We ask new clients one simple question:
If they have a marketing system in operation, their answer is likely to reference their current system’s performance. For example, a good answer could be:
However, what if you don’t currently have a marketing system and your current marketing budget is, therefore, $0?
Is 3x ROI a Realistic Starting Point for a ‘New’ Marketing System?
Banks are currently offering around 2% interest rates on a 12-month deposit.
Therefore, is it realistic to expect a 300% annual return on an investment you make in a marketing system?
Our answer to this question is a resounding ‘YES‘!
However, our answer of “YES” is conditional. Before outlining the conditions let’s remind ourselves of the meaning of a SMART goal. ‘SMART’ is an acronym with letters standing for:
- S = Specific
- M = Measurable
- A = Achievable
- R = Relevant
- T = Time-Bound
With this in mind, the question becomes “Is a 3x ROI in 12 months an achievable goal for a brand new marketing system?” The ‘YES’ answer is dependent on the answers to the following 2 questions:
- What is your ‘Statement Of Value’ and is it meaningful?
- Is your current sales process working well?
- How do you define your ‘investment’?
What is your company’s Statement Of Value’ and is it meaningful?
A Statement Of Value is one of the first things we work on with a new client. Put simply, a Statement Of Value communicates exactly how they are able to add meaningful value to their customers.
If this can be clearly articulated, you’ll be able to use a digital marketing system to generate leads.
Is Your Sales Process Working Well?
When working with a new client on a tight budget we will usually implement a marketing system in 2 stages:
- Stage 1 – Lead Generation
- Stage 2 – Lead To Customer Conversion
Since Stage 2 is implemented some months after Stage 1, it is important that our client is able to manually convert leads into customers.
This will ensure that we see a 3x ROI from Day 1 – even before Stage 2 is implemented.
When Can I Start Getting Excited?
Digital marketing systems are scalable.
For example, a $3,333 per month investment would deliver $120,000 of annual revenue ($10,000 per month) with a 3x ROI.
Similarly, a $10,000 monthly investment would yield an annual return of $360,000.
This is why digital marketing is very popular with small businesses. You’re able to start with a relatively small marketing budget, prove the marketing system, and then scale up.