Save 80% Time & Money: How to Market to the Crucial 20%
Wouldn’t we all like to save 80% of our time, money and marketing effort, while getting 10 times or even 100 times the results?
However, that’s just what Cara accomplished. Let’s see how she did it, and how easily you can do the same.
Starting out, Cara did what most failing marketers do… she found a “deal” renting a cheap list of 5000 prospects for 20 cents per name. It cost her an extra dollar per person to get the offer in front of her list. Total cost: $5500. Since 40 people bought her product at $100 profit each, she got $4000 back for her effort.
Poor Cara. She lost $1500 on this campaign. (Okay, I rounded the numbers, but this is really close to what happened.) Sadly, she thought her target audience should be “everyone interested in my product.” But the school of hard knocks really motivated her to take a closer look at buyer personas and exactly who her ideal audience is.
“What things do I need to look at to find my ideal customers?” Excellent question, Cara.
Fortunately, she found a great data provider who guided her through modelling tools and buyer propensities. Cara selected a list of only 500 prospects. Sure, these extra data analytics cost $2 per name instead of 20 cents each. Was it worth it?
Well, considering she spent the same dollar per person to get her offer in front of the new list, her total cost was $1500. This time, she sold to 30 people, making sales totaling $3000. Yay for Cara! This time, instead of losing, she doubled her money.
Really though, she saved 73% of her marketing cost. And she converted 7.5 times as many prospects into sales. But, you may say, how could you get 100 times the results? Another great question.
We’ve all heard of Mr. Pareto. The original 80/20 guy. Truth is, his principle can be applied to itself. Not only will 20% of your best prospects give you 80% of your profits… The top 4% of your prospects will give you 64% of your profits. (20% of 20% and 80% of 80%.)
So, if you can identify the top 20% of your best prospects, you can really be 16 times more profitable. And if you identify the top 4% of your prospects…wait for it…you can be 250 times more profitable . If you are not following this formula, “you are leaving millions on the table,” says Brian Kurtz, Executive Vice President of Boardroom Inc. and leading direct marketing expert.
Don’t think it’s that valuable to niche down this much? Look at Amazon. They specialize in one tiny niche after another. And even a decade ago, that’s how they sold 50% of their books. Even small businesses can compete with large companies by targeting a smaller niche like this.
How can you make this easy for your business?
Let’s say you’re the Dallas Cowboys. Most fans will get into the stadium for $19. Some of them will get $1000 season tickets for the mediocre seats. Only a few will get the $10,000 seats near the 50-yard line. And a tiny fraction of them will dish out far more money than this to enjoy the ultra-exclusive sky boxes. How much will a raving football fanatic (with money) spend on football? A virtually unlimited amount. You want to find THIS kind of people. And you CAN (and should) find them.
Even if you’re only the company selling the peanuts.
Ask yourself about demographics: Who are your best customers? How old are they? Where do they live? What about their gender, income level, education, family/marital status, occupation and ethnic background? Now, ask yourself about their motives. What makes them buy? What is their personality, attitudes, values, interests/hobbies, lifestyle and behavior?
How can you know this stuff?
It’s not as hard as you might think to learn the right way to use a propensity modelling tool. Or some brand new (and yet relatively inexpensive) methods to give you real behavior data on your ideal customers.
Or better yet, call us. We’re happy to walk you through our tools right now.
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Why Is It So Hard to Get a Good Marketing ROI?
Michael stood in front of the screen – palms sweaty and dreading the result – only to stare in shock at the number in the email. Just two measly sales… after all the cash he’d poured into this one marketing effort.
“How could I be so wrong? Will anyone trust me again?” If you’ve ever felt the anxiety bleeding through your team after a campaign like this, you’re not alone.
And fortunately, this nationwide homebuilder learned the big reason why they (and so many others) flounder so miserably with their marketing.
Knowing your audience is the key.
It seems this simple idea is pounded into us from every angle.
Companies “think” they understand.
They listen to the experts and read the articles. Yet when they send out offers to people, it’s obvious they really don’t know their audience. We hear about lookalike audiences, buyer personas and modeled propensities. It’s a great idea: reach your best prospects – the ones most like your best existing customers. And if it’s done right…
Michael decided on a short consultation and to try our data. He was a little cautious though, probably even a bit skeptical. “Let’s aim for 4 sales.”
