Don’t feel like reading this article? No problem, just listen to the audio file:)
Hi, I’m Adam Martingano, Founder and Chief Strategist at Go To Market Solutions. Welcome to this Marketing School How-To Guide, “How Much Should I Spend On Marketing.”
This is the most frequently asked question I get from clients when it comes to marketing. The answer to this question is a resounding, “I don’t know”.
Probably not the answer that most people including you are looking for, right??
Well, the reason is that there are many factors going into answering this question. So where do we start?
How about at the beginning.
Marketing is a blanket term, and refers to advertising, public relations, promotions and anything else you might do on a day-to-day basis; for example, Google AdWords, social media advertising, print ads, sponsorships, collateral and even happy hours. So with that said, how do you know what you should be doing and how much to spend?
That depends on several things, however, these are the ones that I find most impactful:
Let’s discuss the basics. If you are not tracking your lead sources, then you will never know where and how to spend your marketing dollars. Yes, there are tons of software programs out there to track your lead sources, and guess what, there are even some free ones.
Recently Hubspot released their CRM tool for FREE, yes for free. Now they will try and upsell the hell out of you, but for a powerful CRM tool with lots of integrations, this is a great choice. You can find out more here.
There are some other tools that may pique your interest, but that is a discussion for another time.
A perfect addition for all you WordPress website users (which hopefully you are using), Hubspot has a great plugin for WordPress which you can read about here.
This is the easiest way to ensure that your leads are funneled directly into a CRM tool, and have the lead source tagged automatically based on the web property/form that the user opted into.
Yes, it’s that easy. And did I mention, it’s FREE???
Lead tracking should be detailed, and if you are not a CRM shop, then use a spreadsheet, but that is pretty tedious and very manually driven, therefore prone to errors or lack of consistency.
Once you know what lead sources are performing the best for quantity, quality, and profitability, that’s where to focus your marketing attention.
With so many forms of marketing available, how do you know which ones are performing best? The answer is more of a strategy than a solid answer because in the end, if you are not tracking, then you will never know.
Digital Marketing is by far the easiest way to track lead sources. If you are using Social Media, Google Ads, YouTube Ads, email, blogs, or another form of digital marketing you should be sending people to a landing/capture page. This is where the magic happens.
Although you can drop a pixel on a user when they interact with a social media post or a Google Ad, this is great for remarketing purposes only, but you never get their contact info unless they opt-in to a form. This form can be built in many ways, but I highly suggest the simplest method possible. Bug-fixing lead flows is not fun, so why make it harder on yourself if you don’t have to.
Step 1: Build An Ad
It doesn’t matter where you build your ad, i.e Facebook, Instagram, Google, etc… All of these ads will allow you to send your user somewhere. Keep in mind a blog post or an organic social post can also be considered an ad. You don’t always have to pay for it:)
Step 2: Build a Landing/Capture Page
There are lots of ways to build a landing page. If you are skilled or feeling brave, you can build it right in your current website platform. If you are not sure how to do that, there are some great tools such as Instapages, or Leadpages. These are pretty good, but they are at a monthly cost and they host your pages. This sounds good, but in the end, you are losing out on some serious SEO juice by sending people to some other domain rather than your own.
My favorite tool for building landing pages is OptimizePress. This is a plugin for WordPress and has all the bells and whistles but allows you to build the pages right in your site, independent of your current theme. They are in the process of releasing 3.0 so I would wait until it is fully out before I jumped on board. As a power user, I got an early release to 3.0 and it is really nice.
All of these tools have tons of great templates to use or get inspiration from, or you can look at a site called Landbook for inspiration.
Step 3: Add a Form
A landing/conversion page is not complete without a form. All of these tools have easy ability to add a form, but remember, we want to track the lead source, so using an integrated Form/CRM tool like Hubspot is the way to go.
Step 4: Add Lead Sources To Your CRM
Before your leads can be tagged properly, you need to set up the lead sources in your CRM tool and map the forms to those sources. This way as soon as a user opts-in, they are ported to your CRM and tagged accordingly.
Step 5: Review & Maintain
Now that you have the machine built, you have to review things and maintain things. Because yes, technology breaks for no reason. So once in a while, jump on your site and fill out a form, or eat the $1 and click on an ad you made and follow the trail.
Ok, this was what we were here to learn, right? Well without the prior information, you would have no way to know what lead is coming from where.
A basic rule of thumb is as follows:
Well, that seems like an easy calculation, right? But that is not all. What about Profitability and Return on Ad Spend or ROAS. ROAS tells you at the most foundational level if a marketing channel is performing at a level that will allow for profitability.
