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ROI Marketing WorkshopROI Marketing WorkshopCourtesy of 7 Pillars Digital Marketing AcademyCourtesy of 7 Pillars Digital Marketing Academy

August 24, 2011

Presented By: Arman Rousta

What is ROI Marketing?

7 Pillars of Digital Marketing Methodology

7 Steps to Building an ROI Marketing Plan

Table of ContentsTable of Contents

ROI Marketing Case Studies (Models)

How to build an ROI Marketing Plan – from scratch

• Use the 7 Pillars of Digital Marketing methodology to build an ROI Plan [participants get copy of ROI template : 1-yr license with feature upgrades]

• Realistic financial projections based on grounded marketing assumptions• Wizard-style questionnaire to easily collect data needed to build a business plan• Using SEO/SEM research tools to get real-time data into your plan, for best case vs. other scenarios• For Marketing Executives, Business Owners and Agency Account/Campaign Managers

What to Expect TodayWhat to Expect Today

What is ROI Marketing?What is ROI Marketing?

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The goal is to make marketing more of a scientific process, by giving people a really good strategic tool that highlights their options, gives some basic/standard metrics, and educates people on the variables involved in the process.

It is an approach which essentially has flexibility to consider all or most of the important assumptions which influence marketing and ROI.

Industry Verticals have their own trending metrics to consider, that clients and/or their agencies should know how to identify and integrate into the model.

Blueliner’s ROI Marketing Planner tool integrates both sides of the marketing equation:

1. Marketing/spending aspect, that generates leads and customers

2. Corresponding traffic and user behavior

pillar 1. Content (Copy, Video, Photography, Audio)

pillar 2. design UX (Branding, Web Development)

pillar 3. SEO (Organic Search, Organic CSE, Onsite Search)

pillar 4. digital Media (Paid Search, CPM, Affiliate, Retargeting)

pillar 5. CRM (Customer Service, Email Marketing, Web Analytics)

pillar 6. Social media (SMM, Online PR, Networks, Blogs, Games)

pillar 7. Mobile

The 7 Pillars of Digital MarketingThe 7 Pillars of Digital MarketingEach Pillar and marketing tactic has its own ROI metrics and variables which the ROI Planner takes into account.

7 Pillars + 7 Stages of Marketing7 Pillars + 7 Stages of Marketing

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SEO and Online MediaSEO and Online Media - The Compound Effect: 10-20-60% Click-Through Rates- The Compound Effect: 10-20-60% Click-Through Rates

1. PRODUCT: What is your product or service line?2. PRICE: How do you charge for them?3. HISTORY: What are the historical revenues and trends from each product

line? (the more historical data, the better)4. CUSTOMER: What are your different customer segments, and how do

they differ? (ie - men, women; adults, kids; B2B, B2C; different styles, demographics, income levels, etc)

5. AVG SALE: What is the average revenue per sale?6. TIME: Over what period do we want to track this ROI Plan? (if ongoing,

break down into 3 or 6-month periods; start date and end date needed)7. BUDGET: What is the overall marketing budget for the period? (media

fees vs. agency vs. in-house resources)8. ROI GOALS: What are the revenue, customer and traffic goals for the

period? ("you tell me" says the client)9. STRATEGY: What strategies are on or off-limits?  Is there a specific tactic

that you want to employ and measure?10.PEOPLE: Who will manage the execution of various strategies? (agency

vs. in-house vs. mix)11.TOOLS: What tools are we committed to? (best if that's open for

recommendations)

Key Questions that Drive the ROI PlanKey Questions that Drive the ROI Plan

1. Start with Recent ROI Template

2. Review Data from Client Questionnaire (Key Questions)

• Overall Marketing Budget over Periods

• Sales, Traffic and Customer Goals

• Approved/Desired Tactics (Pillars + PR, Direct Mail, TV, Print, Outdoor)

3. Select Optimal Keywords (25-100, using Google Adwords)

4. Enter Data Inputs to ‘ROI_YR1’ Tab

5. Estimate Traffic and Cost-per-Click (via Google Adwords)

6. Enter/Review Data Inputs to ‘ROI_Details_YR1’

7. Repeat Steps 4-6 yearly for YRS 2-5

7 Steps to Building the Plan7 Steps to Building the Plan

A Case Study:Medical – Lasik Provider

CRM Analytics: Historical Data on Patient Segments.CRM Analytics: Historical Data on Patient Segments.

