Companies are rushing to cancel #marketing budgets! Now? This is sooooo wrong. It's not a way to save money but a way to lose money!
"Wait, Dan, how can we lose money if we cancel our marketing budget?"
Let me explain.
Companies are canceling their marketing budgets as a way to SAVE money during this time of #Covid-19. They are now realizing (doing a deeper dive), that the amount of money they were spending on #digitalmarketing agencies, Google Ad words, pay per clicks; ISN'T generating the #leads to keep their pipeline full. Or worse yet, pay for their marketing dollars spent on these areas.
The biggest misconception of marketing is that you can BUY your traffic and customers. Yes, you can gain some visibility but it's no different than any form of advertising.
A HUGE DIFFERENCE
I had a conversation with a company who didn't know their cost per lead. They assumed it was $1,000 a lead. But that wasn't the case. They were spending $10,000 per month on Google Ad words and getting 10 leads per month. Seems great right?
Google Ad Words: $10,000 per month
Inbound leads: 10 per month
Assumption: $10,000 divide by 10 = $1,000
What's wrong with this scenario? This means, EVERY lead has to turn into a win. Every month. Which would be awesome, if that were true. Then those marketing dollars would be VERY well spent. But this is the real world. Those miracles and wishful thinking doesn't happen.
Looking further, their #businessdevelopment team wasn't qualifying these leads. Just reiterating the information and sending them over to #sales. Sales gets them, does a demo and loses them after that and the chase begins.
Thus the cost per lead goes up with each lead that goes ghost and chases. Also including the money spent on labor with the BD team on these leads.
So the focused turn into budget reallocation.
And yes, like Dave Chapelle here, KEEP more of this money.
We put a plan & a strategy in place where they could STOP spending that money on Google Ad words (for now). Reuse that money into other areas that made more sense. We developed a process improvement methodology to bring more leads in, qualify them better and end the "ghosting" situations.
Now with a new focus, strategy and process, they were able to see results very quickly. AND now they know WHAT Google ad words to spend their dollars on, as they know now HOW their customers are finding them.
Now their marketing budgets are turning into revenue generating rather than expense. #revgen
*We are always here to help. If you like to het on the calendar and see how we can help you during this time, schedule a session today!