under the skin of Marketing ROI can be complex and time-consuming, but knowing
where your revenue comes from and which customers are driving it is essential
for growing your businesses. Sometimes the ROI is not generated where we think
it is, but until you start to ask some hard questions about revenue and profitability,
you simply don’t know what is driving your ROI. If you don’t know the driving
force, you can’t possibility influence it.
many, having the information about where the ROI is coming from is a
step-change which ultimately drives the growth and success of the business.
Often, we think our best customers are those we have the best relationships with. We enjoy working with them and their marketing output. That said, if the client isn’t profitable then it’s important the reasons are identified and this is quickly turned around. We wouldn’t be in business for very long if we continued to work with those that weren’t profitable for us.
So, pull this back to marketing and ask the following types of questions, because we simply want to know what your ‘ideal’ client looks like.
Identifying your ‘ideal’ client:
- Which sectors they operate in?
- What specialist areas do they concentrate on?
- What similarities they have to your other profitable, revenue driving businesses?
Why is it important to be able to identify your ideal client?
We need to know what they look like so we can start to find more like them. This is one of the fundamental processes of profiling – know and understand who your ideal client is, create segments if necessary, and find more like them. If you follow this process, prospective clients are more likely to buy, generating profits in the short-term, whilst building the foundation for future profits, strengthened brand equity and customer retention.
For one client, the similarity might be the organisational structure or culture driving the customer’s organisation to buy their product. For others, it’s the type of work they do or the sector they operate in. Sometimes the answer is obvious, other times, there needs to be some investigating to find the answer – such as buyer profiles, market research or financial analysis.
So, start asking those hard questions, do some revenue analysis, and then set some targets. Whether you’re selling products or services the methodology is the same: you’re looking for those who buy more of the products and services that provide a higher margin. For example, optimise your social advertising campaigns by weeding out anyone who doesn’t align with your target audience. This will narrow your focus, avoid wasting budget and drive stronger engagement and brand performance. Apply the learnings to your marketing (and sales) and we’ll be chasing better quality leads with higher returns
If you’d like to know more about the questions we ask, get in touch and we’ll talk about it over a cup of coffee (or tea).
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