Marketing by the Numbers is What Makes You Rich-242

A lot of people say “People Skills” or “Communication Skills” dictates marketing. While that is true, one important factor should never be missed – numbers. No, we’re not talking about complicated mathematics here, just basic numbers that you have to consider in order for your marketing efforts to succeed, or be effective – kind of like marketing by the numbers so to speak.

What is marketing by the numbers? Marketing by the numbers is simply a guide for you to know your marketing goals, measure how your marketing efforts are doing, and measuring the benefits you get for your efforts. Here are a few numbers you should consider for you to understand what we mean by marketing by the numbers.

Cost Per Impression
When marketing by the numbers, you should always consider cost per impression simply means the amount of money you spent for every person who hears your message, reads your ad, or receives your e-mail or flyer. Say for example you spend 50 cents per flyer, and by estimates 2 people view each flyer, your Cost Per Impression is 25 cents.

Conversion Rates
Conversion rate means the number of people who become customers, or number of people who purchased your product based on total number of impressions. Let’s say you distributed 100 flyers outside your store, and twenty people come inside to purchase something, that means your conversion rate is 20%.

Average Revenue Per Customer
Your average revenue per customer is the amount of profit you make, less the amount of marketing you put into it. Say you earned a profit of $60.00 from your twenty customers; your average revenue per is $3.0 per customer.

Return-on-investment on Marketing Efforts
Return on investments (ROI) is a nebulous theory. If you go specifically by the numbers, it might be discouraging. Taking into account the above example, if you distribute 100 flyers at $0.50 each, then you would have spent $50.00 on advertising. A direct profit of $60.00 from your 20 customers who responded to your ad nets you a direct ROI of $10.00, hardly an amount to jump around for.

However, it is not that simple. Your 20 customers may become loyal to you and become repeat customers for the foreseeable future. Some of the rest of the 80 who received your flyers may come back some other day to purchase or the flyer may end up in someone else’s hand and they may become your customer. In that case, the direct ROI is inconsequential. ROI may be measured some other way, but that should include your overall profits per marketing campaign, but basically ROI is how much you earn vis a vis how much you spent. ROI is one of the more complex concepts you need to grasp when you do marketing by the numbers.

Targeted Marketing
Marketing by the numbers does not mean you should simply market to as many people as possible. Quite the contrary, that tactic will only net you expenses that are unwarranted. It is of course different per product (or opportunity whichever is the case). You can market health products to everyone, while you can only market ladies wear to ladies obviously. You can market milk to most everyone, but you can only market coffee to coffee drinkers. So in other words in targeted marketing, you are looking for people who already have need or want or desire for what you market.

You can of course market something to someone outside of your target to convert him or her to your products, but that is going to be costlier. When you do marketing by the numbers, consider marketing to your target audience first, instead of a blanket approach. A blanket approach reaches more people, but a targeted approach might net you more returns. Try targeted marketing first, then do a blanket approach. Your numbers should show which one is effective, and then go with that.

Marketing by the numbers also allows you to actually see your costs, see how much you earn per marketing effort and decide which marketing strategies to pursue based on those numbers. That is how marketing by the numbers make you rich.

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Marketing by the Numbers is What Makes You Rich-242

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