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9 experts tell what is a good Marketing ROI and why 0

Posted on September 14, 2019 by Rob Petersen
marketing roi

Marketing ROI

Marketing ROI is exactly what it sounds like: A way of measuring the return on investment from the amount a company spends on marketing. 

Marketing ROI benefits any company in the following ways:

  • Justifies marketing spend
  • Shows what to spend on
  • Compares marketing efficiency with competitors
  • Holds marketing people accountable

What sort of Marketing ROI should a business expect? 9 experts tell us what is a good Marketing ROI.

What is a good Marketing ROI?

According to Neilsen, the average marketing return on investment is $1.09. So what is a good Marketing ROI and why.

5:1 Ratio

‘A 5:1 ratio is in the middle of the bell curve. A ratio of over 5:1 is considered strong for most businesses. A 2:1 revenue to marketing cost ratio wouldn’t be profitable for many businesses, as the cost to produce or acquire the item being sold (also known as cost-of-goods-sold, or COGS) is about 50% of the sale price. Companies with higher gross margins (their COGS are LESS than 50% of the sales price) don’t need to achieve as many sales from their marketing before they become profitable. Therefore, the ratio is lower.” – Chris Leone, Web Strategies Inc.

Email marketing has the highest ROI

“Email marketing has the highest ROI of 675% when compared with any of the other major marketing methods. An email marketing campaign with a business’s website can be utilized to great success in order to increase sales and profits.” – Profitworks

Measure against the past

“One good way to set a “good ROI” benchmark for each marketing strategy is to look at the return from similar tactics you’ve tried in the past, as well as your current sales numbers. That information should help you create ROI benchmarks and goals that are realistic for your company. What’s considered a “good ROI” can vary based on the type of marketing strategy, your distribution channels, and your industry.” – Pamela Bump, HubSpot 

Start small and scale with success

“Many entrepreneurs make the mistake of blindly spending money, hoping that cash will eventually come back and multiply. Sometimes it works. Usually, however, the entrepreneur runs out of money because he or she didn’t consider ROI. Maybe you spend $500 on Facebook Ads. You track the campaign over several weeks and discover that leads from those Facebook Ads generated $10,000 in revenue. That’s a massive ROI. Now you know that Facebook Ads offer tremendous ROI. Next time, you might spend $2,000 on Facebook Ads to multiply the potential revenue.” – Jonathan Cronstedt, Medium

Test your way to a high Marketing ROI

“Almost anything can be measured using proper test design – but note that it’s prohibitively expensive to test everything with this method. With test and control groups, you apply the program or treatment that you want to measure to one component of your target buyer group, and not to another homogeneous part of that group.  All other factors being equal, you’ll be able to attribute any difference in buyer behavior between the two groups to the particular program.” Jon Miller, Marketo

Google Ads – $2 return for $1 spent

“According to research by the American Economic Association, businesses make an average of $2 in revenue for every $1 they spend on AdWords (Google Ads). However, many of them spend money on AdWords without knowing which search terms to target, what the best bid price is, or how to measure their revenue.” – MarketingProfs

KPIs with targets determine Marketing ROI

“ROI can certainly be seen as a “numbers game.” When marketers launch campaigns, they must be willing to identify the KPI’s of those campaigns in numerical terms. How much more traffic have they generated? What has been the increase in lead generation compared to that before a campaign has been in place? Companies can obsess on looking for a positive ROI in short order when, in fact, a campaign may be much longer-term before results can actually be seen. Find the balance. Set up the KPI’s, track results in real-time, eliminate those campaigns that are clearly not working, and allow those that seem to be getting results the time they need.” – Circa Interactive

LinkedIn has an average ROI of $9.59

“We looked at every paid LinkedIn touchpoint (e.g. paid social ads) across our customer base from 2017 through July 2018.  We use a full path attribution model in order to give revenue credit across the entire customer journey, including marketing that happens post-opportunity creation. We look at cost data and closed-won opportunities across the same 1.5-year time span. In other words, this includes costs for LinkedIn ads directed towards leads and current open-opportunities. The average ROI for a subset of our customers is $9.59.” – Andrew Nyugen, Bizible

Facebook ads lift search ROI

“Consumers who were exposed to Facebook ads were more likely to conduct a new search on mobile. The average lift for mobile search referral traffic was 6 percent. Small businesses saw the largest variance in the lift. when people saw Facebook ads in addition to paid search results, they were not only 13 percent more likely to buy online, they were also 79 percent more likely to seek out the brand’s physical store.” – Larry Kim, Wordstream

Do these experts help your understanding and expectations of Marketing ROI? Do you need help determining Marketing ROI for your business?

