B-to-B Digital Marketing: Setting a Budget

Digital marketing is a business development activity which means it should directly or indirectly generate revenue. For trainers, consultants, and professional coaches that sell their services to other businesses, the contribution typically comes in the form of leads. Since marketing’s goal is to generate revenue the budget should not be set higher than a reasonable projection for generated revenue. Establishing a clear vision of projected return on the digital marketing investment serves to set a budget cap that makes facilitates profitability.

To set a budget start from the end state and work backwards. Here are the steps and an example of how to work backward:

Step Description Example
1. Start with an estimate of viable prospects in your market. 10,000 prospects.
2. Estimate the number of prospects that might become a lead based on industry data. The below chart is broken out by industry for website visitors so it’s best to halve these numbers as half your prospects likely will not even take an initial step of engaging your marketing channels. 6% is average, so let’s work from 3%. 300 Leads.
chartofweek-10-23-12-lp
3. Divide that number by the number of years you believe it will take to engage your entire market. Be realistic, anything less than three years is aggressive. 5 years for full engagement, so 60 leads per year.
4. Divide your leads by your average rate of turning an interested party into a real sales opportunity via a meeting or phone call. Hopefully your leads will be more engaged than average leads and meet at a higher rate but use the average to stay conservative. A 30% meeting rate results in 18 meetings from the leads.
5. Divide your meetings by your close rate. 33% close rate is 6 sales.
6. Multiply your expected number of closes by your average sale. $6,000 average sale is $36,000 in revenue.
7. Use ¾ of that number as your annual budget cap to give some buffer for marketing to generate positive ROI. $27,000 (¾ of $36,000).

In this way you are providing a guideline on how much you can spend on digital marketing and have it remain profitable. Remember, it’s a guideline and doesn’t mean you should spend that much. It means that’s your cap. For example, if you are a sole trainer, consultant, or professional coach with annual revenues of $100K, it wouldn’t make sense to budget a third of your revenue to digital marketing.

Also keep in mind that this would be your total expense, so marketing tools, data, and labor would need to fall within these parameters.

The primary reason for this guideline is to avoid setting your digital marketing up for failure. Many trainers, consultants and professional coaches get caught up in branding themselves or their business without considering the potential return. If you set a budget that is higher than a reasonable expectation on your return then the marketing effort can’t fulfill the baseline goal of being a business development activity.

A Mistake in My Email Marketing Send . . . Now What?

Email marketing presents a unique challenge from other digital marketing platforms in that it has a single definitive send. Once it’s sent, there’s not a reliable way of retracting the communication. So unlike your website, digital ads, or social media posts, mistakes can’t be overwirtten live at the source. So when mistakes are not caught before a send, how should you handle it?

A word of warning, every email list has a few sticklers on it that will often reply to minor mistakes they find in your emails. It’s worthwhile to respond to those individuals thanking them for alerting you to the error but don’t overblow it to assuming your entire list is aghast at your oversight. Many if not most of your audience might look right past the error. Analyze the mistake in your email send and make a reasonable judgment call on how to address it.

There are four options for addressing mistakes in a sent email marketing communication.

1. A Total Re-Send

This should be reserved for only critical mistakes. Examples of this would be false information on an offer/event, an incorrect email/template being sent, or content being sent to the wrong group.

If you feel that you need to do a re-send, it’s important not to panic which often results in more mistakes. Take a few minutes to ensure you are selecting the right groups to re-send to and that you have successfully corrected the error. There is nothing worse than doing a re-send only to find that you’ve made a second mistake trying to correct the first.

2. A Targeted Re-Send

This is typically most appropriate for inaccurate links within an email. In this case, you can effectively identify who experienced the mistake and target a re-send to those people only.

To do this, simply pull a list of those that clicked on the inaccurate link and send to that subset. A targeted re-send does require additional monitoring of the click report so that anyone that clicks after the initial correction can be provided with the edited communication. This limits the inconvenience to your larger audience and ensures a correction to those that experienced the problem.

3. Let It Ride

Sometimes the best action is inaction. If the mistake is minor it’s often best to leave it alone rather than inconvenience your audience with a re-send. Examples of this would be minor typos, graphical anomalies, or concealed problems (like html or image tags).

In these cases, correct the error on your next communication but don’t bother your list with a re-send highlighting such a small issue.

4. Strategic Follow Up

This is really limited to promotional emails but can be a way of correcting a mistake and reinforcing the offer. Example problems would be non-critical mistakes on an email but correct information on a registration page (like a missing digit in a buildings zip code where an event will be held).

