Marketing ROI | The 80/20 Of Sales And Marketing: How To Work Less And Earn More
Marketing ROI | Few rules are more widely quoted in marketing today than the 80/20 Rule, also known as the Pareto’s Principle. It boils down to the fact that 80% of your sales come from just 20% of your client base. Do a little digging and you’ll find that it usually holds true. However, knowing that information is only half the battle. Knowing which of your investments generate the best results enables you to eliminate some of the costs associated with less productive techniques.
All clients are not equal, far from it. Some bring you an incredibly disproportionate amount of money, many make you a little bit of money, and some even waste your time. With the last group, you lose money selling anything to them at all. The interesting thing about the 80/20 rule is that it applies with astonishing frequency to many other situations. 20% of your time will generate 80% of your results. 20% of marketing material will produce 80% of your campaign results. Here are some of the most effective tips for using the 80/20 rule to boost your marketing efforts.
Social Media Networks | Marketing ROI
80% of your social media posts should be entertaining content, and not self-promotion. Keep in mind that people don’t use social platforms to be sold to. They use it to socialize. In this day of infographics and image-centric marketing (think Pinterest and Instagram), your posts should be entertaining, and should definitely include photos, videos, graphs, interactive surveys that link back to your website, or blog. Pretend you’re enjoying happy hour with some friends after work. Do you think they want to hear you babble on and on about how successful you are at your job? Absolutely not!
To dedicate 80% of posts on your social channels exclusively to non-promotional information may sound useless to some business owners. But if it’s necessary to draw the attention of your target audience by tapping into their interests and needs, it’s worth all the effort. Show how you can help people in their every day lives. Even though you should avoid promoting yourself most of the time, you should keep the posts related to your industry. If you are an auto-body shop you could post tips on how to save on gas, seasonal car maintenance tips, or do-it-yourself auto repairs.
Strike The Right Balance | Marketing ROI
The other 20% of your social media posts should be self-promotion. Post about your products, or promote your services, and how great you are at them. Make sure you include a persuasive call-to-action that inspires your followers to learn more about your business, as it could possibly lead to conversion down the road. Post a discount, add a special offer, provide useful statistics, etc. Offer incentives for your target audience to convert. You might give away something once a week by having a contest, or offer a coupon if they sign up for your newsletter.
Make Sure Your Content Is Sharable 100% | Marketing ROI
Whether you’re posting personal content in your 80%, or promoting your firm in your 20%, make sure that all of your content is something your audience will want to share with their friends. Every social media platform has a different purpose, and attracts different demographics. For example, you wouldn’t want to promote a law firm on Instagram or Pinterest. Understanding this can make your marketing efforts more effective.
Post At The Right Time | Marketing ROI
Know the best days and times to post for your industry and demographics! For many businesses, this is Monday through Friday at around 10am and 4pm. However, this will vary depending on who you’re targeting. A recent study found the best times to post on various platforms are: 9 a.m. to 11 a.m. for Google+, 1 p.m. to 3 p.m. for Twitter, 1 p.m. to 4 p.m. for Facebook, 7 p.m. to 10 p.m. for Tumblr, 5 p.m. to 6 p.m. for Instagram, and 8 p.m. to 11 p.m. for Pinterest.
Analyze Customer Data | Marketing ROI
It is incredible how many businesses don’t bother to look up sales data. Invest in some market research, comb through your receivables, and gather data. Create spreadsheets you can sort. Yes, it’s time consuming, but it’s also time well spent. Apply the R-F-M rule: Check which clients on your list bought most Recently, bought more Frequently, and spent the most Money. Bingo. You’ve found a chunk of your 20 percent! Keep that 20% happy! Don’t get complacent and just send bills. Drop a note or e-mail if you see a relevant article. Send a gift thanking the client for his or her business.
To sum up the 80-20 Rule, if you focus only on self-promotional content on your social platforms, your followers will respond quickly, and ignore your flashy advertisements. Social listening is a science. The bigger your audience and the volume of conversation around the brand, the more difficult it can be to find the nuggets of insight in the noise. The only way to draw their attention is to find and respond to each other’s common interests and needs.