Measure Everything!!

I went to a Business Marketing Association (BMA) meeting sponsored by the Indianapolis chapter recently. Jill Snyder (Schneider) and Shawn Herring (Harlan) gave a very good talk on “Revenue Driven Marketing.” According to the presenters in order to defend a marketing budget from cuts all dollars spent must be tied to top line business revenue. If you can’t relate it back to sales don’t do the tactic. The more directly the correlation the easier it is to defend. We as marketers need to be able to say to management “If my budget is cut by $X, revenue will decrease by $Y” and have the data to prove it.

How do you start?

You need to ask before the process begins what is the revenue objective for the year? Then work backwards to determine the number of leads that needs to enter your funnel to make the objective. Remember marketing is in charge of attracting and cultivating leads. Sales closes them.

For example if your company’s revenue objective is $10 Million & the average contract is $10,000 your company will need 1,000 closed contracts to meet target. If on average 1 in 5 proposals close your sales team will need to prepare 5,000 proposals. If 25% of prospects get proposals you will need 20,000 prospects. If 1 in 5 leads are qualified as prospects you will need 100,000 leads. Your marketing team now needs to create a plan that will attract 100,000 leads.

Take your plan and break it down by tactic (i.e. trade show 1, trade show 2, advertising, public relations, email marketing, referral programs, SEO, social media). What is the cost of each? How many leads are expected? What is the cost/lead?

Prioritize your tactics based on cost/lead. What is the most cost effective way to attract 100,000 leads? Which tactics can be expanded? Where are the gaps?

Fund the things that are effective and cut the tactics that are not. A key part of the model is your sales and marketing team needs to accurately track where leads are coming from. Otherwise valuable sources of information will get dropped from the mix.

It is not an exact science!

Nothing is easy especially when it comes to money. The presenters said that this is not an exact science. Many variables are hard to measure. For example what is the value of brand equity? If a current customer orders again or increases a purchase how is that tracked? What is the negative value of NOT attending a trade show or industry event?

Get started

The first time you do this you won’t know the answers. You can track on line with complicated analogs, you can compute on your PC on an Excel spreadsheet or pick something in between. The most important thing is to start. The more Marketing is seen as a strategic partner for revenue generation instead of a cost center the better it is for all of us.

Until next time – all the best!

RolandB

What is your Mission?

I was meeting with my communications team a couple of weeks ago. We were discussing the various initiatives we were implementing and the success of each. A topic that generated a lot of discussion was how we determined success. Some things are relatively easy. Success of an advertising campaign can be measured directly by the number of individuals driven to a website. Others are more difficult. For example how do you measure the success of a social media program?

As we discussed tactics and metrics we gradually got into team goals. Each of us, no matter who we were or what role we had, was critical to the overall success of the team. We each had individual goals that would help the team meet a much larger outcome. The more each of us understood the overall goal and how each of us was interdependent with others in the group the better it would be for all. We could help each other. Another example of the sum of the parts is bigger than the whole. 1+1=3.

Many of us have professional goals that are a requirement of the job we have. Many of us have personal goals and have a plan to meet them. Often these can be relatively short term in nature spanning weeks to months.

How many of us have a personal mission that will help guide us personally and professionally for years to come?

Back in 1993 I read The Seven Habits of Highly Effective People by Stephen Covey. One of his habits is “Begin with the end in mind.” In his words clearly envision the destination and then use a compass to help you get there.

A tool that Covey strongly recommends is for each of us to write a personal mission statement. This paragraph, poem, document will help us determine what is important to each of us. It will help us as we try to decide what to say “yes” to and what projects or opportunities to decline as we proceed through life. It will help us stay true to our inner self.

Covey recommends taking time to reflect and putting yourself in a setting where you can think creatively and write spontaneously. I was in San Diego and took myself for a few hours to the Torrey Pines Glider Port. I spent a very nice afternoon sitting at the top of a cliff staring out at the Pacific Ocean with Torrey Pines golf course to my right, Black’s Beach below and the occasional hang glider soaring overhead. It is one of the most beautiful spots on the West Coast.

My goal was to trust the process. I really did not know how it would come out but committed to myself to try. At the end of the afternoon as I watched the sun set I had written a passage that I still reflect on and let guide me today over 15 years later. It helps me understand who I am and how I would like to relate to the people that I love and trust. I’ve include it at the end of this passage for a couple of reasons; first so I can find it whenever I need to pull myself back to my basics not letting success or failure derail me from my ultimate goal and second so my family and friends can keep me honest.

Let me know what you think.

Until next time – All the best!

RolandB

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PERSONAL MISSION STATEMENT

I Roland Bydlon value the freedom
to make decisions,
to take on or turn down responsibilities,
to be creative,
to do things differently, to change.

I value the relationships in my life;
my relationship with Sue, my wife and best friend,
with Tim and Kyle my sons,
with my sisters (and all my extended family),
and with my friends both personal and professional.

I value nature and my relationship with it.

I value my faith and my relationship with God.

With these values in mind I commit myself
to be honest in all dealings,
to smile,
to always strive to be my best and do my best without respect to past situations or future considerations,
to take on new challenges willingly and happily,
to continually strive to increase my knowledge and skill base,
to actively listen and attempt to understand others before acting,
to accept divergent thoughts and actions,
to encourage others to be their best,
and to always strive for a win/win solution.

In order to achieve this mission I pledge to
respect my body, eat sensibly and exercise regularly,
take time to think,
take time to pray,
take time to love,
take time to say “thank you”,
take time to stop and listen to the “whispers”,
take time to plan,
and to avoid boasting to others, for recognition of a mission accomplished comes from within.

My overriding goal is to enjoy the day and to enjoy and appreciate life which is limited in length but is always dynamic and limitless in possibility.

From The Serenity Prayer
“Lord give me the courage to change the things which can and ought to be changed, the serenity to accept the things which cannot and the wisdom to know the difference.”

Roland J. Bydlon
Originally written 9/10/93
Updated 6/18/94 & 9/1/02

A Big Thank You!!

There is no “I” in “team”. We have all heard it said and it is true. The magic of a team is the sum of its parts. When a team works well the sum is greater than that of any individual piece. Yes 1 plus 1 does equal 3 in many teams.

I have had the honor throughout my career to work with many gifted individuals. I try whenever possible to surround myself with the best people and set goals that will challenge current paradigms and thinking to introduce products into the marketplace in innovative ways.

At ParaPRO the marketing team is charged with some heavy lifting. After the overall strategy is approved the team is tasked with refining it and then developing and implementing tactics to carry it out. Around that team are many other individuals that often are not directly noticed but whose contribution to the success of an effort is enormous. For example we have a group of dedicated assistants that make all of our travel arrangements and handle any and all of our logistics issues. I remember very well a trade show where everything was delivered except one to the pieces of the booth. FEDEX had delivered 5 of 6 cases. Turned out case number 6 was about ready to be loaded on a plane back to Indianapolis. A very capable and valuable assistant turned a near catastrophe into a good story by getting the case rerouted and returned to the exhibition hall in time for the show. Checks have been cut and delivered on short notice when someone forgot to sign an invoice. Laptops have been resurrected when they decided to crash 30 minutes before a crucial presentation. Graphics to support critical efforts and been designed, produced and delivered in short order. Posters, books and correspondence have been distributed to customers as promised like clockwork.

It doesn’t happen by itself. Kelley, Robin, Cathy, Faye, Amy, Joanne, Cory, Bobby and Steve M. just want you to know that I appreciate everything you do. Great job!

Until next time – all the best!

RolandB