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Making It with Jon Davids
244 - How To Make Unlimited Money In Your Business with 3 Marketing Pillars
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If you want to make more money from every customer without changing what you sell, you've got to understand these three growth drivers. For each one, I'll explain what it is, why you need it, how it works, why it breaks, and how we approach it at Influicity based on working with hundreds of clients over the last decade. My name's John Davids, and if you're a business builder of any size, this video could make you a lot of money and simplify how you get customers forever. Let's do it. You're listening to Making it with John Davids. So there are three kinds of marketing every business needs to be doing, depending on where you are in your growth cycle. And the first one is performance marketing. These are the dollars you spend that you know will generate revenue. You're not guessing, you're not hoping. This is your workhorse budget. So most businesses have some bucket of marketing dollars where they can say, hey, if I spend this amount of money here, we make that amount of money there. And if you're really dialed in, you've got it down to a mathematical formula. You can say, for every $1 I spend, I'll earn $4.75 of revenue within a 60 day period. And if you're there, that's awesome. And if you're not, that's okay too. Most businesses aren't. But wouldn't it be amazing if we all were? Now, why do you need performance marketing? Well, because business shouldn't be a guessing game. If a business builder is preoccupied with where their next dollar of revenue is coming from, they're not gonna be doing the real work of product development strategy, getting to that next level of growth. You're just gonna be worried about paying the bills, keeping the lights on. And that's normal at the very beginning of any business. But when you've gotten past those early scrappy days, customer acquisition is a science. It's not an improvisation. It is not a guess. Now, for most companies, not all, but most, performance marketing involves meta ads. That's your Instagram ads, Facebook, WhatsApp, and Messenger ads. Then there's Google Ads, which is Google and YouTube. It could also be ads on TikTok, Snapchat. Pinterest. If you're in B2B, this could be LinkedIn. If you're in E Commerce, it's Amazon ads. So it's some kind of platform that's designed to optimize for specific, specific transactions. These ads are generally measured on cpc. That's cost per click, cpl, cost per lead, or cpa cost per acquisition. So you're not just looking at how many people saw the ad, but really how many took action. And the closer that action is to the transaction, the better. You want to see people doing things that are very close to a sale. This episode is brought to you by my Playbook website selling machine, available right now@johndavids.com Playbook. Here's the truth. Your website is either making you money or it's costing you sales every single day. And most businesses just aren't optimizing their websites as they should be. This leads to fewer meetings booked, lower average order value, and just a whole lot of people clicking away as fast as they arrived. That's revenue you're losing. You can change all that right now with the insights in my Playbook website selling machine. Grab your free copy@johndavids.com Playbook okay, so why does it break? How does performance marketing not work? Well, picking the platform is just the first step. You also need to know how to use it. So you could be running meta ads, but your pixel isn't set up correctly. The pixel is that little piece of code that helps meta learn to deliver your ads better over time. And if it isn't working, or if you don't even have a pixel set up at all, meta is just flying blind. And it actually happens a lot, unfortunately. Or maybe you're measuring the wrong thing. So meta isn't delivering on the right objective, and then your performance marketing is totally messed up. That's when you get people saying things like, oh well, Facebook ads don't work for my business. Oh yes, I can guarantee they do work for your business. It's probably just that your agents or your consultant hasn't set it up correctly. Now you could also just choose the wrong platform, in which case it won't work either. So if people are mostly searching for your thing on TikTok, but you're running ads on Google and nowhere else, you could be missing out on a lot of the right people. So there's lots of reasons performance marketing might not be working for you, but there's no way around it. You need performance marketing to ensure that you're getting customers predictably and profitably. You got to get it right. Now, how do we approach performance marketing at Influicity? Well, first thing, we've got to make sure it exists. A lot of businesses don't have their workhorse in place, and that's why getting new customers might be choppy or unpredictable or unprofitable. So our first step is just Finding it. And second, how dialed in are you? Do the customer acquisition costs make sense? Are you winning customers at a good clip? Are you converting these costs into cash flow fast enough to continue reinvesting? The real goal is that you have a performance marketing engine that is kind of like a slot machine that's rigged in your favor. You put a dollar in, you get $2 out, or $3, or $4, or $5. Show me that money. That's what performance marketing is all about, my friend. All right, number two, the second kind of