Lucas Walker Business Consulting learned digital marketing by becoming a practitioner. Our earliest clients had very limited budgets. We learned early how to use guerrilla marketing tactics online to stretch out a marketing budget.
Through gritty experimentation, LWBC realized that digital advertising is a great place to generate a return on investment (ROI) by keeping the customer acquisition costs (CAC) low.
We offer…
- WordPress websites that convert
- SEO (On-page, Local)
- Google ads and Facebook ads
- User experience(UX)
- Sales copywriting
- Funnel building
- Content marketing
- Data analytics
- Social media strategy
- And more…
Digital marketing is a huge, ever-changing field, and it takes a dedicated focus to stay on top of everything.
The two main elements of digital marketing.
The first is conversion. This is the percentage of how well you turn people into customers who are interacting with you online.
The second element is the traffic. Once you know a certain percentage of people who land on your website will buy (conversion), how do you get people to your site in the first place?
To improve conversion a business owner must implement an easy to navigate website. The site must have minimal friction to inhibit potential customers from taking the desired action on the site.
The more “useful” a customer finds a site, the more likely they are to interact with it on a deeper basis, eventually creating a business connection.
There are numerous ways to increase traffic, and each source requires a slightly different approach. Once a business knows where to find its Customer Avatar, it can begin to run advertising experiments in driving traffic.
Doing digital marketing math.
It is important to make sure that a company is still making a profit after accounting for the ad spend as a cost of their product. With digital marketing, these calculations become simple.
Pick a window of time (let’s say 30 days)
Conversion Rate Calculations
How many site visitors did you receive?
How many “desired actions” did you get? (sales, contact forms, calls, etc.)?
Example: 2,400 total site visitors
Example: 24 leads
To find your conversion rate take your total visitors (2,400) divided by the ones that took action (24). This is a total of (24 / 2400) 1% conversion rate.
1% of the people who go to your site will buy on average in this example.
Monetary Transaction Calculations
How much did you pay for digital ads?
Example: $240
To find out how much you are paying for a visitor to your site (2,400 visitors)divided by the amount spent to get them there ($250) equals $.10 per visitor.
And remember, it takes 100 visitors to get just 1 conversion (1% conversion rate).
Now we know that one visitor costs $.10, and we need 100 of them, which means we need to spend $10 for each conversion.
The Final Calculation
The final step is to coordinate with the sales team and quantify what their conversion rate is going from a website conversion to a sale (if it wasn’t an onsite transaction).
If they can only sell 1 in 3 that come through the website that means you need to spend $30 to acquire a customer in this example. If you have a product with a $100+ margin, this type of transaction makes sense and should be run as often as cash flow and production allow. If you only have a profit margin of $15, you are actually losing money every transaction!
Get In The Game
Lucas Walker Business Consulting helps set up strategies to improve conversions and drive traffic while keeping you aligned with the realities of your business.
Schedule a digital marketing consultation today!
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