Trending this month



November 17, 2017

five lesser known inbound marketing metrics


 
1)LTV ( Lifetime value of your Customer ) Your customers are valued much more than one purchase. Their value to your company can be defined in influence and in dollars over the course of your business relations with your website. 
For the purpose of calculation ROI, you can simply use a lifetime value for your customer (LTV). 

Using historical sales data you can figure in two different ways. 

The first one is this : Average transaction purchase amount ($) x average number of purchases =LTV 

For example, lets take an example of an online education company whose average course fee is $30. If this company analyses its data to discover that an average student takes 10 courses, the lifetime value of its customers is $300 ( $30X10) Another way of calculating lifetime value is by multiplying the annual purchase amount x average length of engagement.

For example, let’s say that a mobile phone carrier whose average customer has two phone plan at $60 a month per phone and the average customer remains active with its mobile carrier for 3 years ( 36 months).Let’s assume that data shows that the first year’s purchase also includes 2 mobile phones and set up fees totalling $1004 
Therefore first years total revenues (mobile phones, set up fee and 12 months of service =$2000 Second 24 months of contract revenue =(2x$60) x24 =$120x24=$2880 $2000 (year 1)+$2880(year 2 and 3)=$4880 LTV.
To obtain an even more accurate lifetime value of your customer you could apply revenue erosion which arises from contract cancellations and non-fulfilment 

2)First Action Value(Purchase) Because it takes times to realise your customer's lifetime value, you may sometime want to take a quicker view of your marketing ROI. Knowing your initial value of your first action makes it easy for you to calculate the ROI Using the above example of a mobile phone carrier, Let us also assume that there is an initial phone purchase that averages $330 and a setup fee of $22 per phone.Let us assume that for these numbers there is a one-year contract commitment required Because the average customer purchases 2 units the phone hardware cost of $330x2) and the initial set up fee is ($22x2).
The first year contract for 2 phones amounts to 2X$60x12=$1440.Let's also assume that your data shows that customers who don’t fulfil their contracts reduce this amount to on an average 90% of the first year contracts fees, lowering your average first year to $1296 ( $1440-$144=1296)

From this you can calculate your first action value, in this case, the purchase of mobile phones, set up and one year service by adding these 3 values $660+$44+$1296 or $2000 
Your customers average first action value purchase is then $2000. 

3)Cost per Acquisition: Measuring your cost per acquisition simply means how much dollars are you spending to get a customer are yourdoorstep..The simplest way to calculate this is by dividing your digital budgets by the number of customers you are getting via digital channels.
For example in a hospital, if you spend $10,000 a month for promoting a speciality service and 5 customers land up at your clinic, the cost of acquisition is 10,000/5=$2000.Most marketers aim to bring down the cost of acquisition. So does that mean that if you increase this budget by 10 times 50 customers would end up at your hospital? Well, that’s impossible to say, but ideally, you should increase your digital budget incrementally until you reach a point of diminishing returns.

4)Return on Investment: This is simply defined by Cost per lead / Cost of Acquisition Now that you have broken down your marketing budget by assigning your marketing initiative inputs to product pyramids, you can easily find your ROI 
Here is how it's calculated
 LTV X number of customers ) /Marketing Budgets=Total ROI 
In case of the above-mentioned phone company, this looks like this. 250 customers per monthx$4880=1220,00 1220000/100,000 marketing budget=12.2 return or 12000 percent Your marketing budget was 8.2% of sales ($100,000/$1220,000).

Just remember your not realizing your full return at once, but in this example, it requires 3 years to capture the full return on your digital marketing investment For a more immediate ROI, simply replace the Lifetime value of the customer ( LTV) number in your equation with the first action value. This is represented by (First action value X number of customers)/Marketing Budget=immediate  ROI 

5)Cost per Lead: cost per lead ration is determined by dividing your marketing expenses by the number of total leads, For example, you run Paid campaign spending $10,000 and end up with 10 validated leads. Your cost per lead is $10000 

6)CONTACT CONVERSIONS to MQL ( marketing qualified leads)Ratio: The number of leads that become marketing qualified leads (MQL) is the first measure of lead quality. Upon conversion the marketing department designates each lead as one of the following Ideal customer matches or A leads Prospective leads who appear as good matches either by engagement information they provided in the contact form, their onsite activity or their status as buyer decisions , also known as B leads Prospective leads who provided information but whose online activity information or other factors caused the marketing department to view them as questionable. They are C leads Contact Leads which are not good prospects. Classify these leads as unqualified.




November 3, 2017

2017 holiday season projected online shopping revenues by devices

"Online projected  revenues  during  2017 holiday season"

Total Online Revenues during Holiday Season:2014 to 2017


Smartphone led online sales is set to break all barriers and all set to become the dominant revenue channel during 2017 holiday season according to a report published by Adobe Analytics.Smartphone aided online revenues will see an increase of 26% to account for 24 percent of total shopping revenue during this years holiday season.While Desktop share of revenue is projected to be 66 percent, down 6 percent year-over-year and tablet-led online sales will see  9 percent lower growth as compared to 2016  and is likely to account for 10 percent of revenue this holiday season.On Black Friday 2016, 48 percent of online orders were generated via mobile devices, up from 40 percent in the previous

The 2017 holiday shopping season will also see mobile visitors to retail stores grow past desktop visits during the months of November and December.