For ROAS, the higher your number the better. That’s because the metric tells you how much revenue you generate off each advertising dollar spent. So for example, a $5:1 ROAS means that for every $1 spent on a marketing campaign, you generate $5 in revenue. So for example,
Whoo Hoo! Wait, there are more costs to account for. A positive ROAS does not mean that you actually made a profit. So before you blindly follow a calculation, think, logically
Here are some things to factor into your calculation:
Here is a basic example. Please, keep in mind that in a real-world scenario, a $30 product should never cost you $5 to acquire a customer…
$30 sale price – $10 cost to make = $20 margin – $5 customer aquisition cost (CAC) = $15 – $6 sales comission = $9 profit per unit sold.
So if you want to make $5k in revenue, you would need to sell ~166 units. To acquire these customers, it will cost you $830 (166 x $5 CAC).
So the next time you want to know how much to spend on marketing, start by asking yourself how much it costs to acquire a customer, and how much revenue you want to make. Oh, and be sure to not confuse revenue with profit.
Watch for our next Marketing School How To Guide where we discuss the proper way to build a Landing/Conversion page.
Don’t want to read this article? No problem, just listen to the audio file:)
Hi, I’m Adam Martingano, Founder and Chief Strategist at Go To Market Solutions. Let me start by asking you this, have you ever wanted to know the best way to generate sales qualified leads?
Of course you have.
As a marketer, lead generation is one of my main jobs. No matter what processes or techniques I implement, the end goal is typically the generation of leads. Well, I am here to tell you that in my opinion, lead generation is not the ultimate goal, lead conversion is.
If you have ever wanted to know what the best strategy for lead generation is, and how to maximize lead conversions, then you have come to the right place, because that is the focus this article.
Hubspot almost nailed the definition for lead generation as the process of attracting and converting prospects into someone who has indicated interest in your company’s product or service. What I like about this definition is that they mention the term “converting”. In my 15 years in the industry, I have seen most marketing tactics and even bought into the “more-is-better” mentality for a while, meaning if I could generate enough leads, some of them are sure to buy.
The problem is that leads need to be nurtured, and there are only so many hours in the day and only so many times you can re-target/re-market a lead. At some point, you have to give up and mark the lead as dead.
Introducing the concept of lead conversion is something that many marketers still do not embrace, and I am not sure why. To me, it is everything, and the days of “more-is-better” are gone. Today it is all about “better”, not more. Better leads, meaning more qualified leads, which means more conversions, which means…. you guessed it, more sales.
So how do we qualify leads before we even speak to them? There are several strategies available to do this, however, for this article we are going to focus on one of my favorite strategies, the “Lead Funnel”.
I love this definition provided by SnapApp, “A lead funnel is a process of starting with, and sifting through, a large number prospects, identifying which ones are viable as sales leads, and then nurturing these qualified leads into paying customers at the end of the funnel”.
There are several steps to defining the processes of your lead funnel such as:
But to keep things simple, rather than focus on the complexities, we are going to focus on the main concepts:
We will save the complexities for a future article…
The top of the funnel is all about lead generation or better stated, lead engagement. We attract awareness through a variety of different methods such as email campaigns, quality blog posts, social media, video, or SEO/SEM/PPC. Depending on your industry, your market, and your audience’s behaviors, you will need to determine what the best strategy is.
In my opinion, most businesses can get great engagement using Social Media. If you want to learn more about marketing on social media, check out our other Marketing School How-To Guides, “How To Market A Product On Facebook” or “How To Market A Service On Facebook.”
To get them into the funnel, we offer some compelling TOFU content such as an exclusive offer, an eBook, or stuff like that. The trick is that most people are aware of these strategies so it is getting harder to get them to engage with the funnel, so we need to be creative and be sure that whatever it is that you are offering is compelling enough and gives the user some sort of value, either perceived or tangible.
The middle of the funnel is where you now get to talk about your business, your solution, and your brand. And here is where you begin to qualify the lead. Be carful not to sell too much at this stage, you are still trying to establish credibility with the lead and you can easily scare them off. You also want to be highly specific to the message that you are delivering, and be sure it is 100% relevant to the point of initial engagement. Meaning if they clicked on an ad about a specific topic of interest, where you send them from the ad must be 100% about that same topic.
Enter…. The Landing Page.
The technical definition for a landing page in digital marketing terms is a standalone web page, that is created specifically for the purpose of a marketing campaign. The premise is that it is “where a visitor lands” when they have clicked on an ad, link or referral source.
This is why the landing page is so great. You can offer additional information to support the ToFu’s initial point of engagement, build credibility, and allow the lead to somewhat “Opt-In” a second time through the use of a form, or Call To Action.