Average age – 39

Income – between $50,000 and $75,000

Distance from location, up to 25 miles

CRM Analytics: Age DispersionCRM Analytics: Age Dispersion

Average age – 39 – not really the best target

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72

Age

CRM Analytics: IncomeCRM Analytics: Income

Income – between $50,000 and $75,000 – part of the market

CRM Analytics: Geo-LocationCRM Analytics: Geo-Location

Distance – up to 100 miles

CRM Analytics: On-going Lead Scoring ProcessCRM Analytics: On-going Lead Scoring Process

Leads are sent back to client and reloaded into database

Lead is Stored in Database/ Sales

Force Automation

Red Clay assigns a

Rank/Grade A- F for each lead

Lead responds to offer,

customer information is

captured

Leads are Sent via secure FTP, XML or any other method for

processing

A F B D C B

Keyword ResearchKeyword Research - Estimate Potential Traffic- Estimate Potential Traffic

A sample set of the keywords that will be utilized for the Search Marketing campaign, both SEO and Online Advertising, as well as recent pricing on various Cost Per Click keywords.

The following slide (SEO Rankings) shows how a Lasik company and two competitors size up for these keywords, from a Search Engine point of view.

This type of reporting will be conducted each month to track progress.

Competitive Analysis Competitive Analysis - SEO Ranking Report- SEO Ranking Report

CRM Analytics: What is a customer worth?CRM Analytics: What is a customer worth?

Revenue per Procedure: $1,000 (one-time?)

Customer Lifetime Value: $2,500

These are important distinctions for Cash Flow and Enterprise Value Considerations.

Budgets & ProjectionsBudgets & Projections - Media Expenses per Tactic (12-months)- Media Expenses per Tactic (12-months)

Monthly media & third party expenses plus agency hours per tactic over the first year can be seen in the spreadsheet below. Details are available upon request.

Budgets & ProjectionsBudgets & Projections - Goal: 6,000+ Procedures within 12-months- Goal: 6,000+ Procedures within 12-months

Based on this budgetary level, we prescribe a 3-pronged approach (Internet, Traditional and Direct Marketing). 80% of fees go to Media & 3rd party costs.

Return On Investment (ROI) - 1 Return On Investment (ROI) - 1 - Customer Acquisition - # Patients (12-Mo)- Customer Acquisition - # Patients (12-Mo)

As the Lasik brand achieves recognition in the marketplace, Customer Acquisition Costs are reduced, thereby leading to a profitable year, so long as operational costs are kept at bay. The goal of 6,000+ patient procedures is feasible; however, this does not take into account competitive pricing, which will be based on product price, quality and customer service.

Acquisition Cost Dropping

New Patients/Mo Rising

Return On Investment (ROI) - 2Return On Investment (ROI) - 2 - Customer Acquisition per Tactic (12-Mo)- Customer Acquisition per Tactic (12-Mo)

Projected acquisition cost per tactic are outlined below over a twelve-month period, based partially on historical data and prior experience. Results are not guaranteed. The significant boost is attributed towards increased marketing budgets and reduced acquisition costs over time.

CustomersCustomers - Customers per Tactic (12 Months)- Customers per Tactic (12 Months)

If the tactics recommended are employed and the Lasik company maintains its competitive advantages while properly servicing customers, the 3,000+ customer (6,000+ procedure) mark is likely to be achieved within 12-months.

A Case Study:Health – Weight-Loss Meal Co.

Case Study: Prospect on Google - The integration of SEO, PPC, Social Media

Searches Per Month = 460,389

Case Study: Prospect on Google Searches Per Month = 460,389

Social Media + PR Collaboration

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Case Study: Prospect on Google - The impact of SEO (Pillar 2)

SEO is required to achieve top organic search results.

Searches Per Month = 460,389

#1

#2

#3

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Paid Search compliments SEO & Social with quicker and predictable results.

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Case Study: Prospect on Google

Case Study: Medifast Prospect on Google - Revenue Opportunity

Revenue Opportunity for Medifast = $250,000 +

Searches Per Month = 460,389

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This analysis is for one keyword phrase, which presents several different marketing opportunities.

Monthly Statistics on "Diabetes Diet" search phrase# Searches # Clicks # Leads # Sales Revenue/Mo

460,389 13,812 1,381 345 $17,265

Revenue Assumptions

Click-Through Rate 3%Clicks-to-Leads: 10%Leads-to-Sales: 25%Clicks-to-Sales: 3%Avg. Initial Order $50Avg. Reorders/Yr: 5Avg. Reorders/Life: 25Cost Per Click: $1

Projected Long-Term Revenues

Annual Revenue $86,323Lifetime Revenue $431,615

Projected Costs

Cost/Mo: $13,812Cost/Lead: $10Cost/Sale: $40

Return to 7 Pillars ROI Assessment

Case Study: Medifast Prospect on Google - Potential ROI

Questions & Answers

Arman RoustaChief Executive Officerarman@bluelinerny.com

US – Asia – Europe – Latin Americawww.bluelinerny.com

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212.904.1240 office55 Broad Street, 17th FloorNew York, NY 10004

Thank you for your time! Look out for an email with your ROI Plan Template and quarterly updates for one year.