Rather than doing a re-send right away, make a follow up email on the offer that corrects the mistake. Then resend it a few days later as a reminder email. This prevents the frustration to your audience of getting a second email on the heels of the first, gives a second touch on promoting your offer/event, and updates the non-critical mistake on the newest send.

Moving Forward

Despite best efforts and effective editing processes, mistakes will pop up in sent email communications sooner or later. It’s important to weight the gravity of the error in deciding how to handle it. The judgment really comes down to whether it’s worth alerting some or all of your audience to the mistake and inconveniencing them with a second send.

Once you handle a mistake in a send, it’s important to be diligent in your upcoming communications. An error once in a while is going to happen and will be forgiven. Consistent errors show a lack of respect to your audience and will erode credibility.

Digital Marketing Bias: “Digital marketing tools should always be free.” or “Free tools are ineffective.”

The amount of tools available for digital marketing is growing exponentially. The quality and prevalence of these tools varies greatly. This often makes it difficult to identify and effectively implement the tool that’s best suited to your marketing campaign’s needs. One common factor that drives a decision to adopt a tool is whether it’s free or fee based. This factor seems to have two opposing viewpoints that either requires a free version or fosters mistrust in the tool if it’s not a paid service.

Digital marketing tools should always be free.

There is often an expectation that digital marketing tools are free. There are useful free tools but each should be carefully analyzed. The old saying, “you get what you pay for” can often be applied to no cost options.

  • Free . . . Sort Of – Many marketing tools offer a base level service at no cost. Sometimes that base level is sufficient, but many times it is not. Survey Monkey is a tool I’m regularly told by trainers, consultants, and professional coaches that they want to use because it’s free. I’ve yet to complete a digital marketing campaign with the free version. The purchased version always becomes necessary due to the setup and data limitations of the free service. The free services will restrict how you deliver your message and often times will hold your data hostage without an upgrade to the paid service. Nothing will eat up time and money like false starts with tools that end up not meeting your needs or requiring unexpected fees.
  • Support – Tools are worthless without someone that is proficient in using them. Proficiency is often gained from self-teaching through user guides and FAQs, which most free tools offer. However, sometimes the tool doesn’t work as expected or some additional guidance is needed to use it effectively. Most free tools offer no support, either user error or system error. So if there is a problem, users are on their own to figure it out or work around it.
  • Extra Services – Steadfastly sticking to no cost options can blind digital marketers to additional services that might benefit them. For instance, almost every social media platform offers a paid ad service but it’s often ignored due to the cost. These services obviously need to be leveraged intelligently so that unnecessary expenses aren’t created, but it should be an option on the table if it’s likely to benefit a campaign.

Free tools are ineffective

Some trainers, consultants, and professional coaches have a general mistrust of free tools. The thought is generally that no cost equals no quality. Neglecting valuable free tools hurts effectiveness and the marketing budget.

  • Bait and Switch – This is the opposite view of those that jump at “free” services without getting the details. The thought is that every free service is a useless dumbed down version that will force users into getting the paid version. While some healthy skepticism is valuable, too much will have you miss out on valuable services. A good example of this is Google Analytics. Google Analytics can be set up for free and provides valuable tracking data consistently and accurately without a need to upgrade.
  • Neglect Options – Many tools are offered only on a no cost basis. Disregarding them outright eliminates an option that could very well meet your needs. A common example of this is plugins for website content management platforms. Many developers create a solution for the platform and provide it to the platforms store for those that might have similar need. Many of these are free and do an admirable job at a certain function. If you steadfastly need to pay for any tool you use, you might be able to make a donation to the developer but don’t disregard it outright because the developer made it publically available at no cost.
  • Too Much Work – There is often a complaint that free tools require too much work to be implemented. This can be true in some cases but is true just as often for many paid tools. All tools require time and effort to get setup and utilized in your digital marketing campaign. When seeking a tool for a particular function know that it will take work to implement and base your analysis on functionality and feasibility rather than if it’s free or not.

Digital Marketing Bias: “Email Marketing is obsolete.” or “Email marketing is the only thing that really works.”

As digital marketing channels go, email marketing is the senior citizen. Email was developed at the dawn of the internet and leveraging that technology for marketing was not far behind. Of course, email marketing has evolved heavily through the years but what is its current role? There are two opposing views on the importance of email marketing which greatly over-emphasize or greatly under-emphasize its usefulness.

Email Marketing is obsolete.

