How do you eat an Elephant?Posted on , in Enterprise Solutions
One bite at a time!
One of my favourite movies is “Touching the Void”. It’s a true story about a couple of mountain climbers and their expedition to reach the summit of the Siula Grande in the Peruvian Andes. Without giving the story away (I encourage you to watch it), a pivotal scene sees the main character have to set a series of small goals in order to achieve his main objective.
In a previous post, we spoke about the importance of business goals as the basis for your social media marketing activity. However, these goals will typically need to be broken down into a number of smaller goals that will ‘add up’ to the overarching business goals.
In the realm of Social Media, these form part of your Marketing Objectives.
Most commonly Marketing Objectives are quantified (i.e. you can measure them) and include such things are the number of customers, the number of sales leads, sales lead conversion rate, price, and volume. However, you can also have qualitative marketing objectives, such as branding, image and awareness.
Defining your quantitative marketing objectives, involves considering and setting goals for areas that relate to social media. These would include things such as: –
- Traffic volume – how much website traffic is required?
- Traffic conversion rate – what percentage of your traffic is converted into a lead? What percentage purchase immediately without making an enquiry?
- Lead volume – how many sales leads do you require?
- Lead conversion rate – what percentage of leads are converted into paying customers?
- The number of customers – how many customers are required to achieve your business objective?
Let’s look at an example. On average let’s say your business receives 250 visitors to your website (traffic volume) each month without any marketing effort. Of these, 10 people make an enquiry and each enquiry can be counted as a sales lead. Therefore, your traffic conversion rate is 4% (10 divided by 250).
Of the 10 people who make an enquiry, 2 make a purchase. This equates to a lead conversion rate of 20% (2 divided by 10).
Now, as part of your business planning and goal setting you determine the number of purchases you want each month is 10. Assuming the lead conversion rate remains the same at 20%, this would require 50 enquiries.
Keeping the website conversion rate the same as well, the 50 enquiries would require 1,250 visitors per month – 1,000 more than you currently receive. Now we know that this goal is part of the ‘bigger’ goal of 10 purchases a month. And it’s a goal that is very achievable with effective social media marketing.
Other quantitative marketing objectives can include:
- Amount per customer – what is the average amount purchased by each customer?
- Items per customer – what is the average number of items purchased by each customer?
- Price per item – what is the average price of each item purchased?
Qualitative marketing objectives are not measured by numbers, but still, have a substantial impact on the success of your business. For example:
- Brand awareness – a customer’s familiarity with your products/services
- Brand perception/image – how well the customer perceives you and your products/services
- Customer loyalty – the extent to which customers favour your products/services over the competitors
Have you broken your Business goals into Marketing objectives? Do your Marketing objectives ‘add-up’ to your Business objectives? Are you approaching your Social Media Marketing, one bite at a time?
Australis College is offering an intensive Social Media Marketing program aimed at providing businesses and individuals with the marketing knowledge, skills and tools to make social media marketing an important part of your future. Click here for more information and to get started today.