Picture, if you would, that you needed to simply keep an eye on only one number when you wanted to know how successful your marketing was. Wouldn’t this make marketing much simpler than it is right now?
Today, we live in an era where ‘big data’ is king, with marketers able to keep track of almost any parameter they can imagine; however, it is possible that tracking metrics in this way causes many businesses more harm than good.
Of course, being able to get all the data relating to your marketing efforts is often a good thing, but it is also possible for a digital marketer to be confused and overwhelmed by the incessant flow of different numbers.
For this reason, I recommend taking a completely different approach: Instead of trying to wrap your head around everything, it is important to find out what is the key driver for the success of your business. You can then concentrate on this number when developing your marketing strategy for 2016.
At this point, you are probably thinking…
Is It Possible For One Number To Drive The Success Of My Business?
Surely, this sounds too easy to be true. Could one number or metric really determine the success of my business?
As an example, let us examine something that almost everyone can understand – real estate. Right from the construction of a property to its final sale, it is obvious that real estate development is a complicated process. However, among all the data points involved, one number stands out as it determines the appearance of the building, how much it will be sold for, as well as how quickly the developer will be able to sell it.
This important number is the address!
Depending on the address of the property, the options available to the developer with regard to the size of their building and the décor they would like to incorporate into it may be limited. In addition to this, the developer or their realtor would need to carry out research on sales of comparable properties within the neighborhood to find out how much the building is worth and how quickly it is likely to be sold.
As a property developer, when you have just this one data point at hand, you will have an insight into the final sale way before you even begin construction. This is not to say that the other factors should be ignored, but is an illustration of the butterfly effect that one number could have on a business.
So, what effect does this have on your digital marketing campaigns?
Your Key Driver toward Business Success
It took me many painstaking hours of reviewing our sales and marketing data before I finally figured out what the key driver for the success of our company is. Much to my surprise, and contrary to what many would think, it was not the number of leads that our sales pipeline had generated…
Strangely enough, it was simply the email subscribers that we had in our database. If someone had told me that this was the case only a few months ago, I would have laughed them out of my office. Back then, it was inconceivable to me that a marketing agency’s business could be driven by email subscriptions.
However, I will show you how I came to this conclusion. By following the same method, you can analyze your own business and find the key driver for the success of your business.
How Do Your Sales Actually Come In?
When looking for the key driver of your business, the first question you must answer is: Where do my sales actually come from? This question is a tough one for many businesses, and getting the answer to it means that phone calls, in-person visits and web forms need to be meticulously tracked. The idea behind this is to have a way to determine the first point of contact between your business and your customers up until you make a sale and to gain an understanding of the steps in between.
In the case of our company, the majority of sales are generated through phone calls. But where do the phone calls come from in the first place? Many of the calls are scheduled after a prospective client fills out a form on our website. Aha! We are getting closer to the answer, but we are still not there… Where were the prospects before filling out the web form?
As it turns out, most were people who subscribed to our email newsletter. From this study, it is clear that email subscriptions are the key driver of our business, not form completions or phone calls.
See How It Works?
To find what drives the success of your business, start with the sales and work backwards to figure out what the source of your prospects is. Although this process takes a lot of hard work and patience before you can identify the patterns in your data, the rewards are worth it. Once you have identified what the key driver of your business it, you can now focus your energies and budget towards boosting that number.