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Measure for Success

Boosting the performance of your marketing

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Market metrics

How important are existing customers to your business? Do you know?

How important are existing customers to your business? Do you know?

Who doesn’t want a good base of individuals or businesses who are loyal, regular, repeat customers. We all do surely, it makes sound business sense.

But do you know how important existing customers are to you business? Are you confident that you are placing enough emphasis on retaining existing customers compared to attracting new customers? Perhaps now is the time to find out by calculating your Returning vs New Customer Metrics.

These metrics will help you understand the real value of these two groups to your business and enable you, as with any good metric, to make decisions on how much time and money you should put into your marketing for the different groups.

• Start by calculating your Total Number of Customers either at a specific point of time e.g. 1st January or over a point of time e.g. in 2018. Now split these into new customers and repeat customers to see your new customer to repeat customer ratio.

• Next work out the Value of an Average New Customer to your business vs that of a Returning Customer over the lifetime of your relationship. We generally recommend it’s worth also considering the costs you incur with attracting new customers e.g. advertising and retaining existing customers e.g. loyalty incentives. You can now see the costs of generating business and how the business generated between the two groups varies over time. Does that value change over the period a customer stays with you?

• Finally look at calculating the Average Time a Customer Remains Loyal to your business. This is a good indicator of your customers views towards your organisation, how good you are at maintaining existing customer relationships and their likely purchase intentions.

What next?

With this understanding conduct a review of what you do to attract new customers and keep existing customers. Think about the time, money and effort you put into these two groups. Have you got the balance right? Should you for example amend your advertising spend or customer relationship management approaches? Should you consider incentives to either attract new customers or keep existing customers? Perhaps if you discover customers aren’t particularly loyal you should consider loyalty schemes or enhancing the quality of your customer service.

Whatever you do with this knowledge you’ll be in a much stronger position as a business to maximise the benefits from both groups and drive your business forward.

About the author

Richard Milton is founder of e-nexus Ltd – a Marketing Consultancy based in Bournemouth specialising in Strategic Marketing Planning and Performance Measurement. He is a career long marketer, holding numerous senior marketing positions throughout his 20 years in the profession. Describing himself as a marketing strategist, performance and measurement specialist, Richard spends time working with business owners, managers and marketers to help them improve their marketing decisions, investments and impact by harnessing the power of data and insights alongside his strategic experience.

Richard’s biggest passion is to help marketers show the value of their efforts and give them the confidence and skills to be able to share the story with their senior managers. Richard helps organisations understand the importance of measurement and metrics as well as appreciate the breadth of data available to them in todays marketing world.

To find out more about e-nexus and the services we provide please visit www.e-nexus.co.uk

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Supporting businesses in Bournemouth

Who are your top customers by Profit or Life Time Value?

Have you ever stopped and calculated who are your best customers?  It sounds simple but how often do you identify and rank the customers who drive the most profit for your business?

Ranking these customers from highest to lowest by Profit or Life Time Value lets you see which individuals or groups drive an outsized portion of your business results.  When you can look at a single list and see your main customers you have the power to identify the unique characteristics of your customers and work hard to attract more.  Is it who they are, where they live, or what they buy?

Knowing that answer can be more valuable than just making a sale. By focusing your customer service, marketing, promotions and sales offers you can build the long-term value of these customers.  You can also find more existing and new customers who share the same characteristics as well as empower these customers to become advocates of your business.

Measure4Success is the blog for e-nexus Ltd.  We are a Bournemouth based Marketing consultancy specialising in Strategic Marketing Planning and Performance Measurement.  Learn more about what we and get in touch by visiting our website at www.e-nexus.co.uk

6 questions to ask your marketing team

As a business owner, what are the key questions you should be asking those responsible for your marketing? What should you ask to get a better understanding on how marketing is contributing to the success of your business?

1 – How are we measuring the performance of our activities?
Show me the results. How many leads or sales were generated from each marketing campaign and how were they were tracked. If the question can’t be answered because the tracking is non existent or isn’t accurate, you can’t be confident that your campaign was a success.

2 – Who are we targeting in our marketing?
Sales and marketing go hand in hand as marketing leads to sales. If your marketing audience e.g. visitors to your website or your followers on social media are different from your target customers then your efforts may be wasted and you will be missing opportunities to reach out to future clients.

3 – How are we retaining existing customers?
Many marketing strategies focus on gaining new customers at the expense of keeping existing ones. Both are important, but keeping current customers engaged with the business is just as essential as building new clients in order to generate sales for the business.

4 – Who are our top customers?
How are you identifying the customers that drive the most profit for the business. How do you rank them and how impactful are they for the business? You want to find out which individuals or groups drive an outsized portion of your business results. When you can look at a single list and see your main customers you have the power to identify the unique characteristics of this group and work hard to attract more.

5 – What should we stop doing?
It’s far to easy to get into a marketing routine and do things just because you’ve done them in the past. By reviewing data and challenging your marketing efforts it is possible to identify those things you should stop doing and those efforts you should do more of to provide a greater return to your business.