When he got 12 sales and made $13.64 on every dollar he spent, Michael became a believer.
Knowing your audience is just this powerful.
And without a doubt, it’s the first step to make your marketing efforts effective in 2018.
How does it work? You start by sending a spreadsheet or list of your current customers. Maybe all you have is just their names and addresses. Likely there’s quite a bit of information on your customers. (In the sample below, we found data on 85% of our client’s customers.)
Sure, quite a few data companies could tell you the marital status, number of kids and simple demographics on your customers. But what about their political preference? Their hobbies? The way they connect to the internet? Their health, income, vehicles, even how they use their credit cards? (Obviously, due to privacy we can’t learn some of these things directly.)
If you analyze dozens of factors like these – with your best customers – you’ll start to see amazing trends. You can even see why they buy, and when. More than this, what if you could search through 250 million people, using these same factors?
You could find a CROWD of people with the SAME motives and timing.
Imagine what this can do for your sales and profits.
In the sample report below, notice these prospects are labeled “Best performers.” And there are 1.3 million of them.
Focus your best marketing efforts on these people.
And of course, this number could be narrowed down even further – even more targeted. For example, by using pre-defined propensity models, you can learn even more about people and how likely they are to behave like your existing customers.
Want to reach more people? No problem. There are 9.4 million “Undecided prospects.” People where some of the factors match, but they are less likely to buy than the “Best” ones. You could target them with a different kind of offer.
This is what an augmented lookalike report can do for you.
How do you feel about this? How do you get to know your audience? Want to get to know your audience like this?
Pick up the phone and call us.
We’re going to help some select companies exceed their marketing goals in 2018. Are you in?
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The Shocking Truth About Your Marketing Channel
Many people still believe you only need one marketing channel – and they couldn’t be more wrong. For example, malls are lined with countless businesses. And most of these shops rely solely on one thing: a crowded mall area to bring people inside to buy.
Analyst Jan Kniffen says one-third of all the big malls in America will close their doors over the next few years. Nearly two-thirds of the remaining malls will struggle.
Industry veteran John Hazen asked his peers at a recent conference: “Is anyone not seeing large traffic declines?”
Why Single Channel Marketing Is Killing You
Consider this scenario: Brandon McDonald, of Nashville, Tennessee, walks into a local store. Brandon is excited about the Nikon digital camera he’s planning to buy and have in his hands today. Yet when he gets into the store, he decides to scan and check the price with an app on his phone. An online company is selling the same camera for less than what the store is now offering. Brandon decides to buy online and wait for his camera to arrive.
Why Selling Online Doesn’t Fix This Problem Either
Remember, Brandon first wanted to buy from the local store. Like so many customers, he loves to hold the camera in his hands–instant gratification. If only the store knew what Brandon wanted. It would have been win-win for Brandon and the store.
This problem doesn’t just plague retail stores and physical products.
The Secret To One Bank’s Success
One regional bank depended almost entirely on people walking into the bank and asking for a loan.
Yes, they have a website. But only about 1% of web visitors were submitting a loan request. The bank decided to look at data for their mobile and online visitors–surprise! They could recover the business of a significant number of people who abandoned the bank’s online loan form. Sales of current-account and personal loan products shot up 25%.
This is just one way that mobile insights are changing the face of marketing. And moving the whole world toward multi- and omnichannel marketing.
Your Customers Expect Multi & Omnichannel Marketing
As you can see, marketing to people through multiple channels or methods increases your ability to sell and profit. Omnichannel marketing means tying these methods or channels (apps, digital tools or shopping venues) together in an easy-to-use, consistent way for even more profit. More and more, customers are expecting this kind of buying experience. They want to hop on their phone or device and see exactly what inventory you have available. Or they want to shop online and pick products up at your local store.
The Numbers Don’t Lie
Rice University studied 46,000 shoppers for a 14-month period.
Only 7% shopped online exclusively. And 20% visited stores without using any other apps or venues. A whopping 73% used multiple channels in their shopping journey. These multi/omnichannel shoppers absolutely love touchpoints – in all sorts of combinations and locations. Touchpoints like offers to compare prices and download coupons.
