Getting more customers in your business is a journey.
You need to know the steps, and the critical control points, to design a marketing engine that works for you.
Can be hard at times, certain things working last week might not move the needle this week.
There is traffic – offers and deals – conversion rates – average dollar spend – and repeat spends. I’ve got a diagram below to help you understand more.
For me, it’s important that you know how your journey works. The journey from lead to raving fan customer who refers you more customers.
A couple of things that you should try to ascertain first though.
Don’t worry, no clients ever have this information on hand, but it’s crucial to have.
So – before we start looking at your customer journey, see if you can find out:
Average Lead Cost. In your business, you’ll acquire a certain amount of leads per year (these could be email opt ins, email enquiries, phone calls etc). You’ll also have a total marketing / advertising spend per year. This is the total of all spend in the year related to acquiring customers.
This would include website costs, advertising, yellow pages etc etc. Anything at all, including sales staff out on the road.
Take that total cost, divided by the number of leads, and you have Average Lead Cost (ALC).
Conversion Rate. What percentage of these leads turn into customers? Keep that number, because down the line we’ll look at where leads are coming from, and which ones convert more easily than others. We want to focus on improving conversion rates while ALSO focussing our energies on the better lead sources.
Customer Lifetime Spend. This one is crucial. If you have customers that spend with you over and over again, this impacts a lot on how much you can spend to get a customer. If they are a one-off spend, you need to know that too, and have that number.
A marketing person will need those numbers so that any future marketing spend can be linked to results, and then we’ll be able to turn off campaigns that aren’t economical, or double down on the good ones to enhance results and return on investment.
Back to the Customer Acquisition Journey.
Check out this quick drawing I did for a client today.
Up the top you’ll see Facebook, Google, and Ads. For this client, this is where the leads are coming from.
These are the 3 points that we can work on, usually 3 or 4 is about the maximum number of traffic sources that you need. We can look at what’s going out into those areas, and work on improving the quality of the leads at each point.
Those people end up finding out about the business, at which point we have to present them with an offer or a deal – something to attract their attention and the want to do business with us.
The offer, the deal, is something that ideally, we can discuss with a customer in real life if possible. If it’s a low cost item, say a clothing item, the website might be good enough to display how good this item is, and how good the deal is, and we can convert them into a customer right there on the website.
Usually for higher priced items or services, some human interaction will be required. A phone call or meeting will be required, and of course this is another control point that we can improve upon.
This is where the higher levels of the journey are important. We want to attract the RIGHT TYPE of leads into our journey. People who need our THING, and are likely to take us up on the offer.
Eg – today I went to my local cafe because in my letterbox was a direct offer – coffee and a muffin for $5. Targetted (letterbox drop, I live locally), and then a good solid offer. The flyer wouldn’t have worked if it was delivered in the next town, because nobody is going to drive an hour for a coffee.
Once we’ve converted the customer with our offer, we want to ensure our business can help them out again and again, so we can talk about our other services, products etc and work to develop a relationship with them, that’s so good that they refer other people, just like them.
Let’s run a quick example:
My local mechanic might drop a flyer in my letter box – good targetting again – offering a free 7 point safety check on my car coming into winter.
I’ll take that up for sure, because I value my families safety.
On that visit – they might offer to book me in for my next warrant of fitness, for just $20 instead of the usual $40. I’ll take that up for sure. I’ll probably start telling people at this point.
On that warrant of fitness check, they might make some recommendations for further work I need done on my car, which by now I’ll probably book in because I like the style of these guys, they seem very switched on.
Once I’ve completed the work, they might even throw in an offer for the tyre place next door, so that both businesses are winning, and it gets me back down there again in the general area.
They might then offer me a full car detail (high level clean) IF I refer a customer simply to their free safety check.
The process starts again….
By now – I’m a fully fledged customer, and I’ve told a few people about the car detailing…
You get the idea. It’s a journey. You can improve each step along the way, to turn your business marketing engine into a highly tuned money making machine.
You’ll have fun along the way too!
If you need a hand with anything, please just reach out and ask me!
Chief Marketeer – The Good Oil Marketing Dept
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