The 3 complications of calculating an accurate ROI on your digital marketing investment.

Nov 18, 2019 | Marketing, Social Media

Self styled ‘experts’, flog all sorts of metrics that are supposed to tell you how well your digital marketing efforts are doing.

Many of them do give useful information,  but it is only ever partial.

I am certainly one who loudly  advocates the extensive use of data to measure and improve the productivity of marketing investments.

Opt in rates

Sales Conversion rates

Earnings per click

Cost per click,

On, and on, and on.

Being an old fart means I like simple stuff, and the simple measure of the effectiveness of your marketing dollar is the return on investment. ROI. The actions taken as a result of the investment divided by the cost to inspire and  motivate that action.

Always has been the best measure, always will be!

Until the digital stuff took over, the best you could do was take an educated guess, informed by some research and experience.

Now you can usually get a pretty good read on ROI if  you think hard about it.

How much did we spend divided by how much we got back.

There are  really only three  complications, beyond the technical ones involving statistics, and the lies that they can tell. Also, unfortunately, many marketers are lousy at statistics and mathematics, which is often a challenge to credibility.

First. Over what time frame do you do the measurement?  For example, the lifetime value of a customer means you need a framework to make the calculation. This involves a lot of data as well as assumptions, and an intimate knowledge of customer behaviour over an extended period. This is very hard to get right, so most just use averages, which are almost always misleading. If my right foot is in a fire, and my left in a bucket of ice water, on average, my feet are at a comfortable temperature. Nonsense.

Second. Attribution. Which part of the investment led to the transaction? Was it the digital marketing activity, or the manner in which the receptionist took the phone call, or a thousand other sometimes tiny things that contribute to the transaction evolving. This challenge is not exclusive to digital marketing, it is to all marketing activity. However, the specific and very misleading claim made by most digital urgers, that you can measure the effectiveness of an investment in digital because you can measure movement through the ‘sales funnel’ is simply ignoring the reality of attribution. The claims made by the urgers of digital that they can reliably deliver attribution sufficient to make micro adjustments to the allocation of resources in an ever evolving competitive context is rubbish. You can get closer than a ‘best guess,’ but not with anything resembling statistical reliability.

Third. There are still things that we simply cannot measure. Most of us would agree that being a good parent is a great investment in the success of our kids, but how do you calculate an ROI on parenthood? Similarly, the impact of being part of an enterprise culture that encourages and values diversity of opinion,  enables all stakeholders to have a genuine voice, and creates alignment of objectives, is hard to measure.

None of the above should restrain you from making the effort, and continuously improving the methodology as you learn more about your customers, and their behaviour, but it is a warning to those who just believe the nonsense peddled by digital urgers with a dog in the fight for your money.

Header cartoon credit: Tom Fishburne at www.marketoonist.com

 

 

Where to easily find the real value in Facebook

Where to easily find the real value in Facebook

Jun 26, 2019 | Marketing, Social Media

 

Facebook has made organic reach virtually (pun intended) impossible in the quest to empty marketers pockets of advertising funds, at which they have been astonishingly successful. This is despite their appalling management of privacy and enabling some pretty dodgy, some would call it reprehensible, activity.

The only option left, and it is a good one, is to take advantage of the groups that Facebook has encouraged to flourish.

Marketers should be taking advantage of groups, but to do so requires a greater level of discipline and investment than many seem to be able to muster. 

Following are the three main considerations.

Common interest.

Groups are by definition places where there is a common interest that draws members. However, common interest is not enough to generate the engagement that marketers need, there needs to be collaboration amongst the members, that creates its own two sided discussion. If the levels of two way discussion fall, so will the interest levels of participants, who will then wander off, digitally speaking. For marketers prepared to put in some leg work, selectively adding value to the groups specifically around your value proposition can be very useful.

Group control.

