2020 Marketing MASTERCLASS for Startups and Leaders #1 | Your Model | Brian Bozarth | Skillshare

2020 Marketing MASTERCLASS for Startups and Leaders #1 | Your Model

Brian Bozarth, Chief Marketing Strategist

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21 Lessons (1h 58m)
    • 1. Introduction to the Course

      3:12
    • 2. Welcome to Session 1

      1:21
    • 3. Introduction to Building Your Model

      4:33
    • 4. Role of Marketing

      8:52
    • 5. Importance of Marketing

      3:34
    • 6. Introduction to Building Your Model

      1:06
    • 7. Step 1: Know Your Numbers

      11:36
    • 8. Homework: Know Your Numbers

      2:25
    • 9. Step 2: Measuring

      9:09
    • 10. Experience Mapping

      4:20
    • 11. The Buying Process

      8:19
    • 12. Homework: Buyer Journey Questions

      2:22
    • 13. Step 3: Conversion Rates

      8:09
    • 14. Industry Averages

      12:11
    • 15. Step 4: Building Your Model

      5:06
    • 16. Knowing the Value of a Lead

      4:24
    • 17. Homework: Build The Model

      3:03
    • 18. Step 5: Building Your Scenarios

      8:17
    • 19. Homework: Build Your Funnel

      2:58
    • 20. Practical Campaign Models

      10:23
    • 21. Next Steps

      2:29

About This Class

JUST UPDATED FOR 2020 WITH THE LATEST TRENDS IN MODERN MARKETING!!

Leaders and Startups love this Course:

★★★★★  "Way above my expectations! Brian is REALLY knowledgeable about the whole area of marketing and the current state of the digital marketing industry, this is a guy who has ACTUALLY worked in the industry and is not just selling a course based on something he read in a book! This will really help anyone to become a true marketing leader!" - Erick Cardoso

★★★★★  "This is the best marketing masterclass so far. I've taken dozens of online courses in various e-learning websites. No matter you are a beginner or a marketing pro, this course will both give you a ready-to-go checklist for creating your own marketing strategy, and freshen up your marketing skills." - Nano Mardoyan

★★★★★  "The best of the best .... I think his Point of view will last for the next 50 years about the content. Professional and to the point. I`m really glad I know such a great brain of marketing. Note: I've taken more than 50x about marketing and content and you are one of the first ...You know what is my pain point and you deliver it." - Asem Al Sardy

Knowing WHY and WHEN to perform certain marketing tasks is the million dollar question for most businesses.

Anyone can learn how to post to social, write a blog post, or learn what SEO is, but quantity is not what works. What works are people who actually know WHY and WHEN certain marketing activities work.

That's the purpose of this course. By the end, you will have developed an actual marketing strategy, your own personal marketing playbook, that will guide you and your brand into the right marketing activity.

Think about it - no more guessing or assuming. You will be able to inform others and act personally based on the correct information!

★★★★★  "After finishing Session 1 of this course, I have a better understanding of the "WHY" of digital marketing efforts. This course gives you a compass and a map you can refer to plan your marketing activities. Most of the marketing courses I took so far focus more on the tactics --how to rank well on Search Engines, get more visitors on Social Media -- without giving you the tools you need to really plan those activities for optimal ROI. Knowing "How to" is good, but knowing "Why" is even greater because you can chart a better path and keep the eyes on metrics to make the necessary corrections. So, I'm religiously taking this course to implement the concepts taught, and to remove any guesswork when it comes to investing some marketing dollars." - Majonka Diokou

Three reasons to take this course:

  1. You get lifetime access to lectures, including new lectures every month (content is added/updated constantly).

  2. You can ask me questions and see me respond to every single one of them thoughtfully!

  3. What you will learn in this course is original, tested, and very detailed! It comes from years of graduate-level education and 20+ of marketing leadership experience across dozens of industries.

There are plenty of people who can teach you shortcuts and fast tactics. 


This is a course for people who are truly willing to understand marketing strategy. A course for people who would rather do it right than hustle and hassle people. Once you work your way through these 200 lessons, your strategy will become more clear, your empathy will deepen and you'll begin to see the market as it is, instead of merely wishing it to be what you want. You will have your own complete marketing playbook!! No more guessing.

★★★★★  "Amazing course, best delivery, up-to-date, and very specific - no extra blah blah" - Malik Waqas

The Marketing Leadership Masterclass is split into 6 different online sessions, each focusing on a different aspect of marketing leadership.

In Session 1 we will focus on Building Your Model.

As you may know, more and more marketers are constantly under pressure to justify their marketing effectiveness, prove ROI, and create efficiency at scale. Since most marketing today is digital marketing, all the digital tools available make this task easier.

To do this well, every brand should have a model for how they track consumers from anonymous visitor all the way to loyal customer and promoter. The goal of building a model is to ensure that you have a way to track and measure every primary step a consumer takes during the buying journey. Without a model you will simply be guessing at which marketing tasks will be the most effective.

The benefit of having multiple models of historical numbers is that you are then able to build out future scenarios by which you can more accurately gauge ROI, create efficiency at scale, and identify opportunities for marketing activities on each channel.

What are the requirements?

  • No experience or audience required.
  • Suitable for all types of businesses (digital product, physical product, service, B2B, B2C).

Why take this Course?

  • Become a Leader - Learn how to think & act like a strategic marketing leader.
  • Modern Marketing - The world of marketing is in constant flux. Don’t get left behind.
  • “Why” of Marketing - Learn the “Why” of marketing rather than just the “How.”

What am I going to get from this course?

  • Practical theory - Great marketers and great entrepreneurs are great learners. We’ll cover the theory that you need to understand to drive your own Demand Gen program.
  • Hands on - Throughout the course, we give you multiple opportunities to slow down and apply what you have learned by building out the real-world plan that your company needs.
  • Peer Learning - Your instructors are peers, start-up founders and fellow marketers with decades of tangible experience in every stage and level of an organization.

What is the Target Audience?

  • Business Owners - Increase your business revenue, sales pipeline, and ROI by building out transformative demand generation programs that actually work.
  • Startups - Leverage proven marketing processes and practices to establish and increase your user-base and business revenue. 
  • Marketers - Increase your current marketing knowledge by learning the most effective tactics, best practices, and processes.

Go from Beginner to Advanced

No matter what level of marketer you are, you will go from beginner to advanced marketing leader as we walk you through building your own model.

All the strategies, tips and tools recommended are either included, free or very cost effective.

