There’s strong data that, within companies, the No. 1 reason for ethical violations is the pressure to meet expectations, sometimes unrealistic expectations.
Having been the owner of a Vancouver-based integrated marketing and lead generation company, I see a lot of confusion among small and medium sized business owners about what marketing and lead generation really mean. Most of my clients can’t get their heads around how to allocate their marketing budget to generate the highest and quickest return on investment (ROI).
First, I would like to clarify what ROI means in modern marketing. The old approach, where $1000 invested in marketing was expected to generate $3000 in sales the following month is long outdated and unrealistic. Unfortunately, many business owners stubbornly demand that their sales and marketing people to deliver on this strategy… or else.
What is modern marketing then? Shall we cold call prospects randomly, or spam them through email and social media? Shall we break our budgets with Adwords and Display ads? Or maybe the trade show? The answer is that none of those will do it, but all of it combined with smart long-term and short-term activities will. And nothing else. Sorry.
As a marketing consultant with over 25 years experience in sales and marketing, I keep suggesting the famous “80/20” approach is the best solution for lead generation and marketing: invest 80% of your money in long term strategies and 20% in short term activities.
The obvious question is: What is the meaning of long term and short term for marketing and lead generation ROI?
I suggest that long term activities include:
- Web site content development
- Blog writing
- Content Distribution
- Social media
- Email database development and management
- Public relations, events and traditional advertising
- Short term activities include:
- Telemarketing and cold calling campaigns to generate leads and appointments
- Social media prospecting
- Email campaigns
- Google and Facebook advertising campaigns
- Ad Words campaigns
Sounds clear and simple, right? But in reality, business people are doing the complete opposite: Distribution of marketing funds and efforts, which is 80%, to short term efforts and 20% (or often nothing) to long term strategies. And the result is… disappointment. The expectations are not met, marketing and sales people are fired, and eventually business downsizes and collapses.
So, do the right thing: Make an effort to understand and learn what modern marketing is about. Do not believe service providers and sales people who are promising a miracle in the form of a simple one campaign solution. Whether it be cold calling, email, advertising or SEO, it is not going to result in consistent growth for your business. Visit Prospect Solutions to learn about our 80/20 Outsourced Marketing Agency integrated marketing approach and request your Free Consultation.
We look forward to speaking with you and thanks for reading!