23 timely tips that make generational marketing work 0

Posted on August 31, 2019 by Rob Petersen
generational marketing

Generational Marketing

Generational Marketing takes into consideration groups of people born in the same period of time who share similar life experiences shaped by that particular time period and their marketing preferences.

To know as much as possible about a group of people and their preferences is an advantage to any marketer.

To help you do better marketing, here are 23 timely tips that make generational marketing work.

Generation Z (ages 7-22)

By 2020, Gen Z is expected to account for 40% of all customers. Their buying power is $44 billion and expands to $600 billion including the influence they have on their parents’ spending.” They may be the youngest generation but don’t underestimate their importance.

  1. A personal approach is important when marketing to Generation Z. An IBM and National Retail Federation study found that “Gen Z-ers want to actively share their opinions and co-create with brands.”
  2. If it doesn’t work on mobile, it doesn’t work. 85% of Generation Z cite an easy mobile experience as the most important element of making a purchase. Below is mobile usage by age groups.
  3. Gen Zers like to receive emails from brands, the largest group—31.8%—says they like to hear from brands a couple of times a week. The next largest group—27.5%—says they want to hear from brands once a day. 19.0% say they prefer once a week and 18.4% say once a month.
  4. Include a video to keep Gen Zers engaged. The social platforms Gen Zers use most is YouTube (85% of Gen Zers say they use the platform and 32% say they use YouTube more than any other social media site), followed by Instagram (72% say they use the platform though only 15% say they use it most).
  5. Collaborate. Gen Z crowdsources decisions to buy referencing reviews of friends, strangers, and influencers.
Generational Marketing mobile

Millennial generational marketing (ages 23-38)

Millennials have a lower median income and less disposable income than past generations. They’ve learned how to live well on less. This makes their shopping habits much different from their predecessors.

  1. Millennials won’t be caught without multiple mobile devices. Marketers need to ensure their ads display clearly on all mobile devices.
  2. Remarketing lists for shopping ads (RLSAs) are a good way to go. These ads appear on the pages that consumers have previously browsed. Seeing ads multiple times when they’re actively shopping creates a more personal connection to Millennials.
  3. Millennials have caught on to the idea that most stores will price match, This tactic can win their business.
  4. Social media has the biggest influence on Millennials. 49% of Millennials have been influenced by social media to spend on experiences compared to 44% of Gen Z, 28% of Gen X and 16% of Baby Boomers.
  5. Millennials care companies are committed to the community. 81% of Millennials expect companies to make a public commitment to charitable causes and citizenship. 
  6. Millennials expect a great customer experience. 74% of Millennials report they will switch to a different retailer or brand if they have a negative experience. It is important for companies to focus heavily on making sure their customer is satisfied.

Gen X (ages 39-54)

Generation X is characterized by its strong work ethic, sound decision making, and stability. Even though their age range spans just 5 years, they account for 31% of the total U.S. income, and their income (on average) is higher than the national average as well as the averages for all other generations.

  1. Gen Xers want emails/newsletters from a brand more than any other type of content.
  2. They often feel overlooked by brands and marketers. Make sure to create marketing messages tailored specifically to your Generation X consumers.
  3. Gen Xers are big researchers on the internet. 72% use the Internet to find and research businesses. Give them plenty of information and sure your business’s name, address, and phone number are consistent across the internet.
  4. Women are often the breadwinners for Generation X. About 20% of Generation X men earn less than their wives. So consider targeting women for Generation X.
  5. Gen Xers are nostalgic. Nielsen reports both men and women are drawn to TV commercials that showcase everyday life and real-world situations. Messaging that is rooted, authentic and speaks to important times is a good way to get through to them.
  6. Gen Xers are brand loyal. 50% of Gen Xers are brand loyal. Reward them for their loyalty. It’s likely they will keep coming back.