Transcripts

1. Introduction to the Course: welcome to the modern marketing course for leaders designed for those who simply want to up skill or even change careers or become a leader within marketing. Now there are a couple of reasons why I believe this course is increasingly important for the modern marketer. Currently, as you may know, in the world of marketing, there's a plethora thousands, if not hundreds, of thousands of great tutorials and courses on how to perform marketing tasks. For instance, how to post a link to an ad or create the perfect WordPress website or created Google Analytics report or a landing page or a blogged post or a webinar, right? You get the idea, However, it is a rare day when you come across a course that teaches you the Y, off marketing or when to perform certain marketing activities. And yet these are the very questions that a marketing leader must ask. It's not enough anymore for a leader to know how to perform basic or even advanced marketing activities, because for this you can easily hire an employee or an agency or a freelancer to take care of that. Rather, a marketing leader must know why you post a social or start paid advertising when to focus on one marketing channel over another, or even when to focus on conversion rate, optimization versus search engine optimization versus optimizing email campaigns. A leader must know the why and the wen of marketing, not just the house. But the separate reason why I believe this course is increasingly important is that in my experience, I have found a number of today's leaders in business either went to school or got their experience before the Internet and digital marketing were even around. And many of these same leaders are now looking to rapidly up skill on progress, their knowledge of modern marketing because, as there quickly finding out, yesterday's techniques often don't work in today's digitally connected, digitally centered, highly competitive landscape. Which brings us here today. This course is separated into six different marketing sessions, with well over 15 hours of lessons and interactive homework, each tackling a necessary and fundamental aspect of marketing that today's modern marketing leaders need to know. Now I want to reiterate that the purpose for this course my primary goal is to see you succeed, and that's why I'm updating this course on a regular basis with the latest information because I want to ensure that you have everything you need to be successful in today's competitive marketing and business world. So without further ado, I will see you in the coming lessons. 2. Welcome to Session 1: welcome to Session one, where we will be looking at building out your own model. Now, as you may know, more and more marketers and really marketing in general are constantly under pressure to justify their marketing effectiveness, prove our ally and create efficiencies at scale. Does any of this sound familiar? Well, to do this well, many organizations and really every organization should have a model for how they track consumers from anonymous visitor all the way to a loyal customer and promoter. Now, the goal of building a model is to ensure that you have a way to track and measure every primary step a consumer takes during the buying journey. The benefit of having multiple models of historical numbers is that then you are able to build out future scenarios by which you can more accurately gauge our ally, create the efficiency at scale and identify opportunities for marketing activities on each channel. I look forward to building out your model with you in the coming lessons 3. Introduction to Building Your Model: hello and welcome to the marketing course for leaders or really, anyone who wants to be a leader in the marketing and business field. I am Brian Bozarth. I will be your instructor over the next six sessions. Now I want to address this point at the very beginning, there are a number of great courses out there that teach you how to do marketing activities , such as writing a blogged post, installing Google analytics, post toe linked in or created add on Google AdWords. However, I have rarely come across practical marketing knowledge specifically designed for leaders. That teaches much more than just the how of marketing but addresses important leadership questions like when or why. When you aggressively target PPC and spend a lot of money on that channel, why do you write one content article versus another? Which channel is the most important? In order of priority, it's being able to answer questions like these that make both an organization and the leader successful. Now. Personally, I have worked as a founder of start ups and in strategic marketing leadership roles for over 20 years. As a lover of early stage companies, I have my share of experience in digital and marketing. UX design technology S E O C R O Development Project Management You name it in both the profit and non profit sectors, meaning I have seen lots of approaches to marketing and businesses both successful and not so successful. But I have also had the opportunity to help numerous start ups on almost every continent, as well as overseeing global marketing teams, optimizing digital channels with millions of monthly visitors down to completely new startups. The point being, I have had aton of experience on a global scale, and that's what I want to share with you during this course, because I continued to run into the same questions, concerns and challenges and companies of every size across the globe that you most likely face yourself. It's not enough to know how to post. There is a science behind the most successful marketing teams and campaigns, so this course is an aggregation of the most useful knowledge that I have gleaned and shared with marketing and business leaders in order to improve their marketing efforts while staying ahead of the competition. Now let's start with the most important and fundamental question when it comes to marketing . And that is, are you clear on the relative importance of demand? Gen that is generating demand for your business or your product? Now, whether you're in B two B or B two C environment, chances are you desire to increase the demand for your product or service. The reason this question is important is because there's no cookie cutter pattern to business development and marketing. It varies for every business. So do you know for your business, your product, the importance of demand Gin. Also important to note is depending upon your A C v, your average customer value. Some organizations will have sale lead motions, while others will have a marketing lead motion. No, in my experience and from what I continue to hear in the industry is that if you're a CV is under 4 to 5 K, then you will be a marketing led organization. It doesn't pan out otherwise, that is, if you do the numbers, it is not cost effective to be a sales lead, or if your A C V is only a few $1000 you simply cannot support an outbound sales team. Now some will drop that number down to even $1000 But that's still wraps up most small beauty companies. Secondly, does your product or service meet the minimum lifetime value? Aaron Ross, whose grew in the STR Space, said the LTV usually needs to be at least $10,000 otherwise it won't be profitable. So coming back to the original question, knowing your A, c V and really Yurcak, your customer acquisition costs will determine if you're a marketing or sales lead. Orig. Now we'll walk through all these numbers and logic in detail in just a bit. But the point is, it is still possible to introduce a logical and thorough process into your business and marketing efforts in order to make wise decisions based on a defined r A y. That's the purpose of this course, so I look forward to diving much deeper into topics like this in the coming sessions. 4. Role of Marketing: I started this session by asking you if you are clear on the relative importance of demand , Gen for your business. If so, where do you start? Let me present a scenario that you have most likely face at some point in your career. Let's say you're tasked with marketing a new product. Where do you start? Do you pull the trigger on paid search, spend thousands of dollars and just hope it pays off? If so, when do you stop and try something else? Do you build AH website and start generating daily Blawg Post. How about Social? These are challenges in real dilemmas that employees from many companies of all sizes face , which is why season Fortune 500 companies have a deep understanding and appreciation for both the role and challenges of marketing. Let's take a look at some global giants in the business world. Nike, Apple and Coca Cola brands we're all familiar with these companies may already be some of the most recognized brands in the world, but they nevertheless spend billions of dollars every year on their marketing efforts, and you can bet they're not doing it on a whim. They know exactly what those dollars will bring them. In return. They have analyzed, aggregated and researched the respective markets in order to know very closely there are a why. Here's a question. How much do you think each company spends on marketing alone? Well, Nike, In fiscal year, 2015 spent more than $3.2 billion in demand creation expenses. Think of advertising, endorsements, events, etcetera. Tens of billions of dollars have gone into building its brand. This should leave no question in your mind as to the importance of demand generation, and yet they are already one of the most recognized brands globally. How about Apple? Although Apple chose not to disclose his advertising budget in 2016. The decision, though, comes after Apple did state that their advertising expenses rose 50 percent to a record 1.8 billion in 2015. Keep in mind, Apple is one of the top three most recognized global brands. And then, of course, there's Coca Cola. Now I've had the opportunity to travel the globe, living in and visiting nearly 50 countries, many of which are third World countries. In my non scientific research, I am stunned to see how far reaching Coca Cola's marketing and branding exists. You could be walking down a jungle trail in Central Asia and come across a large plastic Coca Cola sign with vines in the rest of jungle trying to swallow it up. Now scientifically, according to Interbrand, they are the most recognized brand in the world. Almost every year, year after year, they're at the top spot. And yet, despite Coca Cola stronghold in the soft drink industry with 44% market share and being the most recognized brand in the world and their vast global reach, the company has sequentially improved. Is marketing spend every year in 2015 Coca Cola spent? Look at almost $4 billion on its marketing efforts. No, let me ask this question. What about RC Cola? And you may ask RC who exactly? Now you may remember, if you've ever taken marketing classes about this prolonged marketing battle that began in the seventies and the soft drink industry and and saw the beloved major brands Duke it out via celebrity endorsements, awards, promotions, onslaught of advertisements and even a race into space. And yet RC Cola, during this entire competition of branding, remained on the sidelines this kind of quiet blue and red can that seemed content simply to be today. Our cycle is simply that a middle of the line soda brand. But did you know at one point in history, RC Cola gave Coke and Pepsi a run for their money? Believe it or not, Royal Crown Cola RC Cola used to be one the most innovative companies in the beverage industry. It was the first to come out with canned soda, the first caffeine free soda and the 1st 16 ounce soda. It was the first to take Diet Cola mainstream in the verse to take nationwide taste tests. What happened to this cutting edge soda brand? Well, in 1984 guy by the name of Victor Posner, a billionaire businessman who specialized in corporate takeovers, we acquired Royal Crown, which own about 10% of the market share. Not dominating right but still a key player in the nine years positive owned Royal Crown. He slashed the company's marketing budget and battled executives over the company's direction. Three years later, in 1987 the government convicted him on tax evasion charges and soon after investigated him for insider trading. However, while Royal Crown is busy cutting marketing costs in dealing with internal turmoil, Coca Cola and Pepsi were dumping millions into unprecedented marketings arms race. What you had were only two coolers, Pepsi and Coca Cola. With its limited ad budget, RC came out with some standard issue TV spot showing people chugging from a bottle before pausing to smile at the camera. But to most people, though, the more than 100 year old brand was largely invisible, invisible because they have not invested in getting their name out there. They're brand out there, constantly being on the cutting edge. There's no question brands like Nike and Apple and Coca Cola, even with an incredible brand awareness, do not underestimate this necessity of marketing. Now I know that these are major global brands. But on the other side of spectrum, startups and micro businesses often view marketing as a matter of survival, not theory. That is, their business will disappear if they don't invest in it. So both the major global brands and starts and micro businesses they understand marketing is important. I have to do this. However, between those two extremes and interesting thing often happens, cos forget about marketing and generating demand. You see, what I have found is that once the company starts to earn some customers and revenue, it's tempting to let things slide just like RC Cola. Some of these companies stop marketing altogether or put it on a back burner and just turn out some blog's and e mails and social post with maybe an occasional webinar. And they call that marketing. This kind of marketing is the quick fix mentality that is simply undertaken when something is wrong. Not enough customers need more revenue. Good write some blonde posted, do some marketing, and that should fix everything right. This is dangerous thinking, and it's one of the reasons so many otherwise successful businesses wind up failing. They get used to feeling busy thinking. Successful marketing is just being busy, producing lots of marketing material until they realize it's too late to start what they should have been doing all along. This is what I want you to catch. Demand generation and other marketing efforts should be the regular and sustained business activity that get your business where you want it and keeps it there, but it should not be done on a whim, nor as a last resort, because this is the best way to throw away your money in this course. And during this session, we're going to look at the smart way to market what are the most important marketing motions to get the biggest bang for your buck, the highest. Our ally. If you can answer that question, and you are no longer guessing at your marketing campaigns and efforts, but you will start to logically and calculatingly nowhere to spend your dollars. Peter Drucker put it this way. Because the purpose of business is to create a customer. The business enterprise has two and only two. Basic functions. Marketing and innovation, marketing, innovation, produce results. All the rest are costs. I love this. This is something that the most successful brands and organizations of all sizes understand that is, this mentality should stretch across the entire business. He also went on to say marketing is not only much broader than selling, it is not a specialized activity. All it encompasses the entire business is the whole business, seen from the point of view of its final result. That is, from the customer's point of view, concern and responsibility for marketing must therefore permeate all areas of the enterprise. This perspective that Peter Drucker talks about is what keeps Fortune 500 companies so intense about sustained, well funded marketing, even when they're already successful by any measure, while, on the other hand, inexperienced businesses wait until they're hurting before addressing the marketing needs. My goal is to walk you through the mindset and strategy of smart marketing leaders so you can avoid some of these same mistakes. 