Businesses need a plan to target the right audience, lower the marketing costs and increase marketing efficiency. If your business is still young, you should invest in a growth marketing strategy to create a large customer base and improve your business's competitive edge.
A growth marketing canvas is a helpful tool to keep you aligned with your goals as a marketer. It guides you on different marketing channels to ensure your marketing efforts are aligned with your goals.
This is the third section of my growth marketing canvas series. Check out part one here and part two here. In this section, I will focus on the last three crucial elements of a growth marketing canvas, which are:
Let's get started.
Marketing is not a one-time thing; it's a journey. It's a process that needs multiple stopovers to reflect on your achievements, appreciate your journey and identify new growth potentials.
Usually, most businesses reflect at the end of the year. Since you have goals, you can take your hat off at specific periods to see if you achieved your goals and measure your achievements.
What You Gain From Brand Reflection
Personal or brand reflection presents an excellent opportunity for you to step back and breathe. As an entrepreneur, it's not surprising that you sometimes get busy and forget about your goals and growth. Unless you take time to reflect, you may end up investing too much or spending excessively on strategies that are not even effective.
You need a self-reflection opportunity to ensure that everything in your business is going as per your expectations.
How to Reflect On Your Brand
Schedule some time for the reflection. You can either reflect alone or with your team if you have a large business. Ensure the place is calm, and turn off your phone or any notifications that might disturb you during that period.
Get your business data for a specific period. For instance, if you have been inactive marketing for the last six months, you will pick your documents for that period.
Analyze them to see your achievements and failures.
- What were your main goals?
- What was your budget?
- Did you achieve what you wanted?
These are some things you will need to answer during your reflection time. If possible, carry a notebook to write down the essential things.
If you have multiple marketing strategies, analyze them to know the specific achievements. For social media, for instance, you can find out the platforms which had the most positive impacts, the posts with the most reactions from customers, or what didn't work out. When you are done, develop new strategies on what you will do next to keep your brand high.
Revenue refers to the income that your business generates over a certain period. When you have a growth marketing strategy in place, it's vital to consistently measure your revenue to see if your marketing efforts are generating the expected revenue or more.
Revenue Measuring Metrics
I talk to many firms across multiple niches. Through those conversions, I've realized that many businesses make an effort to measure revenue metrics and strategies on better ways of increasing revenue.
Is your business generating what you deserve? Here are vital revenue metrics to use:
- Cost Of Customer Acquisition (CAC)
You need to add up the cost you incur in bringing new customers to a business. These costs include marketing expenses, marketing agency fees, software costs, staff salaries, and so on. Then, determine how many customers you bring in after your spending, and divide the total costs by the number of new customers. You will get the average cost of securing one customer.
- Customer Lifetime Value (CLV)
Now that you know the CAC, you should also find out the value of keeping your customers. The best way to calculate CLV is to use historical data. For instance, if a customer signs up for a ten-month subscription worth $100 per month, the value of that customer will be $1000 for those ten months.
- Net Customer Worth
From the above metrics, take your CAC and subtract it from the CLV. It is the net customer worth; the value each customer brings to your business.
Here's how you can increase your business revenue:
- Keep clients promising the higher revenue, but don't neglect the rest
- Increase the number of customers - bring more customers to your business
- Increase the frequency of transactions - encourage your customers to buy more often from you
Naturally, your customers will refer your business to other people if they are satisfied with what you offer. However, you can motivate your customers to increase. You can experiment with multiple promotional methods to build a strong referral program as a growth market.
What Is A Referral Program, And Why Is It Important?
A referral program is a growth marketing tactic that encourages your current clients to market your business to their friends and relatives. Referral marketing uses word of mouth and recommendations, quickly building trust.
Although referral programs include promotions and incentives, the benefits outweigh the efforts. Some benefits include:
- Precision targeting at very low costs
- Extended marketing reach
- Increased brand awareness
- High customer loyalty and improved customer retention rate
- High proven track record, considering that big companies like PayPal and dropbox have grown through referrals
How to Win Customers Through Referral Marketing
- Choose Your Program Goal
What do you want to achieve at the end of it all? You could have more than one goal. Outline them.
- Choose Rewards And Who Will Win Them
Your rewards should be related to your business niche. The rewards can include free products, service upgrades, discounts/coupons, external gift cards, etc. You should also identify a reward structure on how your customers will get the rewards.
- Design A Referral Program Using A Catchy Headline
For instance, you can use something like: "refer to a friend and get $20 instantly!"
- Make the Referral Program Easy To Share
Be sure to include an easy-to-share link so your customers can copy and paste it with ease.
- Create the Referral Message
Beneath the catchy topic, you should create a text providing more details of your referral program. For instance, you can define the referral benefits and include a call to action.
- Track And Measure
Don't forget to measure the success of your referral program. Take note of the customer reviews as well to make the proper implementations.
When running a referral program, don't forget to:
- Provide high-quality products/services so that your customers can be encouraged to refer your business to other people
- Offer exceptional customer services
Start Creating Your Growth Marketing Canvas
Reflection, revenue, and referrals play a vital role in your growth marketing canvas. They, however, require the most effort because you have to constantly check-up with your customers so you can retain them. When done well, reflection, revenue, and referral processes can significantly improve the stability of your business.
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