Can you say “lead qualification”…
An important tip is to only have 1 Call To Action and limit the navigation options to keep the user where you want them. Also, be sure that this page is engaging as hell. If you used a video as the ToFu’s initial point of engagement, follow that up with a more detailed video on the landing page. And be sure your Call To Action, whatever it is, brings further value and that the action steps of the CTA are clear to the lead.
We will teach you all about landing pages in our next Marketing School How-To Guide, “How To Build A Landing Page”. So be sure to keep an eye out for that article.
The bottom of the funnel has 2 elements, Opportunities, and Customers. In this article, we are focusing on Opportunities, because if we do our job correctly, Customers will follow.
The bottom of the funnel is where you attempt your sales pre-close and is the final step in the lead qualification process. Here you present a unique opportunity to address exactly how your product or solution meets the specific needs of the prospective buyer. Meaning, whatever the initial point of engagement was, and the follow-up landing page content was, now needs to be re-enforced one more time and a commitment is made by the prospect. If they made it this far, it is safe to say that they are now a qualified sales lead.
Understanding the difference between lead generation and lead conversion can mean the difference between your sales team burning out chasing non-qualified leads, or your business focusing all their attention on the wrong prospects.
In short, if you build it (the funnel), they will come, you just have to build it the right way. Don’t be too eager to sell, remember, lead nurturing is like dating. You start with an introduction, then ask them to commit to a date, then you try to show them that you are a great fit together.
The rest is left to the imagination…
Don’t want to read this article? No problem, just listen to the audio file:)
Hi, I’m Adam Martingano, Founder and Chief Strategist at Go To Market Solutions. Let me start by asking you this, do you sell a one-time service or is it ongoing?
This is an important question. Selling a one-time service is very different from selling an ongoing service. When you sell a one-time service, you are only required to engage the customer in a single point transaction. The value is built initially with the intention that the service itself will satisfy the customer’s need. In a perfect world, this is a piece of cake, however, depending on your method of customer follow-up, you may never know if the customer was truly satisfied until they post a review. And we all know that most customers are more eager to complain about a service in a review then praise a service. So the choice is yours, but in my opinion, regardless of if you sell a one-time service or an ongoing service, the customer follow-up should be an integral part of your sales and marketing process.
Last week we broke down how to market a Product on Facebook, so if you missed that article, you can check it out here. So let’s break down how to market a Service on Facebook. There are 6 stages to the Customer Lifecycle Model, however, for this article, we will focus on 2 main stages, Aquire and Engage. Since Marketing is all about Acquiring and Engaging consumers, this is how we will break through into a crowded market using the power of Social Media, specifically Facebook
My favorite method for marketing a Service is to use a limited time offer, and promote that offer using a combination of Video, Paid Ads, Email’s, and a Landing Page. By using this combination, and promoting to a defined audience based on Behavioral and Geographical targeting, you can capture potential consumers attention using my Aquire + Engage strategy.
Step 1: Come up with a Limited Time offer for your service. And when I say Limited Time, I don’t mean 30 days, I mean one day, or even a few hours in a day. This offer needs to be substantial, something that would really push a consumer to take an interest in the offer. 5% off just won’t cut it. 15%-20% is better, and you can always throw in some extras that will help offset the reduction in revenue. Pick add-ons that are cost effective for you to throw in, but that add value to the consumer’s purchase.
Step 2: Write a video script that discusses the benefits of the service and the offer. Don’t go into detail about how the service works unless that is vital for you to stand out to your competition. Humor works great, so throw in a joke or two, but stress that this is a limited time and won’t be back. This script should be 60 seconds long, and for reference 50 words is roughly 30 seconds of video dialogue at a normal cadence. You can shoot this yourself, or if you want to add some professional appeal, you can check out a local video company like Ideal Impact Media that specializes in creating short impactful videos for Social Media.
Step 3: Create a Facebook ad, and use the video as the centerpiece, while using the Text portion of the ad to show off the benefits of the special offer and service. This ad is all about selling the offer and the service, but the stress should be on the offer.
Step 4: The ad conversion can happen in two ways. One is to use a Facebook Lead Form.
This is a great option, and Facebook loves this because you are not taking people off of their platform, so their algorithm will be favorable to your ad and show it more often. The problem is that you only get the Ad to sell your offer and service and you have to complete the sale by either sending them an email with the details and sales options or you have to call them. Oh, and be sure to have a Terms of Service ready to upload with your Ad if you want to run a Lead Form ad. The other option is to use a Call To Action (CTA) button in the Facebook ad and have a quality landing page built to drive them to. Be sure to have the Facebook Pixel installed on your website or landing page that you are sending people to. In my experience, a landing page is better than a home page. This landing page should have a similar message to the ad. This page is all about the special EXCLUSIVE offer that you mentioned in the ad, only available for people that view the ad. Put a timer at the top as well counting down how long the offer is valid for.