Baby Boomer generational marketing (ages 55-73)

  1. Baby Boomers prefer more news articles, research reports, and email content.
  2. Computers are still the way to go. 31% use computers to shop online vs 25% for mobile phones. Boomers use laptops and PCs far more often than the younger generations
  3. Boomers take their time. Part of reason they use computers is they don’t take purchasing lightly. Boomers treat a purchase as a commitment and do their due diligence.
  4. Boomers appreciate it when you spell things out. Give them the option to dig into the details if they want.
  5. Search is the channel of choice for their research on businesses and brands. Search engines score higher than watching videos and using social media.
  6. Don’t ignore social media. 82% of Baby Boomers belong to at least one social media site, with Facebook being by far the most popular one.

Do these tips help you with your marketing? Are you interested to learn more about generational marketing?

10 data mining examples for 10 different industries 2

Posted on August 17, 2019 by Rob Petersen
data mining examples

Data mining examples

Data mining examples show the process of discovering patterns and identifying rules in large data sets. Machine learning, artificial intelligence, statistics, and database systems are methods frequently used.

How data mining is applied across industries is vastly different. That’s because the goal of data mining is understand customer behavior, predict future behaviors and identify steps that accelerate the desired outcome. And customers behave differently depending on the industry.

To show how, here are 10 data mining examples for 10 different industries.

Banking data mining

In banking, the main objective is to use data mining is to extract valuable information from distinct customer data. That’s because the key strategy for a bank is to reduce costs and increase bank revenues. The customer, and their accounting and personal information, is the backbone for data mining examples of every bank. They collect data such as their purchase history, geo-location preferences and other behaviors. Bank that effectively use this data mining analysis to create right product for the right customer.

E-commerce

Many e-commerce companies use data mining and business intelligence to offer cross-sells and up-sells through their websites. One of the most famous of these is, of course, Amazon, who use sophisticated mining techniques to drive their, ‘People who viewed that product, also liked this’ functionality. By thoroughly studying and analyzing past data and behaviors, Amazon categorizes products depending on the probability of your purchasing the product.

Educational data mining

Educational Data Mining (EDM) is increasing rapidly as more and more education systems are going online. It has opened new areas like new computer supported interactive learning methods, tools-intelligent tutoring system and simulation games. This has created opportunities to collect and analyze student data , to discover patterns and trends in those data and to make new discoveries and test hypothesis about how students learn through online classes. The data collected from online learning systems can be aggregated over large numbers of students and can contain many variables that data mining algorithms can explore for model building.

Healthcare

Lab tests are often essential to enable a health care provider to decide how to treat a patient. Applying data mining helps doctors discover things they might otherwise miss within laboratory results. In one study, researchers looked at more than 600 urine samples and used data mining to classify patients by life expectancy based on characteristics of their urine. Taking this approach reveals instances where patients are sicker than they seem, allowing doctors to take prompt action.

Marketing data mining

Data mining in marketing is used to explore increasingly large databases and to improve market segmentation. By analyzing the relationships between parameters such as customer age, gender, tastes and lifestyles, it is possible to predict behavior in order to direct personalized loyalty campaigns. Data mining also predicts which users are likely to unsubscribe from a service, what interests them based on their searches or what a mailing list should include to achieve a higher response rate.

Mass merchandisers

Mass merchandisers are good data mining examples in action. Loyalty card programs are usually driven mostly, if not solely, by the desire to gather comprehensive data about customers. One notable recent example of this is Target. As part of its data dining program, the company developed rules to predict if their shoppers were likely to be pregnant. By looking at the contents of their customers’ shopping baskets, they were able to spot customers who they predict were likely to have a baby on the way. They then send them targeted promotions for diaper, wipes and other baby products. Their predictions were so accurate that Target made the news by sending promotional coupons to families who did not yet realize (or who had not yet announced) they were pregnant! 