The first outlook is that email marketing had more than its fifteen minutes of fame and it’s time to remove it from the digital marketing toolkit. This is typically supported by suggestions that social media can do everything and more, that no one looks at email marketing messages anymore, or that email marketing is just outdated like direct mail or faxing.

All of those statements are untrue and usually used an excuse not to attempt an email marketing campaign.

  • Social media has taken email marketing’s place – Social media is a valuable channel but it can’t duplicate the benefits email marketing provides. Email marketing is a one-to-one conversation with your audience where social media is a group environment where you are intermingling with your whole audience. While there are direct communication tools in social media, they are cumbersome to leverage and not nearly as effective as email. Social media is a middle man to that direct communication and trying to set messages to particular people becomes an arduous task that email marketing can achieve easily.
  • No one pays attention to emails – This is the sign of a bad email marketing campaign, not email marketing in general. Filters and screening tools have become commonplace on email systems but that doesn’t mean people aren’t viewing the emails at all. It means that email marketers need to carefully craft their emails to ensure they are delivered and offer valuable content that their audience wants.
  • Outdated – Email marketing is as effective as it has ever been if it’s put together effectively. When setting a plan for trainer, consultants, and professional coaches, our outlook on any call-to-action is that half of the traffic and leads will be generated from email marketing. That’s true for events, sales, purchases, or free resources.

Email marketing is the only thing that really works.

This statement is typically relayed from a person that’s “done it this way for years” and doesn’t want to “fix what isn’t broken”. Fair enough, but just because email continues to work doesn’t mean it’s the only road to success. Furthermore, email marketing becomes stale if it’s done the same way for too long without injecting new ideas and technology into it.

Stubornly sticking to using only email ignores important advances and changes that can be a big advantage to digital marketing campaigns:

  • Tracking – Email marketing offers tracking that generally straight forward to follow. SEO, social, or offline campaigns often take a bit more effort to interpret. This additional analysis is often mistaken as twisting the numbers or requiring too much work to get results. These channels are effective and shouldn’t be viewed as lacking when compared to email marketing.
  • Stagnant – An over-reliance on email marketing is often a sign of stagnation. That stagnation is present in more than just technology. Typically the email list, content, and layout is catered to a core audience and sparsely strays outside of that tried and true formula. This skews perspective when other channels try to bring in a fresh audience or content. Unfamiliar content from fresh eyes won’t be as widely accepted but it’s the only way to grow marketing’s effect. Simply put, if you do the same thing you’ve always done, results won’t improve.

Appreciate email for the advantages it brings but don’t become over-reliant on it. It’s a core channel in digital marketing with proven effectiveness. Leverage that effectiveness but not at the expense of other channels or new ideas.

 

Digital Marketing Biases

Mark Twain said, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” Trainers, consultants, and professional coaches should take that quote to heart when analyzing their digital marketing campaigns. Our biases about digital marketing are often what prevent us from objectively considering new marketing channels or techniques that would produce superior results.

The most common biases on a particular subject often have a counter-bias with a polar opposite viewpoint of the same topic. The most productive outlook tends to fall somewhere in the middle. While a list of biases can go on and on, we’ll focus on 5 high level biases that we encounter fairly regularly:

Watch for our coming posts that deal with each of these biases and how a balanced outlook between the two biases can result in gathering the benefits and eliminating the downside of either extreme viewpoint.

Don’t Allow Your Email Marketing Layout View Dictate the View for Your Audience

ID-100210314Often times trainers, consultants, or professional coaches use their own email or mobile inbox to test their email. While this can be a good first impression, it should not be the final word on layout decisions. Because email platforms, mobile inboxes, and personal settings greatly influence how an email marketing message is viewed, a more diverse testing method should be used.

The first line of testing an email is a test or preview option in your email marketing platform to review your layouts. This will provide a direct browser rendering of your email layout and is best served to check for potential glitches or anomalies. Many offer a scaling tool to see how the email will display for different screen sizes. However, it’s rarely fool proof as it ignores image disabling and advanced functions that some email or mobile platforms won’t support.

So that there are no false expectations, it’s impossible to test your layout for every possible scenario. Even sophisticated paid testing platforms don’t guarantee compatibility across the board. But that doesn’t mean that you can’t test on common platforms, systems and settings.

This is an important point because personal experience often drives inadvisable decisions. We got a simple example of this from a client reviewing an email layout. The client feedback said, “Remove the gray box at the top, it’s just taking up space. Put our header in instead.” The gray box in question was the result of the client’s email system disabling images. After explaining that the image was disabled and viewing the email with images enabled the client told us, “Definitely keep the header as it’s the graphical identifier for who we are.”