marketing every business needs is brand marketing. This creates your flywheel. It lets you scale and grow with literally no cap. Your brand marketing is so important because it lets you acquire customers without spending money. So we just talked about how important performance marketing is, and that's when you spend a dollar to make $2. Brand marketing is where you spend $0 to make $2. Let me explain. You can grow on performance marketing for a very long time, but you're always dependent on someone else. I think of it as rented market share versus owned market share. Right? When you pay Google or Amazon or Instagram or Facebook for that next customer, you are renting space, forcing yourself into the conversation so the customer might give you the time of day. And again, nothing wrong with that. You should be doing it. But at the same time, you also want to build your brand gravity. You want your business to take up more space in the market, mental space. Let me give you some examples at the extreme end of the market so you can really visualize it for yourself. And by the way, I'm not giving you these examples because you should do what these guys do. I just want to illustrate what brand marketing looks like at the extreme. Think Coca Cola. Think Nike, Tylenol, Netflix. These players have invested enormously in building their brands. They have huge gravity in their categories. If you picture the Cola category as a universe with stars and planets and a sun and a moon, the Coca Cola planet would be the biggest one in that universe. That's why I use the term brand gravity. When you're passing Coca Cola in the Cola universe, it totally sucks you in. It has the most gravity. Same with Tylenol. Same with Netflix. Same with Nike and their categories. You need to invest in this because this is the long term asset of your business, the brand. It gives you pricing power, it gives you loyalty, it gives you referrals, it gives you value long into the future. Especially if you're in an undifferentiated industry where there's lots of competing products that look similar this is super important. At the beginning of my book, Marketing Superpowers, I write that brand is every dollar your customer is willing to pay above and beyond what your product is worth. This is 100% true. So what does it look like? Brand marketing could be organic social media. Posting on Instagram, Facebook, Pinterest, TikTok, LinkedIn. It could be long form videos on YouTube, search engine optimization or SEO. Blogging, podcasts, influencer marketing. It could also be paid ads that are just promoting your brand, promoting the awareness that you exist. Now, I want to be clear. When I say you spend $0 to make $2 with brand marketing, that's not entirely true. What I really mean is brand marketing is more difficult to measure. If you sell flowers and floral bouquets and you post an Instagram reel of this beautiful flower arrangement that you just made, and then a customer sees that piece of content on Instagram and calls you up and places a $10,000 flower order for their wedding, you can't really attribute that single Instagram reel to, to that specific purchase because A, you wouldn't know that they saw the reel, and B, they probably didn't just see the reel and place the order. It was a mix of things. They saw the reel, they googled you, then they found you on Yelp, then they stalked you on Pinterest, then they signed up to your newsletter, they read your latest blog post. It's an orchestra of activity. It's a bouquet, if you will. So brand marketing works. It definitely does. It's just hard to pinpoint and measure exactly when it works, which is why so many companies don't do it. And this is why it eventually breaks. The biggest reason brand marketing fails is because companies treat it like performance marketing. So they'll put out really great content on Instagram and TikTok and LinkedIn. They'll write blogs that capture lots of attention, they'll invest in SEO, they make podcasts, and then they start trying to measure every dollar invested in brand marketing and what the return was. And. And they can't. So it's like, Well, I spent $20,000 and I can't point to a specific ROI. Now, they made lots of money that month, they're making plenty of cash in their business. But because they can't trace every dollar spent to every dollar earned, they just think, ah, that whole brand marketing stuff doesn't work. And then they start messing around with their brand marketing or they stop doing it altogether and they just ruin it. Brand marketing needs to be measured as part of the whole customer journey. And there are lots of ways that with surveys, questionnaires, just talking to your customers and knowing what questions to ask. But if you give up on brand marketing entirely, you're really sabotaging the growth of your business. This episode is brought to you by my one minute marketing roadmap, available@johndavids.com roadmap. In 60 seconds, you'll get a custom report showing you how people are finding your brand, where you're losing them, and and how to fix it. We used a decade of data from Influicity and layered in AI to give you a real action plan. It's fast, it's free, and it might just change your business. Go to johndavitz.com roadmap and get yours right now. So at Influicity we have a lot of thoughts on brand building. I literally wrote the book on this called Marketing Superpowers. By the way, go to marketingsuperpowersbook.com, get your copy. But building a brand all comes down really to good storytelling. It's the same reason we love Disney movies