HVAC Marketing – 5 Part Series: HVAC in 2017 and beyond. “Customer is King, only thing normal is change!”
This article will address the importance of utilizing market research (Big Data) and key performance indicators to generate leads and minimize your cost per lead. Money in the Bank!
One of the lessons I learned after 30 years of business turn-arounds is that there are only two responsibilities associated with running a business. First is Operations which includes employees, employees, employees, human resources, scheduling, quality control, finances, etc. The Second is Business Development which includes directing the marketing, advertising and sales activities. The typical business owner spends 95+% of his time on operations, only considers business development when his current business slows down or there is some other disruptive event. Well, rapidly changing technology is that Disruptive Event.
A simple example of Big Data is a Google Analytics report for your website traffic. Most business owners look at rankings, impressions, clicks and bounce rate while having little or no understanding of how or what to address or revise to achieve improved performance. There is a substantial amount of additional information in Google Analytics. Unfortunately disseminating the information can take significant time and energy. The solution, business owners typically outsource website and search engine optimization (SEO) activities. When it comes to Big Data, remember that it is not about how much information you have, but how much is relevant to your specific program and objectives.
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Imagine if you had a business partner that could utilize data and analytics to identify the journey that leads to the most customers by positioning the right information at the right place and at the exact time that the customer or prospect is searching. All while posting and selecting the content, images and offers that resonate with the buyer.
At Brand Management Labs, we call this Digital Dominance, a comprehensive business development strategy that includes.
- Customer Profile
- Keyword Insight Analysis
- Search Engine Marketing
- Social Media
- Video Production
- Paid Media Distribution
- Online Branding
- Creation of Digital Content
Yes the rate of change for Technology is accelerating. And the amount of data produced is staggering. Many data analysts are suggesting that the digital universe will be 40X greater than today by 2020. We have gone through digital, are currently focused on mobile, and transitioning to multichannel marketing. This is the Disruptive Event to your business development that I mentioned at the beginning of this article.
Whether you’re maintaining a life style business or looking for growth, unless you get a handle on technology your businesses long term viability is at risk.
Performance measurement of your business development strategy can actually be considered an extension of big data. Are you aware that businesses that measure the return-on-investment (ROI) performance of their advertising and promotion are 17X more likely to maintain or increase their ROI year over year?
When measuring media performance, the objective is to show how different promotional channels effect each other. This will give you a clearer sense of how each channel performs and the additive affect that they have on each other. This is a holistic approach to the customer journey. For your business development strategy to be effective, we suggest that your website act as the hub of your distribution platform and then measure and analyze the performance of all verticals.
Some simple advertising performance measurements:
- Average Order Value = Total Revenue/# of customers
- Advertising Performance Analysis:
- Cost of Mobile Advertising: $600/month
- Mobile Banner Ads: 175,000 Impressions/month, $/1000 Impressions = $3.43
- Number of Clicks: 1,700, $/Click = $0.35
- Number of Phone Calls: 6, $/Call = $100
- Average Closing Rate: 30% = 2 New Customers
- Cost/ New Customer = $300
Contact Brand Management Labs with questions about how to build or integrate Inbound Marketing into your business growth strategy.
This is the last segment of our 5 Part Series, HVAC in 2017 & Beyond, Customer is King, Only thing normal is change! Technology has changed the way you communicate with customers and prospects and we expect the rate of change to accelerate. To be successful in the future, you are going to need a multi-talented business partner to manage specialized resources and guide your brand, promotion and lead generation activities. Everything from market research to key performance indicators to ensure that your investment in business development is providing a reasonable return-on investment and putting Money in the Bank.
Gregg Anderson is the owner of Brand Management Labs, a business development and brand management consulting company. With over thirty (30) years of business turn-around experience, twenty (20) years of search engine/website and online business development, and a strong marketing, advertising and sales background, BML has helped a number of HVAC dealers grow their business. Visit www.bmlabs.com/hvac-marketing for more information.