M ULTI -M ILLION -D OLLAR S ALES F UNNELS Reid Wilson Quintify Database Solutions, Inc....
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Transcript of M ULTI -M ILLION -D OLLAR S ALES F UNNELS Reid Wilson Quintify Database Solutions, Inc....
MULTI-MILLION-DOLLAR SALES
FUNNELS
Reid WilsonQuintify Database Solutions, [email protected]
(A.K.A. SMALL BUSINESS MARKETING DONE RIGHT)
MY BACKGROUNDWhen it comes to marketing, Fred Meyers
taught me about 90% of everything I know. (I.e., old-school catalog direct marketing applied to modern technology.
WHAT QUINTIFY DOESWe build highly customized web-based
database software systems for “small” multi-million dollar companies and franchisors
Three main uses of databasesin business
THREE MAIN USES OF DATABASES IN BUSINESS
1. Information Store / Data Warehouse
THREE MAIN USES OF DATABASES IN BUSINESS
1. Information Store / Data Warehouse
2. Process Management / Transactional
THREE MAIN USES OF DATABASES IN BUSINESS
1. Information Store / Data Warehouse
2. Process Management / Transactional
3. Actionable Reporting / Analytical
Inadequate data management
leads to poor marketing
(unless you are just lucky)
COMMON MISTAKES IN SMALL BUSINESS DATA MANAGEMENT MS Excel
COMMON MISTAKES IN SMALL BUSINESS DATA MANAGEMENTFile Folders Your customer info is
only accessible by one person at a time in a particular place.
Regarding marketing, data is very tedious to accumulate and analyze
COMMON MISTAKES IN SMALL BUSINESS DATA MANAGEMENTSticky Notes or Random Pieces of Paper Little pieces of paper fly away when the wind blows.Big pieces of paper get stacked and put in boxes when guests come.
COMMON MISTAKES IN SMALL BUSINESS DATA MANAGEMENTSticking with a legacy system that no
longer meets your needs
COMMON MISTAKES IN SMALL BUSINESS DATA MANAGEMENT
Ignorance
(Direct) Marketing Is Math
Applied to Data
The Million Dollar Question:
Where do I spend my marketing
dollars?
The Direct Marketing Approach:
Test and measure!1. (and let analytics tell you what you should
do)
KEY METRICS
Cost per lead acquisition per channel/promotion
Conversion Rate How many “touches” does it take to
convert? Retention / Reorder Rate Reactivation Lifetime Value / Profitability RFM (recency/frequency/monetary) cell
analysis
COST PER LEAD ACQUISITION
Source Count Cost CPA
Google Adwords 547 $4,732 $8.65
Affiliate Program 120 $625 $5.00
LeadSource 259 $3,147 $12.15
THREE-MONTH CONVERSION RATE
Source Count Conversion Revenue $/Lead
Google Adwords
547 15% $4,512 $8.28
Affiliate Program
120 22% $1,716 $14.30
LeadSource 259 27% $4,247 $16.40
LIFETIME REORDER % OVER TIME FOR 1X CUSTOMERS
NEW CUSTOMER REORDER RATES BY INITIAL ORDER SIZE
LIFETIME SALES PER CUSTOMER
LIFETIME SALES FROM INITIAL ORDER SIZE
WHEN SHOULD WE TRY TO REACTIVATE?
MARKETING DATA TO CAPTURE IN YOUR DB
Track the source of each prospect / new customer – source type and source detail and any promotion they first responded to
Segment your customer into various groups, e.g. by industry, size, location
Track lifetime sales per customer (and carry that over to lifetime sales per segment and lifetime sales per source)
MORE DATA TO CAPTURE If your business has many
customers/orders, track “RFM” – recency, frequency, monetary – and incorporate it into decisions on who to send promotions to
Track costs (COGS, fulfilment costs, advertising costs) to each order and each customer, so that profitability can be watched
TEST AND MEASURE REDUX
Test and Measure Put more focus and money into
what’s working Stop what’s not But realize that long-term results are
most useful when making decisions (e.g. three month payoff as opposed to immediate payoff when evaluating a lead generation promotion)
EXAMPLE RFM REPORT (FILE COUNTS OVER TIME BY CELL)