5. Importance of Marketing: So let's address some pain. Points are common thread that we have found among early stage companies, specifically number one. There isn't believe that marketing needs to be an important part of the revenue engine. This is often well understood, but this is, we're understanding tapers off because secondly, companies are often not sure what to do, so they don't do much of anything or too much of everything. Marketing becomes this diverse it of activities that can appear daunting to the inexperience, underfunded or even the overwhelmed. Do you invest in organic e mail nurturing website paid social partnerships, Webinar trade show, etcetera. Where do we spend? I don't know. And so three. There is this kind of lack of confidence that they're heading in the right direction with their marketing efforts. It's this lack of understanding and confidence that I would like to address with a couple questions. And these two questions should actually give every company of every size pause. Number one. Where should I invest? Marketing dollars, right? There's lots of places in a lot of people who want to take your money. What channel? What activity, How many personnel. And secondly, if I make this investment. What should I expect to see in return? More importantly, is it possible to measure the return before the investment in this session? We're going to build a model to answer these two questions. Here's a clip from Moneyball. It's a movie. It's a true story about how data analysis was introduced into the sport of baseball way, using this equation in the upper left right here projecting that need doing 99. We need to score at least 814 runs in order to win those games and allow more than 600. I think this is a code every for a year to year projections. This'll building in all the intelligence that we have to project players. It's about getting things down to one number using. That's the way we read them. We'll find value in players that nobody else. People are overlooked for a variety of biased reasons. In perceived flaws, age appears personality Bill James and mathematics cut straight through that 20,000 notable players for us to consider. I believe that there's a championship team of 25 people that we can afford because everyone else in baseball undervalues them like an island of misfit toys. Did you hear that quote in there? It's all about getting things down to one number. That's the purpose of the model that we keep talking about. Because there are so many numbers in a typical business that's easy to lose. Sight of the goal in the face of a sea of information because going back to the two questions we just proposed. Most brands couldn't tell you exactly where they should be spending marketing dollars. And secondly, if they make the investment in a specific channel, they don't know what kind of return they can expect because they don't know how to measure it again. This underscores the absolute necessity of building your model before you do anything else . 6. Introduction to Building Your Model: first off when trying to determine marketing activity and targets. Where do we start? Well, first things first, and this should be true of most of your business. Number one. Know your numbers. You need the date of the historical data in order to build this smart marketing models. Secondly, they use their journey. Do you know the steps a user takes to become a customer? We'll pull together the detailed metrics concerning the use, their journey. Thirdly, you've got to know your conversion rates. Once you are able to measure and gather the metrics, the steps for the various stages of buyers journey. Now you can start to calculate conversion rates. Fourthly, build your model, fill in all your numbers so that you have a historical model that you can reference. And, fifthly, this is where it gets fun. You build your scenarios. This is ah, scenario is a hypothesis or educated guess based on historical metrics of how much it will cost to earn a lead from specific channels in marketing campaigns. Ready, Exciting. All right, let's dive in 7. Step 1: Know Your Numbers: so Step one to building a smart marketing model is understand the expected value of a specific marketing effort. Marketing efforts have many names, campaigns, scenarios, motions. Choose the name that works for your company. Let's start with a couple questions concerning your numbers, as you see here. Number one. Are you measuring them? And secondly, do you know how to measure them now? Usually, when I ask the second question, I get one of two responses. Number one is just blank stares. Secondly, sometimes I'll get this lengthy discussion about scorecard metrics display generally and endless Excel tables copied and pasted week after week by some intern and at her, then translated into PowerPoint templates. Scorecard Metrics are numbers that represent how you did overall in the past concerning revenue. Demos leads etcetera, but they get very little advice on how to specifically improve and where to invest. Marketing dollars. If all you're doing is scorecard metrics, well, at least everyone will get their bonus based on the numbers, but you will have very little idea how to get better, which is why we start with the most important first step. And that is you must know your numbers Let's run through a few high level examples of numbers you should know. First off, do you know your revenue targets your goals? What's the end game plan for your organization this year on what product and pricing mix will get you to your revenue goals? Secondly, how much is this site visitor worth to you from social email paid organic? Remember, each channel holds a different value. How about a new leader inbound query. Can you put a dollar amount to each visitor from each channel and each engagement? How about a social clique? How How much should you logically statistically Pay phrase. Social clique? How about a demo or free trial? What is the actual dollar value of a demo to you and your organization? Are you purchasing email lists? Can you define the value of a quality email address? How about the value of a subscriber to your blog's or newsletter? Have you even defined your kind of basic KP eyes or your key metrics that you're trying to measure along the buyers journey and if so, are they the right ones? As we start to discuss data and data points that should be measured less to find a few important concepts first, so we're using the same terms of measuring the same metrics. First off, let's ask the question. What is the lead in marketing terms? A. Lead is any person or entity, such as in a business that is potentially interested in purchasing your product or service . Some leads air going to be better than others. A hot lead might be more qualified that is more ready to buy than, say, a cold lead that needs more convincing before pulling the trigger. For this reason, a hot or warm lead would be understandably more valuable to you than a cold lead. But how much more is the important question? Which leads us to the second item we need to define and understand, which is what is the value of a lead. This should be based upon historical numbers. The value of something is what it is worth to you. If you sell Windows, let's say at an average price of $5000 per house and you turn a lead into a sale than that lead is worth $5000 to you. However, we know that not every lead you get will end in a sale. In reality, you might Onley turn two out of 10 inquiries into a sale that would make your conversion rate 20% right. Two out of 10. That means you can expect to generate about $10,000 from 10 leads, right to sales out of 10 leads at $5000 each. That's because we know, on average or closing two out of 10 sales, this means that the value of one lead is actually $1000 right? 10 leads, $10,000. Here's the formulas you see here Lead valuables. Value of sale. $10,000 divided by a number of leads. 10 leads. This example is obviously a bit simplistic, and you can get much deeper with this stuff and we will. But as we discussed earlier, some leads will beam or qualified than others, and we will also want to look at what the actual profit is. Not just the revenue. More on that in minute, though. Third thing we need to define is CAC or a customer acquisition cost. Do you know your customer acquisition cost? That is how much does it cost to acquire a customer? Now we're getting into business costs, which rightfully introduced more numbers. Traditionally, a company had to engage in shotgun style advertising and find methods to track consumers through the decision making process right? Think of marketing mediums like billboards, print magazine, newspapers, TV and radio. It is difficult to track the exact our ally for those market emotions. Obviously, however, today in the age of digital transformation, where most of marketing is done digitally, many companies can engage in highly targeted campaigns and track consumers as they progress from interested leads to long lasting, loyal customers. In this environment, that CAC metric is used by both companies and investors. This is how it works. Add up all your marketing expenses, including salaries and overhead, and divide by how many new customers were acquired in a given time period. Now, using our previous example, if you spent 10,000 marketing dollars in a month and added 10 customers than your customer acquisition cost is $1000. From here, you'll be able to tell how effective your marketing really is now. Obviously, there are caveats about using this metric that you should be aware of when applying. For instance, a company may have made investments on marketing in a new region or early stage CEO that it does not expect to see results from until later period, right? While these instances are rare, it may cloud the relationship when calculating the CAC. Just take that into consideration. It is suggested that you perform multiple variations to account for situations like that, so the formula is simple. Khaki whose dollar spent divided by customers aren't you can take it one step further by identifying your channel customer acquisition. Cost. Your customer acquisition costs per channel is how much you spent to acquire a customer from Facebook versus, Let's Say, a trade show a webinar paid organic. The same general formula applies now, knowing the CAC for each of your marketing channels is what most markers want and need to know if you know which channels have the lowest CAC. You know where to double down on your marketing. Spend the more you can allocate your marketing budget in tow, Lower CAC channels, the more customers you can obtain for a fixed budget amount, the simple approaches to break out your spreadsheet and gather all your marketing receipts for the year quarter a month. However you want to do it and add up those amounts by channel. For example, how much did you spend on Google AdWords and Facebook advertising? In this case, you might want to put this in a column called PPC or Pay per click. How much did you spend on S. CEO on blogging? There's my going to a column called Inbound Marketing Costs. Now that you know how much you spent on each channel, you can imply a simplistic formula and assume each channel worked. Get the same amount of customers as the next channel. This would be an averaging method. It's not perfect. The only issue is that it can be difficult to know what channel is responsible for, which customers you can easily see where this approach becomes futile. Say you only ran one PPC advertisement on one day just as a test you spent $10 that's all. When you look at your spreadsheet will appear PPC would be the best marketing channel because of its extremely Low CAC. It would be unwise to double down, obviously, on pay per click because, you know, you really didn't utilize it all for that period of time for e commerce companies that sell physical products is easy to know what pay per click advertisements lead to direct sales because of the conversion tracking the advertising platform provides. In this case, you can determine that value and note this in your spreadsheet. This will give you a better idea of how your PPC campaigns air doing relative to the rest of your marketing spend. Now I want you to know that this is provided and Onley some B two B situations like Hub Spot or Bright Funnel Kiss Metrics or some third party software that utilizes AP eyes. But many other marketing automation platforms fail miserably at attaching top of the funnel marketing efforts with bottom of the funnel customer acquisitions not leads but customer acquisitions and the dollars associated with that customer. It's also worth noting that some tools trace paying customers back to their last touch, first touch or even multi touch attribution source. For example, this means you can see the last channel the customer visited before doing their final sales with your business. Now, if a customer came from organic search results, you would know that s e O would be responsible for that customer acquisition if you're measuring last touch. Now this is where marketing gets philosophical now. One school of thought is that each marketing channel supports the next channel. It's a combined effort. You've heard of integrated marketing communication or I M. C. As you can see in this graphic, for instance, your Blawg Post reinforce her pay per click ads, and all channels work together harmoniously to bring in customers. This is a common notion, and outdoor advertising right billboards reinforced TV campaigns, which reinforce radio spots and so on. Ultimately, it comes down to your own company's philosophy on how to attribute customer acquisition. If you feel that last touches good enough, you can use that model for your cat calculations. There are other multi touch models that split it out evenly that I personally prefer Toe last touch your first touch, but choose your own calculations That makes sense for your marketing efforts. The ideas that you want to get more detailed in your understanding of customer acquisition costs per channel instead of just a za hole. If you know your customer lifetime value, then you can divide your C L V your customer like time value by Yurcak. Now, if you know your customer lifetime value, Then you can divide your C l V by your CAC. Now the ratio of your CLB to cost of customer acquisition is a very important metric as it gives you a sense of your business sustainability. You should be focused on finding ways to increase that ratio by increasing your CLB and or decreasing Yurcak. Knowing this will help you know how much you were ableto earn per year based upon the number of customers you have and customers you acquire. This will then help outline your yearly business expenses. Point is simple. No, your current metrics set the targets, then develop the appropriate marketing plan. This answer is the all important question. Ultimately, how much am I comfortable spending to acquire a site visitor, get a demo, a trial or elite? This starts to build the foundation of your marketing strategy. As Kurt Fuller put it, Without a strategy, market is just stuff. The world has enough stuff, so be intentional. Well said, Let's start by being intentional by taking a very simple and high level approach in the