as
many months as you can as if you have a
data for but minimum twelve months
for months the more data the better and
then divide that by the number of
clients who build and during that time
so for ours we pulled the I think we
pulled like three four years and we
pulled the value of our you know average
client over the lifetime of that client
at seventeen thousand dollars they
stepped in a teen and you know again a
quick math total revenue during that
time total number of clients and bills
during that time and divide divide that
and you get this this number and then we
have a digital tool which makes it
really easy for our prospects to get in
and figure this out for themselves so
based on the numbers were inputting
$28.99 sixty-three leads out of that
sixty percent of those are qualified
thirty four percent of those actually
become clients and lifetime value of a
customer we can see what what our
conversion rate is how many actual
qualified leads were getting a month and
then that average new customers average
number of new customers a month and
we’re doing the math here of what those
with what this is worth what our digital
marketing is worth and then if we were
to tweak if we were gonna turn those
knobs on any one area what would have
the biggest impact for the least amount
of effort now not that we’re lazy but if
we’re going to get some impact we want
to start with what gives us the biggest
bang for the buck if you will what’s the
least I can do at least I can disrupt my
current process and system and and get
the biggest revenue increase for that in
does you can see at the bottom of the
screen here with a one percent increase
in conversion rates if I go to two point
one seven to three point one seven I’m
looking at an additional one hundred and
four thousand dollars of revenue
top-line revenue that that this will
bring into my organization how valuable
is that then you know looking at other
other knobs other tools that weakens
weak further down to the process what if
we were to increase our web traffic what
if we were to put out some pay-per-click
ads or a little bit more SEO effort to
have a 30% increase in web traffic and
then all the numbers stay the same
following that process so increase in
visitors but we’re increasing the leads
we’re increasing the prospects we
increasing the conversion at the same
rate no other change just a 30% increase
in web traffic and that means an
additional sixty eight thousand dollars
almost in in top-line revenue well what
if we were to turn both knobs here both
dials and and that has a tremendous
impact as well two top-line revenue
$200,000 in top-line revenue that can
make a tremendous impact on the
difference that’s a tool that we offer
to our prospects our leads even though
way back in the process to help them
figure out what’s the impact of working
with my company and how we can really
tweak and play again marketing is not a
one-and-done it’s not a set it and
forget it process it always be tweaking
always be looking at improving because
that that ROI can always be improved to
a level that’s going to a support growth
for your company so we have this PDF
here for you that you can fill this out
and calculate this yourself but this is
typically what we use in workshops that
when we’re in person in front of
somebody we’re at a meeting there’s a
much simpler way that doesn’t involve a
little calculator and it is our ROI
calculator if you go to yourdesignonline.com/roi-calculator then you can and there’s
also a link here for you to access that
you can figure out what exactly you were
ROI on your digital marketing is
currently and how you might improve that
so that’s that’s our service to you
there’s no cost to use that feel free to
use it and if we can help you in any way
do get in touch yourdesignonline.com
or our phone number 800 695 II I’m not
we’re happy to help.