Anyone can create a group, for any reason, and manage the settings to your own agenda. I am a member of a local SME networking group that has three Facebook groups that serve different purposes. The first is a ‘public‘ group, where anyone can see and interact with posts, the second is a private group where only members of the network can  post and view the activity of others in the group. The third is a ‘secret’ group that has the current committee as its only members, and only those few can see anything posted, and respond. The first is a group that can  attract potential members and contributors to the activities of the group, the second is a collaboration of members where we can help each other in a myriad of ways, and the third is a very convenient communication channel for the committee to consider the manner in which the group is managed. The combination works well, and is very simple to set up. 

For a purpose.

Given it is easy to set up a group, when there is a specific purpose, you can set it up and leverage the potential reach amongst those who have an interest in your purpose. This can be anything from a product launch, technical forum to a personal interest, and everything in between. The challenge of course is to market the group to those who may buy into the purpose, and have something to contribute. Without a flow of quality content, such groups will have a very short life, but they have the potential to deliver considerable value to the group owner and members.

 

Groups are not the answer to most marketing challenges, at best they are a partial answer to some common questions, and can be a valuable part of a wider strategy. At least they can deliver a pathway to your own digital asset, your website that should remain a cornerstone of every  marketing activity. It is inevitable that Facebook will change the rules again, squeezing the algorithms that make groups useful, in order to keep the revenue flowing. However,  you  may as well use it while you can.

Almost exactly the same set of observations can be made about the group functions in other platforms. While the details differ, and none are anywhere near as sophisticated or provide the same sort of potential reach, they are all on the same path, monetising their access to your eyeballs in order to sell your details to advertisers.

 

 

 

Anatomy of a sales effective website

Anatomy of a sales effective website

Dec 7, 2018 | Communication, Marketing, Sales, Social Media

People search Google for 1 of 2 reasons:

  • They have a problem to solve, they need information, guidance, options, and are looking for help in some form.
  • They are bored and too lazy to go and have a game of golf, tennis, or mow the lawns, so they look for cat photos to amuse themselves.

It follows therefore that if you are setting out to be of interest to those in the first group, it helps if they recognise quickly that you have something of what they are seeking. Any Google search will throw up multiple options for the searcher to have a quick look at.

Most times when an SME recognises the need for a website, they hire a web designer, and stand back and let them run.

Wrong strategy.

The technology of websites these days is largely commoditised, the 18 year old down the road can often do the ‘techie’ end of a site construction quicker and better than many of the ‘professionals’ around.

The challenge is the  marketing and graphic design of the site.  This is all about the combination of the words being not only the right words for the visitor, but in the right place so they get seen, and the graphic design that makes the site visually interesting and engaging, and importantly, makes some  sort of offer that leads towards the transaction.

The following has nothing to do with SEO, it assumes that you have been found, by one means or another, and your task is now to engage the casual visitor, and very particularly, that casual visitor who fits the profile of your ideal customer, in some sort of process that may lead to  a (first) transaction. The reality is that if you are not attracting your ideal customer, the whole exercise will be at best, sub-optimal. The objective should be to get these people to step through the site to a positive conclusion.

The natural progression of eyes across a website is outlined below, as they seek the answer to the question in their minds ‘Will I find what I am looking for here?’

 

The basic principal.

Top left, to right, across towards middle left, then back to bottom right.

All of this is ‘above the fold’. Many of the more recent sites have a ‘rolling’ architecture, but that does not  eliminate the old adage of ‘be above the fold’.

Let’s go into a little more detail.

The header.

The all important header, or headline, has to be specific, and deliver the value proposition that is directed towards the ideal customer, the answer to their question. Evolutionary biology plays a key role in the construction of the header. Our built in survival mechanisms register automatically the elements around us, is it dangerous, is it food, shelter, a potential partner, without us recognising at a conscious level these automatic choices. If your ideal customer registers in their ‘lizard’ brain that you are good for them, a significant part of your work is done.

The cost of failure.

Highlighting the pain points most likely to be felt by your ideal customer provides a barrier to them just moving on. The more you can highlight the problem they feel, the greater the chance that they will ‘stick’ on your site instead of moving on.

The Solution.

In the simplest words possible, how does your product/service solve the problem.

The plan.