and songs. It's because of the stories. When it comes to brands, we fall in love with stories that companies tell us. You do it every day. Look at what you're eating and drinking. Look at the car you drive or the politician that resonates with you or what phone you have. These are all stories told to us by businesses. Those are all businesses or who profit from them. And that's just the first piece. There's also the stories that others tell us about those companies. Really powerful and the most powerful of all the stories we tell ourselves. And that's what building your brand is all about. And it's the second type of marketing every business needs to have. So now let's look at the third one, Customer relationship marketing, also known as CRM. This is one to one interaction with your customer. So this starts with your CRM software. That's customer relationship management software, which also goes by the acronym CRM. Maybe you're using Salesforce or HubSpot, or maybe you just have a spreadsheet where you write down the names of everybody you work with. Hopefully not. But the CRM software is where all your data and automation lives. So you need this. And then from there you have email marketing, SMS marketing, loyalty programs, referral programs, personalized ads, retargeting ads, anything where it feels like you're speaking directly to a customer. That's customer relationship marketing. So why is CRM so important? Well, because it's the most effective bottom of Funnel activity you can do when someone already knows who you are. They've already expressed interest, they've already given you some buying signals. Now you need to get up close and personal with them. When you can focus your marketing on the people who are most likely to buy, your sales go up, plain and simple. So you need good data, you need good software to manage that data, and you need to know how to use that data to maximize sales. Let me give you a very quick example of how it works. Let's say you're a med spa. You do Botox, facial skin treatments, that sort of thing. So you get customers through performance marketing, right? Things like ads on Google and Facebook. And you get customers through brand marketing, your TikToks, your YouTube videos, podcasts. And now someone lands on your website and downloads your service offering or joins your email list. That person has a high likelihood to buy. Right? Of course. Okay, so what do we do next? Well, first their email address goes into your CRM software and we can drop them into our email welcome sequence, introducing them to the med spa, our staff, our top services, our origin story. And we can start targeting them with ads on Facebook, on Instagram, on Google, on YouTube. Because the CRM speaks to the ad platforms and that's just the surface. You can go way deeper from there. It gets really powerful. So that's how CRM works. Now, why doesn't it work? Why does it break? Well, there's a lot of setup involved in this, right? If you want to do it correctly, you need to create email sequences, you need to do automations, you need to segment, you need to connect various apps to make sure they're all speaking to one another, and then you have to maintain them. A lot of companies just don't do this. Also, you need to know what to say and when to say it. You could send out 20,000 emails, and if you're only getting a 10 or 15% open rate, then that's no good. Or maybe they're all going to spam. That's really bad and actually kind of common. And then there's the messaging itself. Someone who downloads a coupon, for example, should see a different message from someone who's never heard of you. And the other piece is that this can get pretty expensive. Companies can easily spend hundreds or even thousands of dollars a month on their CRM software. And honestly, they don't need to. You're getting a tank when all you need is a Porsche. Eventually you get sick of looking at your Visa statement every month and seeing that same charge. So you downgrade or you just cancel the CRM altogether. And I've seen this happen. It's really, really bad. And it should never happen because you can avoid it. At Influicity, we do lots of customer relationship marketing. We've used plenty of CRM software. We've set up literally hundreds of email sequences for our clients. We know which ones work, how to get the open rates higher up, how to avoid the spam box. And we also use a ton of automation so you don't need anyone doing manual work moving data around from system to system. What a waste of time. And honestly, we try to do it economically. Software costs are coming down. You can get really powerful programs for a lot less money today than you could even three years ago. So there you have it, my friend. Performance marketing, brand marketing, customer relationship marketing. That is your marketing trifecta and one big takeaway that I want to leave you with because this is important. You don't need to do all these things to the max, all at once or all the time. But you must do the right ones. And you should be thinking about how they all fit into your business. My name is John Davids. Get my best stuff to your inbox@johndavids.com. If you're spending more than $50,000 a year on marketing, I've got something for you. It's a playbook I wrote called how to Build a Social Media Selling Machine. You can grab it now for free at johndavids.com playbook. This is the nine step formula we use for our clients at Influicity to turn their social media channels into reliable revenue engines. Grab it right now@johndavids.com playbook do.