What is the most effective form of marketing?
For years people have learned about the “4 P’s of Marketing”. They are Price, Product, Place and Promotion. More recently, there have been another “3 P’s” added. They are People, Partnerships and Packages. All of this is GREAT for the theorists out there but the main thing you need to know about marketing is its purpose. The purpose of marketing is to create leads.
People often make the mistake of thinking that website hits, people asking for your business card, getting a standing ovation for a presentation, talking to the media, or “likes” obtained for a blog that you’ve written are leads, and they are not. A lead is where someone contacts you directly and asks if you’re available to present at an upcoming event, and how much do you charge?
Here are 5 questions to ask to see if your marketing is effective?
1. Where do most of your leads come from? The Paretto principle states that 80% of results come from 20% of your effort. Ideally you want 80% of your leads coming from 20% of your campaigns. Therefore it’s a good idea to have 5 campaigns running at once. Once you identify where the majority of your leads are coming from then do more of that.
2. How easily do the leads turn into sales? You should aim to convert a minimum of 1 out of every 3 leads into a sale. If you’re not then review the message that you’re sending, or how good your sales skills are. Most people who have poor sales skills use deceptive marketing methods and messages to “trick” people into buying. Try not to use this approach, as it will attract the wrong type of clients, and (potentially) damage your reputation.
3. How much revenue do they create? Are your leads asking for you to do FREE gigs or $2000 ones? This goes very much to the look and feel of your marketing material. Does it reflect that you have a reputable organization that requires lots of money to keep it going, or that you are desperate for anything that will come your way and most likely say yes to it. This is all about “positioning” which I will write about next month unless something else comes up.
4. How profitable are they? What are the expenses involved with getting the work, and then doing it. You need to firstly know how much it has cost you to get that lead? Secondly being asked to travel interstate or overseas may seem glamorous and exciting (which it is at first) but what is the cost of it? More often than not the majority of your opportunities is right under your nose and close by. It’s sometimes better to be the king of your own community rather than a pauper elsewhere.
5. Are the leads coming from the right customers? This issue is all about sending the right messages to the right clients. To do this you need to ensure that you have done a Client Analysis Table, understood their needs and wants, and sent them the right message. Market research is all about knowing who is in buying mode and why, as well as how much they have to spend.
If you have any further questions regarding your marketing then please feel free to email me at firstname.lastname@example.org at anytime. Any recommendations for future topics are also appreciated.
Merv Neal is a Laughter Yoga Master Trainer and the CEO of Laughter Yoga Australia and New Zealand. He has successfully owned and operated his own businesses for more than 40 years. He has created a Laughter Yoga Business Training Program to help others to take Laughter Yoga to commercial organizations, and/or to create a Laughter Yoga business of their own.