Is revenue optimised marketing the future for B2B?
At the end of the day there is only one purpose that anyone invests budgets into marketing and that’s to make money. Sure having a large social following and having everyone know the name of your company is important, but does it make you any money?
If you’re like most B2B businesses where you’ve been copying big brands with your approach to marketing, stop it immediately!
You see, unlike our large consumer driven counterparts, us B2B marketers don’t have the luxury of being able to run a 5 year sales cycle on our advertising, we need results now.
So if you want to grow your B2B business in the next 5 years you need to focus on revenue optimised marketing instead, and here’s why…
- If you can prove with hard data that every dollar invested into marketing generates more than a dollar back in profit, then you’ll always get the budgets that you need to achieve your goals
- The growth of most B2B businesses is restricted by lack of effective marketing solutions
- The world of ‘branding’ is getting increasingly expensive and most small B2B businesses are getting squeezed out of the market.
What is revenue optimised marketing?
In the past marketing has been very much like a machine gun. You start firing away and hopefully you hit something. However you may only hit the target one time out of 100, meaning the other 99 shots are wasted.
Revenue optimised marketing however is more like a sniper, every shot they take has a direct result. And even if they are bad, every 2 or 3 still hits the mark. The result is a much more affordable way to market and grow your business.
Key fundamentals of revenue optimised marketing:
Getting in front of customers when they are ready to buy increases conversion rates three fold.
Find customers in the environment that is congruent to your business.( If you sell sewage systems, don’t promote on Instagram!)
Find the most profitable areas and exploit them. Even a handful of leads in a high value area is worth more than a constant stream in a low value area.
Real world case study:
Recently I was working with a client in high end eCommerce website development. The first step was to get in front of them when they were ready to buy, this lead the decision to focus on an SEO campaign. This was also natural area that people expect a website development client to be in.
The second goal was to find the most profitable areas of the business. In this case we started with the ideal client, who in this place was businesses willing to invest $50K plus for an eCommerce website.
The next phase was to plan our ‘sniper’ approach. As we dug into the keywords it became apparent that there was a large monthly search volume of 1,300 people looking for ‘eCommerce Website’. However the competitors in this market were charging $5,000 for a site - only a 10th of what the client charged.
Upon further digging we discovered that when clients searched for keywords like ‘Magento Support’ or ‘Magento Enterprise Developer’, they are more likely to spend large money as they are enterprise level clients. So while most marketing companies skip these sort of terms as they have 30 and 10 searches a month respectively, they have lead to the client receiving 2 high quality leads a month, and closing 1 addition large deal ever 2 months. That will add $300K of new revenue to their bottom line each year for very minimal outlay.
How to find your hot area’s?
After reading through the case study above, take some time to think about the hot area’s in your business, and how you can implement a revenue optimised marketing approach in your business. This approach will still work for B2C Businesses, however due to the larger sales value that I’d recommend it more for B2B business.