And they can get the special offer by filling out a form and receiving the information via email, or if you are set up to sell online, then there can be a coupon code that is applied at checkout.
Step 5: For the audience, you should know the geographic radius that your service applies to. You don’t want to market to someone that is 100 miles away if your service price does not compensate for travel like that. Behavioral targeting is where things get fun. There are all sorts of segments you can choose from. And a tip, just because you don’t see it in the available selections, doesn’t mean you can’t choose it, just start typing and Facebook will start displaying behaviors and interests for you to target and choose. [ add an image of behaviors form]
Step 6: For the ad spend on this ad, you should aim high. You want to get the most engagement on this ad in the shortest amount of time, and you are only running this for a limited time. So depending on how much you can make from selling with the Special Offer Price, spend some money to make some money The exact amount is up to you, but $20 won’t cut it. Go for the hundreds, you want this add shown and re-shown.
Step 7: Run the ad on both the Facebook and Instagram platforms. Since they are both owned by Facebook, as long as you keep the video 60 seconds or less, you can run it on both platforms using the same single ad.
Step 8: Once the ad ends, you will have gained two valuable things:
1. Sales and Email Address/Contact Info
2. Engagement with the add and the accompanying metrics saved
The 1st is a no-brainer, you will know if you had sales based on how you set up your conversion. The 2nd is for future use. You spent a lot of money to get engagement on this ad. So even if someone doesn’t buy, but viewed your ad, you can remarket to them in two ways; by retargeting them with a future ad on Facebook or if you were able to get their email address, you can remarket to them by email, which we will discuss next.
Step 9: Email, email, email. I don’t care what anyone says, email still works as long as it is not spammy. If you used the Facebook Lead Form ad or created a Lead From on your landing page, you hopefully got an email address. Both of these methods of collection can be tied to Email Systems like MailChimp, Drip, Convert Kit, etc. You should create two tags for this so that when an email comes in, you know where it came from. Depending on which email platform you choose, will dictate the ability to use multiple tags. The whole point is that you don’t want to send a sales email to someone that already purchased, so you must have a Thank You page that you can capture if the consumer made it to that stage in the conversion funnel, so that they are segmented/tagged accordingly and receive a thank you email rather than a marketing sales email.
Step 10: Now comes the Facebook remarketing ad. For this ad, you will create a targeted sales-focused ad, and you choose to create a custom audience, known as an Engagement Custom Audience. This is all about selling again. These people have already shown interest in your ad, but at the time they did not buy, so it is ok to hit them with a sales ad and drive them to the conversion funnel. This ad should run for about a 1 week or you can try a 2-day (last chance) extension to the offer, but that may cheapen the offer itself, but the offer should be less than before, but still interesting. And you can be much lower on the ad spend because you are remarketing which, in general, has a better Cost per Click rate. $10 a day should be ok. To accompany this, you will also send out a remarketing email to those that never made it to the Thank You page, with the same details as the Facebook remarketing ad. The conversion funnel remains the same, but your landing page should be updated to reflect the new offer.
There are so many ways to market your service, but customer follow-up is the backbone of any effective strategy. So be sure to get their email address one way or another. This can be used for selling, cross-selling, thanking them, asking for a review or referral, or just saying hi. The more you engage with them on a human-to-human level the more willing they will be to either buy again or recommend your service to a friend or family member.
Be sure to join me next week when I breakdown how to create a proper Marketing Funnel.
Don’t want to read this article? No problem, just listen to the audio file:)
Hi, I’m Adam Martingano, Founder and Chief Strategist at Go To Market Solutions. Let me start by asking you this, do you sell a product or service?
This is an important question. Selling a product is much easier than selling a service. People like to buy something they can touch, take home, and enjoy immediately. So when marketing a product, it is all about the “thing”, what it does, and most importantly how the customer can benefit from the product.
So your marketing message should be all about how the product can positively impact the customer’s life. This can be done very nicely through video, showing the product, how it works, what it does, and some happy customers telling their stories.
My favorite method for marketing a product is to use video and promote it on Social Media using a defined targeted audience and geographic area. By creating this initial engagement piece on social, you have the ability to capture interested potential customers. Specifically, when marketing on Facebook, you can create a remarketing audience for anyone that has viewed/clicked on the video. You can even choose between several metrics from Facebook like ThruPlays (they have to watch a certain length of the video) before you are charged. So for a Cost Per Acquisition (CPA) model, this provides a great Return on Investment (ROI). ThruPlays are only available when you choose Video Views as your marketing objective.
Marketing is not easy, it is a science, and is heavily influenced by data. So if you are not tracking and testing, then you are most likely wasting money.
Be sure to join me next week when I breakdown how to market a service using Social Media.