Question

Topic: E-Marketing

Formula For Reach/conversion

Posted by nverardi on 125 Points
What formula are you using to say, you need X reach to get X leads/conversions?
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RESPONSES

  • Posted by modza on Member
    One can't know without testing- so what I do is set a trial target, and adjust after testing. Start with 1 in a million...or if you're brave, 1 in 10,000. But better to underpromise and over-deliver. Many factors affect the ratio: price, need vs. want vs. impulse, competition, size of universe of potential buyers, sales cycle (how many times an ad has to be repeated to move a buyer from apathy to action, as well as the corporate purchase process)... and more.
  • Posted by nverardi on Author
    Thank you!

    But is there an accepted formula for budget planning? I am being tasked to explain how many people we need to reach and how many we will likely lose along the way into actual conversion.
  • Posted by modza on Member
    You might be able to Google some statistics for your industry. If you can share the product category and the medium or media, someone here might have relevant experience. Or tell me confidentially at modza@odzaconsults.com. For example, when I published a newsletter in the 90s and promoted by direct mail, industry gurus said the ratio to expect was 1%. But I never got over 1/2 percent. However. I had a niche where I could charge $400/year and because the marketing costs were low, and retention (renewal) rates were high, nearly every mail campaign was profitable, using the lifetime value of each subscriber.
  • Posted on Member
    I think you need to go back a step or two. You say that you are "being tasked to explain how many people we need to reach and how many we will likely lose along the way into actual conversion". Who actually is doing the asking? If it is your senior management team, then they are not facing reality. Does your business have a formal or comprehensive plan where the business strategy, business model and marketing strategy are subject to 'what if' options? You cannot just look at the point raised in your original question posted here in isolation. The point you are considering is important but has to be examined from a 'whole of business' concept.
  • Posted by mgoodman on Moderator
    In addition to all the mechanical/arithmetic calculations, don't forget the most important variable: copy effectiveness. Very often a simple adjustment in your copy -- on the landing page, on your website, etc. -- can increase (or decrease) effectiveness by 5X or 10X.

    That's why it's so important to test everything -- especially your copy.
  • Posted by Gary Bloomer on Member
  • Posted by Gary Bloomer on Member
    Whoops: typo. I meant 'these'.

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