How do you ensure your online marketing is squarely focussed on a return on your investment?

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Leverage agile frameworks to provide a robust synopsis for high level overviews. Iterative approaches to corporate strategy foster collaborative thinking to further the overall value proposition. Organically grow the holistic world view of disruptive innovation via workplace diversity and empowerment.

Bring to the table win-win survival strategies to ensure proactive domination. At the end of the day, going forward, a new normal that has evolved from generation X is on the runway heading towards a streamlined cloud solution. User generated content in real-time will have multiple touchpoints for offshoring.

Capitalize on low hanging fruit to identify a ballpark value added activity to beta test. Override the digital divide with additional clickthroughs from DevOps. Nanotechnology immersion along the information highway will close the loop on focusing solely on the bottom line.

Why branding leads to a 23% bottom line increase in revenue

Your brand is a form of relationship management

According to Demand Metric, branding leads to a bottom line increase in revenue between 10 and 23%. The key driver is consistency within the marketplace which leads to recognition, trust, and ultimately more uptake. The underlying factor is that customers feel like they ‘own’ the brand – they align themselves with it and are proud of it.

Although branding can seem superficial when starting a small business, growing a loyal customer base is something that ensures that your business thrives. As an online marketing services company, we have seen that the more recognisable your business, the easier it is to grow and keep your customers. 

What’s the key behind an iconic brand vs one you can’t remember?  

  • Recognisable logo at any size (think bus vs  facebook icon) 
  • A brand has values that clients know 
  • A strong  brand communicates with their ideal clients
  • A brilliant brand is memorable and clearly articulated
  • A great brand has personality; eg. sexy, strong, futuristic, courageous

What is in a logo? 

1. A Simple logo is essential 

The art of making a logo is quite complex, because it needs to be simple yet memorable. Think of the Nike ‘tick’ and Apple’s latest silver Apple. They are simple icons, and each image is entirely recognisable and unmistakable. 

“The easier it is to process things, the more we like those things” – Jonah Berger 

For example, most of us know the Nike tick. It’s known as a ‘swoosh’, it evokes speed and wings (Nike is the messenger of the gods and has shoes with wings on them). It’s so simple, yet with trademarking it is unique. 

If you’re wondering how simple your logo needs to be, imagine that it fits inside a circle, to proliferate your company’s presence on social media. 

Examples of eye catching brands that stand out globally 

2. Your Logo Must Evolve With Your Brand 

This is one of the biggest disconnects in business. When a business does not continuously convey their brand effectively to their clients, usually because it is too complex, the brand will fail to be memorable. Although there are a few brands who have successfully complex iconography, those tiny details are progressively getting lost on devices and in icon and favicon form. Evolution of the logo and the brand together is key. 

The evolution of the Apple logo shows the story of the clients the business served and the progression from niche to global. As the business grew from a local ‘apple off the tree’ to a far reaching brand of several products with future forward thinking, so the apple went from being a painting, to a friendly tree hugging rainbow to being a futuristic, minimalist and yet still (to my eye) a friendly icon. 

Apple has gone through quite a long birthing period, where the brand has moved consistently towards futuristic, more iconic iconography. Alongside this brand development is the evolution from build it yourself personal desktop computers to the product that now carries a distinctive ‘i’ pronoun. 

You can see the evolution of the design as techniques evolved, and as Apple itself embraced its place in the future of technology.

3. Is your Logo Memorable?

Can you take one look at your logo and remember the details? Can someone who hasn’t seen it before tell you what your logo looked like after one quick glance? Ideally that’s what you want. 

Think of the largest logo brands in the world, they have personality, yet they are simple and elegant. 

This gets even more obvious in the fashion industry and the car industry. Just take a look at how clean fashion brands are, often they are black and white and there is an extreme kind of simplicity, an aesthetic. While some brands hold a higher level of complexity visually, for example Versace and Burberry, the full brand is often replaced with just the name.

The same goes for car logos, which translate into silver ornaments or fixtures. I have a VW and just like Apple, Volkswagen has undergone a several stage transition from the early days until now. Of course, this brand has been around for a lot longer than Apple, yet it seems the transitions are remarkably similar. At first we have a complicated symbol, which progressively gets more simplified then finally takes on a slightly 3D look to become a future forward brand.

While we can’t predict the future of brand iconography, being driven by a simple colour palette or distinctive shape is key to customer recognition. 

4. Is Your Logo Remarkable?

“If you’re an established brand, you may not want a remarkable logo. But if you’re a startup, you need to take a little more risk.” says Berger. 

This means having a logo that is strong – and in today’s world that means you can see it in the icon on social media for maximum benefit. Now just think how tiny that little square is on Facebook on your phone – to nail that you’ve got to be pretty clear about what you offer and how to encapsulate it in just a small ‘swoosh’ or ‘apple’ or ‘polo rider’. Even some of the major fashion brands have logos that are too complicated for today’s fast paced world, and so they revert to the word only to gain meaning. For example Versace reduces from the logo above to a simpler form – either the name or just the V. 

