Marketing Tips is a weekly feature at Marketing Binder. Allen Stafford provides a weekly marketing tip to help you better market your business.
To survive and thrive in today’s digital, customer-driven, market environment, you need to stay one step ahead of your customers. Customer’s, empowered with social media and consumer reviews sites, can help build your business or destroy your business with their online reviews.
In part 1 of this 3 part series on Establishing Lead Generation Goals for Your Business, I introduce a series of lead generation metric questions to ask your sales and marketing team. By answering the questions in part 1, you began to formulate your lead generation goals. In this section, part 2, I discuss the process for Establishing Lead Generation Goals.
Looking back at part 1, where there any answers to the questions that resonate with you or your team? These are the building blocks to your goals. They help you determine what you are trying to accomplish with your business.
Essentially, are you seeking more social media conversions? Perhaps you are interested in increasing brand awareness with your business or product and services. Maybe you are seeking more leads or better-qualified leads that result in higher conversions.
The answers to your questions do not necessarily lead to one specific lead generation goal. It’s possible, and probable that you want to create multiple lead generation campaigns, each with their own set of goals. The questions in part 1 are just to help you understand what is important now, and what you may want to focus on at a later date.
Once your area, or areas, of concentration are established, the next step is developing measurable goals. See the article on “Writing S.M.A.R.T. Marketing Goals” for a detailed explanation on writing time-bound, measurable goals.
Finally, establishing Key Performance Indicators (KPIs) are essential for gauging success in reaching your lead generation goals. KPIs are the litmus test to each established goal and if you are on the right path to achieving success. If you are not meeting KPIs, it’s time to make adjustments to your strategy and/or goal. If you are hitting your KPIs, then your goal may be too easy and you need to make changes to your goal. See the Sidebar below for an example of establishing KPIs.
Once you establish your lead generation goals and campaigns, you are ready to develop the roadmap and plan for reaching your goals. This is the topic of part 3 in Establishing Lead Generation Goals for your Business.
In part 1 of this 3 part Marketing Tips series on lead generation goals, I examine the initial questions to ask your lead generation team as a primer to setting your lead generation key metrics and goals.
Setting Lead Generation Key Metrics
Your first task is to establish benchmarks for both a sales and marketing processes. Depending on your company structure, you’ll want to work with your lead generation team to tackle and answer the following questions.
Your lead generation team may consist of you, your sales staff, and marketing team. It can also include top level key decision makers (or the C-Suite), depending on the structure and size of your company. If you’re a small business, your team may be just you and an employee or your spouse.
Creating two categories, sales and marketing processes, answer the following questions with your team.
- What is the average sales price for your products or services?
- What is your average sales cycle? Is it one week, 6 months, or some other time duration?
- What are your quarterly revenue goals? (you can establish yearly goals, but it’s best to set quarterly goals to measure your progress and make corrections if you miss your target goal for one quarter.)
- What are your current percentage of leads that turn in to a sale?
- How do you define an opportunity and what are the steps it takes to move that opportunity toward a sales. (see sidebar below for an example opportunity)
- How many influencers does it take at a prospects business to influence a sales? (See sidebar for an example)
- How is your sales team divided? Do you have inside sales, outside sales, or a combination of both?
- What are done with leads that do not turn into opportunities? Are they discarded/deleted? Do you remarked to these leads?
- What percentage of leads generated by your marketing department are considered “good” leads?
- Where does the sales team look outside of marketing to find good leads?
- Is your business currently participating in any lead generation programs? If so, what are they?
- Is your company actively engaged in blogging?
- Is your company producing content? If so, what types of content are they generating? Infographics? Webinars? Videos?
- Are you active in social media streams as a company?
- Assuming you are using a Customer Relations Management (CRM) tool what happens to those leads once they are entered into the system?
- What is the cost per lead? This can vary depending on the types of products and marketing channels used.
- Do you have a lead scoring and lead nurturing program?
- Do you currently track marketing metrics? If so, how is this done?
- What is the conversion rate for leads generated from marketing to opportunities? From leads generated from sales people to opportunities. Is there a difference in lead quality?
- What are your sales success rates from leads?
- How does marketing contribute to the sales pipeline?
- What is marketing’s contribution to closed sales revenue?
The answers to these questions are the beginning to developing your lead generation goals. Goals are very different for each organization and are dynamic in nature. That is, they can change as the business climate and company goals change. This is why revisiting your lead generation goals on a quarterly basis with your team is important.
In part 2, I help you formulate goals and develop a path toward a lead generation plan.
One simple way to measure customer loyalty for your business, product, or service is to use the Net Promoter Score (NPS) introduced in 2003 by Fred Reichheld and Bain & Company. The NPS serves as an alternate method to traditional customer service satisfaction surveys where any person can administer the survey.
