Tag Archives: ROI

Love at First Sight – Who Get’s the Credit?

Is there such a thing as love at first sight? Sure there is, but in most cases, it’s a process. The question is… Who gets the credit for closing the deal?

Here’s a real-life example of the point I’m trying to make.

Through a mutual friend, I introduce Gary to Bonnie. I then arrange, through another mutual friend, to provide Bonnie’s phone number to Gary.

Shortly after, they go on their first date and have a good time. After several dates that include dinners at nice restaurants, movies, and even some flowers, she invites Gary to meet her family. They begin dating more seriously on a regular basis. Then, Bonnie’s dad, being an avid hunter like Gary, invites Gary on a bear hunting excursion.

Ultimately, one nervous night, under a romantic full moon, Gary gets up the nerve to ask Bonnie to marry him. She says, “Yes”, accepts his ring, and the sale is made.

Who gets credit for the sale? Me, the friend who introduced them? The restaurants, movie theatres, or flower shops? Bonnie’s dad? The months of dating and getting to know each other? The ring? Or how about the full moon?

Human behavior, including perceptions, attitudes, relationships, and buying decisions is seldom based upon one singular event, but rather on a series of events, experiences, and influences.

Advertising is no different. Many advertisers give all the credit of the sale to the “moon”, or the last touchpoint. Years ago, it was the newspaper or yellow pages. Today, it’s Google and social analytics that now provide a “Last Interaction Attribution Model” and give 100% of the credit for a sale, which they call a “conversion”, to the clicks that immediately precede the sale.

And… advertisers, hungry to measure the ROI (Return on Investment) of every expenditure, eat it up!

The “Last Interaction Attribution Model” would leave out me, the friend who introduced Gary to Bonnie, the countless dates, good times, the hunting trip, and give all the credit for the marriage to the “moon”.

Are you and your people trained to understand the Purchasing Funnel and the Targeting Pyramid? Are you able to explain, articulate, and sell radio’s role in the entire “conversion” process from introduction, to building a relationship, branding, and asking for the order?

Digital media and last-touch clicks shouldn’t get all the credit. All exposures play a role in what those in search of ROI call “conversion”. In reality, there is no single source that can take credit for the sale and no single source that can make the sale without the influence of other touchpoints along the path to conversion.

 P.S. Gary and Bonnie have been happily married for almost 25 years, and like radio’s role in the Purchasing Funnel, I’m proud to take my fair share of the credit!!

Click here to inquire about facilitating a workshop for your annual sales conference or broadcast association to train local radio account executives on how to sell Radio’s ROI.

The Secret to Increasing Your Sales

In this excerpt from my 2001 book, I wrote: “Tear up the last page in your presentation and double the investment you are asking for.” That was one of the keys to success then and remains so in 2017.

Here are the simple back-to-basics steps that still work today:

  1.  Know your prospects dreams.
  2.  Wear your ad manager’s hat & do the best presentation you possibly can with the client’s best  interest at heart
  3.  Establish a budget within the parameters, as described by the client.
  4.  Look for the big idea.  Revolve your presentation around a creative solution to an agreed to  client problem or dream; not around spots, rates, or GRP’s.
  5.  THEN TEAR UP THE LAST PAGE, AND DOUBLE THE INVESTMENT!!!

WHY DOUBLE YOUR PRESENTATION?

 

  1. A)   From a Client Perspective
  1.  Dominating your medium will capture and gain a dominant Share-of-Mind and subsequent  dominant Share-of-Market with your audience.
  2.  Major investments are viewed with much more respect and attention than minor or token  investments. Your advertisers have a vested interest in ensuring your campaign works if the  investment is significant.
  3.  More budget directly increases reach, frequency, Share-of-Voice and success.
  4.  Clients seldom tell you their real budget. They believe they have a vested interest in reducing  their costs, but will always invest more if they are convinced they’ll get a return on that  investment.
  5. Larger ‘asks’ demonstrate your confidence in what you are proposing.
  1. B)   From Your Perspective
  1. You deserve more. Radio should not continue to accept competitors as “automatic buys”.
  2. It takes just as much work to write and service a $20,000.00 account as it does a $100,000.00 account.
  3. You will make more money………more easily.