Adobe predicts that Cyber Monday 2017 will be a huge contributor to those sales, and is on track to become the biggest online shopping day in U.S. history with $6.6 billion in online sales, a 16.5 percent increase over last year.
"comparison of online revenues for 2017 christmas"

Projected Online Shopping in 2017



 
Last November, mobile internet use topped desktop for the first time ever. And during the holiday shopping season, several of the top U.S. retailers reported record numbers of mobile shoppers. For instance, Amazon's mobile orders on Thanksgiving 2016 exceeded both Thanksgiving 2015 as well as Cyber Monday 2015. Walmart data showed that  70 percent of its website traffic around Black Friday came from mobile. Target's data revealed that " mobile "accounted for over 60 percent of its Black Friday pre-sales. But whether it’s on desktop or on mobile, online shopping is outpacing in-store sales. This holiday season, Adobe is forecasting online sales to reach $107.4 billion, up 13.8 percent from last year, and topping in-store retail by 10 percent.




October 23, 2017

the top 10 paypal mafia's running the world wide web


The PayPal Mafia and how they control the consumer internet  industry (via Fleximize).

Although most of the PayPal Mafia’s investments have stayed within their traditional territory of Silicon Valley tech, more unusual Family ventures have included private spaceflight company SpaceX, Hollywood movie Thank You for Smoking and political campaign group FWD.us.


Originally the term "PayPal Mafia" is a term used to indicate a group of former PayPal employees and founders who have since founded and developed additional technology companies such as Tesla Motors, LinkedIn, Palantir Technologies, SpaceX, YouTube, Yelp, and Yammer.

They have also invested in a slew of internet and dotcom startups and wields considerable influence across silicon valley and corporate boardrooms including politics and governance.

 Most of the members attended Stanford University or the University of Illinois at Urbana–Champaign at some point in their studies. Five members, Peter Thiel, Elon Musk, Reid Hoffman, Luke Nosek and Ken Howery have become billionaires.

The list of individuals mentioned below makes up the Paypal Mafia which invests in a lot of consumer internet companies including startups Individuals whom the media refers to as members of the PayPal Mafia include:

Peter Thiel, PayPal founder and former chief executive officer who is sometimes referred to as the "don" of the PayPal Mafia

 Max Levchin, Founder and chief technology officer at PayPal sometimes called the "consigliere" of the PayPal Mafia.

Elon Musk, is founder of X.com which acquired the company Confinity. Musk later co-founded Tesla Motors and SpaceX, and is the Chairman of SolarCity

David O. Sacks, former PayPal COO who later founded Geni.com and Yammer

Scott Banister, former IronPort CTO and PayPal board member Roelof Botha, former PayPal CFO who later became a partner of venture capital firm Sequoia Capital

Steve Chen, former PayPal engineer who co-founded YouTube. David Gausebeck, former PayPal Technical Architect, co-creator of the Gausebeck-Levchin test, co-founder of Matterport Inc., a digital 3-D modeling company.

 Reid Hoffman, former executive vice president who later founded LinkedIn and was an early investor in Facebook, Aviary, Friendster, Six Apart, Zynga, IronPort, Flickr, Digg, Grockit, Ping.fm, Nanosolar, Care.com, Knewton, Kongregate, Last.fm, Ning, and Technorati Ken



Rod D. Martin, former special counsel to CEO Peter Thiel whose 10X Capital took over Galectin Therapeutics in 2009 and who founded Advanced Search Laboratories in 2012.

Dave McClure, a former PayPal marketing director, a super angel investor for startup companies and founder of 500 Startups which has hit 500+ investments.

Andrew McCormack, co-founder of Valar Ventures Luke Nosek, PayPal co-founder and former vice president of marketing and strategy, became a partner at Founders Fund with Peter Thiel and Ken Howery

 Jason Portnoy, former vice president of financial planning and analysis who later became CFO at Peter Thiel's Clarium Capital, CFO at Palantir Technologies, and founding partner at Subtraction Capital.

Keith Rabois, a former executive at PayPal who later worked at LinkedIn, Slide, Square, and currently Khosla Ventures, and personally invested in Tokbox, Xoom, Slide, LinkedIn, Geni, Room 9 Entertainment, YouTube, and Yelp

Jack Selby, former vice president of corporate and international development at PayPal who co-founded Clarium Capital with Peter Thiel, later becoming managing director of Grandmaster Capital Management.

Premal Shah, the former product manager at PayPal, became the founding president of Kiva.org. Russel Simmons, former PayPal engineer who co-founded Yelp Inc.

Jeremy Stoppelman, former vice president of technology at PayPal who later co-founded Yelp, Inc.

 Yishan Wong, a former engineering manager at PayPal, later worked at Facebook and became the CEO of Reddit.

September 12, 2017

how to kick start your mobile app downloads:

10 Mobile Growth Hacks That Will Sky Rocket Your App Growth #infographichow to increase your mobile app downloads via Visualistan

 
The above infographic shows some of the ways how you can kickstart your mobile app downloads.




August 30, 2017

how LinkedIn new targeting option works


LinkedIn has been working to update and refine its ad targeting options in recent months, adding in new ways to better focus your LinkedIn ads to reach the right people at the right time. Among those updates, Linkedin has: Expanded their demographic reporting tools, while also adding auto-generated recommendations in order to help boost campaign performance Added lead generation forms which offer improved data accuracy by providing information direct from user profiles Announced their new ‘Website Demographics’ process, which can provide a range of insights into who’s visiting your website, based on their listed LinkedIn data They also added ‘Matched Audiences’ back in April, LinkedIn’s own variation of retargeting, with three options available to help better focus your LinkedIn ad efforts. Those three options are the focus of a new infographic from LinkedIn, which looks at how business can use Matched Audiences to maximize their ad efforts (while also keeping in line with LinkedIn’s affection for food-themed graphics).