As 2016 comes to a close and 2017 is popping up over the horizon, many of us will be revamping our marketing strategy to formulate a new plan of action. Renewing and updating your marketing goals is critical, and taking an in-depth look at the successes and failures in your current marketing plan is the launch pad for going forward.
1) Consider your goals: I like to call this one “all roads lead to Rome”. Keep the goals you established front and center in the process. Every action should come back to the positive or negative impact it had on one or all of your 2016 goals.
2) Evaluate your key performance indicators (KPI’s): Metrics associated with each of your action steps will reveal how well your efforts performed. Examples would be an increase in social media engagement, a higher direct mail response or more followers in twitter.
3) Look at your sales: Look at where you lost and gained sales in addition to the total increase. This might red flag a needed change in marketing strategy, a problem with a marketing channel or perhaps the market has shifted and you need a product change.
4) Calculate your return on investment (ROI): How much did that doggy in the window cost? Even if your sales were great, your profits will suffer if you’re spending too much. A few helpful calculations are:
- Customer Acquisition Cost (CAC) - CAC can be calculated in a broad sense by dividing your yearly marketing budget by the number of new customers you obtained. You can also drill down another level and do the same exercise by using your yearly budget as it breaks down for each marketing channel. If your data was captured completely, you may know exactly which channel got you each new customer and your CAC will be that much more precise.
- Customer Lifetime Value (CLV) - Multiply how much the average customer spends per year by the amount of years they are projected to be a customer, and then subtract the CAC. You can also go back several years and use exact case scenarios for a clearer picture.
Didn’t capture much data? No worries! Customer and prospect surveys are great tools for getting answers. A hint for success: people’s schedules are busy so providing an incentive for filling out the survey will boost your response.
Successful marketing is about constantly adjusting your goals and strategies to your product or service and an ever-changing market place. Remember, you can do “mini” evaluations of your marketing plan all year.
Best of luck for a prosperous 2017!
About the Author
Donna Johns is President of promarkdirect, a full service direct marketing agency celebrating forty years in business. promark will help you navigate the complexity of direct marketing across channels utilizing postal and email campaigns, social media, content management, website development, Pay-Per-Click advertising, analytics, and search engine optimization. Please visit: http://www.promarkdirect.com