Take Your Dogs to the Vet: Why optimization is the key to success
We love our pets. I particularly, love my dogs. I have a 6-year old husky named Mika (pronounced mee-kuh, not mike-uh) and a 6-month old German Shephard named Tarkin (like from Star Wars).
I had a pretty routine visit with them, but I, like many other responsible parents, like to make sure our parents stay up to date on their vaccines (And no, the shots didn’t give your dog autism, you just are bad at training them.)
Also, it’s the time of age for Tarkin where we look at doing mean things like taking the fruit of the loins options away. Usually, this costs $200 with medicine. With him, it will be upwards of $700 because one of his balls never dropped and they have to go up through his abdomen. He probably withheld it purposely to try and prevent me from having the surgery done.
Back on topic, it is very helpful to routinely check on our dog’s health and make sure everything is good. If there’s an area we need to address, we address it. Maybe that’s a diet change, adding a supplement, or repairing something altogether (Mika is a double torn ACL veteran).
I think you know where I’m going with this…
When it comes to our marketing campaigns or funnels, depending on your terminology, it’s essential we checkup regularly as well. And some people ask, well if it’s working, why do we need to regularly check up on it? Like the health of a living creature, things can change with age. Instead of reacting differently to food or hurting itself running, the audience might get sick of seeing the same thing, a website gets outdated, or things break altogether.
The first piece I brought up with dogs is potentially needing a diet change. The reason this happens is allergies, weight, or simply striving for a better diet. In marketing campaigns, think of the diet as your traffic. It’s what feeds your campaigns and eventually makes you money.
For example, when we’re running ads to an audience, sometimes if the ad is over-delivered to that audience they get sick of it. We can change the ad, which usually starts with changing the creative (image or video).
We might determine early on that the audience just isn’t delivering. In this case, we need to change it up altogether. In other words, find a different kind of food, because what you’re usin’ ain’t workin’.
Adding a Supplement
Sometimes our pets need some help. A joint, multivitamin, or in some cases a steroid can help tremendously. Shifting this thought process to our marketing campaigns is quite simple. You might realize, my Google ads are going well, maybe it’s time to add Facebook to continue a healthy process.
These are the thoughts of business owners who win. Businesses that constantly grow and scale their mindset of a marketing strategy are able to reach more customers and grow their revenue. Of course, it’s not all about revenue, it’s about profit. But this entire post is about profit if you’ve been catching my drift.
We can’t just turn something on and walk away expecting to gain profit, let alone revenue.
Ugh, the last thing we want, am I right? Not only do we have to see our furry ones in casts, drugged up, and mopy. It does some damage to our wallets too. However, in the long haul, if it was the right decision it should create a rejuvenated, happy, and more care-free pet.
Same thing with our marketing campaigns. Sometimes things get outdated. Now, most of the time we can avoid surgery altogether by staying on top of everything. Sometimes, we can’t though. Maybe we hired the wrong consultant and they sucked really bad. Maybe we decided to outsource some work but didn’t have the systems in place for that to succeed.
Surgery to our marketing campaigns halts revenue from them temporarily, takes a chunk of change to have it done right by the best marketers, and is a bit nerve-racking.
It’s about the long haul, and the decision to go through with an overhaul in your marketing process can mean a much healthier business long term.
We love our pets and we love our business. Routine checkups and optimization are essential to the health of both. If we start valuing each piece of our business much as we do with our furry friends, we can achieve greater success in every campaign.
By understanding each one’s needs specifically whether it’s diet (traffic), supplements (diversification), or surgery (overhaul) we can increase revenue and profit significantly.
I lightly touched on the importance of revenue and profit earlier, but I want to expand on this point. Some business owners talk highly on revenue and others highly on profits. Neither are technically wrong, but I find those who only focus on profit have a hard time seeing the bigger picture.
For example, sometimes we run campaigns to generate leads where we don’t profit significantly. Heck, sometimes it’s okay to lose money in this stage. And you’re thinking, “Why the hell is it okay to lose profits?”
The answer is simple, everything needs to be a part of a large effort. That individual campaign might lose money, but on the backend, you could be taking clients who spend a few dollars with you and getting them to spend thousands in the long haul.
Let’s crunch some numbers. Let’s say we push people through a campaign to spend about $20. The cost of acquiring each customer is more in the $35 range. That means we lose $15 every time we spend $35.
How do we get around this? Surgery? Don’t even think about it.
A quick fix is to add some upsells. Maybe 10% of people take a $200 upsell. Math time again…
Campaign spends $3500. With no upsells we make $2000. 10% of 100 customers (which it takes to generate $2000) is 10. 10×200=2000. We’re up to $4000 and $500 in profits if you’re keeping track.
But the thing is, once we have these people as customers we can market to them. Email campaigns, retargeting ads. We could be making thousands from just 1 out of 100 people on the backend and the front end campaign easily pays for itself. That’s the profit.
Maybe what you’re lacking isn’t a good campaign in the frontend, maybe what you’re lacking is an overall strategy. Keep this in mind if you are planning on hiring someone to consult or work with your business so you can ask the right questions. They need to be able to walk the talk.
Remember, take your dogs to the vet (and optimize your marketing campaigns). Hope you enjoyed today’s hump day lesson!