4 Key Performance Indicators of A Good Marketing Plan

Every time we have a meeting, prospects and customers always ask us, well, how are you going to evaluate your performance? And so in this video, we're going to discuss how to evaluate your sales and marketing channels, specifically your key performance indicators or KPIs. This is really important when you're evaluating. Is what you're doing working? Is it not working? Where are the leak points? And it's not just like, oh, our marketing is not working. There are four different sections, and I'll give you a bonus one at the end, but four different sections that you want to look at and for your marketing and sales channels. And I'm going to go through them with you today. And this is what we do at Flash when we are partnering with a company, we check all these levers off to make sure that things are functioning properly. And if there is a leak point, then we bring it up to the client, whether that's us or them. All right, so this is our customer journey and there's three parts to it. We've made videos about this before, but just a quick overview. You can create visibility for your business. You can convert leads for your business and then you can retarget past customers for your business. The end goal is to get to this sale, which is more revenue for your company. But there's a bunch of other things that happen before you get to the sale. As you know, you're building visibility, you're out doing marketing, you're out running ads, you're building relationships with referral partners, then they're contacting your business, they're filling out leads, going through this funnel to try to get to a sale, and then maybe you're reengaging people to come back into your funnel. That's the gist of this. So the first key performance indicator that we want to look at is, is this visibility funnel over here, which is how many people are actually seeing our business and its impressions and visibility. And so what this means is if you're doing all this stuff out here, you're building referrals, you're doing direct mail, you're doing prospecting calls, you have an email newsletter, you're doing some type of text message marketing and social media, you're doing all this stuff, right? And so imagine there's a billboard out on the highway and all these people are driving past it and they see your billboard. There's a. That is what impressions and visibility is. All these people are seeing your stuff all over the place. But if you could get to a big number that all these people are seeing, Your stuff. That is the first key performance indicator, which is how many people are seeing your stuff. Because if you have a good product or service, then there's only two reasons why you're not doing more business. The first one is your product or service is not good. The second one is that not enough people know about it. So that is why this is the most important first step is get more people to know about your product or service. So that way they can use your service if it truly is good. All right, so how can you do this? There's a bunch of different ways to track your visibility. The way that we do is through Google Analytics. We can see the number of impressions that a website gets. We can also see on ads how many impressions that you get. From there, if you're doing any business to business outreach, you can look at how many maybe one on one meetings that you've had with prospects or referral partners. Same with prospecting calls. If you make X amount of calls, you should get X amount and X amount. So that is how you do visibility. From a marketing perspective, what we look at is impressions and we use Google Analytics for that. Because from a website we can see the total number of impressions. From an ads perspective, we can use those platforms to see how many people that we got in front of and so on and so forth. So the next thing, after you have some idea of how many impressions that you're getting, how many eyeballs on your business, you can actually start to go to the next thing, which is how many leads did that generate. So I got 6,000 people saw me last month, which turned into 10 leads, let's just say. So 6,000 people saw me and that turned into 10 leads. And what that allows you to do is to get to how many eyeballs, right? How many people do need to see my stuff before I get to a lead? And you can start to figure out what your conversion rate is. We also like to look at, okay, inside of these individual platforms. Let's say it's your website. Let's say 100 people go to your website. Well, how many leads go and then actually come from those hundred people to my website? Typically we're seeing around 10 to 20%. Our goal is to get every client to 10% conversion rate. And same with ads. How many people saw your stuff, how many leads, your cost per click, all that stuff. And there's a way to drill down on all of these, but high level, you want impressions, visibility, then how many leads or calls came through to your business and then you can See what a conversion rate looks like from impressions to leads. All right, so that's the second step. The third one is actually getting to the point where you book a job. So on this funnel, you have your visibility, you have your leads. Then you're actually scheduling an appointment of some sort and going out to do this job. Now, when you schedule an appointment, you probably haven't collected the money yet, but you schedule that appointment to happen. And so what this is looking at is from leads to appointments, what is that conversion rate? If I gave you 10 leads, how many appointments are you setting off those 10 leads? Is it five, is it three, is it seven, is it eight? And then are there ways that we can increase that, that conversion rate? And yes, there are. We made videos about that before. But figuring out these numbers is very, very important because then you can work backwards. If I increase my website traffic to 200 and I convert at 10%, then I will go from 10 leads to 20 leads, which my conversion rate, if I know how many jobs that I've booked, will then give me that number. And so you can start to work through the funnel, you can start to see how this works. So jobs booked. And then finally, when we get to our revenue and sales, how much money do we actually collect from these appointments? And so if we can work through these four steps, then we know that if we increase this, if we pull this viv valve right here and we increase our visibility on all this stuff, then presumably we'll increase our leads, which will increase our scheduled appointments, which will increase our sales. And then we can go all the way back and say, okay, did this come from this, this, this or this? One of the bonus steps in here, and you can see it right here, is your estimate, price and proposal. So every business is different. But what we found, let's say you're H VAC contractor, you get a lead, they need a new unit, you go out there to give them an estimate, and then you either sell the job or you don't sell the job. Well, let's say that this sales doesn't happen. But is it, is it the lead's fault or is it the salesperson's fault? Here's a way that you can figure that out. Once you get to this estimated proposal, let's say that you've generated a million dollars in proposals. Well, you, you can work through this entire sequence and say, okay, I got a million dollars in proposals, but I only close $500,000 in jobs. So that means that just very high level, that's a 50% conversion rate. Is that good, Is that bad? It depends on your business. Typically what we Recommend is a 60 to 70% conversion rate, but it all depends on the lead. If you get super cold traffic, it's going to convert, you know, 20, 30%. If you get really warm leads, you're going to get, you know, 70, 80%. It just all depends on the lead. But overall, I think a good number is around 60%. And so as we work through these, these channels, we can create more visibility. Whether that's through retargeting again, sending out a newsletter, that's another way to get in front of more people. Same thing with all these. And then when they come through this, these sections, do we have a number and a key performance indicator for each one of these? What I would recommend is if you have a goal to hit a certain amount of revenue, then you can work backwards. So if your goal is to hit a million dollars, then that means at a 60% conversion rate, you probably need to generate around $1.8 million in proposals, which if you want to generate $1.8 million in proposals and your average sale is $10,000, then you're going to need to schedule 180 appointments because each appointment's worth $10,000. One hundred and eighty appointments divided by 12. That's going to tell you how many leads that you need each month. And then to get those leads, you're going to have to go back over here and figure out what all do I need to do to get those 12 leads or whatever it is. And if you do these things, I promise you you'll be successful as a marketing consulting company. We partner with companies and we help build these metrics in their business. Some companies do not have the visibility, literally visibility in their numbers. They don't know how many leads they have, they don't know how many appointments, they don't know how many proposals. We help build these inside of businesses because if you're spending money on marketing, we don't want you wasting money. And so any good company should do this. If you find this content interesting, be sure to hit like and subscribe. We post videos about growing local service businesses and we'll see you in the next video.