Steve Johnsen

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Which marketing generated the best ROI?

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When I ran a software company here in Denver, we marketed our software several ways. We used print advertising, direct mail, trade shows, and online marketing, including search engine optimization, banner ads and email marketing.

I carefully analyzed the results of each of our different marketing campaigns. What I found was pretty interesting.

Our most expensive leads came from trade shows. We spent about $150 to acquire each lead from a trade show. When we turned the sales team loose to follow up on that lead, many of them turned out to be a huge waste of time. These expensive leads had a low closing ratio, around 5%.

We did a bit better with print ads. We acquired leads at $20 – $40 each. When we followed up with them, we had a slightly better closing ratio than the trade shows.

The least expensive leads were generated through our online marketing. The leads cost us only a couple of dollars each. We had a high closing ratio, sometimes as much as 40% because they were highly self-qualified leads. They were people looking for a solution to their problem, and they had taken the time to engage with us through our website.

Compare a lead obtained at $150 with a 5% closing ratio to a lead that cost $3 with a 40% closing ratio. The cost of acquiring a client through our online marketing was a tiny, tiny fraction of the cost of acquiring clients through other channels. The gap became even more significant when we factored in the cost of the sales rep’s follow-up on the trade show and print ad leads.

As long as we continued to get a positive return on the trade shows and print ads, we did continue to use those methods. However, we put most of our attention and focus on our online marketing because it gave us our best return. By far.

To your success!

Byte to Byte with Steve Johnsen
Multiplying Your Marketing ROI

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Filed Under: Marketing, Podcasts, SEO

How many of your referrals are getting lost?

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Last week we talked about the three different types of websites–a placeholder, a branding website, and a website that functions as your number 1 employee. The job of a branding website is to engage your prospect enough to compel them to take the next step with you.

Whether your prospect met you at a networking event, heard about you from a friend or received your advertisement, they’re going to check out your website. It’s hard to measure how many referrals get lost at that point.

Picture this scenario: someone has recommended you to a friend. Then, before that friend calls you, they check out your website.

When they visit your site, they’re going to have some variation of these three reactions:

  • They could be turned off if they don’t like your site.
  • They could say, “Okay, this is a real business. Maybe this is the kind of service provider that I need.” Then, they’ll put you on a list with a bunch of other names that they’ve gotten. They may or may not call you.
  • They could look at your website and say, “Wow, I’ve got to talk to this person. This looks like the person I want to work with.” It’s that “wow” impression that you’re really going for with a good branding website. This requires professional design and really good copy.

Does your business thrive on referrals? If you sense you may be losing out on some, take an objective look at your site through the eyes of your prospect. What might it need to create that “wow” factor for them? Here’s a link that can help.

To your success!

Filed Under: Marketing

What makes a “good employee”?

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The only reason for having a business website is to make your business money. That’s why I talk about making your website your #1 employee.

A traditional employee — a person — can be expected to generate value equal to three times their salary. For a marketing or sales employee, that ratio will be much higher. Your website should also be an investment that gives you a very good return.

When I talk about your website being your #1 employee, I’m talking about “someone” who is working for you 24 hours a day, 7 days a week, 365 days a year. This amazing employee never takes a vacation, never calls in sick and always has your best interest at heart.

This #1 employee works hard for you, automatically bringing you new connections, new leads and new customers. This employee keeps generating money for your business. Picture what your life will be like with a well-designed website that is bringing in far more revenue than any human employee.

If your website isn’t working as your #1 employee right now, Cloud Mountain Marketing can help.

To your success!

Filed Under: Marketing

Sharpening the Ax

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If I had eight hours to chop down a tree,
I’d spend six sharpening my ax.

– Abraham Lincoln

I often have business owners tell me that they need a website without having thought about why they want it. Over the past 21 years of creating and optimizing websites, I have found that there is an important prerequisite to building a successful website.

Before beginning to develop or overhaul your website (or any other marketing platform, for that matter) it’s critical to define your website’s purpose:

  • What do you want your website to do?
  • How is it going to help your business reach its objectives?
  • How does the website fit into your overall business plan and marketing plan?
  • What is the key message you must communicate on the site?

Once visitors are on your site, what do you want them to do? You will want to identify a primary purpose (and possibly a secondary and tertiary purpose).

Do you want them to:

  • Buy products from your site?
  • Call or email you about your services?
  • Subscribe to your list?
  • Download certain information?
  • Read and respond to your blog?

Write down clear answers to these questions. Then, and only then, you are ready to proceed to writing and designing your website.

To your success!

Filed Under: Key distinctions, Marketing, Websites & Internet marketing

Let your light shine!

by Steve Johnsen Leave a Comment

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You have a product or service that can make other people’s lives better. You’re passionate about it. And yet does it sometimes seem that you’re the best-kept secret in the country?

Dr. Jonas Salk wasn’t afraid to promote his cure for polio. Actually, his vaccine wasn’t necessarily the best solution. Dr. Albert Sabin was working on a live polio vaccine at the time, that was more effective than Salk’s. But because Dr. Salk promoted his cure, thousands of lives were saved.

Maybe you’re not in the business of curing polio, but don’t you make people’s lives better?

For example, I’m not “just” in the business of building websites. Ineffective marketing is listed as the #4 cause of business failure. By building websites that get found online, bring in new customers, and actually make money for the business, I am improving the quality of life for the entrepreneur, and his or her spouse, children, employees, customers, vendors, employees’ families, vendors’ employees, etc.

How about your business? How many lives do you impact? How can you improve your customers’ lives? What would your business success mean to your family? Your employees?

With that much on the line, don’t you owe it to them to have a website that is effective at growing your business?

To your success!

Filed Under: Marketing

Reality TV and Business Success

by Steve Johnsen Leave a Comment

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A couple of years ago, I wanted to produce a reality TV show called, “Business Makeover.” I would bring in a team of business advisors, and within a month we would completely turn around a struggling business, capturing it all on film. The business makeover concept is still a lot of fun, but I eventually decided not to get into the TV business.

Today I was looking at a coupon I got in the mail from a cosmetic dentist and thought of a working title for a new reality TV show, How Not to Market. It’s amazing how many marketing dollars are wasted in the U.S. If you’re spending money on marketing in a particular area and it’s not making you money, STOP!

It’s also not enough to track how many leads are generated. A software company I worked with was generating about 800 leads per year at trade shows, at an average cost of about $140 each (when you added up all the expenses). But most of these “leads” were just people wanting the door prize. They wouldn’t return calls and would generally waste the salespeople’s time, so that their real cost was much higher.

In contrast, the leads we generated through search engine optimization and several email campaigns was significantly lower (about $10 each), but the leads themselves were already highly pre-qualified. A large percentage of those resulted in a sale.

When I compared the cost of making a sale through trade show generated leads vs. SEO generated leads, it was about 100 to 1.

To your success!

Filed Under: Marketing

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