Take control of your marketing and sales
I cannot recount the number of times people told me “Marketing does not work”. My first response is normally, “How to do measure your marketing and sales?” to which the answer is normally “No we do not measure it, anyhow, can you measure it?
Well, there is good news, marketing and sales can be measured with the right business processes and systems.
Measuring your Marketing
The formula to measure marketing is actually easy:
Marketing spends divided by customers acquired by the marketing efforts = Marketing cost per customer or Customer Acquisition Cost (CAC).
Example: R50 000 / 10 = R5000
Thus it cost R5000 to get a customer through the marketing process.
Measuring your Sales
Also an easy calculation:
Potential customers (Leads) entered into the system divided leads that become customers = sales conversion percentage
Example: 100 / 10 = 10% sales conversion rate
Thus for every 10 leads entered into the system 1 become a customer.
Why is it difficult to measure?
The short answer is inadequate business processes and systems.
Here is an example of the most basic process of marketing and sales.
Easy isn’t it? But why do businesses struggle to get this process right? Let me use an example of a project which we just completed.
We had the privilege of implementing all the Business systems for a Hotel/Spa/Wedding venue/Restaurant. We implemented all the normal systems, Spa management, Hotel management, POS, accounting, website, online travel agents, etc, and the enquiries start flowing in.
It’s then that I overheard the following conversation between two of the managers. “Did you follow up with Jolene Nel about her wedding request, she filled in our online wedding venue calculator a week ago?”. The reply from the other manager, “I think so, I must just check my emails, I am not sure, I think so, will check for you when I get back to my office.”
This is where potential customers (Leads) fall through the cracks, between step 2 and step 3 of the Basic Marketing and Sales process.
Why?, because of the lack of a CRM system that is used by all in the business.
What is a CRM system?
CRM (Customer relationship management) is a technology for managing all your company's relationships and interactions with customers and potential customers. ... When people talk about CRM, they are usually referring to a CRM system, a tool that helps with contact management, sales management, productivity, and more.
Again, not rocket science, but why doesn’t CRM’s work for businesses? There are two main reasons:
Businesses do not have a CRM system in place.
If they do have a CRM in place the people do not use it.
This brings the next question, why do people not use the CRM systems if there is one in place, this boils down to one or more of three reasons:
The implemented CRM system is not user-friendly and is cumbersome to use
Employees do not have the discipline to use the system
Employees protect their jobs by having data about current and potential customers that only they have, if it was in a system they would be easily replaceable
Let’s assume for a moment a business has implemented a user-friendly integrated CRM system that is used by everyone in the business.
The following would be business as usual
All potential customers (Leads) would be captured in the integrated CRM
A potential customer would be automatically assigned to a salesperson or team when entering the system
An escalation notification would be triggered after a predetermined time if the potential customer was not updated with a note about a contact from a salesperson
Each and every potential customer would be in one of a few predetermined stages, eg. Lead stage or opportunity stage or proposal stage or win/lost stage, etc.
The potential income expected and the probability of this realising would be calculated per stage and per potential customer.
Each and every contact with the potential customer would be noted in the integrated CRM system
Follow-up activities can be created on each potential customer and assigned as tasks
Each employee with the relevant access rights will be able to get a full picture of each and every potential customer activities and data in the integrated CRM
Reporting about KPI’s like sales conversion rates, potential customer entry points, etc., would be easily accessible
Bottom line, a business would have control over its Marketing and Sales process.
Speak to us for a quick demo on an integrated CRM.