Measuring What Matters: Achieving Client & Career Success
Share On Purpose not only launches and develops brands, but also trains employees to work in, and eventually run these companies.
Within Share On Purpose’s innovative suite of businesses, there are two Authentic Demand GenerationTMcompanies; Promote On Purpose and IGNITE On Purpose. As the largest businesses in the portfolio, they often serve as the first step in employees’ career journeys.
These businesses separate themselves from traditional marketing firms by implementing two science-based tools:
- Authentic Demand GenerationTM
- Our ROI Algorithm
ROI has always been at the foundation of what we do. In fact, both businesses guarantee it.
Getting to ROI
For most companies, sales and marketing expenses represent the largest non-product/service related overhead costs, yet executives rarely understand how to measure the value of these costs, other than by asking “did revenue increase?”
By the time it’s clear whether or not a marketing/sales expense actually generated revenue, it is unfortunately too late, because the cost was already incurred. In most companies, this lack of quantifiable and predictable results (ROI) occurs quarter after quarter and year after year.
At Promote and IGNITE, ROI isn’t something we “hope” to get. It’s something that is planned, measured and guaranteed.
Since we are committed to ROI, consistently reviewing metrics, assessing data, and making adjustments is essential to stay on track. What is not productive however, is spinning wheels and investigating data that won’t serve the ultimate goal – an ROI for clients.
Here are the top three metrics to measure in order to determine if marketing activities are generating results.
No. 1: Revenue Multiple (the best indication of ROI)
The first and most important metric to track is the revenue multiple, or revenue-based ROI. Dollars earned should equate to a multiple of the dollars spent.
The rule of thumb here is that a new program should generate greater than 2X (two times) the revenue of the cost of the program and do so fairly quickly. So, if your new lead generation program costs $15,000, in its first 90 days it should generate $30,000 in quantifiable revenue, period, end of story.
Over time, the program should increase its multiple to a greater than 5X revenue increase for every dollar spent on the sales or marketing program.
For B2B companies with a longer sales cycle, this metric is more difficult to measure, so it would be wise to use what is known as “Pipeline ROI.”
No. 2: Net Profit Ratio
For smaller businesses, using a net profit ratio is critical, as not all demand generation initiatives result in profitable revenue. Growth-funded growth techniques measure the actual profit generated from the sales and marketing program (as well as the revenue generated) to ensure the company is investing in sales and marketing proportionate to profit generation.
Taking a growth-funded growth mindset is critical for smaller brands, like the IGNITE clients, who want to grow quickly, but responsibly. Once the ratio is established, only a portion of the net profit is reinvested into new sales and marketing programs. This metric ensures profitable growth, rather than growth for growth’s sake.
No. 3: Cost of Acquisition
This metric should be customized for each sales and marketing activity and tracked intensely, as it is the best predictor of efficient demand generation strategies long-term. There are three metrics to measure for increasing efficiency of demand generation:
- Cost Per Lead
- Cost Per Opportunity
- Cost Per Sale
Yes, Revenue-based ROI Is Trackable and Doable
It doesn’t take a rocket scientist to quantify the ROI from sales and marketing programs, but it DOES take a scientific approach to measure, track and deliver revenue-based ROI to ensure profitability. We are always looking to expand our team with driven professionals who aren’t scared by our ROI guarantee but embrace it.
Are you ready to measure what matters to clients so you can help them achieve success, and quickly grow your career? Check out our available positions and find the right fit for you!
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