6 – What metrics are we monitoring to measure success?
There are so many different metrics that you can measure. The rule when deciding what to measure is:
• Does this metric help me make a decision?
• When I view this metric does it help me understand how to get closer to my business goals?
• If you answer ‘No’ to both questions you are looking at a vanity metric and need to ignore it and repeat steps to identify better metrics to monitor.

Measure4Success is the blog for e-nexus Ltd.  We are a Bournemouth based Marketing consultancy specialising in Strategic Marketing Planning and Performance Measurement.  Learn more about what we and get in touch by visiting our website at www.e-nexus.co.uk

Quote of the day

The price of light is less than the cost of darkness.
Arthur C. Nielsen, Market Researcher & Founder of ACNielsen

Marketing is so much more than promotion

No matter the size of your business every penny you spend & every hour you commit to your marketing has to count towards you achieving your business goals.

Promotion is an important part in your marketing efforts but ‘effective marketing’, the entire marketing that satisfies the needs of your customers is so much more. You can have a great promotional campaign but if your product or service isn’t wanted or you are charging prices that are above what your target customers will pay then it will struggle to deliver.

To have ‘effective marketing’ you need to consider a wider range of factors than just promotion. Much of it isn’t difficult with the result being that it can transform the impact of your marketing. Here are just a few ideas:

• Start with product. Give customers what they need not what you think they need. Think wider than the actual product – consider the other features that surround your product – delivery methods and times, guarantees, installations, refunds, exchange policies – all of which can make your product or service more attractive.

• Speak to your customers. Ask them what they need and want from you. Find out what they think of your product or service and how it can be improved.

• Ask your customers for reviews. If they are liking what you do then encourage them to share with others what they think of your product and to post reviews on-line.

• Regularly monitor your sector and competitors. Consider how tastes are changing or new products are being launched and adapt where necessary.

• Make it easy for people to acquire your product. That maybe how they can find you or buy your product on-line. Make sure your website is mobile responsive and is search engine optimised.

• Develop your team. Ensure that everyone who works for you has great knowledge about your business and offer. Ensure they also have the right attitude & provide the level of service your customers would expect.

• Be responsive to your customers. Ensure you follow up on enquiries quickly – not many buy products or services from a company they have had to chase or have had to wait a long time to respond.

• Deal with customer complaints well. No doubts you have all had customers who haven’t been completely satisfied but how you deal and resolve their compliant will make all the difference to whether they buy from you again or recommend you to others.

• Measure, measure, measure. If you don’t measure your marketing you can’t understand, control or improve it. Use tools such as Google Analytics to see how well your website is working, monitor your email performance or conduct market research to understand what your target audience think about you and your product or service.

 

Quote of the day

Success is the result of good judgement, which is the result of experience, experience is often the result of bad judgement. – Tony Robbins

Connecting insight, data & creativity to transform your marketing – e-nexus evening seminar – 25th June 2018

Want to transform the impact of your marketing? In our next seminar taking place in Southbourne, Bournemouth on 25th June we’ll show you how best to connect data, insight and creativity to boost your marketing efforts & ROI. During the session we’ll focus on:

• The benefits of using data and insight to measure & monitor your marketing efforts.
• Identifying the types of marketing data you have access to and how you can begin to fill any data gaps.
• How you can turn your marketing data into meaningful insights for your business.
• How you can connect your data and insights with your creative approach to engage more of your customers successfully.

Who should attend?

This seminar is ideal for anyone who wishes to enhance their marketing and wants to better understand how to connect data, insight and creativity to optimise their marketing efforts.

The seminar is hosted by Richard Milton – a career long marketer who specialises in marketing strategy, performance and measurement. Richard spends his time working with business owners, managers and marketers, supporting them to improve their marketing decisions, investments and impact.

Book NOW to claim your ticket – space is limited so please book early to avoid disappointment.

17.30 – Registration & networking
18.00 – Seminar
19.15 – Q&A
19.30 – Seminar closes

Location:

Brewhouse & Kitchen – Southbourne
147 Parkwood Road
Bournemouth
BH5 2BW

 

 

Grow your business using Web Analytics – e-nexus marketing seminar – 11th June 2018

Google Analytics and tools like it can do wonders for your business. They can provide you with easily accessible insights & metrics that you can use to improve the performance of your website and other areas of your marketing mix.

This seminar will demonstrate the benefits of using web analytics tools and show you how you can use them to better understand and transform the performance of your marketing.

During the session we will focus on:

• How insight gained from web analytics tools can influence your marketing.
• How you can use these tools to understand the performance of your website.
• How the tools can be used to understand the performance of other elements of your marketing mix.

Who should attend?

This seminar taking place in Southbourne, Bournemouth on 11th June 2018 is ideal for anyone who wishes to enhance their marketing and wants to better understand how tools such as Google Analytics can help boost their marketing efforts.

The seminar is hosted by Richard Milton – a career long marketer who specialises in marketing strategy, performance and measurement. Richard spends his time working with business owners, managers and marketers, supporting them to improve their marketing decisions, investments and impact.

Book NOW to claim your ticket – space is limited so please book early to avoid disappointment.

17.30 – Registration & networking
18.00 – Seminar
19.15 – Q&A
19.30 – Seminar closes

Location

Brewhouse & Kitchen – Southbourne
147 Parkwood Road
Bournemouth
BH5 2BW

 

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