At Year-end, Check KPIs to Gird 2018 Marketing

The busy year-end holiday season, especially for fundraisers and retailers, should not distract direct marketers from the working on the analytics they need to finalize next year’s marketing plans and ROI. Marketing ROI is about effective spending and requires tracking results by channel and campaign. KPIs use actual annual outlay for direct mail marketing (lists, print, lettershop, creative, postage), digital marketing (e-mail, SEO/SEM, landing pages, social media and creative), as well as spending on PR/events/content marketing. Marketers must keep a tally of the number of outbound leads attributed to direct mail or e-mail campaigns, as well as the inbound leads generated by efforts such as SEO, blog content or PR. Then a cost per lead acquired (CPL) can be calculated by dividing annual expenditure by the number of leads generated. Since the ultimate goal is sales not merely leads, the percentage of leads that become paying customers and the dollar sales per lead are key measures. Beyond general performance, marketers should use measurement to fine-tune future plans and budgets. This means identifying the response rates and conversion rates for each channel, for each direct mail and digital campaign, and for tests of creative, timing, frequency, lists and segments. Performance rates should be measured not only for campaigns to acquire new leads/customers but also targeting of existing customers and reactivation of dormant customers. Website traffic reports from Google Analytics can not only show online ad and SEM effectiveness but also track spikes around direct mail or e-mail promotions to give a fuller picture of response. A simple ratio of the return on marketing investment can be calculated by adding up incremental sales from marketing and subtracting marketing amount spent, and then dividing the result by amount spent on marketing. But remember that a focus on annual or campaign results can be myopic since these do not necessarily deliver long-term growth. Marketers need to look at customer and prospect databases to make sure they are growing year-over-year. Because acquiring a single sale per lead also is less profitable long-term than acquiring a repeat customer, average customer lifetime value is vital and calculated by multiplying average dollar sale per customer by the average number of purchases per year and the average retention time in years. For a helpful KPI checklist from Digital Dog Direct, see http://www.acculistusa.com/use-key-direct-marketing-kpis-to-gird-2018-plans/

Are You Optimizing LinkedIn's B2B Lead Power?

If you're a business-to-business marketer frustrated with results from LinkedIn, you're not alone. Using social media to generate qualified leads and measurable ROI is a challenge. So take a look at a recent online article for Advertising Age magazine by Sebastian Jespersen, president and CEO of Vertic Inc., a digital ad agency. Jespersen offers four tips for B2B marketers on how to optimize LinkedIn promotional investment, taking a cue from the lead-gen success of client firms like Microsoft, GE and Siemens. Tip No. 1: Measure the right part of the funnel. Understand that LinkedIn pours in fewer leads at the top but can have higher conversion rates than other channels at the bottom. Therefore, measure cost per lead or cost per conversion rather than cost per click or impression. Tip No. 2: To get conversion, create the right post-click experience. Don't send qualified traffic to a generic web page; build multiple customized pieces of content on-site and direct users to relevant messages. Tip No. 3 is a no-brainer: Use the data LinkedIn provides to target! Tip No. 4: Retarget. Successful LinkedIn campaigns get a 20% conversion rate, but that doesn't mean throwing away the other 80% of leads. Tap user behavior to retarget qualified responders on other relevant sites and get a second chance at conversion. For the complete article, go to http://adage.com/article/btob/b-b-marketers-improve-leads-linkedin/297386/

Overcautious CPL Targeting Can Sap Lead Volume

A recent Target Marketing magazine article addressed a common direct marketing challenge: A cost-per-lead (CPL) target in testing winnows acceptable lists or media and scales down roll-out for fewer potential leads. This occurs because conservative marketers prefer tested lists/media that outperform a target CPL to guard against any unexpected roll-out declines in response. That caution may actually undermine maximized results, however. Article author Chuck McLeester presents an alternative strategy of combining a test's "big winners" in terms of CPL with its "little losers" -- for a larger cumulative universe that will deliver more leads at an acceptable cumulative CPL. Of course, both winning and losing lists/media from a test should be re-tested at larger quantities to make sure response holds up before going to roll-out. Yet the end result of a cumulative-CPL strategy can be a big boost in cost-effective lead generation: McLeester provides an example that takes roll-out from a little over 4 million impressions, out of a potential 15 million, up to more than 12 million impressions, while keeping well within the target CPL. For his spreadsheet analysis example, see http://www.targetmarketingmag.com/blog/how-maximize-your-lead-volume-within-your-allowable-cost-per-lead#