We all have budgets. Even if you're not a numbers person, the bottom line is often a main consideration, especially where marketing is concerned.
But how much should be allotted for advertising to and bringing in new clients? Sure, it depends upon what marketing tactics you employ, but there's a lot more to think about, too.
Conversions, Sales, and Leads
Every person who visits your website is a potential customer. Let's call our potential customer Joe. Joe comes across your website and makes a purchase there. Joe is now considered a conversion, because he showed interest in your company. Joe might also be called a sale, because he made a purchase.
Got it? Okay, now let's rewind a bit. Joe comes across your website, but instead of making a purchase outright, he fills out a contact form. Joe is still considered a conversion, because he showed interest in your company, but he’s also a lead. A lead is someone who needs you or someone at your company to contact him before he can or will make a purchase. Once your rep makes the connection and Joe makes the purchase, Joe can be considered a sale.
The Cost of a Lead
So how do you know how much money it took to turn each of your potential customers into leads? You could simply take the amount of money your company spends in online marketing and divide that by the number of conversions you get from your website, but there are a lot of factors you miss by doing that.
We're living in a world that often has a fluid cross-over between the digital and analog. For example, imagine if Joe visited your website and liked what he saw, but, instead of filling out the online contact form, he came into the office and talked to a representative there. Would that be considered an online conversion in a report? He wouldn't have come in to the office if he hadn’t accessed your website, but the conversion point technically didn't occur until he spoke with a live representative.
Not sure? Consider another example. We'll call this potential customer Jane. Jane is shopping in your store when she comes across a product that your company sells. She pulls up the website on her phone to learn more information and read reviews. She likes what she sees online and decides to purchase the product from the store. Again, Jane probably wouldn't have made the purchase without seeing the website, but your online analytics report wouldn't necessarily count Jane as a conversion.
Quality over Quantity
So Joe, Jane, and a bunch of their friends all fill out your online contact form. That's great, right? Not necessarily. If you're getting a lot of inquiries, but very few of them actually end up buying your product or service, it's a good indication you're marketing to the wrong group of people or your website is unappealing to the market you're aiming for. The result is a lot of wasted money and resources.
So What Can Be Done?
If you're feeling overwhelmed, take a deep breath. There are solutions to be had.
Conversions, sales, leads, pay-per-click marketing, search engine optimization, social media, they're all a part of the same strategy: letting customers who want your product or service know you're out there, then showing them why you're the best solution to their needs. It really is that simple. And there are tools to help along the way.
Digital marketing is in our blood and we can help you navigate these difficult waters by analyzing your marketing strategy and business revenue goals, understanding your potential customers, and teaching you how to track conversions, leads, and sales. Best of all, we turn all that data into reports that are understandable and able to be turned into actionable items to improve outlook and sales.