Creative, Strategy and Ratios:The Holy Trinity?

 

 

How This Applies to a Small and Medium-Sized Business Owner

Let’s say, for argument’s sake, that you have an air-conditioning company specializing in single-family homes and that a lot of your contacts come from the web.

There are two different approaches you can take: Google search (pay per click) and regular “classic” web advertising (e.g., in local sites like your hometown newspaper).

Keeping the holy trinity in mind (ratios, creative and strategy), your reasoning could be as follows:

 

 

    1. Your average sale per customer is $3,700

 

    1. For every 15 people who click on your website and fill out the contact information you make one sale.

 

    1. For every eight people who land on your site, one will fill out the information form.

 

Assume that your sales ratio will remain the same (one out of every 15 people who fill the form). But what would happen if you could, through better creative incentives, increase the number of people who fill out the form? (Remember, you’re paying per click, so everyone who clicks visits the site.)

So if you can convince just one or two more people out of 120 to fill out the form, all things being equal, you’ll reduce your cost/sale by about $90 per person. Not bad.

With Regular CPM Buys, the Importance of Fine-Tuning the Creative Becomes Even More Crucial

Just getting a thousand people out of one million to click on the banner, all things being equal, will decrease your cost of sales substantially.

The bottom line:

 

 

    • There are no isolated factors: creative strategy, metrics and messaging work in unison.

 

    • Creatives should be brought into the strategic process so that they, too, are aware of what works and what doesn’t.

 

    • For small and medium-sized business especially, understanding your metrics are crucial.

 

You may not be selling Porsches, but the methods are very similar. You need to rev up your online presence to make a mark.