In the first two blogs of this series, we talked about how most online marketers assume that if they’re making a steady income that they’re succeeding with their online marketing. They measure success by measuring whether there’s more money coming in than there is going out. If your goal is simply to make more money than what you’re spending and to stay in business right now, then maybe the “income must be higher than outgo” is a good way to measure success.
But if you want to be in business for five or ten years, or longer, and if you want to make sure that you won’t go out of business if the economy takes a hit or if you experience a lag in sales, you need more ways to measure success. In the first blog of this series we talked about “future banking,” and how it’s necessary for creating sustainable business growth. In the second blog, we talked about the power of social banking and how it can increase your conversions and make your marketing dollars more effective.
In this final blog, we’re introducing the third method for measuring the success of your marketing campaigns, and this is one that can turn your marketing success around very, very fast…
Method #3: Infrastructure Banking
“Infrastructure Banking,” is determining how much lasting value you’ve added to your company by creating marketing campaigns which can be used to create predictable results many times over. For example, let’s assume that you create a six step direct mail campaign that, on average, earns you $2,000 in immediate profits and brings in 8 to 10 new customers and at least one positive online review. How much would this marketing campaign be worth to your company over the next five to ten years?
Since you’ll need to consider the other two methods (covered in blogs one and two), and a few other variables, in order to answer this question, let’s look at a simple selling situation as most marketers would look at it. Then I’ll show you how to look at it from an infrastructure banking perspective.
The Casual Marketing Perspective
Let’s assume that you run a campaign which costs you $1,500 every time you run it. Ten new customers buy a product which is worth $250 in response to the campaign. So you’ve got $2,500 in income and after deducting your $1,500 investment, you’ve got $1,000 in profits. Assuming that each product requires $75 to create and to deliver, you’re now down to $250 in profits.
Most marketers would consider this a decent result and would probably run the campaign to find ten more customers. But they’d probably keep searching for more “effective” marketing methods, all the while burning up time, money and human resources trying to find the “magic” marketing campaign. Others might focus on increasing their conversion rate so that the campaign brought in 12, 15 or 20 new customers instead of just 10.
However, let’s look at this same situation from an infrastructure banking perspective…
The Infrastructure Banking Perspective
Let’s assume that you’ve developed a method for soliciting positive customer reviews and posting them online and/or on your website, your landing pages, your direct mailers and other ads. Let’s also assume that you’re practicing future banking and that you’re considering the value of having a campaign that’s sure to produce $250 in profits and that those ten new customers will spend, on average, $100 a year.
If you run the same campaign again and again, adding one new customer review, on average, every time, and make ten new sales, that campaign will probably (with an occasional tweaking) continue to bring in $250 in profits every time you run it and adding $1,000 a year to your future bank. Now, consider the amount of time and money that you won’t have to invest creating new marketing campaigns. Imagine how much less anxiety you’ll have once you know that you’ve built a marketing campaign which can literally become a part of your operational infrastructure.
What would that be worth?
Infrastructure Banking vs Money Banking
Are you starting to see how a combined awareness of future banking, social banking and infrastructure can change the way you think about marketing? Are you starting to see the dramatic impact that it can have on the future success of your business? Many online marketers get so caught up in measuring conversions and chasing new business and new marketing trends that they never consider the value of creating a simple, predictable marketing campaign which they can run again and again, each time bringing in new profits, building up their future equity and their social proof.
As you can see, there’s more than one way to determine how successful your online marketing strategies are. If you use the three methods covered in this blog series, you could be in a completely different place with your business by this time next year. Imagine where you could be in five years, or ten.