Tools and Tips EP 5 – Tracking your digital marketing budget
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Today’s episode of Tools & Tips is going to cover the importance of paying attention to your marketing budget and watching where your money is going.
Before we get into it, I want to give a shout out to Marilyn Brenner for pointing out some great advice, and that is… “Do not cut the marketing budget. The only way to make sales is to market your business.”
This sparked the idea for this video, so thank you Marilyn. You can check her out on Twitter :
I would first like to start off with an example of what happens when an internet marketing campaign or lack there of, goes completely wrong…
Despite the fact that boo.com went spectacularly bust over a decade ago, it still offers a unique insight into one of the biggest and most costly digital business failures in European history. Boo.com aimed to become a first-to-market global brand selling sportswear and designer clothes. boo-failed-digital-marketing! The business launched in 18 countries in the autumn of 1999, they spent .4 million on marketing and PR. It then looked for further funding to increase it’s global reach and cover its spiraling costs. They presented expected growth figures in a meeting, but when they were unable to answer basic questions on conversion rates, customer acquisition costs and required visitor numbers they fell apart in May of 2000. You can see more about the failed approach in this article by Dave Chaffey reviewing Boo as an example of a failed digital strategy:
Key lesson: Boo.com clearly had a weak digital marketing plan/team. If Boo.com had a better handle on their key metrics and ecommerce levers such as customer life time value or CLTV, the cost to acquire a customer or CAC derived from the CLTV and a decent view on traffic sources and conversation rates then they might have been slower to expand and controlled their incredible “burn rate”.
Companies that start investing in internet marketing typically fall into 2 areas:
1. Those that are frustrated because their investment is not paying off.
2. Those frustrated because they cannot tell.
This will usually lead to said companies changing strategies or changing agencies. The majority of organizations failing with internet marketing make some of the worst mistakes you could make.
One is bad calls to action! You may have the content right and sometimes visitors are so in need they may be willing to convert in spite of awful content. Failing to add strong calls to action to your products or services can make converting difficult.
Calls to action must include offers that are often time-sensitive and relevant. “20% off until Sunday” gives you a great chance at converting.
Another is no lead validation.
Lead validation is the process of separating sales leads from other website conversions: Spam, sales solicitations, customer service inquiries, etc. Without validation, you will never know how effective your campaigns are.
Very few companies do validation because very few companies realize that as much as 50 percent of their conversions are something other than leads!
Most Internet marketing/web analytics reports lump all conversions together, companies fall into the habit of thinking about conversations as being synonymous with leads. As a result, they overestimate the success of their campaign by as much as half or in extreme cases like the one I mentioned, much, much more. These companies base campaign changes on conversion data, with is inaccurate, rather than on lead data, which is accurate. This error in campaign execution leads to bad decisions. Just because a particular keyword generates a log of conversions does not mean it generates many validated leads.
This inability to accurately gauge results is why so many companies never feel confident in their online marketing investments and campaign execution.
Internet marketing works. It will generate leads and online orders, but only if campaigns are fundamentally sound. Once you correct these mistakes, you can strategize, test, and tweak with confidence and continually improve results.
If you have any questions or would like to learn more information on how we can help with your digital marketing campaign, go to https://allshousedesigns.com/ and fill out our request-a-callback form.
I would like to thank Honor Hall for providing more tunes for this weeks video. Check out more from Honor Hall:
We will continue to feature Honor Hall as the band in our videos, that is unless you give us a band that would like to participate in our videos. Just give us your info and some of your digital music. You could be featured next.
Thanks for watching!