This is a simple example but one that could be expanded on. Suppose the client loved the graphics and made an email full of them. Every recipient with blocked images would see a blank email until images were enabled. What if the graphic didn’t scale to smaller screens? Mobile users would see a zoomed in version of the header without the benefit of seeing where the content began further down the page.

Don’t let your personal viewing experience dictate unilateral changes. Set up a layout and test it in a few different ways to ensure that a wide range of your audience will get a useful view.

Image courtesy of  Feelart / FreeDigitalPhotos.net

Personalized Text Emails for Digital Marketing

ID-100104792The discussion over HTML emails vs. text emails has gone on for some time and continues to be debated. Our general thought is to let your audience decide which format they prefer. However there is a situation where text messages clearly outperform. Personalized email messages, with a very targeted offer, and sent from a particular trainer, consultant, or professional coach often create a greater connection and improved conversions.

Sticklers will state that a “text” email is often set up with HTML formatting. For the purposes of this tactic, text messages means a simple text email; no images, no ads, and no marketing gimmicks. If you have an email template or signature that is typically used then setting it up with HTML is fine. Just so long as it does not appear to be a general mass-produced marketing email.

These text messages should speak directly to a very specific group. A few examples would be:

  • An invitation to an event to people that abandoned a shopping cart or met with a sales person but never bought.
  • A personalized offer for a report or article to owners or executives of past clients that deals specifically with their position or industry.
  • A consulting session offer to people that no-showed an event or were invited but did not respond.

Every case has two things in common. The targeted group can be tightly defined so that the copy will speak directly to them and they have interacted in some way before with the training, consulting, or professional coaching firm. The message itself should address the person directly and have a simple statement on why they were targeted and why the offer pertains to them.

A key aspect is to mock the message up as if the trainer, consultant, professional coach or sales person typed it for that single person. That is why the email remaining text only is key. Some telltale signs of email marketing like unsubscribe options have to be included for legal requirements but try to push them down so that it’s not a distraction from the message.

Don’t overthink this process. The text email should be constructed exactly like direct mail merges with names and identifying information. The secret is to customize it enough that it applies but doesn’t come across as dishonest.

These personalized text emails often get superior response rates because they emulate a more powerful one-to-one interaction where the recipient feels a greater connection to the sender. For this reason, it’s important not to over-use the tactic because emails that are not suitable for a wider audience or that are sent too frequently will make all your emails seem deceptive.

So why are these types of email campaign rarely done well? That level of data mining, organization, and targeted distribution takes a fair amount of work that many firms simply won’t invest into their email marketing campaigns. But those that build these personalized messages into their email marketing campaigns can expect to see consistently better response rates.

Image courtesy of  watcharakun / FreeDigitalPhotos.net

Consolidating Marketing Emails

Most trainers, consultants, and professional coaches have a lot of good ideas, strategies, and tactics that they are eager to share with their target audiences. Sometimes that eagerness boils over to form an overloaded and cluttered email marketing newsletter. Typically, it’s best to simplify an email campaign so that each email has a single topic and/or a single call to action. However, there are a couple cases where a more robust newsletter that consolidates several topics is advisable.

Here are samples of the styles:

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Consolidation typically only makes sense in one of two cases:

  1. Particular segment is receiving communications too frequently.

    Unfortunately, consolidations are often the first option that trainers, coaches, or professional coaches jump to if they want to scale back on message frequency. However, the first and best option is to segment into appropriate lists and deliver only the content customized to that target. If you’ve already segmented your list and find that the email frequency is higher than you have targeted, consolidating can be a useful option.

  2. The email is designed as an index of information.

    Some trainers, coaches, or professional coaches produce newsletters that highlight timely industry or topical news rather than producing new content themselves. In this case, the goal is to be a valuable information repository that is amplified through commentary or editorials on how the information affects the email’s target group.These emails are better delivered in a consolidated format because only the original content (the commentary or editorial) should be included in the email, where the referenced material should be linked.

Consolidated emails have their place but be sure to verify that it’s the best layout for your email campaign. Often times consolidated emails happen because a trainer, consultant, or professional coach has problems trimming down their content rather than a true need for a more robust newsletter.

If you can manage to deliver your content in a simple way with more frequency or segmentation, do so. If not, then be sure that you are providing a consolidated newsletter that has direct relevance to the audience and makes it simple to scan so that it’s not overwhelming.