If only half your clients double their budget, and you capture the original proposed budget as a fall-back position with the other half, your sales will increase by 50%.

Selling Radio’s ROI

Imagine you’re fresh out of college and your best friend sets you up on a blind date. You have a good time on the date, and after a few more dates she invites you to join her on a cruise.

During the cruise you have the time of your life, and you begin dating more seriously on a regular basis.

One nervous night, under a romantic full moon, you get up the nerve to ask her to marry you. She says, “Yes”, accepts your ring, and the sale is made.

Who gets credit for the sale? The best friend who introduced you? The cruise line? The months of dating and getting to know each other?  The ring? Or how about the full moon?

Human perceptions, attitudes, relationships and decisions are seldom based upon one singular event, but rather on a series of events, experiences and influences that form our opinions, biases, and prejudices over time.

For as long as I’ve been in this business, some advertisers have under-estimated the introductory role radio plays in making the sale, and they’ve given credit for the sale to the moon…that last touch-point in the conversion process.

In the old days, it was the newspaper. Some advertisers would proclaim their customers actually came to buy with a copy of the newspaper under their arm. Some even went so far as to say “No one ever came in with a radio under their arm.”  Hmm…imagine that.

Then came direct mail, coupon envelopes, flashing neon signs, huge pink gorillas, and a long list of ‘last-touch’ or last customer touch-points.

Google Analytics now flogs a ‘Last Interaction Attribution Model’ that gives 100% of the credit for a sale, which they call a ‘conversion,’ to the clicks that immediately precede the sale.

And advertisers hungry to measure the ROI (Return on Investment) of every expenditure, are eating it up.

The Google model would leave out the best friend who introduced you to your wife, the countless dates, good times and the cruise, and give all the credit for the marriage to the moon.

The problem is radio salespeople have not been trained to understand, articulate and sell radio’s role in the entire ‘conversion’ process, from introduction, to building a relationship and brand, to asking for the order.

Digital media and last-touch clicks are not radio’s problem, any more than a ‘last-touch-point’ car salesperson who takes credit for the sale or other last-touch-points, like coupons, Yellow Pages and pink gorillas on the roof.

All exposures play a role in what those in search of ROI call ‘conversion.’  In reality, there is no one ‘single source’ that can take credit for the sale and no single source that can make the sale without the influence of other touch points along the path to conversion.

Click here to inquire about facilitating our Radio Works workshop for your annual sales conference or broadcast association to train local radio account executives how to sell Radio’s ROI as the launch on the path to increased conversions and sales.

Choosing to Win!

Fragmentation and competition — they can destroy your business, or make it stronger. The choice is yours.

McDonald’s didn’t pack up their bag and go home when the Burger Kings, Wendy’s, Harvey’s and a long list of other competitors sprung up to eat their lunch (no pun intended)

And the auto industry’s ‘Big Three,’ Ford, General Motors and Chrysler, rose to the challenge to build better cars when dozens of manufacturers from Germany, Japan, and other countries began exporting their products to our shores.

In fact, General Motors continues to consistently be among the top three automakers in global sales.

You’ll hear and read a lot of doom and gloom about radio and TV as the number of new competitors we face mushrooms every day. By the way, those same new competitors are facing more new competitors every day, too.

So the choice is yours. You can make excuses for lack-luster sales, or you can choose to stand out in the crowd by being the best that you can be.

According to the Kauffman Foundation’s Index of Start Up Activity, small business growth is on the upswing. New and existing small businesses are looking for a star media professional like you to guide them through the confusing array of advertising and media choices they have and to improve their ROI (Return on Investment).

While many of the purveyors of new media are still selling their ‘platforms’ you can stand out in the crowd by selling results.

The choice is yours. You can be a shooting media star, or be a falling star. I don’t see why anyone would choose the latter.

Profits

After reading our ENS on Sales about the absurdity of patting ourselves on the back for achieving ‘record sales’, an astute client pointed out there is one ‘record’ worth pursuing… record profits.

We can’t feed our families with record ratings or record sales, although both can contribute to the result that can feed our families…profits!

The delicate balance between controlling costs but making investments that will pay off, is where the best managers shine.

To view the Record Sales article click here

P.S. We guarantee a return on your investment in our (TOMA) Top Of Mind Awareness surveys. Click here to arrange an online demo.