 

5. Market testing.

Jonah Berger, author of Contagious Things Catch suggests that market testing even for a logo is key. “Don’t just trust your gut when designing a logo”, Berger says. Do market research. Hway to test various logo designs is to put out a survey on a service such as Amazon’s Mechanical Turk.

“We could throw up a quick study for an entrepreneur for $10 and, within a day, get a lot of feedback from different people about how heavy or light, fast or slow a logo would be,” Berger says. 

Given that you already have a following, or at least a sympathetic group of contacts, you can also ‘market test’ through social media on your Facebook, Instagram or Linkedin profiles. I’d recommend having some final versions, perhaps the last two or three variations before you ask the public. It’s actually relatively clear most of the time which logo people prefer. If you have more than four options, and a lot of ideas, this can lead to more confusion than clarity. My tip is to ensure a simple set of variations; for example a different colour palette or slightly different font. 

6. Considerations on Logo Concept Direction.

Logos come in two basic forms: abstract symbols (like the apple in Apple Computer) or logotypes, a stylised rendition of your company’s name. You can also use a combination of both. 

Alan Siegel, former chairman of Siegel+Gale, a design firm specialising in corporate identity, warns that promoting an abstract symbol can prove very costly for a small business on a budget. In addition, he says, such logos are harder to remember. 

“A logotype or word mark is much easier to recall,” says Siegel. “If you use an abstract symbol, always use it in connection with your business name.”

7. Finding a Logo Designer

Trying to create a logo on your own may seem like the best way to avoid the high costs of going to a professional design firm, which will charge thousands for a logo alone. However, be aware that there are a lot of independent designers who charge much less. 

According to Stan Evenson, founder of Evenson Design Group, “Entrepreneurs on a tight budget should shop around for a designer, but don’t hire someone because of their bargain price. Find a designer who’s familiar with your field and your competition. If the cost still seems exorbitant, remember that a good logo should last at least ten years. If you look at the amortization of that cost over a ten-year period, it doesn’t seem so bad.”

Final Advice – Make Sure Your Brand Translates  

Even if you have a good eye for color and a sense of what you want your branding and logo to look like, we recommend that you consult a professional design firm, like ourselves. 

You’ll need to have certain items – the logo in vector form (.png, .tiff, .ai) not just .jpg or .png. You’ll need your CMYK, RGB and Hex values for each colour, so that your logo doesn’t change colour when it’s printed or used in on a Tshirt, car or website. 

A trained designer will know whether or not a logo design will transfer easily into print or onto a sign, while you might come up with a beautiful design that can’t be transferred or would cost too much to be printed. 

Your logo is the foundation for all your promotional materials, so this is one area where spending a little more now really pays off later. 

As a digital marketing company based in Melbourne, Australia, we offer logo design packages that are designed to give you the basics, then we add brand guidelines and further elements as the brand grows.

Resources 

Entrepreneur.com https://www.entrepreneur.com/article/241956 

Jonah Berger https://www.amazon.com/Contagious-Things-Catch-Jonah-Berger/dp/1451686587 

Demand Metric The Impact of Brand Consistency Benchmark Report 2016

How do you ensure your online marketing is squarely focussed on a return on your investment?

An online marketing services company often focuses on pay per click or lead generation, which works only while the ad runs and the ad spend keeps clicking over.

The real value of digital marketing lies in seeing the digital reach  and digital footprint grow as a whole, developing authority and brand capital. This is often through a multi-channel approach and includes cross pollination and strategy across business units, such as marketing, production, sales and finances.

Read more

How do you ensure your online marketing is squarely focussed on a return on your investment?

An online marketing services company often focuses on pay per click or lead generation, which works only while the ad runs and the ad spend keeps clicking over.

The real value of digital marketing lies in seeing the digital reach  and digital footprint grow as a whole, developing authority and brand capital. This is often through a multi-channel approach and includes cross pollination and strategy across business units, such as marketing, production, sales and finances.

An old school approach to return on investment or ROI for your marketing is as follows:
If I spend $5,000 on my ads, and see $50,000 in sales occur, my gross profit is 10 x what I spent.
My net profit is then derived after all costs, such as raw materials, fixed costs, labour, fulfillment. That’s my ROI for marketing.
In the digital world, often people view SEM or PPC (pay per click) as the same equation. But is it that simple?

Not any longer. Any online marketing business needs to adopt a wider approach which incorporates a global view and multichannel approach. Internet purchase trends are no longer dominated by only early adopter, impulsive and FOMO (fear of missing out) buyers. Especially during COVID, we are all spending more time online and doing our research on who we choose as our provider of goods and services, on a wider range of needs than ever before.

