August 01, 2022

That's How We Get Our New Customers

At least that's what the Executive said when I asked him about various online marketing tactics.

A look at his customer file told a different story.

  • 19% of his digital marketing budget was attributed to the top 4% of his customer file.
  • 31% of his digital marketing budget was attributed to the 5th percentile to the 24th percentile of his customer file.
  • 24% of his digital marketing budget was attributed to new customers.
In other words, it was the very best customers consuming online marketing tactics, or new customers consumed online marketing tactics.

Sometimes we just miss the point of everything we're doing. We're not "bidding on a keyword". I mean, that's the tactical thing we're doing. What is the strategic thing we're doing? It's like we're Billy Beane in Moneyball yelling at the scouts "What's the problem we're trying to solve?"

We're trying to increase File Power. And for some reason our best customers know we sell widgets and are out there on Google searching for widgets anyway. What's the problem we're trying to solve when that happens?? Once you answer that question, the tactics employed to solve the problem are different than "bidding on a keyword". Obviously. We just don't ever want to answer the question, do we?

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