Is Your Digital Marketing Burned-Out or Bored-Out?

ID-10046983In a recent conversation with a client that offers sales training and consulting, the owner said, “We’re burned out. Everything seems the same. We start putting together content and inevitably we end up writing a similar article every time.” It’s not uncommon for trainers, consultants, or professional coaches to fall into a rut because they forget the power of their content. However, that’s not burn-out, it’s bored-out.

Burn-out and bored-out are polar opposites of one another but are often referred to as if they are the same thing. Since burn-out and bored-out are opposites they call for different plans of action.

Digital marketing happens at a much quicker pace than any marketing media has in the past. It’s important to take stock of the quality of your current content to ensure you’re producing marketing communications at a level that is worthy of the product or service you provide. If it’s not valuable or insightful for your target market, then it’s a wasted effort.

If you are truly burned out, meaning the level of time, energy, and/or money is exhausting, then it’s time to re-evaluate the entire marketing mix. An over-extension on your marketing plan will lead to a collapse sooner rather than later. It’s better to re-evaluate that plan and formulate something more manageable before a total collapse occurs requiring a restart of marketing initiatives.

It’s much more common to be bored-out, meaning the content or campaign has become tiresome to you personally and creating the necessary elements has become mind numbingly dull. A revitalization process is necessary to overcome bored-out because that lack of energy will bleed into the marketing materials.

Get some outside perspective so that you can look at your digital marketing with fresh eyes. Many times a trainer, consultant, or coach’s familiarity with their expertise makes them an impossible critic. They fail to see the powerful insights in their content because it’s old news to them. An outsiders perspective that has less familiarity will highlight if bored-out Is a result over being overly critical. If it is the outside enthusiasm can reinvigorate the trainer, consultant, or professional coach.

If you confirm that your content or communication has become monotonous or dull then challenge yourself. What are some new topics or channels you can use to revitalize your digital marketing? Put some real thought into making new compelling content. If you are struggling to find new material get outside suggestions or hire help to revamp what is causing the bored-out.

Burn-out and bored-out pose equal risks to your digital marketing but be careful not to misidentify them. Burn-out calls for a slow down and re-evaluation where bored-out is often a speed up for revitalization. It’s important to handle either burn-out or bored-out urgently because a collapse will stop the entire digital marketing campaign or a lethargic uninteresting campaign will lose the target market.

Image courtesy of  Ambro / FreeDigitalPhotos.net

Exploiting Current or Cultural Events in Marketing Often Lacks Authenticity

starbuck_by_diablo2003Last week I visited a national park that is a civil war battlefield. During a conversation with the Ranger at the visitor center, she mentioned that the national park service had encouraged each park to do a promotion that tied in with the release of the new Star Wars movie. She explained that several parks came up with good promotions, especially those where Star Wars had been filmed or had an obvious connection.

I asked what promotion her park had come up with and the Ranger stated, “I had several ideas to tie it in with the rebels but thought better of it. The Civil War still hits a nerve with many people here and I didn’t want any backlash from our members or supporters in comparing it to a movie. In any case, the connection was a real stretch.” Unfortunately many marketers didn’t use the same discretion and tried to get on the cultural trending whether it made sense or not.

I have literally been bombarded the last few weeks with marketing messages and articles about ____ is like Star Wars, Use the Force to _____, or ____ leads to the dark side. Some of those messages or promotions were attention grabbing with a witty or amusing connection. Many were a real stretch and appeared to only be interested in exploiting a cultural trend.

There are only two marketing scenarios where using trending current or cultural events has authentic impact:

  • There is a direct and obvious connection to be drawn.
  • There is a personal connection to the cultural event where the author or poster is very knowledgeable or a large fan.

Star Wars is a major cultural event with wide exposure so it’s easy to understand why so many people wanted to use it for marketing purposes. But without a clear connection, it can ring hollow as an artificial attempt at tapping into keywords or riding a trend’s coattails.

This is especially damaging if it’s a regular tactic in a trainer, consultant, or professional coach’s marketing mix. Using every cultural trend reflects a lack of sincerity. Like a politician kissing babies, it tends to raise doubts and suspicions rather than credibility. If you have an authentic connection, then by all means display that connection in your marketing communications. But remember that it’s impossible to have a connection with every current or cultural event so don’t overdo it.

Is this article hypocritical being posted as The Force Awakens continues to rule the box office? Maybe, but as a lifelong Star Wars fan; I thought I might get a pass.

Image courtesy of  diablo2003 / deviantart.com
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