Tag: customer acquisition

Posted on

Coordinate and Communicate Touchpoint Strategies for Greater Impact

How many touchpoints does it take to convert a target into a buyer? 

Marketing and sales experts will often quote a common belief that it takes seven touchpoints to convert an identified target to a customer. This is a good rule of thumb for budgeting and planning. Pipeline data and analytics should confirm whether this is true within your organization.

Whether three, seven or 13 touches are required to convert a target to a buyer, the fact remains that well-coordinated touchpoint strategies between sales and marketing are critical to fully maximize the value of any investment in customer acquisition. This applies to people, methods and technology. The key to successful returns on this investment is identifying the “best” mix of touchpoints that amplify results. And this requires constant analysis, agility and oversight by sales and marketing executives.

The initial step in maximizing the impact of touchpoint strategies begins with a coordinated sales and marketing plan detailing each touchpoint used for awareness and engagement.

The touchpoints plan should outline every organized touch along the customer’s buying journey. From the initial stages of targeting and brand awareness campaigns to engagement with a sales professional, all touchpoints should be deliberate in activity, call-to-action and expectation of results. This applies to both B2B and B2C.

A touchpoint is defined as the contact made with a customer or prospect in the buying and selling process.

What are the most frequently sales and marketing touchpoint strategies used to convert a target from awareness to engagement?

  • Email: Outbound, Inbound
  • Phone: Outbound, Inbound
  • Web: Sites, Landing Pages
  • Advertising: Digital, Print, Display, Broadcast
  • Social Media
  • Content: News, Opinion, Blog, Online, Print
  • Events: Webinars, Trade Shows, Sponsorships, Speaking Engagements, Hosted Events
  • Direct Marketing: Mail, Email, Phone, Subscription
  • Point-of-Sales Display and Storefronts
  • Meetings: Online, In-Person
  • Employees and Stakeholders
  • Referrals, References and Word-of-Mouth

As you can see from the list, it is easy to find at least seven methods to reach your target audience. Each method can have multiple uses and characteristics. Experience, time, target types and cost will help determine the most effective methods for selling your products and services.

It is vital to utilize a mix of touchpoints and apply them to every single target to increase your conversion probability. Obviously, the goal is to convert with fewer touches; however, it is essential to plan for the complete mix.

Touchpoint strategies should not be left to circumstance. A touchpoint plan must answer who is responsible for each touchpoint, the medium that will be utilized, what will be said and how it will represent the brand. It needs to outline the schedule of activities and KPIs set against the expected outcomes to benchmark and measure success. Again, touchpoints should be married to the customer journey to ensure that every touchpoint is fully utilized to push and persuade the contact to buy.

A touchpoint plan should outline:

  1. Roles and responsibilities
  2. Medium
  3. Frequency and timing
  4. Key messages
  5. Call-to-actions
  6. KPIs
  7. Investment

Consistency in outreach, timing and messaging for all areas within the plan requires alignment to the business goals and should be shared company-wide.

One of the greatest failures is not leveraging the entire customer journey to completely benefit from all touchpoints. This happens when sales and marketing are not setting expectations on how, what and when touchpoints are utilized and who is responsible for delivery.

Resources that can help coordinate effective and consistent touchpoint strategies across an organization include:

  1. Company fact sheets and FAQs to ensure everyone is speaking the same language
  2. Brand guidelines help organizations articulate and represent the company in look and feel
  3. Content libraries and online resources that are maintained with the latest marketing and sales support materials
  4. Corporate templates for presentations, emails, marketing communications
  5. Marketing technologies (MarTech) and customer relationship (CRM) management platforms to help organize and manage critical touchpoints in the sales and marketing process
  6. Communication and event calendars to keep the organization informed of when there are opportunities to engage with key targets and customers
  7. Company events and training that detail the plan and set expectations for everyone’s role to support the outcomes
  8. Reports and dashboards that show the results of each touchpoint and ROI

Everyone in a organization sells. This means everyone should fully understand and value the sales and marketing coordinated touchpoint strategies. It is the leadership of sales and marketing that must then work hand-in-hand to ensure that the investments made into touchpoints are actualized to generate results.