Here are some of the factors affecting buyer behaviour

  • Global competition
  • Multiple sales platforms
  • Goods that don’t arrive
  • Goods not matching product descriptions
  • Buyer preferences for green and eco friendly
  • Online reviews
  • Multiple touch point impact on buying
  • Brand consistency

Understanding these factors is key in debunking the notion that ROI is as simple as running an ad campaign.

Why is Multi-Channel Marketing so Important?  

Google now reports that people view a business somewhere between 20 and 200 times, or touchpoints in their buying journey. It becomes important not just to have a single funnel or point of sale, but to nurture your client’s understanding of your services through a combination of channels, with end points for delivery to the client across business units and platforms.Marketing, Sales, Finances and Fulfillment all need to work together to find out the process that delivers the most profitable results across the entire business.

For example our online Marketing team delivers on consultation and strategy. Sales fulfillment for social media or SEO collateral is through another team, yet those assets typically lead back to the client’s business for appointments or purchase processes. Outbound calling is handled in person by us or our clients. Our division for online marketing in Melbourne handles social messaging for our clients. However at the point of purchase, our clients’ sales team or platform takes control. In reality it’s a bit of a spaghetti process, and it can look something like this.

In most businesses, sales, marketing, leads and profit start with a user that finds the business in several ways, and it can be the most common problem that a business faces – the challenge of knowing what a lead costs, how much it takes to fulfil and the actual profit margin per product in the business.

What are the Digital Metrics That Might Play a Part in ROI?

From a digital marketing perspective, there are many ways to measure ROI within a business, and here are some of the prevailing terms and their explanations.

  1. Unique Monthly Visitors (SEO metric)
  2. Cost Per Lead (SEM or PPC metric)
  3. Cost Per Acquisition (CPA OR CAC)
  4. Return on Ad Spend (ROAS)
  5. Average Order Value (AOV)
  6. Customer Lifetime Value (LTV)
  7. Lead-to-Close Ratio
  1. Unique monthly visitors
Simply put this is how many people visit your business online. The short list includes social platforms, your website and Google my business. The longer listing includes Bing, directory listings and other portals such as online stores (eBay or Uber Eats for example).

 

  1. Cost per Lead 
This is often mistaken for CPC – cost per click – which is a metric pulled from a paid ad campaign, which is determined by how much it costs when someone clicks from an Ad through to a landing page, or other action. However, actually it should be when a click results in an action that allows you to track back to the actual person. In this case they have entered their details into a lead form, or made an appointment, or even replied to an email.

 

  1. Cost Per Acquisition 
This is the cost of acquiring a customer. It could be related to emails, social posts, google or social ads, physical products such as flyers, billboards, or even sales people who have then closed the deal. It’s no wonder it’s hard for this metric to be truly tracked.

 

  1. Return on Ad Spend 
This can also be mixed up with ROI – Return on Investment. This relates to what it cost to set up, strategise, design and manage your ads, the cost of running the campaign through a media provider, such as radio, google, or social platforms, and the resulting leads per platform. So you might even need to consider the cost of video, consultant fees, or staff wages to get a campaign up and running.

 

  1. Average Order Value 
In our business we have around 130 SKUs. These different product lines all have a value; some have a time (service) component, some are a deliverable product. The average order value of our clients is often $2 – 5k per month, however your average order value may be under $100. One way in which to increase your profitability and return on investment is to add higher value products to an existing customer bundle, so that they can easily order more from you, an already trusted source.

 

  1. Customer Lifetime Value (LTV)
People often underestimate the lifetime value of a customer when they consider ROI. For example, if you are a dentist who gains a client for a clean from an ad, that client is then likely to repeat their clean in 6 months, have some dental work at some stage. Their lifetime value could be in the thousands. So it’s important to realise that clients come in once, but well looked after clients will stay a long time. A part played in LTV is also how well your follow up processes support repeat business, like loyalty bonuses, customer service calls, SMS reminders or offers.

 

  1. Lead-to-Close Ratio
In digital terms, we often know the CPC – cost per click, and with the right forms or actions we know the CPL – cost of turning that click into a lead where we know who the person is. Then we need to look at how many leads we need before a sale is done. That metric is known as lead to close. In some industries, this can be high, up to 90%. In others it can be only 10%.

 

If you’re finding this a little confusing, you’re not alone. It might be disappointing to know that tracking your ROI on marketing is not as simple as paying for a single ad and while we sympathise, we don’t apologise. A simple approach will no longer get the right results for a business in our current global market and we would rather you were well informed.

Hopefully you now have some insight into some of the ways in which a business should look at online marketing services and their ROI. If you have any questions around this topic, feel free to reach out to our Creative Director, Emma on +61 429 331 519 or call the office on +61 8395 3369.