Posted On January 9th, 2019
Of the four M’s of marketing – Market, Message, Media and Math – the one that many don’t like is the math. Marketing is, at its core, applied psychology plus math; you can get the psychology side really, really right (offers, message, USP, etc.) but totally and completely miss your mark if the numbers side of the equation doesn’t add up; and since the New Year is when most people are setting goals for themselves, you MUST know the MATH side of the equation or you’ll frustrate yourself (and your staff) by constantly falling short of goals – and it’s VERY demoralizing for a leader to constantly set goals they don’t hit. Not knowing marketing “math” also makes it impossible to manage new sales reps, because you won’t be able to work backwards from their goal to tell them how many activities (calls, connections, appointments, proposals, etc.) they will need to conduct to hit their quota; worse, you won’t know if they HIT or MISSED their quota until it’s too late to do anything about it.
Example: A client calls in and wants to know if sending 50 Bad Date letters a week is “good.” I can’t say if it is “good” or not without knowing his specific goals. If he wants to add $1 million to his business and the average client is worth $2,000 a month, then JUST sending 50 Bad Date letters a week is NOT a sufficient plan. At $2,000 a month, he’ll need approximately 42 clients. If his close rate is 30%, he’ll need 142 proposals generated; if 50% of all leads generated are not qualified, not ready to buy now and don’t move to an appointment, he’ll need 284 leads per year and about 7,100 prospects to target per quarter if we assume an average 1% response rate to the campaign each time it’s sent (284 ÷ .01 is 28,400, then divide again by 4 to assume we remarket to that same group every quarter with a different type of lead generation campaign and offer). Based on HIS SPECIFIC GOAL, he would have to send out 546 Bad Date letters per week to hit $1 million in net new business that year if that’s ALL he was doing AND if his goal was to add $1 million in revenue with an average price point of $2,000. Read full article and comment →