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June 12, 2013

How to create a highly effective marketing campaign

Filed under: Uncategorized — admin @ 7:44 am

In the following article I am going to share with you some of the secrets of successful marketing campaigns along with some excellent tips and tricks. Here’s a small example:

Let’s suppose that one of your major competitor has just launched a campaign that will reach 10,000 customers and his results are something like this:

  • 1 percent response rate (a response rate is defined as an answer to the campaign, the answer can be a visit to the website, a visit to the store, a call, an email, etc.)
  • 35% conversion rate ( this mean the percentage of the responding potential customers that bought the product or service and became customers)
  • $500 the price of the sold product
  • 1.5 products per customer (an average buyer buys 1.5 products in the initial order).
  • 30% profit margin
  • 10% of the customers buy again in the future (the repurchase rate).

If you quickly do the math you will notice that this competitor made a gross profit of $8,662.50 from the ad, if it reached 10,000 customers. From this profit he will need to withdraw the cost of the ad.

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If your company would achieve better results by 20% your numbers will look something like this.

  • 1.2% response rate
  • 42% conversion rate
  • $500 price per product
  • 1,8 products per buyer
  • 36% profit margin
  • 12% repurchase rate

The actual result of an increase like this means a profit of $19,596 assuming you reached 10,000 customers. You would get 2.3 times more profit than your competition and if you replicate this success every time you run your own ads you will soon crush the competition.

What`s the key in all this? The essence is that you do not need to revolutionize your marketing process. Focus on small improvements of 20% in every part of your marketing system. Small improvements like these will lead to amazing results in terms of sales and more.

So, how can you do it? Here are some options that you can take into consideration in order to improve your marketing and your results:

Improve your Response Rate

The first thing you need to do is to design ads that appeal to your customers and in order to do that you need to know more about their needs and wants.

Knowing more about them will help you create your USP, the unique selling proposition, which will make your company stand out.

If you sell, for example, children`s clothes and you know that your typical customer is a busy mom with at least two kids, a husband and a dog at home you can create ads that she will relate with better. This will increase your response rate.

You can also increase the response rate by releasing excellent offers to attract offers. One good offer that always makes an impression is the 90-day money-back guarantee.

Improve your Conversion Rate

The conversion rate is the most important aspect of your marketing campaign. This means the percentage of leads that are converted into customers.

The conversion rate is partially in your control. You can increase it by improving the sales process, training the sales team and the staff, incentivizing the employees with bonuses or commissions, testing the marketing messages and sales scripts.


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