John D. Rockefeller was, without a doubt, the greatest businessman of all time. He never made a loss in his entire life in business —even through The Great Depression— and he amassed a fortune of $340 billion dollars (1.5% of Americas total GDP).
John D. Rockefeller said this:
“I chartered my course by figures, nothing but figures.”
Read that quote a couple of times. Think about it. Let it really sink in.
He didn’t say he went with his gut or that he relied on intuition, as so many of us do. He said he used nothing but figures to chart his course. Numbers were Rockefeller’s secret weapon and they’re also your secret weapon when it comes to digital marketing.
The best businesses in the world can go bankrupt without good bookkeeping and accounting, and so can the best digital marketing campaign. If you’re to take one thing from this report please let it be to measure everything in your business and see what’s actually happening with your marketing dollars.
I almost fall off my chair when I meet with people, they say they’re spending $5,000 a month and have no idea what return that gets them. How is that different from throwing $5,000 out the window and hoping it might do something? It’s not. Without measurement you don’t know anything.
For all you know you might be getting ZERO in return and your so called “digital marketing manager” is just pocketing the total sum as beer money.
Ridiculous you might say but how are you to know when you don’t have any figures?
When I studied 200 successful businesses, every single one of them had their eye on the numbers and that's how they made their marketing decisions. No guesswork, no “let’s go with our gut” conversations. Just, “here’s the numbers and this is what we should do according to them”.
Just like John D Rockefeller, these 200 successful businesses didn’t get rich by “luck”. They got rich by charting their course with facts and figures.
For every different channel of digital marketing you should know the following:
- Cost Per Website Visitor: How much it costs you to get somebody on your website
- Cost Per Email Enquiry: How much it costs you to get somebody to take the next step and email you
- Cost Per Phone Call Enquiry: How much it costs you to get somebody to take the next step and call you
- Cost To Acquire A Customer: How much it costs you to actually get a paying customer through a paid advertising channel
- Return On Investment (ROI): The amount of profit you make when you subtract the cost to acquire a customer from the average revenue per customer.
If you don’t know all of the above metrics, or if the person managing your digital marketing can’t tell you, then you seriously need to make some changes. You are essentially flying blind.
Why would somebody do digital marketing without knowing the numbers you might ask?
Well, it can only come down to two things: 1) they just don’t know; or, 2) they don’t want to know because then they’re accountable to deliver, when it's easier to just have you spend blindly. If this is the case, then either fire yourself or your digital marketing manager!