Mobile phones and utilities data mining

Mobile phone and utility companies are data mining examples that predict ‘churn’, the terms used for when a customer leaves their company to get their phone/gas/broadband from another provider. They collate billing information, customer services interactions, website visits and other metrics to give each customer a probability score, then target offers and incentives to customers whom they perceive to be at a higher risk of churning.

Nursing

An analysis reveals a substantial portion of Medicaid patients are going to the ER more than 10 times per year. 2 or 3 trips to the ER is just a bad year, but more than 10 visits means that something has gone wrong. This prompts Medicaid employees to call these patients, take steps to increase their level of personal care at home and institute 24/7 nurse hotline to allow Medicaid patients to call in for medical help rather than going to the hospital. This lowers the costs of Medicaid ER visits by more than 20%.

Retail data mining

Retailers segment customers into ‘Recency, Frequency, Monetary’ (RFM) groups and target marketing and promotions to those different groups. A customer who spends little but often is handled differently to a customer who spent big but only once and some time ago. The former may receive a loyalty, up-sell and cross-sell offers, whereas the latter may be offered a win-back deal, for example.

Social media

A study published in the Journal of Advertising uses social media mining techniques to gauge users’ perception of a variety of common brand names. The study specifically looked at Twitter, examining tweets of brands in the following industries: fast-food restaurants, department stores, telecommunication carriers, consumer electronics products, and footwear companies. The researchers use the Twitter handles of each company (“@CompanyName”) as keywords to pull about ten million tweets for each of the twenty companies studied for results that are incredibly specific. For example, the study found 15.7% of tweets about fast-food restaurants are about promotions chains are offering. And, among cable companies, 66.7% of tweets about Comcast contain a negative sentiment.

Are these relevant data mining examples to you? Could you use guidance on data mining for your company

7 Tips for Replying to Negative Online Reviews [Infographic] 2

Posted on August 04, 2019 by Drew Page
negative online reviews

Negative online reviews

The Internet provides consumers with nearly unlimited options and a direct channel for communication with companies. Love a product’s design and functionality? Write a review on Google. Experience negative custom service at a restaurant? Share it on Yelp. Negative online reviews can be shared too.

Online reviews can make a significant impact on the future of a company given that 89% of consumers read a company’s reply to reviews. Therefore, a business should spend time carefully crafting their reply to both negative and positive reviews. 

Many people consider negative reviews to be inevitable because not one consumer values or experiences a product or service the same. Ignoring consumer reviews online can hurt your brand and cash inflows. Read on for tips for replying to reviews online.

1. Recognize the Problem and Apologize

We’ve all heard the phrase “the customer is always right.” Take that to heart when replying to a negative review. Acknowledge the problem in your response, so the consumer knows you understand and include an apologetic sentence or two. 

Customer complaints can be perceived as ridiculous from a business standpoint, but their feelings are real. De-escalating the situation with an apology is all the consumer wants sometimes.

2. Empathize

At the end of the day, we’re all human. Display your compassion in your reply to a review, so your customers know you care above and beyond the transaction. Put yourself in their shoes and ask how you’d feel in this situation. This can be a good exercise before drafting a response.  Here are 12 authentic ways to get better online reviews.

3. Avoid Disputes Online

An important guideline to replying to negative reviews: it’s not personal. Running a business requires tremendous energy, hardwork and heart. This makes reading a negative review online frustrating for many business owners. 

Avoid defensive replies by taking a moment to breath and calm your emotions. Future customers may be hesitant to purchase your products if they see you’ve argued with past customers. 

4. Give Offline Support Contact Info

More often than not, negative customer reviews involve serious problems. If a customer simply doesn’t like the product, it’s unlikely they’ll spend time blasting their opinion online. Regonzie when a review needs more than a short reply and provide an email or phone number to directly reach someone for help. This proves your company values their business and goes beyond a mediocre “give us a call” page.

