As digital marketers, we must think of sales as part of our jobs, too. Here are three key objectives to help focus your efforts.
Several years ago when I was attending business school, my marketing professor tried to convince us that sales is sales and marketing is marketing. Both are different, he argued! But are they?
Being a marketer, I knew something was fishy in what he said. Can it be that marketers who produce flashy banners are in charge of the brand and positioning but not in charge of the bottom line?
Unfortunately in many companies today (more in the B2B offline), this is still the case. Marketers are in charge of marketing, and sales is in charge of sales.
In my opinion, marketers are the superheroes of the digital space, and are essentially the sales force responsible for revenue. If it's not the case in your company, I very much suggest that you start measuring your contribution by the dollars produced from each marketing activity.
The world of digital marketing is getting more complex with an increasing number of channels (Web, email, social, mobile) and customers and prospects are broken down into small communities in different channels. For example, they move from Facebook to smaller and more intimate communities such as technologies like WhatsApp, Vine, WeChat, Snapchat, and many others. In short, the job of a digital marketer is ever-challenging.
Sometimes the focus is directed too much toward the channels and much attention is given to seeing what's new out there and making sure we're reaching out to customers and prospects in all channels without real objectives behind what we want to do with the clients. Does an increase in followers equal success? Does it translate to revenue?
Rule #1: Channels are channels and not objectives. They're there to facilitate customer engagement while linking it to our (often quantifiable) objectives as digital marketers.
Then, what are the objectives, you most probably ask?
There are three strategic objectives that digital marketers need to set and measure in order to generate revenue.
Let's look at the customer lifecycle and its journey from a lead to a churning customer. The chart above explains the journey visually, and thus the strategic objectives:
Most of the budget we invest in digital is directed toward acquisition strategies such as SEO, pay-per-click (PPC), Facebook ads, banners, affiliation, etc. The true objective is to take the leads we invest so much money in and convert them into buying customers.
We need to measure how much money we spend on each channel against the conversions we have. If we don't do that, then our acquisition strategy is merely a hobby. Assigning monetary values to each channel and looking into conversions is often called attribution. We want to measure the increase in conversions against our actions while assigning desirable targets. For example, 20 percent of my leads are converted into buyers each month.
Given the investment we've made in acquiring the customers, every sale we will have from now on will yield larger gross margins (the purchase cost doesn't include the acquisition costs anymore). And hence what we want to do here is look into the increase of the spend from our existing clients and make sure they are retained. Here you need to look into increase in the average purchase from your clients, and increase in their engagement metrics (more visits, increased time on site, review of products, etc).
The third and last objective is to try to pull back the customers who churned or are inactive toward the center of the customer lifecycle, so that the pool of customers we have will churn in a slower pace. (Twist it, turn it, customers will always churn. The best you can do is to delay their churn.)
I am not going into the tactics used, but looking at the strategy - you want to measure win-back ratios (churning customers - churning customers who purchased again) and work against improving this number.
It doesn't really matter what type of business and industry you're working in. The job of the digital marketer is sales, and by sticking to these objectives and measuring against them we're ensuring our efforts are directed toward the bottom line. You can now look at different channels, campaigns, etc., but make sure that everything you do is attributed to one of these goals.
And as soon as you can quantify success in these objectives to your efforts, see your boss and ask for a pay increase.
Until next time, stay tuned.
What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!
Ohad Hecht is the chief operations officer at Emarsys and in his role he builds operations, placing and training people, assisting with customer acquisition and client management and supporting marketing across the business. With an outstanding track record of successfully starting, growing and managing a number of businesses, Ohad is an accomplished leader. He has cross-industry experience in marketing, sales, operations and manufacturing, supported by a deep understanding of digital marketing and e-commerce.
Click here to contact Ohad. Ohad is responsible for managing some of company’s highest profile international clients. Prior to joining the Emarsys, he was leading Marketing at Superfund Asset Management in Asia, and leading the global operations of luxury company, Dalumi.
With international experience acquired by living and working in Asia, Europe and the Middle-East, Ohad, holds a BA in Management and Marketing, and an M.B.A. He speaks four languages including English, German, Hebrew and Chinese. Ohad frequently speaks and visit digital marketing events, writes and publish columns in ClickZ ,Mashable and in other publications, he won the loyalty award in Marketing Magazine’s “agency of the year awards” 2014.
Singapore, 3-4 November
Hong Kong, 8-9 December
Hong Kong, 8-9 December
Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.
5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.