homework section 8. Homework: Know Your Numbers: all right, and now we come to the homework section of this course. Now the homework section is one of the most important parts of the course, because this is where we actually begin to apply, which you have already learned. As you can see, we are using Google sheets primarily because it's easy to distribute, and it's easy to update that where you guys are always getting the latest knowledge of the latest information, and so we can constantly be improving the homework section of the course. So on this first tab called Your Numbers, we have homework for you to fill out, and this is called Know your numbers Now, as you can see in this first channel, most organizations have this data. It's very generic. It's very overall, but it's still valuable for an organization. Understand what our goal is to get you to start thinking along different channels. So again, this is very high level. It's very simplistic, but we want you to start thinking of at least these four numbers. See if you can't gather these four numbers, such as dollar spent total revenue, number of leads and customers earned for each of these channels now obviously feel free to copy and paste into other columns here, um as it suits your own business. Now down below. Here these air. Just simple calculations that give you these three primary metrics that we just went through in the session and the course. And so the idea is try to fill out these columns, start pulling in these numbers right here these primary metrics because we are going to be using these later on. In the course now, I put in a blawg link here except found this really valuable. It's an infographic showing you how to calculate lifetime value from kiss metrics the seal . The is often calculated differently depending upon your industry or your market. And so take a look at this. There's obviously different ways to calculate cld. Find the formula that works for you, and then you can add that number in his well. So again, the idea is just to get you to start thinking of these four primary numbers here, see if you can't gather them along these different channels so you can get these primary metrics again. It's very simplistic, very high level, but we're going to die deeper as we go in through session one 9. Step 2: Measuring: all right, moving on to step two. Now that you know a few high level numbers and some important metrics that you can start measuring if you're not already, let's move into some more detailed metrics concerning the user journey. Now let's start by asking the all important marketing question. How do your prospects become customers? And let me follow that up with another question. Do you even know? Do you measure this journey? Do you know the primary steps the bulk of your prospects took to become a customer? Now, before we get too lost in this lengthy discussion, we should define various methods of measuring buyers journeys. Now, just a quick side note. There are lots of names for what we're about to discuss that tackle this topic slightly differently. You'll hear names like the Sales and Marketing Funnel. This is a very popular model, if not the most popular. There's experience mapping for the U X initiated or even the buying process for the more modern marketer Now, although we will take a much deeper look at these in Session three, let's take a brief look now at the three examples and the benefits of each. Let's start with funnels. If you've spent any time around sales and marketing analytics, you've probably come across the term funnels. What are funnels well, by definition, a sales or marketing funnel is simply a tool for visualizing where your prospects are in the process of making a buying decision. A sales funnel, as you can see, is wide at the top because prospects with all levels of engagement enter and eventually the most engaged ones are channeled to the bottom of the funnel to be turned into sales and repeat customers. The question is, why is this set of steps to conversion called a funnel? Well, because of the beginning of the process, there's obviously lots of people who take the first step. Then, as the people continue along and take the next steps in the journey, some of them drop out in the size of the crowd, thins or narrows, and even further along in the process, your sales team gets involved to help close a deal. Sometimes, though, it's easier to visualize the final stages by looking at an actual sales funnel chart. For this purpose, we can agree that you undoubtably want visitors on your website to take certain actions. Maybe you want them to make a purchase, sign up or fill out a form When someone does something you want them to do. It's known as a conversion. In other words, the visitor converts from browsing to taking the action you want them to take. The funnel is simply the set of steps a visitor needs to go through before they can reach the conversion. For illustration. Simplicity. Think about a generic Amazon BTC purchase funnel There are a few steps a visitor has to go through before they can purchase a product. Here's how that journey would look. A user visits amazon dot com. They view a product or product page. They add a product to their shopping cart, and then they purchase. Now these steps can be defined as must have. That is, a prospect must go through each of these steps during a check out process. Now I understand that there's buy now buttons and people search Amazon products via search engines. But for illustration purposes, let's agree to these four must have steps in the Amazon BTC buyers journey. There are additional steps and actions that can be taken in between each of these steps, but they do not matter. In the purchase funnel, for example, a visitor may view multiple Amazon category pages or the Blawg or Contact Page or Careers Page. But we don't need a counties in the funnel because they are not necessary steps. However, these are often important. A study in order to find out if there are valuable pages at a prospect at different stages of the buying process, find useful. So to sum up, these are the three primary characteristics of a funnel. First off is the inflow. Think of the top of the funnels where everyone goes in, such as visiting your website. So when you hear people say, let's wide in the funnel, This is what they're referring to. They want to cast a larger net by advertising to new audiences, increasing their brand awareness or adding inbound marketing etcetera in order to drive more people to their website, thus widening the top of their funnel. The more people there are in the funnel, the wider it is, and this is good, especially the audience is full of your target market. Secondly, on Lee, the most interested buyers will move further down your funnel that is completing actions that you deem important enough to be measured as a conversion. Thirdly, steps and conversions are what drive a visitor further down the funnel. For instance, a website visitor may be at the top of the funnel, but if they subscribe to your blogger newsletter that is counted as a conversion if they download a white paper or case study that maybe another conversion ultimately requesting a demo or free trial or even purchasing a product is the final or macro conversion or really the goal. Now it's important to note you aren't limited to using your funnel strictly for signing up and or purchasing. As if that is the only goal you have. You can put funnels all over your website to simply see how visitors move through a specific website flow, for instance. You may want to track a newsletter sign up so the funnel would look like the one on the left. A visitor views the newsletter sign up form, they submit the form, and then they confirm the email. Right? That's the macro goal. Is confirming an email, or how about a simple page conversion? The funnel would look like the one on the right. A visitor comes from a certain channel, so there's the channel source. They view a sign up page, and then they submit the sign up form. That's the macro goal is submitting the Senate form. The point is this. Figure out what your macro and micro goals are and what you want visitors to do on your website, and then you can create a funnel for it. Once you start to outline the steps and gather the data, then you'll be able to see where roadblocks are and how to start to optimize your funnel. Let's quickly dig a little deeper into this idea. Here's an example of two more funnels that occur every day with consumers. Let's look at the funnel process for a retail store and then see the corresponding steps in an e commerce store. So, for instance, the retail store the customer walks into the store. Step one. The customer looks at products. They grabbed the items and put them into her cart. The customer walks to the check out, and the customer completes the purchase with the store clerk. Now for the commerce funnel, you'll notice that it's very, very similar the customer visits the e commerce website. The customer views of product page or page is the customer adds the item to her CART customer, enters the check out process and then finishes the check out process and clicks purchase. Now the e commerce store has the fortune of actually being able to see a funnel. That is, we can attach data points to everyone of those steps, and we can measure this user journey from the start of the funnel all the way down to the macro goal. And so, with a funnel report, you can see where you are starting to lose customers. That is where customers air starting to drop off. As you could see, the benefit of funnels on digital channels is that you can use software tools to keep accurate numbers while tracking customers through the funnel. Let's look at a funnel for a SAS product that may hit a little closer to home for many of you. In this example, a user visits a website. They signed up for a free trial, the user trials of product and then upgrades to pain subscriber. You can see that we can start to add exact numbers to each step. The funnel Because this is a digital channel now, obviously you got Ask the question. Do people have to trial a SAS product before pain? Generally? No. But it's a good idea to track it, so you can see if it's a roadblock for them. This is how that funnel would look with both numbers and conversion rates. Do you see, by looking at this funnel any obvious opportunities? Possibly such as between used product and build? In this example, the business manages to get 100 and 50 people to use a product, but only 11 people convert to build. That's less than 110.4% of all visitors. Now I understand there are opportunities for improvement at every step the funnel. But it's important to first work on the areas that need the most attention. The more people they can convert to build, the more revenue they'll have. This should be the first area the funnel to optimize again. We'll look at this more in Session three, but I want you to start to see the whole picture before we dive in too deep. All right, up next, we'll dive into the experience mapping, which those air you familiar with UX and design may have had some experience with 10. Experience Mapping: so we have just looked at the common sales and marketing funnel. Now let's take a look at experience mapping or the customer journey map, which adds another layer to a typical funnel to make it personal and real. Hence the experience. Part of it you see a customer journey map or an experience map is an illustration that shows all the different steps that your customers go through as they do business with you over time. In addition to showing just what they do, as in a typical funnel model as we just saw, it also shows customers thoughts, their feelings and emotions. Now the goal of the customer journey map is to get a holistic view of what the customer's going through from their point of view and really what it's like for them on a personal level, the human level. Now, quick side note. This means you will actually have to start talking to customers and prospects. I understand most marketers like the high beyond the computer screen and just look at the data. But this, too, is data very valuable qualitative data every year on becoming more and more convinced of the necessity of this kind of customer journey map because without an understanding of how consumerism is evolving without a true sense of customer centric city businesses will continue to sell, market and serve customers from a position of assumption rather than purpose. You see the future of customer relationships and business in general lies in experience architecture. This means that businesses must assess what the true experiences related to their brand products and people, not solely in the blur of metrics and endless excel tables that do not measure users feelings, opinions and frustrations. Let's take a look at another experience map. As you can see from this experience map. There are varieties of styles to each one, but the benefits and the goals are the same. For instance, you're able to identify crucial touch points that have the biggest impact on customer satisfaction. It also helps you focus your website towards the user, not yourself, not the business, into something more. Called the user centered design, you're also able to better identify the users potential needs and wants before they're even able to express it. It can also provide you with a clear presentation of the whole process. The holistic process carried out by the user, which can eventually help with client presentations and pitches similar story boarding. It can also summarize the information that you already have about users and their behavior , and lastly, it helps you locate additional U X improvement opportunities as well as the areas where there's a risk of dissatisfying the user. So if you were to ask me what is the point of experience mapping? I would identify at least these four areas, and this is why I use experience maps. First off, it uncovers the truth. You begin to understand the rial touchpoints, the pain points of your users, what parts to customers touch and do not touch. How do they feel when they interact with certain elements and engage with other pages? Secondly, it helps you chart the course. You're able to collaborate to synthesize key insights into a customer of journey model. Thirdly, it tells a story so you can have empathy and understanding into what the user is going through. And lastly, I would say the point of experience mapping is to use the map so you can create new ideas and better customer experiences. This isn't to go through an entire exercise So you have a really neat display of a user journey. No, it's so that you can learn from it and then integrated into your business and design and marketing processes in the future. Now we'll talk more about this in the next section when we address building personas in the belief framework. But I want you to be at least a little bit aware of what a buyer's journey looks like. So you can start to identify the different touch points of various groups of buyers in your Beiring journey. Finally, in the next video, we're going to take a look at the buying process. 