The starting point for your marketing strategy and marketing plan is to set some goals for your small business. This will help you and your staff, to understand what you are striving to achieve each month, quarter and year.
There are three types of goals that I suggest you set for your business. In this blog post, I will outline these goals.
1. Business Goals
These are long term goals that you would like to achieve to help you expand your offer or enter into new segments. Some examples of business goals are as follows:
- Increase your market share in your industry
- Launch an online course
- Launch a podcast
- Enter into a new market segment with a tailor made offering
You may just have one business goal that you want to achieve over the next 12 months or you may have more. Figure out what is realistic and achievable for your business. But with each goal you need to allocate a due date.
2. Sales Goals
Sales or revenue goals for your business are vital for your success. It’s how you will grow your business, be able to employ more staff and eventually work on the business rather than in the business. For your revenue goals I’d suggest you set a target per:
Break your revenue goals down by service you offer. So if you offer 4 services, set revenue targets per service. Know which is your most profitable service so that you can sell more of this service to help you reach your revenue targets faster.
Then calculate how many new/returning customers you need each month to achieve those revenue goal, by service.
3. Marketing Goals
Once you have set your business and revenue goals, and built your marketing plan, then you will need to set some marketing goals. It’s important to understand the lifetime value of each customer. This means how long on average does a customer do business with you, and much on average do they spend each month with you.
So if a customer is a customer for on average 12 months, and spends on average $200 per month, that customers lifetime value is $200 X 12 = $2,400.
You also want to be aware of your cost per lead. So this is calculated by dividing Monthly marketing spend by each marketing channel by number of leads you received in that channel. So for example you may spend $300 each month on Facebook Ads, and those ads deliver 10 leads per month, it means your cost per lead is: $300/10 = $30 per lead.
Examples of marketing goals are:
- 1,000 website visitors per month
- Website visitors to convert at 10% which would mean 100 leads per month
- Your conversion rate is based on, what is the action you want them to take on your website e.g. Sign up for your weekly tips newsletter, or download an eBook. It’s the number of people that actually take action and provide you with their email address.
I’d also recommend you keep a track of your marketing spend per month. As your business grows you should increase your marketing spend each month. You must invest to grow, and I see many small business owners fail to do this from the start, and wonder why they are not growing at the rate they wanted.