In fact, they are avid users of all sorts of mobile tools such as interactive catalogs and price checkers. They bought online and picked up at the store. They bought at the store and got their products shipped.
Multi-channel and Omnichannel Shoppers Are More Valuable
And those who used multiple channels spent 4% more in the store and 10% more online than the single-channel folks. In fact, those who used 4 or more channels spent 9% more in-store than the one-channel shoppers. And those who used apps to research online first? They spent 13% more in-store. Six months after these shoppers had their first omnichannel experience, they were shopping 23% more. And they were far more likely to recommend their chosen brand to friends and family.
The “Killer App”
No wonder many are calling omnichannel marketing the “killer app” – because it’s saving the future of so many businesses. Despite the bleak future of single-channel businesses, you now know the secret that empowers you to reach your customers at the right time, with the right message. It’s why the most successful marketing campaigns today are omnichannel campaigns. It’s how you give your customers what they really want.
How will you use omnichannel marketing?
Contact us to learn more about how multi-channel & omnichannel marketing can improve your prospect marketing.
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The Power of Mobile Data in a Data-Centric World
Modern marketing is fully embracing the explosive emergence of mobile-based consumer data. Because of its ability to capture a more accurate snapshot of when consumers are seeking out a particular company–or its products and services–mobile data has created a step-change in how marketers are crafting and delivering their message. Consumers are seeing this change manifest itself into today’s highest performing omnichannel strategies; which is connecting them with the right message, through the right channel, and most critically… at the right time.
It’s estimated that by 2020 more than 80 percent of adults worldwide will have mobile devices. This is going to continue to drive up social media usage, increased families with multiple devices, and even more data for marketers to utilize to better connect with consumers. Smartphones and tablets have given consumers real strength in terms of providing them with multiple platforms to access businesses, for finding information on products and services, and to even purchase those items.
What Do the Numbers Say?
How much data the world currently uses is creeping up, rising from 7 exabytes per month in 2016 to 11 exabytes per month in 2017, with a predicted increase to 17 exabytes per month in 2018 (one exabyte is one quintillion bytes). However, that number could increase exponentially to 49 exabytes per month in 2021.
According to a survey developed by App Annie, worldwide app downloads in 2016 exceeded 90 billion (an increase of more than 13 billion). During this time, the number of hours that consumers spent using these apps boomed by more than 150 billion hours to almost 900 billion hours. While this will add an incredible amount of data for marketers to sift through, it will also lead to more accurate, relevant marketing lists that will allow businesses to reach out and connect with consumers at the right time, in the right way.
“Increasing the quality of sales leads, improving the quality of sales lead data, improving prospecting list accuracy, territory planning, win rates and decision maker engagement strategies are all areas where big data is making a contribution to sales today.” said Forbes’ Contributor Louis Columbus.
What Does This Mean For Marketers?
What this information will allow marketers to do is to gain better insight into when, where, and how consumers are spending money. It also empowers businesses with the means to evaluate the performance of their product and services in the market; such as determining pricing and placement.
The number of devices consumers have access to is increasing; the number of apps being downloaded and the time spent on them is increasing; and marketing dollars used in the mobile space are increasing; all because of how quickly consumers are incorporating new technology into their lives. Generation Z is being raised with devices in their hands while millennials perpetually push technology and app trends (such as boosting Instagram, Facebook, Twitter to new heights). It has become obvious that with such an integration of technology into our daily lives, marketers are going to be inundated with information about its consumers from across multiple channels in order to connect with them with relevant and timely offers.
The Emergence of Life Event Marketing
It has become apparent that the insights from mobile data can provide businesses with opportunities for identifying when consumers are experiencing a significant life event. If a particular consumer has entered into a fairly monumental life phase (which usually involves large, complex purchases) chances are they’re using several apps or platforms to access the products and services associated with these events. This is valuable information for marketers, which is reflected in a study conducted by Royal Mail Data Services. In 2014, only 15 percent of marketers surveyed saw life events as a new sales opportunity, 32 percent surveyed said those events provided a reason to engage with customers. In just a year, those numbers jumped to 50 percent and 70 percent, respectively, indicating how marketers were viewing these particular moments to connect with consumers.
Contact us to learn more about how mobile insights can improve your marketing.
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