11. The Buying Process: So far, we've taken a look at the sales and marketing funnel, which is the most popular model by far out there. Secondly, we took a look at the experience mapping model, which is far less popular but has gained traction in UX design as it allows insight into what the customers actually feeling during the buying journey. And thoroughly, we're going to be taking a look at the buying process. The buying process is just another way to look at the buying journey. This specifically what you see on the screen here is an example of hub spots. Inbound marketing methodology. As you can see, this is basically the funnel turned on its side. But for argument's sake, let's focus on the differences. As we go through this. They'll keep in mind. Buyers don't want to be prospected or demo door closed these steps at zero value to the buyer. Buyers are looking for additional information about your product that can't be found online . Remember, this is helpful for you, not the buyer, so you can personalize your sales and marketing process to the buyers context by understanding buying journey. What is the buyers process? Well, the buyers process is similar to the buyers. Journey in a funnel. But it's more general. It refers to the overarching states at a buyer goes through to become aware of, evaluate and purchase a new product or service. At its core, this journey is a three step process. The awareness stages when the buyer realizes they have a problem. The consideration stages when the buyer defines their problem and starts to research options to solve it. And thirdly is the decision stage, and this is where the buyer eventually chooses a solution. Now, obviously, there's more stages than just these three that can and have been added to other buyers journeys. But this is the most basic example. Now let's take a look at each stage identified by Hub Spot and asked him important questions that will help you put together the buyers journey for your company. The first stage is the awareness stage, and during the awareness stage, buyers identify their challenge or opportunity they want to pursue. They also decide whether or not the Goler challenged should be a priority. In order to fully understand the awareness stage for your buyer, you gotta ask yourself a few questions. First off How do buyers describe their goals or challenges? That is, what do they hope to achieve and what is keeping them from achieving these goals. Secondly, how do buyers educate themselves on these gold or challenges where they go and what they consider valuable? And then you should be able to prioritize that list. Thirdly, what are the consequences of inaction by the buyer? More than just not making their numbers? What about frustration, embarrassment, confusion? Maybe their job depends upon it. You've got to be able to identify that, fourthly, are their common misconceptions buyers have about addressing their specific goal or challenge. It's like the old adage you don't know what you don't know. As an example, I work with an organization who informed me that if their prospects don't use their service or a service similar to theirs than that prospect would be breaking the law in their industry now, obviously a lot of them don't know it. And so this organization that I work with spends a great amount of time in their marketing messages and content material, educating and informing their prospects of the Galati of using a service like there's This is where you have an opportunity as well to educate people during the awareness stage. And, fifthly, how do buyers decide whether the goal or challenge should be prioritized? That is, what are the pressures that makes them decide one goal or challenge over the other. You can see how knowing these questions will start to direct you into creating the right content. The second stage of the buying journey is the consideration stage, and during this stage, buyers have clearly defined the Golar challenge that they personally have, and now they're committed to addressing it. They evaluate the different approaches or methods available to pursue the goal and solve their challenge. So you gotta ask yourself, at least these four questions. First off, What categories of solutions do buyers investigate? Have you or can you categorise the different solutions? Secondly, how do buyers educate themselves on the various categories? Is it obvious to them that there are different categories, or do they lump every option in your industry together? Thirdly, how do buyers perceive the pros and cons of each category? How important are the pros and cons? Can they be prioritized as well? And fourthly, how do buyers decide which categories right for them are their list of features and benefits that a buyer can relate to. These are important questions to ask and understand, because these are the actions that common buyers take when they're starting to consider solving their challenge or pursuing their goal. The final stage of the buying process is the decision stage. This is the stage where buyers have already decided on a solution category. As an example, let's use one of our favorite topics. Filing taxes in Category one. You can do it on your own from files you have printed off from online. I probably wouldn't suggest this route, but this is a category nonetheless. Secondly, you could use an online service or software like QuickBooks or TurboTax. Thirdly, you could use an accountant, right These air different solution categories well at the decision stage, a user has already generally decided on a solution category that is right for them, and so now they begin to look at competition within that specific category. So here's five questions. You should ask yourself to define the decision stage. First off, what criteria do buyers used to evaluate the available offerings with in that solution category is a price. Is it qualities that availability support? You got to be able to understand and prioritize the top criteria and then own it. Secondly, when buyers investigate your company's offerings, what do they like about A compared to alternatives and the competitors? What concerns they have with your specific offering, you should be able develop a pros and cons, a likes and dislikes list, and then you should enhance and promote the legs while being honest and fixing the dislikes . Thirdly, who needs to be involved in the decision making process? Who are the stakeholders? Have you identified these people for each person involved? How does their perspective on the decision differ? Now we're gonna look at this later when we develop personas and start to tailor content for each of the stakeholders. But it is still important for you to be able to identify who these stakeholders are. Fourthly, do buyers have expectations around trying the offering before they purchase it, such as a 14 day free trial or freemium content or a live demo? What does your market need and what can you support? Or do you need to support Fifthly? Outside of purchasing, do buyers need to make additional preparations, such as implementation plans or training strategies. Do you have these steps clearly outlined to reduce on boarding concerns or costs? Now the answers to these questions will provide a robust foundation for your buyers journey . So let me ask you, how do you define your company's buying journey? If you don't have an intimate understanding of your buyers and are able to answer these questions quickly and clearly, then just start conducting a few interviews with customers and prospects or other sales people, your company to get a sense of the buyers journey and the struggles they face and the questions they have. 12. Homework: Buyer Journey Questions: the second tab for session when homework in Google Sheets is called questions. And really, it's identifying the buyers journey questions. So we have built out this very simple metrics for you to start in putting the data. We just went over in the video Siris for you and your team or just for you to gain a better understanding of your target market and the process that go through. The idea is that you formulate in your mind and put it down in this Google sheet in a tangible form. The various wants needs and pain points of each buyer persona. So, for instance, what are the goals and challenges of persona one, That is, what do they hope to achieve and what is keeping them from achieving those goals? How about education? How do buyers educate themselves on these goals and challenges so to the consequences? What are the consequences of inaction by the buyer? Now, fill out this Google sheet in conjunction with watching the videos. You may want to go back and re watch them as I walk through each one of these primary points again, the goal is just for you to formulate in your own mind and put it down in this Google sheet . The various wants needs and pain points of each buyer based upon each one of these topics in the awareness stage, that consideration stage and, of course, down in the decision stage. Now I have put in here three personas to start off with. You can obviously replace this with whatever persona you have. You don't have to fill out all three personas. Start with one. Make it very simple, high level, and over time you can improve this chart. But the idea is you have one place that you can constantly go, and so that you and your team can say, What are the goals and challenges for persona one? Well, we have already defined them and again over time this is going to evolve. It's going to improve its going to grow. But there needs to be a central location where you always go and you come back to and you work on you and you think through and you wrestle with not just with yourself but with your team as well. Each one of these factors and again don't be limited to just these five factors for the awareness stage you can add to this. You can take some away, find out what is meaningful to you and your target market, and then build out your own buyers journey questions. 13. Step 3: Conversion Rates: Welcome back to Step three in building out your model. Now, we've already taken a look at the 1st 2 steps of this process of building out your model, which is number one. You've got to know your numbers. That is, you must be measuring the right metrics and secondly, defining the user journey, which includes both conversions of steps and primary goals. And now we come to Step three, and that is knowing your conversion rates. Once you're able to measure and gather the right metrics for the various stages or steps of a buyer's journey. Now you can start to calculate conversion rates. Now I want you to note we will talk about this a lot more during Session three with CR Oh, but for now we will walk through a quick, high level overview of the basics in light of the entire funnel. But first, let's define some basic terms concerning conversions to make sure we're saying the same thing. Let's start with the most basic term conversion. What is a conversion. Now we're going to spend an entire section on conversion rate optimization, as I just said, where we will look at this topic from every angle. So for the purpose of this discussion, let's give a quick and simple definition in order to agree on a metric that should be measured. A conversion is any desired action on the user behalf that you define. It could be a purchase. An old fashioned phone call. Contact forms Mission A, a newsletter. Sign up a social share, a specific length of time a visitor spends on Web page playing a video downloading content . Really, any action that you define is a conversion. You may be a rock start this already. But many of the small businesses that I need on Lee have a gut sense of where their new business comes from because they haven't been identifying or tracking their conversion through any process or funnel. I have even found this with large organizations worth hundreds of millions of dollars. Now, all those this may seem basic. I will continue to repeat myself until companies grasp this and begin effectively tracking conversions because knowing your conversion rate or conversion rates is the first step in understanding how your marketing and sales funnel is performing and what marketing avenues air giving the greatest return on investment. So the most important next question is what is a conversion rate? If you're engaged in B two b lead generation focused marketing and you've got a limited marketing budget. You're probably trying to decide how to allocate your funds that you can get the most qualified leads, right? Well, one of the main criteria for making this decision is the conversion rate for each marketing channel you have under consideration. So we come back to the question. What is a conversion rate? Well, the conversion rate is the percentage of users who take a desired action and digital marketing. A conversion rate is usually the rate at which a website visitor becomes a lead, essentially by filling out a form, for instance, to share their contact information with with the understanding that you will continue to market to them. Conversion rate can also mean the rate at which leads leads, become marketing qualified leads than sales leads and finally, customers or really perform any action that you have identified. In essence, conversion rate is just a generic term that tries to describe the rate at which customers take the actions you want them to take in order to progress from one stage in the marketing funnel to the next. Now let's take a look at the marketing funnel once more to make this clear. All right, this funnel should look familiar. We have just taking a look at it A few videos ago when someone on your website does something you want them to do, such as a sign up, make a purchase, fill out a form, etcetera. It's known as a conversion or primary conversion. This is usually identified at the bottom or the last step of the funnel. Now, as you remember, a funnel is used to track the steps that lead up to that conversion. For example, e commerce companies want people to purchase products on their website. Right? That's the primary conversion is purchasing products so their funnel would have steps like visited site number one. Secondly, viewed product place products in cart and then purchased. Using a funnel report. You can see where people are beginning to drop off in the path to conversion and where conversions are low, which is why it is important to find a software that provides the right metrics and automation for your organization. But to sum up for now, conversion rates are simple math calculations based on the numbers from the different stages of your buying journey. So, for example, let's say you have 1000 website visitors per month and 30 of them purchase a product. You've got a conversion rate of 3% 30 out of 1000 right to shift to a B two B. Example. The calculation for a lead conversion rate would look like this. Now I know lead conversion rate is a narrow focus at just one stage of the buyers journey. But this is often the most popular and most measured stage of the conversion process, probably due to this stage, bringing in the dollars now What I want you to note is, before you can calculate these rates, you need to define what type of action defines lead conversion in that particular campaign . More often than not, lead conversion is defined as being accomplished when the lead becomes a paying customer, all right, but convergent in itself can mean any other customer behaviors, such as becoming a newsletter subscriber, downloading your white paper offer, signing up for an online seminar, sharing content on social media or a specific length of time spent on your home page. Once you've clearly defined what a conversion is, you now know what to measure at how to compute your lead conversion rate using this formula . Now, if your conversion is defined, his lead to become new customers than the formula should look like this. Lead conversion rate equals number of customers divided by a number of leads. Conversion rates are equal to the total number of conversions, divided by the total number of leads and multiplied by hundreds to get the percentage. So if you had 100 leads and 20 of them became new customers, your lead conversion rate is 20% simple, right? But that's just a start before moving on. Here's a quick word of advice. There are limits to conversion rates. It's important to remember