The challenges that B2B businesses face are almost the same – whether it’s B2B generating leads and closing them purely, closing them offline, or whether its B2B e-commerce – this is because it usually takes a while for a costumer or prospects, for their first engagement with you – to actually purchase.
It is challenging to understand what’s working, what’s not, where one should invest more – specifically:
- Connecting the dots – on how to spend and turn it into revenue
- identifying where you should be spending more and spending less
What are we trying to achieve? When we talk about all these challenges and advertising and b2b and seeing what points are driving our revenue? What’s the big vision?
The big vision is: we’re trying to let your advertising spend and advertising cost to drive revenue. As an example: product margin is 50% and willing to spend 18% on advertising – for a thousand dollar sale I’ll spend 180 bucks to get it for 10000 dollars. So this is what we really want to go to – we want to let their spend on advertising cost be accountable and drive revenue rather than being something that we feel like we’re a slave to, in a sense that we need to continue spending because it has to be there but that it’s not something that’s truly driving value. So that’s the vision.
What’s the challenge? The challenges we discussed is that the dots are very hard to connect, you have your:
- Marketing platforms
- Analysts and teams and people that are working with them there
- Vendors that are working with them there to optimize based off the data that’s in there.
And then on top of that you have your CRM. Your CRM isn’t getting your marketing data it doesn’t know what your costs are or what messaging and out copies is tied to each lead so you don’t truly have any insight into which pieces from the CRM site of what’s going on.
Then you have your vendors – you have bin management platforms, you have your tracking platforms you have all these different attribution platforms and again they still do some fancy pieces of this but you still don’t truly know what’s driving your revenue and what’s driving your costs and you’re back at zero or if you are its because its taking you a hell a lot of time to pull the pieces together. Bottom line is – it’s really important to tie everything together and crack this code.
So, the first concept I want to introduce you to is what I call Agile Insights. The principle of agile insights is that every single platform that you’re going to be optimizing off of ideally should have the revenue associated with it within that platform. You’re optimizing adwords and any revenue data that’s associated, any lead or lead quality of data should be, as much as possible, should be within the native platform itself that you’re doing the management and optimization problems. So that your analysts can live in their regular environment and use that data without becoming a data monkey having to go back and forth a do five gazillion things in order to get the lead quality of data, etcetera once every couple of months.
Concept 1: Agile insights that data should live in your CRM so your sales people can tell you this is a bad lead and this is the reason why it is a bad lead and you can take that and tie that back into your sales and then also on the marketing side your marketing platform should have an idea of lead quality or lead value some actionable way that can be easily used.
The next thing is Layered Optimization. So, I don’t know if you know how long your customer sales cycle is, but if your customer sales cycle is more than 2 weeks and more than two engagements on average you need what we’ve developed as layered optimization goals and layered optimization goals means that, for example, you have your leads that come in and some of those percentage of those leads convert and some of the channels, some of the key words, some of the ads have a higher propensity to drive higher quality leads some of them have lower propensity, big part of the challenge but we can’t really connect the dots so we don’t know what is and what isn’t working. So the concept of layered optimization goals is that there are two steps to this process:
- Driving a lead and
- Is actually driving a sale.
In an ideal world when we look at it in a yearly, a quarterly, a monthly basis perhaps or even bi-weekly we want to know how much do we spend and how much revenue did that drive. The big picture is spend versus revenue and ideally again more attract back down to the individual channels. So, that’s optimization goal number 1.
Optimization goal number #2 – what’s your actual cost per lead, per initial engagement – so what this does is you can look at spend versus revenue in a higher level over a longer period of time, because you can’t actually gain if your sales cycle is longer than 2 weeks.
Step #1: Layered optimization – is what’s the first action or interaction that a prospect that brings to you and what’s your target cost? Use that as step 1. And then your 2nd performance target which is your real 1, the one that really ties spend to revenue is “hey what am I spending in this channel? and what am I making in this channel?” in broad strokes across a couple of months of data again on an ongoing optimization standard you’re looking at every month or every two months you’re updating it and you’re able to review your performance metrics and tweak the different channels based on what’s working and what’s not and so the first pieces as I mention was agile insights so getting the data everywhere it needs to be so that analysts can work within their platform and do their job their supposed to do.
Step #2: is layered optimization goals having two optimization goals one for that media that you can react to in real time and one is the longer term, longer cycle process.
Step #3: Quantify what you don’t know and this is really important, lot of people don’t buy the fancy technology and attribution platform or this or that and it doesn’t actually solve their problem because they haven’t quantified what they don’t know what they can’t answer.
So there’s going to be lots of question marked and its very important to quantify what we don’t know in as absolute terms as possible.
Step #4: is quantifying what you don’t know.
Step #5: is understanding the technical tracking structure so we’ve talked about this theoretical ideal of being able to track and optimize from within the platforms, but how does that actually work? I want to bring you to 3 specific – 2 of them good one of them bad and with specifically within Adwords that are driven a tremendous amount of change, a sea of change that opened up some opportunities, closes up some other one.
- Is that Google’s gone to in a bunch of big strokes. They’ve actually started closing their ecosystem of sharing Adwords data as openly with advertisers? Number 1 is that a use to be just organic site Google would set all of their URLs to secure but when it came to advertisers they allowed advertisers to see the referred data, see the full data that the URL that the actual URL the person input the full URL when you get from secure search it breaks off all the details so you can’t pass that. So basically Google changed that so that now that even advertisers can’t see the original full view URL and the only way to do it is as we’ll discuss through G quick ID’s and tracking.