Monthly Archives: February 2017

The ROI Equation for Building Products Marketers

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In recent years, our ability to analyze user behavior and determine how Facebook, SEO, email and other tactics affect the purchase decision has improved. However, the challenges of two-step distribution make determining ROI especially difficult for most building products manufacturers. It can seem impossible to account for all the variables that result in purchase when you have little insight at the dealer or contractor level.

With the exception of reduced visibility, the funnel isn’t much different than it is for other marketers. The challenge is connecting marketing metrics to sales metrics. At True, we use three tactics to bridge the gap.

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Determine a non-sales marketing metric that indicates purchase

You can start to bridge the marketing ROI gap by focusing on what can be quantified, rather than what can’t. When a direct connection can’t be made between marketing efforts and offline sales, an intermediate, online conversion can help connect the dots. Examples of these include:

  • Requests for more information
  • Free product samples
  • Visiting a dealer
  • Downloading an online resource

Web experience planning is crucial at this point to figure out how users engage with your site and what they want to learn. Focus on finding one relevant, measurable action for each objective.

Determine the cost for your non-sales marketing conversion

The calculation is simple:

Cost of the program / Non-sales marketing conversion = Cost per conversion

The first question at this point is always, “What’s a good cost per conversion?” The better question is, “What’s a profitable cost per conversion?” The building products industry has a wide range of price points for a unit or an entire job. The drywall for a new construction build may be roughly $500. New siding is likely to cost upwards of $10,000. The siding company can afford a much higher cost per conversion and still be profitable.

Simple calculations for online conversions are the next step toward demystifying ROI. Determining front-end marketing costs and outcomes based on online conversion points is easier.

Determine the value of your non-sales marketing conversion

In a two-step distribution model, it’s nearly impossible to track every sale at the end-user level. What’s important is identifying trends to learn how different audiences buy. Rather than track every sale, use trends and averages to start to unmask ROI. There are three pieces to uncovering these trends:

  • Organized data – Whether you have a spreadsheet or a CRM, knowing where your customers come from, what audience segments they belong to and which sales rep closed the deal is important. The more information you have about your customers, the more reliable your assumptions about revenue per sale.
  • Open communications with sales reps – It’s important to get the right feedback from your reps. They know how many architects, builders and contractors they call on in a month. They can also tell you how many they feel ended in a sale. Depending on the rep and relationship, they may be able to shed insight on one-time customers vs. customers likely to repeat purchase.
  • Patience – Because two-step distribution is so fragmented, it’s important to remember this is an ongoing process. The more you learn about your audience and test your model, the smarter you become. Once you have a clear model you can test your inputs. Shift marketing dollars regionally, refocus audiences and change marketing messages. As long as you have a wealth of customer data, you will learn how these variable affect sales.

When you lose visibility at the point of sales, ROI is always going to be elusive, but we have the tools to audit our marketing efforts and track trends with sales.

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Meet True’s Newest Intern

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Meet Bailey, True’s new content intern. In this blog post, she tells us more about her PR experience so far, what she likes to do in her free time and where she sees herself in the future!

Name: Bailey Purpura

School: Kent State University

Major: Public Relations

Year: Senior

Other internship experience: Social media manager for NEO Allstars.

Do you have any hobbies?: I love to travel and I am usually somewhere different every weekend. I love taking and editing pictures and I also enjoy playing board games with my cousins.

What are 3 fun facts about you: 1. I am a competitive cheerleading coach 2. I LOVE Harry Potter and I had the chance to visit where they filmed the movies in London 3. I play the ukulele!

What’s your favorite snack: GRILLED CHEESE (I know that’s a big snack but I would eat it every day)

What do you hope to gain from your internship at True?: I hope to walk away with a better understanding of all aspects of a PR agency setting. I hope to take what I have learned beyond just PR and apply it to every job in my future.

What made you interested in an internship at True? I love how everyone is so passionate about their role at True. I think it’s awesome and beneficial that everyone here has a different specialty, and I feel like I learn something new every day! I love the atmosphere in the office and the variety of clients and projects True works on.

Where do you want to be in ten years? I would love to be working at an international PR agency in Cleveland or Chicago that allows me to travel and work with partners all over the world.

Welcome, Bailey! We’re so happy to have you on the team!

 

Google Shopping Certification: What You Need To Know

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In the past, I’ve given you the run down for how to pass the Google Adwords and Analytics certification exams, but today I wanted to you give an in-depth look into one of the Google shopping exams for the Google Adwords certification. The Google Shopping exam was the easier of the two exams I chose (the other being search), however it did present its own set of unique challenges.

As stated in my previous blog posts, before you can take the exams, you are required to sign up for Google Partners. Google Partners is Google’s free program for agencies and other digital professionals designed to give you access to special events, Adwords and Analytics updates and free certification exams. Once you have registered, you will have access to all of the study materials for the Google Shopping exam under the Google Adwords certification.

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In order to become certified in Google Adwords you must pass two of the six possible exams with the Shopping exam as one of your options. The Google Shopping exam is 63 questions in 90 minutes and places heavy emphasis on the various feed specifications required to participate in Product Listing Ads (PLAs). There are plenty of supplemental materials on the web to help prepare yourself for the exam, but I found Google’s study guides to be the most helpful. Pay close attention to the specific requirements that each product must include to be approved for shopping and note that some requirements are specific to the product category. For instance, apparel and accessories may have different requirements than home goods and tools. Luckily, many of the requirements seem to be common sense, such as you can’t advertise a product through PLAs without an accurate photo and size and color information must be provided for apparel products. The majority of the exam’s questions focus on setting up the product feed and the fundamentals of the program.

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Since taking my Google Shopping exam last year, I’ve had the opportunity to work on accounts with Shopping campaigns and have developed a list of key takeaways from the exam that have helped me manage my accounts:

  • Products must include two of the three possible unique product identifiers in the feed: Global Trade Identification Number (GTIN), Manufacturer Parts Number (MPN) or the brand name.
  • GTINs are unique to every SKU of every product. Each variation should have a unique number.
  • Apparel and accessories must include the GTIN and the brand.
  • For apparel products, images must be at least 250 x 250 pixels and all other products must be at least 100 x 100 pixels.

Let’s review the facts before you take the exam:

  • You have 90 minutes to answer 63 questions.
  • You will not be able to return to any previous question once submitted.
  • Multiple choice answers, with the occasional multiple answer.
  • The passing score is 80%.
  • If you do not pass, you may retake the test in 7 days.
  • Your passing score is good for 12 months.

Remember to study the Google-provided materials before the exam because you will run out of time if you have to look up every answer to every question. Good luck!