a marketing channels conversion rate is not the be all end all when it comes to deciding where to allocate your marketing budget. Other factors such as cost per lead, lead volume and lead quality definitely need to be a part of the decision making process, and we will take a look at the's in much more detail during the C R. O session. For instance, attending a trade show is usually a costly endeavor and doesn't yield a huge number of potential leads compared to the costs right, if you're experienced with trade shows, you would be not in your head right now. So while contacts made a trade show may have a high conversion rate when it comes to turning them into Leeds, prospects yielded by trade, you activity will likely end up with a high cost per lead because you spend so much money getting into a trade show. On the other hand, while social media advertising may have a relatively low conversion rate, it is also much less expensive than mounting a trade show and has ah much larger reach, meaning that it has the potential to deliver. MAWR leads for a lower cost. However, when it comes to looking at your digital marketing mix where all market and activities are relatively inexpensive and conversion rate data is abundant. Comparing channel conversion rates can be an effective way to decide which channels you want emphasize. All right, that was just a quick word to the wise. As we look at conversion rates, it's important to know what a good conversion rate is, and so we'll take a look at that in the next video 14. Industry Averages: let me start this section by asking a question. Do you know what the average conversion rate for your industry is? There's nothing worse than an employer boss coming in and telling you that the average conversion rates globally are 5% and therefore we should be at 5%. What they failed to take in account with these generic statistics is that there are variances that can and do occur across industries and markets and regions and time of year . Right Seasonality is a huge factor in conversion rates because conversion rate averages will very depending on all these factors, including what industry you belong to. You need to be aware of these figures on this chart to accurately gauge if your lead generation campaign is a success or if there's room for improvement now. Recently. Marketing shirt that did this study to determine the average website conversion rates by industry again take this somewhat with a grain of sand simply because your seasonality, your industry, your market, it's all going to fluctuate. And so your historical metrics are extremely important when you come to finding out your average conversion rates. Nevertheless, this study by marketing Sherpa found that the average convergent for a website. In the manufacturing industry, for instance, the rate at which an anonymous visitor fills out a form to identify themselves is 4%. This is, in contrast to, say, the financial service sector, which converts at 10%. But I put this up here as well to point out something that the study underscores, and that is a lot depends on the definition of conversion in these industries. Perhaps a conversion for the financial service sector is just a email dress. Well, for retail, it's everything from name and address to buying preferences. That is why it is important to get more granular and actually start to take a look at conversion rates down the funnel. Here's an example from Cap Terra for just the software industry alone. Now, this example breaks down the funnel or buyers journey into four stages, allowing for three conversion rates where visitor becomes a lead, a lead becomes a qualified opportunity and qualified opportunity becomes a sale. As you can see, according to CAPT. Era, the conversion rate average for lead generation that the first calm in the software industry hovers between 5 to 10% an important part of tracking performance is seen here is looking at convergent rates at each stage of the sales process. When we're talking about conversion rates, MQ wells or marketing qualified leads and SQL sales qualified leads, those are the two columns on the right. They provide bigger opportunities because they have been identified as Leeds who want to hear from you and learn more about your product. On average, SQL conversion rates higher than ampule conversion rates because these air leads that have been identified as those who are interested in your product and therefore have a higher propensity to buy for this reason. Not surprisingly, it's much harder to convert top of funnel visitors compared to those farther along in the sales funnel. That's evidence in this chart by the fact that 7% of Web traffic was converted into a lead , compared to 36% of those leads that well qualified into a sales ready opportunity. But put it in perspective. Once you get that crucial contact info and you're able to qualify them, you're working with someone who wants to hear from you and wants to learn more about your product. So moving a known prospect over to the sales team becomes a lot easier than convincing an unknown visitor to fill out a form right Common sense. Now quick side note. While 7% is a good benchmark for a software website conversion rate, that number can differ dramatically, depending on the ad channel. For example, word stream did analysis of B two B conversion rates on thousands of Google AdWords accounts, and they found that the average conversion rate for BTB advertisers with just 2.23% with the top performing accounts reaching up to 11.7%. Of course 2 to 11.7% is a pretty big range of performance. But most of the disparity comes from the difference in ad channel and quality of traffic. That comes from an ad word campaign versus any visitor to a software website. So if you're getting lots of clicks but no conversions, you probably need to make some changes to increase conversions with your landing page. Does the landing page provide the info they were expecting based on the ad copy and the key where they searched? Is there a strong offer that they'd be willing to submit their contact info for or is it super generic and bland? The important thing to take away from this data is to not just compare your numbers against the averages or of another industry, because your lead gen goals may differ. Ideally, we take it one step further by measuring the average conversion rates by channel for our industry. Marquette Oh, the B two b marketing automation platform did conduct such a study by analyzing over 4000 of its users account data. Now, While this information isn't specific to any industry, it does provide some instructive information about which channels perform the best when it comes to conversion rates. Now you should have a chart similar to this. If not, you should start measuring as much as possible on gathering your own data and average is that you can benchmark in Bhola. From now, we can see here that inbounds strategies, including on site and off site s CEO on blogging, yielded an average rate of 3.82% paid marketing or online advertising such as search paperclip campaigns that resulted in 2.98% conversion rate on average. Social Media clocked in at 1.95% now. This study by Marquette also includes conversion rates for offline Lee generation strategies such as sales prospecting. So what is what is this data tell us. As marketers now looking at the result, here's what should stand out to you if you want to start taking a look at potential channels that have higher conversion rates. First off, I see referral the power of word to mouth right. Referral is by far the highest acquisition channel for conversion rates, almost four times the average. In fact, some of the largest, fastest adoptions things like Gmail and Drop boxer Zappos. They could be credited directly toward of mouth. So what's the take away? Build a great product? Build a great experience, tell the world actually customers to tell the world and maybe even reward them to do so. And you'll profit. Referral is a powerful channel. Secondly, I noticed inbound. Now content is king. If you've been around any sort of marketing seminars or conferences or a marketer period, you would have heard the term content is king now. Bill Gates predicted an article written in 1996. He said this and I'll read it to you content is where I expect much of the real money will be made on the Internet. 1996 He said that now, over 20 years later, this couldn't be more true, especially in the digital marketing era, where choice and content is in the hands of the consumer. Imagine a papa bad, such as an outbound marketing channel versus a funny infographic you chose to look at that's inbound. Did it clearly shows that people who choose to interact with your brand naturally convert higher, evidently, is 20% more than paid marketing. What are you doing to build content to support your customers? Journey and engagement? Another thing I see here is sales prospecting as mining for leads. Now, to be honest, this one is a bit surprising. Leads source from prospecting. Convert at 1/3 off overall average. But this goes to show you how old fashioned prospecting such a door to door or cold calling just doesn't work well. Compared to other sources, it isn't uncommon these days. For me to hear about companies was 60 to 80% of their lead source for marketing. It's much more efficient. Have sales do what they do best selling, Not cold calling again. No your industry. Know your market study of numbers and make your own conclusions based on the data. Finally, I want to point out email and nurture e mails have the lowest conversion rate. Did you see that? Does that shock you at all? Now, obviously, don't fire your marketing team email marketing team. I should say this is just showing conversion rate by acquisition channel, which means if you're lead source came from e mails and nurture, you're doing something wrong or you're just desperate or you're a spammer. Which also explains the bad conversion rate. It is important to note that emails and nurture both have an amazing our ally for multi touch attribution after you've acquired that lead now. These statistics, though, are just for top of funnel conversions. Email and nurture. Campaigns, of course, are designed to usher already identified prospects down the lead conversion funnel towards sales. In other words, e mail and nurturing are middle of the funnel marketing techniques that no business should rely on to fill the top of their funnel. All right, let's take a look at one last chart to wrap up this section now this chart shows the lead quality by channel, that is, the number of leads and conversion rate by channel. Are good numbers to measure? No, but how good are these leads? That is, you can get a tremendous number of leads from one specific channel, but are they good? How did they perform further down the funnel? Now here's the results. This chart shows the results of, if by phone study of the approval ratings from marketing channels that convert the highest quality leads. Now what I want you to note is that these are middle to bottom of the funnel conversion rates right when it comes to converting leads into sales, the marketing mix that helps make these sorts of conversions happen is substantially different than the top of the funnel techniques. Here's the take away. Based on these findings, how is your business performing now? Keep in mind no matter where you fall in that rangers always something that can be tweaked and improved. But what can you do to improve and again? Don't use these average conversion rates as the be all end all as though you have to be exactly here. I'm just using these as a reference meaning. If your email marketing conversion rate is 0.1% and you take a look at these conversion rates, well, you might wanna take a look at your email marketing and say we are way off base compared to industry standard. Now, the purpose is not to depress you, but to empower you to measure and understand where you are compared to industry standards. If you're below, then you can improve. If you are at or above industry averages, then you need to maintain and also constantly improved because you can bet your competitors are not sitting still. All right, one final note before we move into the next section. And that is when you see all of these numbers that I just showed you the average conversion rate, it's hard not to compare him. Judge your campaigns performance. The point of it is to make sure you're considering all of the factors that go into that conversion rate. For example, One Cos. Or one industry's average conversion rate can be higher than other channels due to a number of market factors. That doesn't mean your channel specific campaigns are performing poorly or perfectly in comparison. The trafficking leads are just different. So your data will reflect that judge the performance of your campaigns based on your success metrics and goals, not the industry averages in benchmarks. I provided this data to help you get an idea of what the landscape is like for similar campaigns, not as a right or wrong answer for how your campaign is performing. So just make sure you're considering all of the factors that go into your conversion rates . 15. Step 4: Building Your Model: And now we come to step four of building out your model. We've already taken a look at the first few steps. That is number one. You've got to know your numbers, right? You gotta be measuring the right metrics. Secondly, you've got it to find the user journey, including both conversions of steps and goals. Thirdly, know that conversion rates just mathematics, which hopefully you've started to measure an analyze in the homework module previous to this video. And fourthly, we finally come to building out your model. That is now we can knowledgeably put together all that we have looked at into historical models again. I feel it's important to say if you're not building historical models for each channel and campaign type, then you're going to simply be guessing at what marketing activity will work for your future. Campaigns, in fact, underscore the need for building models. Let me show you a few typical hypotheses in the marketing world today. Do you happen to see a common thread here? And many teams that have worked with the common answer toe how to fix marketing deficiencies is mawr. We need more of everything. More. Blog's more monthly. Webinars more daily social post. If we post one today, we should post twice a day. How about a larger lead database so we can pummel consumers with MAWR? Of our e mails, we have, AH, 100,000 leads in our database. We need 200,000 leads. How about in e book? I mean, do you know how much time and effort goes into an E book? Six weeks to people. A copywriter designer, maybe even the CME, Actually, probably the CMO with his hands all over. It may be a director, too, and it'll probably cost you about $50,000. Once all is said and done, you get the idea. The hypothesis in too many marketing departments today is very simple, but common. We need more, however. What if we develop models? A plan campaigns scenarios based on research and experience that will actually move the needle. Let's start with a basic model example. No, I'm building out these models. I'm going to use the traditional sales and marketing funnel simply because it's easier to diagram now. In this example before you, this is what we know. The historical conversion rates we know the annual contract value of $2500 target payback periods 12 months again, we're keeping it simple and percentage of demos from a specific channel. These are historical numbers. This is something that you should be able to gather now in this case. Assume we're referring to organic traffic. This will obviously work with most channels. Now that we have, these numbers were able to answer two very important questions. Number one. How many visitors do we need in this example? It is visitors, but you can build backwards to any number, whether it's demos, lead subscriptions or emails, you really database again. This could be done for any channel individually based on historical numbers. Second question. What are we willing to pay for each visitor? Now that we have this information? These historical numbers, let's plug it into a basic model. Let's start with the targets. Most companies have targets or goals for 1/4 year, right? The purpose of Bolena model is to more accurately predict how to achieve your goals of your targets based on your current numbers and conversion rates. Therefore, we start with the target of the goal and move backwards. In other words, we're going to be building a reverse funnel. Now, if our goal is 30 pain subscribers, then based on historical conversion rates, we would need if you track it all the way back. 7500 organic search visitors again based upon the conversion rates. Historically, now the annual contract value is $2500. Then, if you track that all the way back to organic traffic, we would be willing to pay $1 per organic visitor again. This is based upon historical conversion rates Now, since organic is not something you pay for, you could relate this to how many visitors did a block post bring compared to how much it costs to produce that blood post. Now again, this is very crude math. But bear with me for now. If you spend $150 on a block post and it brought in 300 Web visitors in the last 12 months , then the assumption is that it paid off. This is also assuming there were no other benefits to having a blogger article in that visitors is the only measure of a blawg post value. Now they're true, but you can see how this starts to bring value when you build models for other channels, like paid or social or partnership channels that you are actually spending a defined dollar amount on. Now again, this is just the starting point. So it's a side note. Numbers do fluctuate for seasonality, so it is best to measure 12 months in numbers as your baseline and then compare the seasonality to a specific quarter a month that you'll be running your marketing campaigns. 