Multi-Million-Dollar Sales Funnels

MULTI-MILLION-DOLLAR SALES

FUNNELS

Reid WilsonQuintify Database Solutions, Inc.reid@quintify.com

(A.K.A. SMALL BUSINESS MARKETING DONE RIGHT)

MY BACKGROUNDWhen it comes to marketing, Fred Meyers

taught me about 90% of everything I know. (I.e., old-school catalog direct marketing applied to modern technology.

WHAT QUINTIFY DOESWe build highly customized web-based

database software systems for “small” multi-million dollar companies and franchisors

Three main uses of databasesin business

THREE MAIN USES OF DATABASES IN BUSINESS

1. Information Store / Data Warehouse

THREE MAIN USES OF DATABASES IN BUSINESS

1. Information Store / Data Warehouse

2. Process Management / Transactional

THREE MAIN USES OF DATABASES IN BUSINESS

1. Information Store / Data Warehouse

2. Process Management / Transactional

3. Actionable Reporting / Analytical

Inadequate data management

leads to poor marketing

(unless you are just lucky)

COMMON MISTAKES IN SMALL BUSINESS DATA MANAGEMENT MS Excel

COMMON MISTAKES IN SMALL BUSINESS DATA MANAGEMENTFile Folders Your customer info is

only accessible by one person at a time in a particular place.

Regarding marketing, data is very tedious to accumulate and analyze

COMMON MISTAKES IN SMALL BUSINESS DATA MANAGEMENTSticky Notes or Random Pieces of Paper Little pieces of paper fly away when the wind blows.Big pieces of paper get stacked and put in boxes when guests come.

COMMON MISTAKES IN SMALL BUSINESS DATA MANAGEMENTSticking with a legacy system that no

longer meets your needs

COMMON MISTAKES IN SMALL BUSINESS DATA MANAGEMENT

Ignorance

(Direct) Marketing Is Math

Applied to Data

The Million Dollar Question:

Where do I spend my marketing

dollars?

The Direct Marketing Approach:

Test and measure!1. (and let analytics tell you what you should

do)

KEY METRICS

Cost per lead acquisition per channel/promotion

Conversion Rate How many “touches” does it take to

convert? Retention / Reorder Rate Reactivation Lifetime Value / Profitability RFM (recency/frequency/monetary) cell

analysis

COST PER LEAD ACQUISITION

Source Count Cost CPA

Google Adwords 547 $4,732 $8.65

Affiliate Program 120 $625 $5.00

LeadSource 259 $3,147 $12.15

THREE-MONTH CONVERSION RATE

Source Count Conversion Revenue $/Lead

Google Adwords

547 15% $4,512 $8.28

Affiliate Program

120 22% $1,716 $14.30

LeadSource 259 27% $4,247 $16.40

LIFETIME REORDER % OVER TIME FOR 1X CUSTOMERS

NEW CUSTOMER REORDER RATES BY INITIAL ORDER SIZE

LIFETIME SALES PER CUSTOMER

LIFETIME SALES FROM INITIAL ORDER SIZE

WHEN SHOULD WE TRY TO REACTIVATE?

MARKETING DATA TO CAPTURE IN YOUR DB

Track the source of each prospect / new customer – source type and source detail and any promotion they first responded to

Segment your customer into various groups, e.g. by industry, size, location

Track lifetime sales per customer (and carry that over to lifetime sales per segment and lifetime sales per source)

MORE DATA TO CAPTURE If your business has many

customers/orders, track “RFM” – recency, frequency, monetary – and incorporate it into decisions on who to send promotions to

Track costs (COGS, fulfilment costs, advertising costs) to each order and each customer, so that profitability can be watched

TEST AND MEASURE REDUX

Test and Measure Put more focus and money into

what’s working Stop what’s not But realize that long-term results are

most useful when making decisions (e.g. three month payoff as opposed to immediate payoff when evaluating a lead generation promotion)

EXAMPLE RFM REPORT (FILE COUNTS OVER TIME BY CELL)

QUESTIONS?

Reid WilsonQuintify Database

Solutions

reid@quintify.comwww.quintify.com