Have you got it all mapped out?

MappedOut

We’ve all heard the phrase ‘if it can’t be measured it can’t be managed’ and we know in business we should be continuously testing – copy, ways to market, pitches, products… everything needs to be measured, managed, tested… How else do you know that it’s working or working optimally for the business?

So… sales… What are you measuring? Is every single channel mapped out? Do you know the real cost of a sale through each of the channels? If you wanted to increase sales by say 5% do you know what needs to happen to the conversion rates through the whole of the sales process to achieve it?

In my experience a number of businesses have various routes to market, but only very high level conversion rates for an overall channel and so have no idea what’s really working for them e.g. if a campaign using `channel a’ is better than ‘channel b’ and that’s because they don’t collect the data to analyse it and can’t differentiate between the campaigns.

So it could be that everything is working equally well or even equally badly but more likely, that some are better than others… goes back to the 80/20 principle.

Getting it mapped out…

  1. List every way you go to market i.e. lead generation including every channel for campaigns over the last 12 months say – splitting out where you’ve used say FB sponsored ads and sponsored posts or two different publications with the same advert.
  2. For each of the different lead generations break them down into logical steps through to the sale e.g. leads, conversations, appointments, proposals, sales. It’s entirely possible there are more than five stages for a channel…
  3. For each stage identify the numbers of leads that go through to the next stage and therefore the conversion rate at each stage through to the sale. This gives the baseline for that lead generation/way to market.
  4. You should be able to identify which sales were attributed to each lead generation,even if its the overall method and using the cost of each one work out the cost of acquisition of each sale e.g. if an advert costs £10, 000 and generated 100 leads the cost per lead is £100, if that generated 80 conversations the cost per conversation is £125, and so on.
  5. Mapping out each route to market/lead generation allows you to not only understand the cost of acquisition for that particular route and so decide on what’s working well and what isn’t but then allows you to see the impact if conversions were increased, the impact on the cost of conversion and the overall sales.
As my good friend Peter Thomson, who designed the process, says ‘for every action there’s an equal and opposite measurement’. And this is just one of the tools we’re exploring in detail at my events next month…

Comments