We all can hope for the one touch that leads to a conversion. Those tales often are ones that are repeated in company folklore. The facts remain, it most frequently takes multiple touches to successfully convert targets to leads, then leads to buyers. Coordination between sales and marketing only increases results and impact.

Work together and expect more. Create your plan, set your targets, define your activities and measure your success. That is how you will maximize the results of your coordinated touchpoint strategies.

Jamie Glass, CMO + President, Artful Thinkers, a sales and marketing consulting company.

Posted on

Return on Marketing Requires an Investment

One of the most important decisions a business owner or CEO will make is establishing a budget for marketing. Like talent, product and infrastructure, marketing must be viewed as a necessity in business.  Marketing expenditures are essential investments for growth.

An average SMB (small-to-medium size business) will typically set a marketing budget at 4% to 6% of sales revenues.  There are several factors that can impact this budget.  As an example, a well-funded startup may invest 20% of revenues for aggressive consumer acquisition programs and advertising.  Notice, the “well-funded” qualifier.  Likewise, there is always difficulty in setting a budget for a pre-revenue company. Entrepreneurs will often spend most of their investments in product and then struggle to bring in sales. Startup costs must include marketing.  For every dollar invested in product, people and infrastructure, an equal dollar should be set aside for investment in sales and marketing.

Here are three simplified phases for marketing investment planning:

1.  Brand Awareness:  Your marketing investment should start with focus in reach and awareness including brand identity, a website, company advertising and direct and social marketing.

2.  Engagement: The second phase invests in additional marketing programs that support your sales efforts including lead generation, publicity, web marketing (SEO and SEM), market validation, events, advertising, presentations and customer case studies.

3.  Nurture:  Finally, maximize your marketing investments with customer communications, CRM services, loyalty initiatives and nurturing programs to maintain the valuable potential and existing customer relationships.  Once you have them engaged, use your marketing spend wisely to develop and grow your relationship.

After your marketing budget is defined, you will want to establish how you will measure the success of your investment.  ROMI is the acronym for Return on Marketing Investment.  The calculation is total revenue divided by marketing spend.  ROMI = Revenue ($) / Marketing Spend ($).

Some marketing activities such as branding, advertising, PR and social media are harder to track impact and influence. As a rule of thumb, the simple ROMI equation gives you a thumbnail sketch of your return on your marketing investment.  ROMI is a good KPI (key performance indicator) for leaders to use in the business dashboard.

If you are a startup or pre-revenue, the marketing spend will be set as your budget for purposes of forecasting. Some may argue that there should be other factors added or subtracted, such as attributable revenues; however, most businesses have a difficult time tracking every dollar spent on activities such as advertising. Start with the broadest “buckets” and as you increase your marketing reporting and tracking sophistication, you can scrutinize spending with finer analysis.

Marketing is an investment.  Success in ROMI requires budgeting, reporting and analysis in order to fully actualize the benefits.

In lean times, business owners have a tendency to cut marketing spend. Lost time and lack of investment, even during challenging periods, impacts long-term growth. The result may not be felt right away. It is an illusion. Prolonged periods of reduced marketing spend can dramatically reduce sales opportunities. The fewer dollars you put into a marketing budget the greater the exponential impact on future revenues.

Similar to an investment savings account, the more you put into your “growth” marketing account, the higher potential return on your investment. The more dollars spent on high risk marketing activities, the greater risk to returns. Any sound investment advisor, marketing or financial, will counsel a business owner and CEO to invest based on the organization’s risk tolerance.  Marketing investments should be treated like any financial investment.  Know your risk tolerance, invest accordingly.  If the business has low tolerance for risk, eliminate marketing spend in expensive tactics that are difficult to measure. Always diversify your investment to mitigate risk.

In order to qualify for a return, it requires an investment.  Failing to set aside funds to market is failing to invest in business sustainability.  Expectations of sales without an adequate marketing budget is a business built on luck. Though we would all like to be lucky, if you plan to sell something, invest in marketing to create the sale.

“I have a problem with too much money. I can’t reinvest it fast enough, and because I reinvest it, more money comes in. Yes, the rich do get richer.” -Robert Kiyosaki

By Jamie Glass, CMO & President of Artful Thinkers and Managing Director of Sales & Marketing Practice at CKS Advisors.