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Sep

25

2012

Marketing ROI: 2 Essential Steps to Return on Marketing Investment

Inbound Marketing

Are you failing to see a return on marketing investment? That's because your current online marketing strategy is designed to fail.That's right. Your current online marketing strategy is killing business development and opportunities for return on marketing investment (Read: Marketing ROI). Fortunately, we're here with the answers on how to fix your marketing department's online marketing strategy. Aren't we nice?

Return on Marketing Investment- Einstein Quote

More than likely, your online marketing strategy team is generating the wrong kind of leads. What I mean by wrong is unqualified. As with any department, it’s all about providing numbers. Most marketers think an online marketing strategy that generates tons of leads and traffic will produce a return on marketing investment. But while they keep busy generating leads, they're not qualifying those leads before handing them over to sales. Consequently, your sales team ends up spending a substantial amount of time and effort trying to convert leads into customers that, for a number of reasons, can't or won't purchase your products or service. If your leads aren't converting into customers, then your online marketing strategy is failing and your return on marketing investment is dwindling. Marketing ROI is a quality over quantity game.

You can help reclaim lost marketing ROI in two essential ways: Reevaluate your contact properties, and segment your lists.

Contact properties are crucial for an online marketing strategy that generates a return on marketing investment.

Want easy marketing ROI? Take sales out of the qualifying process. Let your leads qualify themselves through optimized contact properties on your forms. What do we mean by qualified?

  • An individual or company who can afford your product or services. You online marketing strategy shouldn't be nurturing leads who can’t afford the product or service in the first place, and they certainly shouldn’t pass that lead onto Sales. Nothing kills the potential for return on marketing investment than wasting time generating leads that can't afford you!
  • An individual or company who needs your product or service. Marketers should first and foremost target those who actually need your products/services. Marketing ROI isn't trying to sell someone dog toys if they don’t have a dog, and the same goes for your product/service. Or maybe a prospect already has a similar product or service from a competitor. Your online marketing strategy needs to include a way to find out if they’re satisfied with their current product/service. While they have the need, they may not be willing (or even looking) to switch to your company. Segment these leads out.
  • Someone who is a decision maker. You may have a prospect who is interested in your product or service but if they aren’t the decision maker, or have access to persuade the decision maker, then your marketing ROI is going to reach a dead end very quickly.

In order for your marketing team to be able to provide online marketing ROI, they need to generate an online marketing strategy that automatically qualifies leads for your sales team. They do this by knowing your contacts’ required properties or criteria.

  1. The amount of revenue a lead should possess to be able to afford your products/services.
  2. The desired position of the lead. (Are they the decision maker for this purchase, or have access to influence the decision maker?)
  3. The level of interest or need for your product or service. Remember that for a lead to be passed to your sales team, they should have a deep need for what your company offers, and be willing to switch if they currently utilize a competitor’s product/service.
  4. Other factors. Depending on your industry, your ideal prospect might live in a certain area, be a particular age or gender, work in a specific industry, etc.

Knowing the answers to these questions not only tells you who your primary target audience is, and will thus generate that return on marketing investment you want, but segments your target audience into lists based on required properties. Segmenting leads into lists is crucial for efficiency and time management, and ultimately your return on marketing investment. For starters, you will have a better understanding of who is qualified, who is not and probably never will be (thus, shouldn’t take up time from your online marketers or sales team), and who is borderline to qualifying. By utilizing list segmentation effectively you can create better workflows for each category and nurture leads properly by how they either qualify or are close to qualifying. Most importantly, you can stop wasting your time for an online marketing strategy on those leads that never will qualify and provide a return on marketing investment.

Segmenting lists and nurturing contacts accordingly drives marketing ROI.

An effective online marketing strategy would be to create a list for those that are borderline to meeting your criteria. For example, perhaps there’s a portion of leads that are just short of meeting the required revenue. But, you know that they may very possibly grow to earn enough in a couple of years to afford your products or services. Here would be a great list to segment them under because you can nurture a relationship so when they do have the required revenue, they’ll be more than glad to come on board with your company. This will ensure marketing ROI in the future. Starting to see how proper online marketing strategy can aid your return on marketing investment?

Your business may need to reevaluate its idea of marketing ROI if your first concern is pumping out leads. Lead quality is marketing ROI. For high conversions that generate return on marketing investment, you need to utilize a clear, concise online marketing strategy that qualifies leads, segments them into contact properties lists, and creates the appropriate workflows for each of those lists. Automatically, 24/7. If sales teams are given more prospects that not only want to make a purchase but have the authority to sign that check or dotted line, you're going to see a huge return on marketing investment. And fast.

 

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