Posts Tagged ‘strategy’
August 16th, 2010 | 
Author: |
Medium
|
Cost
|
Campaign Return
|
Audience Reach
|
| Local Television |
30 seconds in top 10 market: $4,000 to $45,000+. |
Higher than direct mail | Large number of consumers but a small target audience. |
| Network Television |
30 seconds in prime time: $80,000 to $600,000. |
Like direct mail | Very high number of consumers with very low ROI. |
| Cable Television/Ad Insertion |
30 seconds in prime time: $5,000 and $8,000./Ad insertion $2-$280 |
Higher than direct mail |
Lower number of consumers but offers better audience targeting. |
| Radio | 15-60 seconds: $200 to $1,000. |
Lower than direct mail. |
Depends on station. Good reaction numbers but at a high cost. |
| Magazines | National Magazine: $50 per 1,000 issues. Local magazine: |
Like direct mail | Depends on circulation. |
| Direct Mail | Letter-sized envelopes: $15-$20 per 1000. Single sheet newspaper insert: $25-$40 per 1000 issues. |
1-2% is a great return | Depends on copy and follow-up |
| Search Engine Optimization and SEM |
$15,000-$75,000 per year.
Landing pages with co-op |
Like direct mail | Visitors are seeking your products and services and return to become regular customers. No personal contact. Only email back. |
| Phone Follow-up | $500-$75,000 per month for two people calling from part-time to full-time. |
Increases response 10-15% | Medium high ROI. When on phone customer buys if the right sales pitch. Lead recycling.. |
| Mailer and Phone | $3,000-$75,000 per month.
for two people calling from part-time to full-time |
Direct mail then phone response | High ROI. If right timing of sales scripting and mailer. Must have great copy. Lead recycling. |
| Mailer, Phone and Landing Page Optimization with email, newsletter and SEM with specials. |
$3,000-$75,000 per year.
Landing pages with co-op minimuim 3 months SEO and calling is working for you |
Direct mail then phone follow-up with collection site/co-op advertising/ and SEO |
Exceptionally high ROI as visitors are seeking your products and services and return to become regular customers. Lead recycling |
Obviously these are sales strategies with average returns. We implement earnings moves that go along with sales strategy but in addition go something like increase price 3%, increases margin 3% and decrease advertising3% which results in a 15% more increase to EBITADA. What ever your sales strategy is going to be we add an earnings move. Make sure you do the right combination of media since they could work against you with the same 15% if wrong. Find out with a quick analysis with CenterfigurE and remove any obvious blunders.
Posted in ebitada | 
Tags: business strategy, business strategy consulting, social media, strategy | 
Comments Closed
Did you know a typical sales/seo/sem strategy that brings in gross sales does not necessarily increase earnings. Yes, there could be sales but are they profitable? And do they increase EBITADA?
For example lets say a Business Owner invested $10,000 to increase sales on a website. It worked. $25,000 was added to revenue but profits were 3%. Now what if the Owner invested $10,000 in an earnings move resulting in $25,000 while increasing price 3%, margin 3% and decreasing advertising 3%? This new earnings move with combined with the other sales strategy would result with a 18% gain of EBITADA. So the same risk and investment but with different moves brings $13,500 to EBITADA and $40,500 in business value. Which move would you take? Warning! The wrong earnings move could do the opposite. Which move are you making? Too complicated to do without a spreadsheet-ask us for a spreadsheet with the numbers.
Learn the difference between a typical sales strategy vs. earnings move in the introduction of “14 Unalterable Laws of Business Value”.
Don’t get confused about strategies not focused on earnings/value. Below is a short list of typical strategies:
MARKET SEGMENTATION
COMPETITIVE POSITIONING
DATABASE STREAMLINING
REDUCING NETWORK DOWNTIME
MORE EFFICIENT PROCESSES
BRANDING
FACILITATION
TIME MANAGEMENT
SALES TRAINING
SOCIAL MEDIA INITIATIVES
DON’T TAKE US WRONG there might be a strong strategy currently working for you! We ask are your initiatives focusing on areas that could bring you a EBITADA return? Ask about an earnings move for your particular situation.