HOW TO MEASURE DIGITAL STRATEGY
(AN EPISODE OF THE DIGITAL STRATEGIST PODCASTING)
Hey, welcome to local twin city marketing podcast where we talk about creative ways that you as business owner, freelancer or digital marketer can use to grow a business. Giving an absolute advice on how to keep track of your ROI and not just that, but how to measure what a blog post does, and how do you know the kind of effort you need to put into your business? If that is producing the best ROI. There are about 30 different revenue sources that my business has, how do I check which one worth putting time into. Just like I am doing a podcast, does it worth it? Why will I be doing this instead of SEO, writing better ads. or converting mark. This is how you can track these things and test them out, which one really does well for your business. You can approach this as a kind of shocking approach, saying these are all the things I am doing: I am running SEO, social media, I have website and then at the end of this 10 minutes podcast you are going to understand exactly how to really know what is good for your business.
Before we drive into that, I am going to tell little about who I am. My name is Jake Goss-Kuehn, I am the creative marketing director of Web Strategy Viking, if you are in Minneapolis area, we might have exchange handshake a few times. Not only am do I work with a digital team, we have also work with a lot of American talents. So, we are the strategist you should be listening to, to grow your business, specially because it is for free, all our podcast and content are very valuable.
Let’s dive into this. We are working with spreadsheets, they tell you data that will help you grow your business and we can make it fun. There are four variables that is 4 columns: T, C, V and R meaning TRAFFIC, CONVERGENCE, VALUE AND REVENUE. Together with all these power combine, you will understand and have complete control of what internet is throwing your way. What that means is the number of people going through a traffic source in a full traffic rate that are becoming or developing or taking the step you want them to take. Maybe find your website and call you or go through your website and fill a form or go to your website and buy something or send out email that you want them a certain appointment.
There are so many ways to drive traffic and make them take the next step, social media, blog post, podcasting and all, but how can all these be tracked? On the value, write the page, put the link and the value of that is going to be for you. Like what will be your expected revenue then you can ask, “Jake, if one fills a form or like me on Facebook do I make money?” Yes, that is an asset, just like ATM. If you play your card right, you can get your fans to do whatever you want. They will talk for you, they will show up, and they will tell their friends. That is an asset and there is an expected value from that asset, if you have sales form. I learn this from Wayne Ramires, doing the sales CRM (a very remarkable guy). There is an expected value when it comes to closing of business in developing business. Even with a statistic background, I don’t like to put the two together for what I will do well.
Now, let say you make 10 dollars of new business like that is what you do, and it is normal for you just like kitchen and bathroom remodeling. Let say you make 7000 and 3000 dollars that is 10000 dollars, if there is certain percentage of people that call you and say they are interested in doing business with you so if that number is consistent and you are able to track that data, let say you have 100 phone calls and only 5% of the 100 calls turns into that 10000 dollars revenue, then congratulations. You place value on each phone call. You just say that if I pay 500 dollars for the same quality of phone calls, I will break even that is I will make zero dollar or if I pay less than that then that’s how I can make money. Honestly, you must go out and do the work.
You will get the theory with this, right? But if you can somehow convince additional marketer that you are willing to pay them 20 or 30 dollars for them to generate a business like a phone call and you get 20 phone calls, after which you end up closing one of them and maybe you spend 1000 dollars and now you have 10000 dollars revenue. Yes, that is 900 percent in ROI, which brings the value of tracking that. But you know the number then you will not be able to get anything you are testing, because you have to start somewhere collecting data and that is what we do in the first step in what I do with clients. I try to understand where they are coming from or I am working in the dark with a lot of stuffs here. But under TCVR, the expected number of traffic you should be getting, or you are getting, put them in such of some metric or variable under that. The source which could be social media, it could say 100 people social media that are actively finding us clicking on our page, I am getting 10 likes per month on our page, how many people that end up liking it on Facebook. if you post on a date, it is there like it is transparent. If you know where to look from each platform, they will tell you and the value is how much money you are going to make statistically over each person that like your page and necessarily making money. If you send a 100 email to your clients and 20 percent of them want to do more business and you can say anytime you send a monthly email blast you make 20000 dollars because 2 of them might end up working with you. You can prove that at least because statistic is found, if you can do that and show that, then congratulations. That is your revenue you can expect to make every month. The biggest thing is the time/effort it takes to get to this. I like to work month by month seeing how much time I spent working on this but if you are building up this for your business, you might not have that yet, you might not know where you add. If you can be able to write out all your sources just by following all you do in a month. This is what I do for my online marketing. You can also use this for offline too. I spend 30000 dollars flyer and I made this sum of money back, you can quantify that in your business. If you do not quantify or measure you ROI, then I don’t know why you are doing that, then it is something that people need to think about.
Allowing people to test new things, and if you are not testing what you have done then you just reinventing the wheel, collecting more and more data and there is nothing to show for it. They don’t have the time to pay attention to this data, they need to understand that if only they change 2 to 3 things in 5 minutes of effort, they might be able to get 10 times more business because instead of them sending a thousand out. Somebody told me that they are spending thousand of thousand of dollar a month and they don’t know if it is working because it is a norm. That is scary, they are not tracking data, they are spending a lot of money trying to test new things and they are not testing if their investment is worth it. This is like they having a fire going on in the basement and they are thinking of replanting the roof.
So, what I am going to do is provide a quick 15 minutes strategy session for any business owners that want to check out through their numbers. “For the rest of October or probably the rest of my business, this is how I want to start things up”, these are things that they didn’t know; where their money should be going into or provide them with opportunity to show that they can do things themselves. I see a lot of business owner getting a growth on their investment when they do email marketing. “Do you have email? Yes”. “Are you sending them messages through your email? No”. “Then why?” “It is not a priority” or “I don’t know how”. That is not an excuse anymore, we do care for these kinds of business owners, we want them to grow, that is why I am using this podcast to provide a lot of economic value and knowledge to a lot of business owners. If you like this, then feel free to share and leave a comment, let us know if you like our content. Cheers!