Having established the ideal outcome, offer a plan, create the steps to achieve it. Making it easy to progress to the transaction and beyond by making the process transparent and easy is the equivalent of a ‘Close’.

Testimonials.

‘Social proof’ to use the psychological jargon is an extremely powerful tool. People, prepared to be identified and tell a listener how great  your product or service is, how it delivered for them, are better than almost anything else in closing a sale. Even if the video is a bit amateurish, that is OK.  get those testimonials.

Call to Action.

Make sure that you ask for the order, or the progression through the funnel to the next stage. Often asking several times lifts the closure rates significantly.

 

There is  no need for clever graphics or fancy advertising slogans. Your ideal customer is looking to see if you can help them, or if they should speak to one of your competitors. The task of your website is therefore clear, by presenting a credible way of solving their problem.

No fancy embellishments, industry jargon to establish your creds, unintelligible sentences, words of 5 syllables, just simple, clear, uncluttered communication.

Help them to help themselves!

Header: is a common  ‘wire-frame’ 

 

A marketers rant about ‘content porn’

A marketers rant about ‘content porn’

Oct 10, 2018 | Branding, Communication, Social Media

Content has become a marketing buzzword delivering a tsunami of crap into our inboxes, cluttering up our phones, and potentially delivering all sorts of nasty surprises if we open them.

Content started as a great idea, suddenly we could communicate directly with those in our markets and give them stuff of value, that coincidentally led to a transaction, perhaps many transactions.

Anyone would think this was new, this is what advertising has done for decades, we can now just target the recipient more accurately.

We have forgotten the ultimate objective of content is to create circumstances where a transaction can occur. However, ‘Content’ has become a cliché, and we all indulge, churning out shit that does nobody any good.

It is like Porn, interesting at first, perhaps educational for some, offensive to others, but quickly becoming just boring.

People are keen to receive things of value, things that make a difference to their lives, but increasingly the stuff they are being delivered is just content porn, doing nobody any good, leading to the turn off, so that the good stuff gets missed in the never ending churn.

There is a branding opportunity here, send only good stuff, and personalise it!

What we need to produce is ideas, not indulgence, and there is way too little of the former and too much of the latter.

Let’s be fair dinkum about what content is.

Fair chance it is a regurgitated version of something else, and by the time the first good idea has been reshaped, and re-imagined, it has become blurred and unrecognisable. An original good idea is something most recognise when they see it, simply because it demands attention and action.

That is what  we need, more ideas, originality, and deviance, in a nice way, that demands your attention, and drives an action. We do not need more of the same old content porn.

I read somewhere, and I wish I could take credit for it that: ‘if I take a photo of a pile of dog shit, I have a photo of a pile of dog shit, if I upload it to  a website, it becomes content’

Sounds a bit like the inimitable Bob Hoffman, but could not locate the source.

 

Your ‘Values’ should not be table stakes.

Your ‘Values’ should not be table stakes.

Feb 27, 2018 | Customers, Marketing, Social Media

 

Consultants have delivered a lot of value to many over the years, but in some areas, have screwed the pooch.

One is the confusion that presides over the differences in meaning between ‘Vision’, ‘Mission’, and ‘Values’, and more recently, ‘Purpose’.

The result has been a huge number of well meaning but generic sounding statements adorning many reception areas.

You know  the sort of fluffy meaningless stuff I refer to:

‘XYZ company works as a team applying rigorous standards of integrity and authenticity to everything we do. We are focussed on delivering value to our customers, while having fun at work, and respecting the needs of our diverse workforce and supplier partners’

Bollocks.

Each element of that fluffy nonsense is table stakes if you want to stay in business, and in addition, that statement could apply to any business from the multinational supplier of coal to the local massage therapy franchise.

Building a brand, a position, a purpose, however you wish to define it for your business is a hard, long term job. It requires deep consideration of what it is you do, how you add value, and  what makes you sufficiently different to be  noticed and engaged by customers. Having a set of core beliefs that delivers on those three elements is what gives your brand the power and presence to stand out.

If you run a delivery service, speed of delivery is a given, as would be reliability. Having those two words on a board  in your reception will do little to differentiate you from your competition.

