By Sue Brady
Marketing doesn’t just happen. It takes thoughtful planning.
As you embark on your next successful year, be sure to remember a few basics as you formulate your plans:
- Set clear goals
What do you want your marketing to accomplish: Sales, brand awareness, positive social media coverage, award-winning recognition?
All might be valid goals for you, and all would have different approaches. Understanding your goals is perhaps the most important element to spell out in advance of launching any new marketing program. And don’t forget that goals have nuances. If your goal is sales, it makes a difference if you are after a one-time sale or if your product is a subscription or requires repeat sales throughout the customer life. Knowing the difference will determine how you segment your acquisition file, how you message your campaign, and how you communicate with the customer post-sale.
- Define what success looks like
While sales might be a goal, success metrics go further. Metrics could be gross revenue per new customer, % business from existing customers, mobile app downloads, Return on Investment (ROI)* above a defined amount, Cost per Orders (CPOs)* lower than a certain level. All are valid. The key is to know what you’re after.
- Identify your target market
And it can’t be everyone. Get specific. What type of person needs your product? How much money do they make? Are they college educated? Do they live in urban areas? Are they in their 20s? Do they tend to use Facebook? Knowing who your customer is will make finding them easier.
- Design a campaign that will meet your goals
If your goal is say 500 mobile app downloads, you might want to run a campaign targeting your audience on their mobile phones. If you also know that they are Facebook users in a certain age group with certain interests, you can run a highly targeted campaign on Facebook.
As with every post I write about marketing, if you aren’t testing every time you go into market, you are missing out on an opportunity to learn. Whatever campaign you choose to run, there’s almost always room for testing. Testing will make your next campaign better. Test the most important things first: offer, audience, creative. Use what you learn as you create your next campaign.
Check back for future posts expanding on some of these concepts!
* CPOs are calculated by looking at the total cost to generate an order, and dividing that by the total number of orders received. Total cost typically does not include creative development, because creative can be used well beyond the campaign it’s first designed to support. Think of some of the well-known marketing campaigns out there. Take Flo from Progressive Insurance. If the folks that created that campaign took all of the campaign development costs against the orders for that first campaign, it most likely wouldn’t have been considered successful because of the high CPO. Flo has been used for years now, and so the cost of developing that initial campaign has benefited many campaigns that came later.
ROI can be a trickier metric. ROI is calculated by looking at how much revenue is generated vs how much it cost to generate that revenue. Higher ROI is obviously better. But how you calculate that ROI can vary. True ROI should look over the life of each customer generated off of that specific campaign spend, and also take into account other business generated from the campaign. For instance, TV ads often drive consumers to search on the web, or to respond to a direct mail or email campaign that arrives at the same time. This gets into the importance of attribution. You can read a post about that here.