5. Implement Steps to Mitigate the Situation

A common step to mitigate a negative review is extending an offer. Some airlines extend offers to upset customers in the form of a discounted flight or free baggage, depending on the severity of a situation. This could win a customer’s respect and business back because it shows your commitment to excellent customer service. Ensure you acknowledge the problem and apologize before giving an offer because this could be perceived as bribery. 

6. Answer the Review with Gratitude

It may sound funny to say “thank you” for a negative review, but gratitude can turn a negative situation into a positive one. Most of the time ending on a positive note is a company’s goal when replying to reviews. Thank your customer for allowing you to solve any internal problems from their rear view. This can make a genuine and lasting impact. 

7. Update Your Reply

Some negative reviews involve a few messages back and forth with a customer. Once you’ve reached a resolution of a customer’s issue, include a status update that reads “resolved” to show future customers you took action. Ultimately, this promotes your customer service capabilities.  

Below is an infographic from Housecall Pro featuring examples and template ideas for you to practice writing your own negative review replies.

Drew is a content marketing specialist from San Diego, where he helps create epic content for companies like Housecall Pro. He loves learning, writing and playing music. When not surfing the web, you can find him actually surfing, in the kitchen or in a book.


10 experts give their definition of a good sales lead 0

Posted on July 19, 2019 by Rob Petersen
sales lead

Sales lead

Good sales leads are the foundation for any lead generation strategy, one of the most frequently used strategies in digital marketing, especially among B2B companies.

For a lead generation strategy to be successful, it makes sense for there to be clarity and alignment around the definition of sales lead.

Unfortunately, too many organizations lack a clear definition that can be used across marketing and sales. There are even differences among the experts.

So you decide best definition for your business, here are 10 experts that give their definition of a good sales lead.

  1. “A lead is a person who has provided at least some basic information that suggests a potential interest in buying from you.” – Dan Purvis, Head of Marketing Communication, Planet
  2. “A lead is an unqualified contact. Any potential client or customer you meet that hasn’t been qualified as a prospect, is a lead. A prospect is a potential customer that has been qualified as fitting certain criteria.” – Mindy Lilyquist, Founder, Epiphany Marketing Management
  3. Lead – An individual who has provided contact information and, in doing so, pointed toward a potential sales opportunity.” – Matt Leap, HIPB2B
  4. “An individual or company with an actionable need for a service or solution.” – Dan McCade, President and CEO, PointClear
  5. “A lead is usually a person who just entered your marketing funnel. He may have filled out your online form. Or signed up to your program. Or clicked on your ad. A lead’s engagement is usually minimal. They just showed interest, but they aren’t that invested in your product or service yet. A prospect, on the other hand, is a person who has been exhibiting interest or showing ability to make a purchase. A prospect has been qualified by your sales team or your segmentation process.” – Will Cannon, Founder at UpLead
  6. “RULE No. 1: A good lead is pre-qualified. RULE No. 2: A good lead is easy to convert into a customer. RULE No. 3: A good lead is easy to close. RULE No. 4: A good lead includes quantitative data.RULE No. 5: A good lead is measurable and measured.” – Geoffrey James, CBS News, Moneywatch
  7. “Most salespeople define a sales lead as a person or business who fits the perfect customer profile of their company.  A qualified sales lead is a lead that has been validated and checked manually within your organization (or by a third party) as meeting the minimum attribute level of the customer profile. This task is usually carried out by the marketing team. A prospect is a person or organization that has expressed an interest in your product or service.” – Liz Fulham, Sales Optimize 
  8. “A marketing qualified lead (MQL) is a lead who has been deemed more likely to become a customer compared to other leads. This qualification is based on what web pages a person has visited, what they’ve downloaded, and similar engagement with the business’s content.” – Sam Kusnitz, HubSpot
  9. “A sales qualified lead (SQL) is when the buyer has a defined project with budget and timeline established.” – Craig Rosenberg, Chief Analyst, TOPO,
  10. “The point is: a “Lead” isn’t a sure thing. One of the dictionary definitions states that a lead is, “a slight or indirect pointing to something”. – Justin McGill, LeadFuze

Before your organization jumps into a lead generation initiative, make sure you have agreement on how you define a good sales lead. Do these definition help your consideration? Are you ready to begin?

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