It is not easy to come up with the words that reflect the persona of your business, the way you would like others to see you.

It is however, worth the effort.

Good examples are few and far between, perhaps I am just being an old curmudgeon again. Ask Dr Google to give you some examples, and there are millions of responses, all with similar words.  Passion, integrity, respect, innovative, accountability, and so on all feature, largely it is just so much undifferentiated mush.

However, there are a few do stand out, beyond the few like Apple and Google that we all know:

Patagonia: ‘Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.’

Warby Parker: ‘To offer designer eyewear at a revolutionary price. While leading the way for socially conscious businesses’

Both these businesses have been standout performers over the recent past. Obviously it is more than their values statements that delivered that  outcome, but it helps.

My local mechanic, to demonstrate you do not need to be a cashed up multinational to have a great statement that defines you, has as his positioning statement on the wall for all to see ‘Our deep experience and attention to the detail ensures that your car stays reliably, safely and comfortably on the road longer.’

This always struck me as a useful expression of why I should be taking my precious old Merc to him.

 

 

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How to send a great brand down the crapper.

How to send a great brand down the crapper.

Feb 22, 2017 | Branding, Social Media

When you change your business  model, make sure you take your customers with you. Just assuming loyalty and the power of incumbency can be terminal. The evidence to this is long: Kodak, Blockbuster, and more recently, Blackberry, amongst a very long list.

A few customers will hang around, even to the death, but most will walk just as soon as a viable alternative emerges, and in the meantime probably think you have overindulged in happy-juice, and think way less of you for it.

Not many would see this as a good outcome in the challenge to build and leverage a brand.

LinkedIn has been a great success, making its founders billionaires, early investors multi millionaires, and enabling business connection and networking in ways unimaginable just half my working life ago.

The freemium model they used worked well, it gave significant levels of usage for free, which hooked in a huge, professional user base.

You did get a lot for no financial cost, but in exchange, you did give them a lot of information.

Your personal details, work history, interests, location, affiliations and networks, and a lot more, all of which should have been an advertising bonanza, and if I asked for it when interviewing face to face in Australia, I would be breaking the law.

This information is  the quid pro quo for the use of the platform, and unless you are really stupid, you know that it will be used to sell access to that information to anyone with the money, who wants to reach you.

Nobody would seriously argue that this was not the case.

Facebook has made a huge success of advertising to finely defined audiences based on the personal information given in return for access to the platform. That LinkedIn failed to do the same, with the significant added value that could be accessed via the subscription versions, is their marketing failure, not evidence that  there was not an opportunity waiting to be grabbed.

Anyway, at some point, some of the users of the free version needed to go a bit deeper, to be able to search in a more targeted manner, so they happily upgraded to one of the premium packages. While the subscription revenue may have been under what it could have been, LinkedIn seemed never to really set out to market the benefits aggressively to their user base, all they did was offer a months free access to the premium version.

As LinkedIn seeks to generate revenue by annoying its users, Facebook jumps into the markets to date dominated by LinkedIn and offers similar services to its huge user base. Serious competition? Not too the differentiated Linkedin, but perhaps now it is.

I was a constant advocate of LinkedIn, and strongly encouraged and coached all those I worked with started to use it, some migrating to the subscription services. That advocacy is now gone, and I am sure that I am not the only one.

How long before the first cat photo turns up? Perhaps it already has, further blurring the differentiation LinkedIn used to have to Facebook and other social platforms.

I get that Microsoft needed to create a return on their $26 billion investment, but ignoring your market is a pretty stupid way to go about it.

Perhaps the new bloke who has admittedly made some pretty smart moves since he took over from Steve Ballmer, should have rung Jeff Bezos at Amazon who may have reminded him that Amazon keeps an empty chair at every meeting as a constant reminder that they are there to serve customers, not the  other way around. Do that successfully, and you will make money, fail to do it, and the bell will eventually ring.

The upside for the few really effective marketers out there is that a really effective automated toolbox has been removed from the wannebe’s, so creative, differentiated, focused and truly customer-centric  marketers will have more oxygen.