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Posts Tagged ‘Marketing’

Comments Off on A Grad Student’s View of Facebook’s Outlook

A Grad Student’s View of Facebook’s Outlook

We’re keenly interested in insights to the various social media platforms as marketing venues. We’ve often written about the upsides and down of them here. We were recently contacted by the creator of the graphic below which tells an enlightening story about the social media giant and her view on how that might play out over time.  The story this graphic tells also contains info about Google and other companies in the social media mix. We thought it was worth sharing with you.

-BG

Facebook: Programmed for Disaster
Created by: www.OnlineGraduatePrograms.com

Comments Off on Timing is Everything

Timing is Everything

From an email article by Jay Levinson

If your marketing is right, but your timing is wrong, watch out. Even the best-laid plans go awry when the timing is off. Here’s how to prevent that.

Sometimes a company actively markets the right product or service to the right people in the right media. But the marketing turns out to be a flop all because of poor timing. In order to get the most mileage from your marketing, you’ve got to be keenly attuned to the right times and the wrong times. To gain a bit of insight, consider these ten examples:

  1. You’ve created the perfect mailing package, but it arrives too early in the week, when your prospect is thinking of the week ahead — or too late, when your prospect is thinking of the upcoming weekend. Moral: See to it that your mailing arrives on a Tuesday, Wednesday or Thursday.
  2. You’ve got a fine product but a limited budget and a lot of competition. What to do? Do your marketing when your competitors have eased up and you can gain the largest share of mind with the smallest marketing investment. Maybe that will be during what are deemed the slow months. But it’s when you can attract the most attention the fastest.
  3. Everybody receives Christmas catalogs in September and October. If you sent yours during July or August, you’d get people thinking of your company then and later on as well. It’s may sound a bit crazy, but if you explain why you are mailing at that time, it will make sense to your prospects. Naturally, this applies to times other than Christmas.
  4. You keep abreast of current events by watching the tube, reading the paper, accessing online news services, perusing newsweeklies, and subscribing to publications within your industry and community. You should be doing this, and if you do, you can tie in your offerings with what is happening at that moment in history. A recession is ugly except to companies that realize it is an ideal opportunity for them to make sales.
  5. Be careful not to launch your marketing too soon. One of the most common errors in marketing is to promote before all the bugs have been worked out, before the salespeople know all the facts, and before you are ready to fill the flood of orders and engage in guerrilla follow-up. Remember that patience is a guerrilla virtue.

Read the full list here.

Comments Off on How Much Is A Customer Worth?

How Much Is A Customer Worth?

We’ve talked a lot about return on marketing investment in this blog.  It’s critical to business profitability.   But there are gaps in the formula for calculating this that many businesses have simply not closed.  For example, when you giveaway an item as an incentive to close a sale, or gain a subscriber to you email list, there is obviously some cost to you.  If it’s only a downloadable file, that cost is minimal, but still there is some number that needs to be factored in to determine its impact on your profit.

We’re going to list five steps here to help you calculate the lifetime value of a subscriber to your email list.

  1. How many subscribers do you have?
    • When you total your list, do not include those that have previously bounced or unsubscribed
  2. Get an estimate on sales generated in the past year
    • Examine clickthrough direct sales (this is usually the default figure used and likely will be very underestimated)
    • Use promotion codes to track sales not directly generated
    • Overall sales increases, including those from forwarded emails, sharing in social networks, and other less obvious ways
  3. Set Your Time Frame
    • Is your business seasonal, or does it make sense for you to calculate this annually?
  4. Calculate the value of the subscriber (V)
    Here’s an example from one of our online retailer sites:
     

    • Active email subscribers: 4,500 (X)
    • Sales attributed to direct clicks in email over past year: $275,000 (Y)
    • Apply the equation V=Y/X
    • Value of the subscriber = $61 per yearTo estimate the lifetime value of your subscriber, examine the average time between the first and most recent purchases in your database. We’ll assume that 1/3 buy from you just once, another 1/3 buy for two years, and the others for three years.
      • 1,500 subscribers x $61 = $91,500
      • 1,500 subscribers x $122 = $183,000
      • 1,500 subscribers x $183 = $$274,500
      • Total value is $384,300
      • Divide this by the number of subscribers (4500)
      • Estimated value per subscriber is $85.40 per subscriber
  5. Results Analysis
    We have to admit there are a lot of weaknesses to this method. It only calculates direct clicks, not peripheral action sales, it only views three years, etc.  But it does give us a rough idea of the lifetime value of that subscription.  So you can see that a promotion campaign costing $100 per subscriber is too expensive to  make sense, but $10 per subscriber would be much more likely to net a positive result. 

    All online merchants have unique circumstances, with differing characteristics to their databases. This system is meant to serve as a guideline to help you start down the path of ROI analysis and profitability.

Over the life span of your relationship with your customer, you may do many thousands of dollars worth of business.  In a future post we will discuss calculating this lifetime value so that you have a better sense of what you should be willing to spend to attract and keep that customer.

Comments Off on Google Introduces the +1 Button – What It Means to Your Business

Google Introduces the +1 Button – What It Means to Your Business

We’re in a new time for marketing. In case you hadn’t noticed, it doesn’t matter how much you have to spend on advertising anymore. It doesn’t work the way it used to.  The only thing that really matters (over the long-term) is what your customers think about you. They are your advertising, and they can help or hinder your sales.

That Facebook “like” button has become more than relevant. It’s important, not only to users of Facebook, but to search engines which are now factoring “likes” and “retweets” into their algorithms.

Bing landed a partnership with Facebook, which uses Bing for its on-site search function, so the upstart company can incorporate Facebook activity into its search results. A search for a local restaurant, for example, would reveal not only information about the restaurant, but also recommendations from friends based on their Facebook profiles.

Not to be outdone, Google is answering with the “+1 button,” which is akin to a Facebook “like.” The button will be on search results as well as individual web pages, which allows users to make recommendations across the web. To build a social network around the search results, Google is requiring users to create a profile before taking part in the fun.

Similar in some ways to Facebook’s “Like” button, the Google +1 enables visitors to your web site to see who recommends you or your products. According to them, “The +1 button is shorthand for ‘this is pretty cool’ or ‘you should check this out.’

Click +1 to publicly give something your stamp of approval. Your +1’s can help friends, contacts, and others on the web find the best stuff when they search.”

See +1’s

Sometimes it’s easier to find exactly what you’re looking for when someone you know already found it. Get recommendations for the things that interest you, right when you want them, in your search results.

The next time you’re trying to remember that bed and breakfast your buddy was raving about, or find a great charity to support, a +1 could help you out. Just make sure you’re signed in to your Google Account.

Show +1’s

In order to +1 things, you first need a public Google profile. This helps people see who recommended that tasty recipe or great campsite. When you create a profile, it’s visible to anyone and connections with your email address can easily find it.

Your +1’s are stored in a new tab on your Google profile. You can show your +1’s tab to the world, or keep it private and just use it to personally manage the ever-expanding record of things you love around the web.

So whether we like it or not,  facilitating transparent conversations with your customers on review sites and social networks is becoming essential. How is your company doing in this new arena?

Get started with the +1 here.