The Great Internet Marketing Lie

I keep having this recurring nightmare; but then I wake up and find it’s really happening to people I care about. I’ll call this disturbing “dream” The Great Internet Marketing Lie. Here’s how it goes…

A business owner with no plan, no strategy, and no idea why he or she is using the Internet at all jumps into social media, SEO, local search, and other costly activities in the name of not missing out on an important marketing wave. These people waste time, they flush precious money down the seemingly-never-ending black hole of this marketing cash drain, then they sit back and hope something great will happen. And, of course, it doesn’t.

In case you haven’t figured it out yet, the Internet isn’t magic. It isn’t free. And it isn’t the tool that has replaced all other marketing tools. Those who would have you believe these lies are either blinded themselves, or simply out to sell you something that benefits them, and not necessarily you.

The Internet is a tool. It is a vehicle that, when used properly, can carry your message effectively to your targeted, intended audience. It’s a place to be found by those looking for what you offer, right at the moment they need it. That’s pretty cool! But none of this happens as a result of random shotgun blasts in the general direction of people who just happen to be surfing by.

I’ve watched many decision-makers throw thousands upon thousands of dollars at SEO services to get on the first page of the search engines. And you know what? Many of them have made it there! But it hasn’t made them a dime because they didn’t have the rest of their strategy and system in place to convert clicks into cash. (That last phrase sounded a lot like sleazy Internet marketer talk; but I’ll leave it for effect.)

I’ve also witnessed many other business owners invest large amounts of time and money into social media, only to have thousands of followers who are not engaged. In most cases this is because they fell for the lie of “bigger is better,” focusing on quantity of followers instead of quality.

I could go on, but you get the picture.

Am I saying the Internet isn’t a viable marketing vehicle? Of course not. Am I suggesting people should not engage in SEO activities, social media pursuits, and other Internet-based marketing practices? Not at all.

What I am saying is, “Wake up!” Realize the Internet and its accompanying accoutrements are marketing vehicles, not “marketing” in its entirety. We still need to research our audiences and get our messages in the right place. We need to have the right message for that right audience, too. We must have a big picture that clearly outlines our strategies for advancement, and campaigns to turn those strategies into action. Then, if the Internet shows itself to be one of the vehicles we use to grow our businesses, we know why we’re using it, how we’re using it, who we’re getting in front of, and what we’ll do to convert those viewers into engaged followers and, ultimately, repeat clients.

Please, stop torturing yourself over The Great Internet Marketing Lie. If what I’ve said here makes sense and you can take a few steps back and see your way clear to analyze your company’s use of the Internet, great! If you need your team to assist (which I highly recommend), get them together and talk through what you are trying to accomplish and how the myriad possibilities presented by the Internet may fit into your company’s plans for greater success.

If you don’t have your team yet, or can’t otherwise see your way clear to getting a handle on managing the barrage of information being thrown at you with regard to online marketing activities, I’m here to help. Ask your questions . Let’s get you out of any nightmares you may be living through and into the fulfillment of the pleasant dreams you had when you decided to go into business.

Here’s to your marketing success!

Bryan Waldon Pope

2011 Marketing and Business Plans

The holiday season is here! And with this season comes a time of reflection and planning for all business owners.

What went well in 2010? What could have been better? What are we going to do to make the most of our opportunities in 2011?

It’s extremely valuable, at least once a year, to step away from our businesses, evaluate what has happened since our last examination of the company, and plan for the upcoming year. For many of us, December is the time to undertake this task. For others (like retailers, who are in the middle of their busy season), this activity may make more sense after the first of the year.

I’m going on my annual retreat next week. This is a solo experience where fresh mountain air, fluffy holiday snow, and a crackling fire combine to take me away from the trenches of everyday business and open my mind to limitless possibilities. (Who knows, I may even buckle on the ol’ skis and hit the slopes while I’m at it just to make the experience complete.)

After this solo portion of my review and planning experience, I’ll take what I come up with and present it to my team for further examination and input. By month end, I’ll have my 2011 plan in place.

However you choose to engage in this activity, I strongly suggest you do it. A two-part solo/team approach works well for me. Perhaps a team retreat is more suited to your situation. Whatever the case, it doesn’t have to be expensive, but the outcome is genuinely invaluable.

Here’s to your 2011 planning success!

Bryan Waldon Pope

Need a team to work with you on your marketing? Check out http://www.marketingsuccessinstitute.com/mastermind.html

What Am I Really Spending to Get New Customers and Clients?

Last week I shared a formula for determining the lifetime value of customers and clients (LTV). This is useful in helping us decide what we’re willing to invest to engage and keep our audience as repeat clients. Today I’m going to share another useful formula: Client/Customer Acquisition Cost (CAC). This formula will tell us what we’re actually investing, on average, to gain each new client.

Although there are methods of getting down to very specific numbers, it’s more important to have a good idea of our CAC than it is to have it down to the penny (at least to begin with). Determining our current CAC is accomplished by gathering information on all our marketing-related expenses for new customer/client acquisition over the past 12 months. Using a 12-month period is good for coming up with a true average. Leaving out expenses specifically directed at retention and loyalty campaigns is good since these are not part of initial acquisition.

Once we have our 12-month expenditure number, we need to find out how many new customers or clients we have acquired during that same 12-month period. Once that number is known, we simply divide our investment by the number of new clients we’ve gained. Here’s the formula:

$ Invested in Acquisition Marketing Activities (past 12 months)
/ # New Clients in the same period
____________________________________
= Client Acquisition Cost (CAC)

As an example, if we’ve invested $10,000 in new client acquisition marketing activities over the past 12 months, and we’ve gained 100 new clients, our Client Acquisition Cost (CAC) is $100.

In conducting this activity, many will find their CAC is far too high, calling for a need for more targeted marketing efforts. Others will find they can afford to invest more in each new client, allowing them to accelerate client acquisition rates.

Questions? Comments? Let’s hear them!

Here’s to your marketing success!

Bryan Waldon Pope