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Todd Grimm's Web Log - Marketing & Rapid Prototyping Notes
 

Tuesday, January 20, 2004

When 1000 Visitors are Bad for Business


Would you be ecstatic with a 15% click-through rate on a pay-per-click advertisement? Typically, these kind of ads will generate <1% to 5% click- through rates, so the answer to the previous question seems obvious.

But it is not.

I recently had this level of “success”, and I killed the campaign. If I assumed (as many do) that 1000 visitor to my site is good business, I would have run the advertisement indefinitely. But, I took a critical step that you need to take…I measured the conversion rate. Not one order or request for quote from the 1000 visitors. In effect, I was paying people to visit my Web site.

If you don’t measure the impact on sales and calculate the profit from a pay-per-click advertisement, you are probably losing money. An effective pay-per-click campaign measures the results of an advertisement to determine what keywords, ad copy and headlines deliver qualified traffic to your site. The results are measured with the number of desired actions (buying something, requesting a quote, or asking for samples) and the total cost.

Don’t assume that traffic means profit. If you do, you may be your wasting money.






Tuesday, January 13, 2004

Profit from Referrals


Everyone knows that word of mouth advertising and referrals are the best possible sources of new leads. While there is little that a small company can do to foster word of mouth advertising (aka “buzz”), you can take action to get referrals. But if you are like the majority, you are inconsistent in asking for these prized sales leads.

The key to sales success may lie in the simple act of making it a habit to ask for a referral in every conversation. To improve your return even more, there are three simple guidelines:

1) Anytime you give something of value to your client or go beyond their expectations, ask for referrals. Also, when client states that he is happy with your product or service, ask for the referral. If you don’t ask, you probably won’t get them.

2) Don’t ask the question, “Who do you know that can use my products or services?” Even if the client wants to help you, asking for a referral in this manner forces them to mentally sort through every person they know. Frequently the outcome is that they can’t think of anyone.

For greater success, limit the population for them to consider by framing your question around a small group of people. For example, “Are any of your neighbors looking for a new widget?” or “Could any of your suppliers benefit from our service.” When you limit the population, your chances of receiving a referral increase dramatically.

3) To keep the flow of referrals coming, always follow up with your client to inform him of the outcome of his referral.

Most people want to help others. When you make it easy for them and let them know of your successes from their referral, the sales pipeline can fill quickly.







 

Contact information:
T. A. Grimm & Associates, Inc.
3028 Beth Court, Edgewood, Kentucky 41017
Phone: (859) 331-5340      Fax: (859) 331-5342
tgrimm@tagrimm.com      www.tagrimm.com

 

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