How NPS Works
The Net Promoter Score calculation is based on customer responses to the ultimate question: “How likely is it that you would recommend our company, product, or service to a friend or colleague?”
Based on an 11-point scale respondents giving a score of 0 to 6 are known as detractors. Respondents providing a score of 7 or 8 are passives, and respondents giving a score of 9 or 10 are known as promoters. See table below for description of each NPS category.
|NPS Respondent Categories and Scores|
|Promoters||9-10||Loyal enthusiasts who will refer others and keep buying from your organization.|
|Passives||7-8||Satisfied customers, but lack enthusiasm. These customers are vulnerable and at risk of leaving for the competition.|
|Detractors||0-6||These are unhappy customers who can damage your brand, giving negative reviews and word-of-mouth.|
The Net Promoter Score is calculated by subtracting the percentage of respondents who are detractors from the percentage of respondents who are promoters. The NPS is represented as a number, not percentage, between -100 — where 100% of the respondents mark 0 — and 100% — where 100% mark 10 on the survey. Passives are used to calculate the average percentage, but not used in the final calculation for arriving at the Net Promoter Score.
The organization or business must adopt the concept of using the NPS to gauge customer loyalty and providing support to customer who give a low NPS score. Customers who respond as either detractors or passives should be priority and a follow-up call given to decide how the organization can correct what caused the customer to give a low score.
How to Deploy an NPS Survey
The Net Promoter Score is typically deployed following a sale or service call. Using either internal or external email platforms, organizations can send customers the NPS survey. SurveyMonke.com offers pre-designed NPS templates for gathering customer data easily.
For more information on the Net Promoter Score, try one of the recommended readings listed to the right (top if you are on a mobile device) or visit this site.
Daily Marketing Tip #2 – Explanation
This marketing tip is inspired by an event I witnessed several weeks ago. While driving to a retail shopping center, I witnessed a young man standing on the center medium of the centers entrance. In his hand was a sign that read, “Cactus Cantina Serves Breakfast Too!” and an arrow pointing in the direction of the restaurant. This was Guerrilla Marketing at its best! (See Sidebar below for details on Guerrilla Marketing.)
What makes this tip so great is the center has what’s known as an anchor restaurant (a major restaurant that is responsible for drawing a majority of the customers). The anchor restaurant is an IHOP — International House of Pancakes. The restaurant advertising is not known for serving breakfast. To increase their breakfast business, they had a sign twirler (a person who stands outside with a sign and twirls or dances with it, attracting attention), stand on a center medium and directing traffic toward the cantina. The best part, this was happening at peek breakfast time on a Sunday morning, when the IHOP is packed and wait times are long.
If you have a retail store or restaurant and there’s an anchor store or restaurant that is receiving a lot of the business, use a sign twirler or other attention getting device to steel customers away from the anchor business.
Daily Marketing Tip #1 – Explanation
By now, if your restaurant or food establishment is not on social media, you’re possibly losing out on potential business. In Marketing Binders premiere Daily Marketing Tips section, I discuss the need to post good images of your food dishes / products to your social media stream, consistently during peak serving hours.
Here’s why. We are a technological society enamored with social media, specifically sites such as Facebook (where we find an abundance of food postings). Instagram, Pinterest, Twitter, and a whole host of other social sharing sites. According to statista.com, cell phone usage is projected to reach over 2.6 billion users worldwide, with both Android and iOS comprising the majority of cell phone users. What does all of this mean for your restaurant business? A lot of potential customers thumb surfing through social media on their phones.
By showcasing your new menu items, “hot” sellers (pun intended), and other favored (or not so favored) menu items, frequently on social media, you help entice potentially hungry customers into visiting your restaurant. But, timing is everything. The key is to post just prior to and during your peak serving hours. If you’re posting food images all day long and too frequently, you can create follower burnout. Additionally, posting too many food pictures all day long does not pair well with a good content strategy for social media.
A Note on Social Media Content Marketing and the 4-1-1 Rule
An important rule to note when frequently posting self promotions is the 4-1-1 Rule for Social Media, popularized by Joe Pulizzi of The Content Marketing Institute. The rule states that “for every self-serving social media post, you should post one relevant post and share four pieces of relevant content written by others.” The 4-1-1 rule gives you the opportunity to have dialog, build awareness of your business, as well as keep in touch with followers without being too pushy.
If you are promoting content written by others on your site throughout the day, self-serving posts during a few hours of peak serving should not pose a concern.
Welcome to the Marketing Tips Daily blog, a new section here on Marketing Binder, where I, Allen Stafford – a marketing professional with 17 years of marketing experience – will bring to you, the small to mid-sized business (SMB) daily marketing tips on a variety of marketing subjects that include: