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Measure for Success

Boosting the performance of your marketing

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customers

How loyal are your customers?

What do your customers think of your business? Would they recommend you, your products or services to their family and friends? Calculate your Net Promoter Score (NPS) and gauge your customer’s overall satisfaction with your business and their loyalty to your brand.

Net Promoter Score is used by many companies to gauge the loyalty of a firm’s customer relationships and serves as an alternative to traditional customer satisfaction research. What’s more, it’s felt by many that there is a strong correlation between a high Net Promoter Score and company growth. Your NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., higher than zero) is felt to be good, and an NPS of +50 is excellent.

Calculating your Net Promoter Score

To calculate your Net Promoter Score ask your customers, most likely in a simple survey how likely they are to recommend your company to a friend or colleague, using a scale of zero to 10, with 10 being highest. Then work out the percentage of responses that scored your company between seven and 10, then zero and six. Subtract the zero-to-six percentage from the seven-to-10 percentage, and you have your Net Promoter Score.

You can also take the opportunity when surveying your customers to ask some further questions on how and what you can improve to potentially push your NPS even higher.

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

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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

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

 

 

Data, what data?

The digital revolution means that you can now access more data and insight than ever before to understand the impact of your marketing. With so much being available for free and at a click of a button there are now real opportunities for you to better measure your marketing.

Through our day to day work we still support companies that feel they have no or very little data or insight. For many of these businesses we go on a journey of discovery, helping them to think about their needs. We work with them to identify what data and insight they actually have, what they need as well as how it can be captured and stored – and yes at times that includes uncovering all the data and insight stored in numerous note books, diaries, excel spreadsheets, business card holders and even their own heads.

So if you think you are marketing data and insight poor or want to better measure the performance of your marketing consider some of the following to build your knowledge and understanding:

• Website analytics – many websites have some form of analytics platform linked to them so you can understand where your visitors are coming from and how they interact with your site.

• Social media analytics – these will tell you a lot about the types and levels of engagement you are receiving from your posts. Platforms like Facebook will also give you some demographic data so you can be sure you are reaching the correct people.

• Email – platforms like Mailchimp will tell you how many people open your emails, how high or low your bounce rates are and your click through rate to your website. If you A/B test your emails you’ll also get a much clearer idea of what type of content or subject headlines work better with your audience.

• Voice of the customer – such things as feedback from your customers as well as interviews and survey ratings will give you a clear view of what they think of your product offering or service levels.

• Competitive intelligence – It’s important to monitor the performance of others. For example monitoring the social media engagement that your competitors are gaining can be a useful benchmark for the performance of your own social posts.

• Sales data – understanding what and how frequently your customers are buying from you is key. What channels are they reaching you to make that purchase – is it via your website, retail outlet or exhibition stand?

• Customer churn rate – establish how many customers are cutting ties with you over a given time. Monitoring your churn rate is the first step in understanding how good you are at retaining customers and identifying what actions might result in a higher retention rate.

• Your top customers – sounds simple but identify which customers drive the most profit your business. 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 on attracting more.

• Cost of acquisition – calculate how much you spend in acquiring leads and turning these leads into new clients. How does that differ using different channels? The key here is that the fees you charge need to at least cover your associate costs.

• And finally conversations with customers – always a great place to start

Need some help on where to start with your data and insight gathering?

At e-nexus we undertake marketing audits where we’ll work with you to identify your data and insight needs, what you already have access to and how you can begin to fill the gaps. Just email us at info@e-nexus.co.uk and we’ll organise a time to meet.

 

 

 

 

Web Conversion Rate

Web conversion rate is one of the most important indicators of whether your digital efforts are paying off. High levels of traffic to a website without completion of your key goals or calls to action is pointless, as these are a company’s route to growth.

If the conversion rate of your website is stubbornly low, two things could be wrong. First, consider what percentage of your site traffic is qualified. If it’s in the single digits, your target audience probably isn’t hearing you. Next, consider users’ online experience. If the checkout is cumbersome or your site is confusing, visitors are unlikely to convert.

Complicated forms are a common stumbling block in the user experience and can damage conversion rates. Consider giving users a guest checkout option. If visitors must register before checking out, make the process as simple as possible. If a longer form is absolutely necessary, try prepopulating data fields to minimise the hassle.

A website that lacks responsive design can also sap conversions. Most of your users are probably on mobile devices so ensure your website can adjust to small screens.

Based on an article from Deren Baker – Five Key Marketing Metrics CEOs want to see.  http://performancein.com/news/2016/01/18/five-key-marketing-metrics-ceos-want-see/

Net Promoter Score

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Net Promoter or Net Promoter Score (NPS) is a customer loyalty metric. It can be used to gauge the loyalty of a firm’s customer relationships and serve as an alternative to traditional customer satisfaction research.

Many senior managers care about the Net Promoter Score because they want to guage the loyalty of their customers. What’s more, there’s a strong correlation between a high Net Promoter Score and company growth. NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., higher than zero) is felt to be good, and an NPS of +50 is excellent.

Surveys provide a great tool for tracking the Net Promoter Score: You can ask respondents how likely they are to recommend a company to a friend or colleague, then ask them to score their satisfaction with your company between zero and 10.

To calculate your NPS work out the percentage of responses that scored your company between seven and 10, then zero and six. Subtract the zero-to-six percentage from the seven-to-10 percentage, and you have your Net Promoter Score.

You can also use the same survey to ask customers how you can improve. Your senior managers will be impressed with the insights you can provide with the data gathered by the Net Promoter Score.

Key metric – Incremental sales

Incremental Sales measures the contribution of your marketing efforts to increasing sales revenue.

This KPI emphasizes the close relationship between sales and marketing, and how that relationship benefits the organisation. Marketing attracts qualified leads, and sales converts those leads into paying customers (which, hopefully, become brand advocates to further fuel marketing efforts).

The incremental sales KPI is one of the most consistent ways to measure the marketing ROI as it demonstrates new revenue that can be directly attributed to a marketing campaign.

The problem for marketing teams is that campaigns may generate new leads or sales indirectly. For example, a banner campaign with a large volume of impressions may encourage people to complete what is called a “view through conversion.” This means that a visitor may see an ad, visit the website in a separate browser tab or window, and then complete a goal without actually clicking on the banner ad. The result is the same, but the path and credit for the completion are very different.

Key metric – Retention rate

Retention rate is the ratio of the number of retained customers to the number at risk.

In contractual situations, it makes sense to talk about the number of customers currently under contract and the percentage retained when the contract period runs out.” This term should not be confused with growth (decline) in customer counts.

Retention refers only to existing customers in contractual situations. “In non-contractual situations (such as catalog sales), it makes less sense to talk about the current number of customers, but instead to count the number of customers of a specified recency.

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