16. Knowing the Value of a Lead: let me start this section by asking a question. Why is it important to know the value of a visitor or lead from a specific channel? Well, when you know what the value of a lead is, you can determine how many leads you need each month to sustain your business and how much you should be paying for things like advertising or visitors per channel leads from partnerships or email sent. All right, this is true whether you're using paper, click or really any channel for that matter, especially when you segment the value of a lead by channel. And so this formula that you see here really works. Conversions needed, equals desire, revenue divided by lead value. Let's simply really quickly look at another example Now. This example. Let's say you need to generate $15,000 of new revenue per month afloat your business. Now each sale of $2000 actually cost you $1000 to deliver. The profit on each sale is really $1000. If two out of every 10 leads actually converted into a sale, then we could say the conversion rate is 20% right to sales. Divide by 10 leads to back that up than each lead is actually worth $200. Therefore, the conclusion is, if our goal is $15,000 per month, then we would need 75 leads. Now it's worth noting most. Org's will use a very simplistic example. Using revenue generated, a more accurate option would be to use the profit generated by sales is seen here, and not just the revenue. But many businesses have difficulty defining this number, so just use revenues a guide even if you use revenue instead of actual profit. As long as you're constantly tracking these metrics, you will be able to make much more informed decisions and going off your gut. Hopefully, you can start to see the importance of taking a more scientific approach to understanding your sales final. It can help you determine things like the number of leads you need to get each month to float or improve your business. Or how about how much you can safely spend on advertising without throwing your money away or what. You can hope to expect a return based upon historical numbers. Now if someone asked you how you are going to achieve your goals you can actually answer with a bit more confidence and clarity, especially when you start to build out models for your different channels. So let's look at a quick example. Here's an example that shows high level, the average lead value per channel, and we can see using basic analytics, the number of leads sales, the resulting conversion rate and ultimately, the lead value. Now, in this example, the question is which one is better? Which one will help me reach my marketing and business goals Now, before we dive into these and many more questions a couple things to note. First in this in the business world, things aren't always so simple. Not all sales are going to be equal. Some sales will be a home run, and others won't right. Also. Secondly, the conversion rates are gonna be different. Depending on the traffic source. You may find that leads generated by page search convert better because you've been hyper focused on your advertising or using keywords with extremely high commercial, intend or or targeting customers that are very local to you. Lots of different reasons why there will be different conversion rates, this chart again and really the point I want you to see is that the value of a lead may be different, depending on the lead source. From this, you can see that elite generated from your paid search campaign is worth more to you than elite generated from organic search again as a side note, if you have Google analytics installed on your site and you should, you can determine the average lead value and enter this into your analytics goal. Then Google Analytics will do most of the hard work for you. However, if you just stuff the average revenue value into the gold value, you'll see highly inflated numbers that won't make sense, as as not every lead generated from the website will actually result in a sale. Just a side note about Google analytics. But the point is this. Using a realistic lead value as your goal will give you a clear insight into how your website is performing compared to other channels. And that's the benefit of building out these historical models because without the historical models, you can't build out future scenarios and determine our ally, and that's what we're going to be looking at next 17. Homework: Build The Model: Now we come to the fun part on the fourth tab. Session one, homework, you will see. Build the model. Now, some of this should be familiar to you. Based upon the third tab where you actually built the top part of the funnel in this building model, you're actually going to carry it all the way through the funnel. Both the sales and marketing funnel. And so this is example. Is it be to be organic? I just simply filled out some of this information here where they visited the website, requested a demo and filled out request a demo form. This should be familiar from Tab number three and cold funnel. But then we continued on down to all the way to pain subscribers and again, the conversion rates. Papa. Now, the reason this is still beneficial is we now begin to answer these two questions. And really, we're jumping ahead of ourselves because this is the final stage of building out your model , and that's really building future scenarios. And so you'll see more of this in the coming videos. But the idea is that if you have these historical values and these historical conversion rates, then you can start to answer these questions. How many do we need? How maney of each of these do we need and what are? Well, what are we willing to pay for each now? Obviously, I just put in some random numbers here. But let's say you said I need 15 new subscribers, so we put in 15. Yeah, all the numbers change based upon these conversion rates here and now, you can see as you work back up through the historical conversion rates, you're going to need 37,500 website visitors in order to get 15 pain subscribers. You'll also see here based upon the lifetime value or how much each subscriber is worth. How much you're willing to pay at the very max, right? This is at the very max how much you're willing to pay for a website visit. Now, this doesn't obviously mean very much for the organic channel, but you can see how this is going to play an important role when you're talking about pay per click or social or your pain for ads on a partner website, just again put in all the historical values and now you can start building your scenarios, so have fun with this again. You can copy and paste this whole section and just start building out as many models as you want again. These two columns will be covered in future videos in this session, so it will help you understand these numbers a little bit better. But the idea is now you can start building out scenarios, so you take out the guesswork for future marketing campaigns. Again, these numbers aren't perfect, but it's going to be a lot better than just going off your gut or just kind of winging it. So have fun with this enjoyed and let me know if you have any questions. 18. Step 5: Building Your Scenarios: And now we come to step five of building out your model. My favorite step. This is where all of our hard work finally pays off. Now we've taken a look at the 1st 4 steps already. First off, we have to know our numbers. We must be measuring the right metrics. Second, we needed to find the user journey include both conversions of steps and goals. Third, we need to know or conversion rate simple mathematical calculations, which hopefully you have already worked out as well. And fourthly, something I hope you've also done is building out your historical models based upon historical data. Now we begin to build campaign scenarios. Now let's to find this first a campaign scenario you can read along. It's simply a hypothesis or educated guess based on the metrics of how much it will cost to earn a leave from specific channels and marketing campaigns, right. This is based upon our historical models. This is the lowest hanging fruit. By doing this, you can begin to see which campaigns and channels or week another strong or which ones need work or will be a success in setting up campaign scenarios. It is really a hypothesis on what will work for future marketing efforts based on historical data. Now we do this naturally all the time. Don't me, for instance. Let's say every time you visit a certain restaurant, you get sick every time you learn after a while that you should avoid that restaurant, right. Future behavior based upon past effects, past data. A really bad analogy, I know, but it illustrates what we're doing here. In other words, this is experience based on historical data that is being formulated into a model that lets you determine with some accuracy. Future are alive. Your marketing efforts now compare this to traditional marketing departments. At this point of the discussion concerning future marketing efforts, the gloves come off in the conference room and business politics come to the forefront and generally hippo winds, right? Highest paid person's opinion wins. However, with this model, we have now introduced a reality check you can see now Is it believable? Is this hypothesis really good inaccurate? Is the campaign going to pay off? We can start to see if an investment in a marketing campaign is really going to be worth it before we even start so Let's look at an example now Here's the sample scenario, with sample numbers at the very bottom of the funnel from two separate channels. Organic and social. Now let's see. You have a decent organic presence. It could use a lot of help, but you are garnering some non branded traffic. On the other hand, you have a very passionate and talented social media group who was driving a ton of traffic through both legitimate campaigns and the fair share of Clickbait. Let me ask this is traffic a good enough metric for success? For many people and marketing apartments, the answer is yes. When you look at this table, though social has three times as much. Traffic is organic now. Obviously, I'm using fake numbers to make a point, but I have seen this philosophy on a regular basis. The common result. The coming conclusion is that social is better than organic. Just look at the traffic, However, just a cursory, high level overview of the leads, sales, conversion rates, average lead value and revenue starts to tell a different story Right off, you can see that social visitors conferred at a much lower rate leads to sales for instance , is 50% vs just 9% again exaggerated numbers to make a point. Social visitors also purchased less right hence a lower average lead value. And we see the end result of revenue the most important number for any business being dramatically different. Although Social was pulling in far more traffic, the conversion rates leaned in favor of organic. Hence the much higher revenue. Again, this is a very simplistic example, but I want to underscore why metrics are important by looking at goals and targets. Let's say your goal is to earn an extra $10,000. You can see right off that once you start to look at the numbers, it is difficult to justify achieving your revenue goals. By targeting justice Social, you would need 15 new sales and 100 and 70 new leads based upon your historical metrics and conversion rates. Now, this doesn't mean you neglect social campaigns entirely, but you are now able to place the proper priority on right channels and campaigns. Let's look at this sample scenario in funnel format again. The purpose of doing this is to do a reality check. Do the numbers add up? Let me set up this scenario again. Your goal is an extra $10,000 right? So new sales from organic would be eight new sales from social would be 15. This funnel shows a 50% close rate from SQL accounts for organic and 9% for Social. So the new leads would be 16 for organic versus 170 for Social. Now, let's say both organic and social. Convert mq of the X SQL at 80%. This is normally a very high percentage. Let's also say that 20% of prospects convert to M cules for both channels. Again, we'll keep. We'll keep the conversion rates similar here, and you would add in your own specific numbers. So the visitor to em que el lead would be 0.66% conversion rate for organic and 0.51% conversion rate for social. Take my word for it right now. Go back and do the numbers in a bit. But here's here's the result. I just put in kind of the final numbers for you. We would need 3000 new organic visitors, which is an increase of 20% from 15,000 to 18,000 that's doable, right? It's going to require a lot of work, but it is achievable, achievable to grow by 20% social, though we would need to deliver over 40,000 more visitors. That is nearly double the amount of social traffic that is already being generated. It's possible, but it is a long shot to meet your numbers by going the social route Now. Obviously, the conclusion should be obvious again. It doesn't mean you neglect social only for Ganic, because social is still working. However, when choices have to be made concerning marketing dollars, you are now able to show a more predictable our ally for marketing spend. This is not going to be accurate 100% right? I think we can kind of understand that. But the point is, is you're going to be much more accurate than if you're just to take a blind stab in the dark. Now, if the goals don't work for any combination of funnels, then you have one of the few options. You either have to take another look at your goals, talk to your leadership and say we've got to reduce the numbers or you have to dramatically increase conversion rates, which is possible through sorrow. Or you will need to identify how to place more visitors in the funnel through some other channel or method. That's S E O and obviously optimizing other channels. The question still remains. What is the hypothesis on the source of Best Em que els All the answers. MQ wells can come from anywhere, but we need to scientifically find the best source of R A Y and identify weak areas we can work on. The point is simply this metrics can really help here. Now, we're gonna look later in Session six on the value of you TM codes in order to improve your tracking throughout the entire funnel something called full funnel reporting. But the goal here right now is we need to build enough funnels so that you can begin to see where your M fuels air coming from and how to focus on the highest converting channels while improving the poorest performers 19. Homework: Build Your Funnel: on Tab three of the homework for Session one, we can begin to now build out a very basic funnel in order to see conversion rates. Now these historical conversion rates is we just went through are extremely important. When we get to the next stage of building out your model and ultimately building out future scenarios again without these historical conversion rates, then you are simply guessing at how well a certain social or email campaign will do. However empowered with these numbers, you have an opportunity to approach marketing activity with more accurate hypotheses in the results. And so what I've done for you is I built out a few just simple funnels here. This one is a beauty. See example. It's got four stages. Visit website, you, the product added product that cart and purchase products. Now these are the numbers you want to change right here in the black thes conversion rates again, a very simple calculation. This chart is a little more complicated. Hence this column over here COLUMN end. You'll see the chart creator, and it goes through some kind of fancy calculations that gives you, ah more of the visualization. This is more for grins and giggles and just spices up a little bit. Uh, there is software that does this for you, and it actually creates beautiful funnels. But for now, this is the calm we're really concerned about. Philip Calm. See the values and then take a look here at the conversion rates. This is where you want to see if there's any drop offs. So again, very simple examples. You can build out 100 of these based upon the primary conversion that you have already identified in this case would be to see example, purchase product is the primary conversion. It's what you want people to do. If you have a BBC website, often in a B two b example, the primary conversion is filled out forms. So that's the macro conversion. And these are the steps that lead up to that macro primary conversion. And so again, just fill out the numbers. And now you start to see the conversion rates fill out, and another beat of the example is now we start to have ah, we start this segment by channel, right Here's organic here, social Now I would suggest not having many steps here because the purpose of the funnel is to identify the necessary steps that you are able to optimize. Therefore, I would avoid putting non necessary pages in these funnels. For instance, pages like the about page or contact page or even certain category pages may just be too narrowly focused and are not part of the conversion journey for most users. So the goal here is to create all the necessary funnels that are important for your website so you could begin to identify if there are leaks in your conversion journey. Now, we'll also explore this in more detail in session three. So have fun with this and let me know if you have any questions. 20. Practical Campaign Models: so far in this session, we have approached building your model from a theoretical perspective. So I want to take a few minutes to take a practical look at building out RIA World campaigns now to do so. I want to use several common examples that you probably use on a regular basis. Let's first take a look at a typical email campaign. Now, in this email example, let's say we're sending a webinar email. These numbers are all made up, but not completely unreasonable. So remember, as we go through these practical examples, it's important for you to understand how we are modeling each campaign so you can input your own historical numbers Now. In this example, 20,000 emails were sent to a sample leaderless, announcing an upcoming webinar. Of the 20,000 emails, 20% of them were opened, equaling for 1000 of those that open the email. 25% of them clicked on the primary C t A. To sign up for a webinar, which is the 1000 now after landing on the landing page. 40% of these prospects ended up signing up for the webinar totalling 400. Now, after the Webinar depending upon who showed up in the engagement with sales and marketing. Let's say that there were about 50 opportunities created now a quick, an important side note. Every organization has a different way of classifying an opportunity created for some. It's an SQL sales qualified lead. Others. It's an essay l sales accepted lead or even an MQ all marketing qualified lead. Or or maybe it's even point based. Just make sure you and your team are clear on how you define an opportunity. So of those 50 ops created in this example, 20 deals were closed at a 40% close rate, which again isn't completely unreasonable because we want to track marketing campaigns all the way through the funnel. The total revenue earned is $4000 meaning the average customer value or a CV is $200 right ? 20 deals totaling $4000 is a $200 a C V. Now, here's why. Building out a model like this is important. Let's say you run a monthly webinar now, month one and month to are relatively normal and average. There's not a lot of variance between the original email distribution list. Click the rates, registrants, close rates and a CD right? They all look fairly similar. Now it's important to note that nearly every organization is squarely focused on deals closed and revenue. Now there's good reason for that, right as these numbers keep the lights on and food on the table, so we have to be focused on dollars earned as well. This is called the full Funnel. So again, in looking at this chart, I want you to notice that when we come to month three, all of a sudden we see a huge drop in numbers across the board instead of around 20,000 recipients weapon are three was only emailed to about half of that which dramatically affected all the other numbers. Now, I chose this simple example because you think this would be obvious, right? We send the email to have to the number of people are numbers are going to be down. However, this is actually what happened to a client of mine. They were racking their brains, trying to figure out why one of their webinars was underperforming. But once they built out their model for the webinar, it was very clear as to where the drop off occurred now. A chart like this will be very important when we focus on conversion rate optimization in Session three. Because if we want to increase deals closed and revenue earned, we either have to a wide in the top of our funnel up in this section or improve the conversion rates throughout the buyers journey. However, it may not always be this simple, so let's take a look at a little more complicated example. Now, in this next example, we are looking at a common social campaign. Let's say, for this social campaign, you boost a post that is promoting an E book, right? This can easily be done on platforms like Facebook. Arlington. Now, let's just keep it fairly simple. Your ad is served up 10,000 times. That is, you have 10,000 impressions. You have a 5% click through rate totalling 500 clicks. Of the 500 prospects who land on your e book landing page, 100 of them downloaded your product. E book. Now, since this was a hyper targeted social campaign, your sales team closed 20% of the ops created, equaling 20 closed one deals totaling $4000 earned revenue, which is an A C V of $200. Again, your own numbers will make a lot more sense with a model like this. But the reason why building out a model is important is that not only do you see conversion leaks within your own model, but you can quickly compare successes and failures of this campaign with other campaigns. Take, for instance, these three campaigns. The first campaign we just went through, where there were 500 social cliques that ended up in 20 deals closed. The second campaign had twice that with 1000 clicks, but still had only 20 deals closed notice. Though the 50,000 impressions for this campaign will get back to that in a bit, the third campaign has slightly more clicks. At 700 they closed 30 deals with the A C V of only 1 33 Now, without going into too much detail, you can quickly see how this is extremely valuable for a team, because in one single screenshot, you're able to see where the leaks are in your conversion rate or where your ad collateral is simply not resonating with your audience again. The second campaign had collateral messaging or C T A. That evidently didn't resonate with the target audience. Right? Look, these very poor conversion rates when compared with your other campaigns. And, as you can see, $6000 was spent on this campaign but yielded only $4000 in revenue, Right? This is not the business model that you want, however. Although Campaign three had normal social interaction, the engaged audiences simply not as valuable as the first campaign by the A. C. V. The goal here is to learn over time what works and what doesn't work. You'll begin to see averages and are able to optimize your campaigns based on past feedback . However, without a complete model like this, you will be flying blind every time you post a social. Let's look at one last riel world example that just happened to one of my clients a couple of weeks ago. Now, like all campaigns and channels, let's start with the basic model. In this case, we're looking at a paid ad campaign. Now a typical paid ad will look very similar to a social boost, so let's use the same numbers as in our last example we have 10,000 impressions, 500 clicks, 100 ops created, 20 deals closed and $4000 earned. Remember, though, when you were building out your own models, you will begin to develop your own averages, meaning you are able to determine how much a click is worth in dollars earned. For instance, 500 clicks earned us $4000 in this sample example. Each click then is worth $8 to the brand. Therefore, your cost per click bid should be quite a bit less than $8 right per click. Knowing this number is important because it is part of what makes up the LTV to CAC ratio. That's a lifetime value to customer acquisition cost ratio. Now, because there are a number of different expenses that go into acquiring a customer, knowing how much they paid ad click is worth in revenue is invaluable for your business. Before we look at this example, though, I feel is important to say that in a typical campaign there are a number of moving parts. Thus the more variations from one campaign to another, the more difficult it becomes to narrow down what worked and what didn't across your various campaigns, making developing averages that much more difficult. And that's exactly what happened to this one client in their paid ads. Here's some sample data that is similar to what we went through with the client. They were running a monthly webinar, and one of their sources of traffic was paid ads hence to three different paid ads, one for each month. Now paid ad one and two are almost identical, since the ads and landing pages are very similar. There's not much difference between these two months, however. In month Number three, you'll notice a huge drop off in webinar sign ups. With this model, we were able to quickly trace it back to the paid clicks and ultimately impressions right off. We removed much of the mystery as to why the webinar sign ups were underperforming because we were able to compare paid ad three with other historical add numbers and averages. So for the client, we ended up walking through each paid ad, comparing messaging, see th audience targeting and the different settings for each pay Dad. We finally located that the underperforming ad was accidentally limited to display on Lee on mobile devices Now, upon further sleuthing, we realize that the mobile device category was actually performing normally. But we have just excluded desktops and tablets for this one paid ad, hence resulting in very low impressions. Now these are basic, simple examples, but you can quickly see how valuable building out your own historical models can become over time because, as you do, you'll begin to see average click through rates, average customer acquisition costs and average customer value. Knowing these numbers will help you not only build better models and optimize campaigns, but it will help you make better business decisions because you'll finally be able to clarify the R A y for your different marketing activities, meaning you will know where to spend your dollars and why one channel is more valuable to you over another. However, without building out your own model for each channel, you are simply flying blind when it comes to your marketing efforts. 21. Next Steps: Now this point in the course, you should be asking yourself one of a few questions. How do I measure the important metrics, or are all my analytics set up correctly, or do I have full funnel reporting as we've been taking a look at, or can I build my first funneling campaign scenarios to start making educated decisions? Now? I don't want you to miss the purpose off all this data and analytics. The goal is alignment. One of the key challenges in any organization is aligning different parts of your organization, like product or sales and marketing and people within marketing on smart metrics and goals . Some key questions that ultimately need to be answered include What are our revenue targets or what products are we going to sell? Who are we going to sell them to or where are we going to sell them? Right trade shows, online sales, team etcetera, and how many units of each product do we need to hit our numbers? You can imagine how detailed and complicated we can get with marketing models, for instance, so far we are simply assuming there's only one product. However, if you have multiple products, then you will need to answer the question. What product and pricing mix will get us to our revenue goal? Whether you have a simple or complicated product offering, the goal is still the same. It's alignment across the organization. Having metrics that show R A Y, where you are at presently and how you'll get where you would like to be will help keep the delicate balance between very stakeholders and departments in organizations of any size. Once you have alignment, then you can move on to the how of marketing. Hopefully, at this point, though, you have completed your most important funnels for all channels and started to draw conclusions on what is and is not working. Secondly, you have actually started to create a game plan for specific channels and numbers to measure and move. However, we realize we haven't gotten to the point of how to improve your marketing. We have simply laid out the groundwork from measuring and analyzing your funnel data. Although this is the most important first step for any marketer, the reality is that you still have to market and improve your marketing by understanding the how of marketing, and that is what we will discuss in detail in the future sessions