Born and raised in New York City, Jeff Kalter graduated with a Bachelor of Science from New York Institute of Technology. Jeff began his professional career at Bruce Supply Corporation, a leading industrial supplies distributor in the United States. Thereafter, Jeff co-founded Central Foundries Inc., a global importer and manufacturer of cast iron and copper products.
In the late 90s Jeff moved his family to Munich, Germany, where he gained experience in the consumer market acting as Advertising Designer for companies such as ESCADA and Altmarkt Gallery.
Jeff was then recruited by a leading outsourced customer acquisition company responsible for global clients, including TOSHIBA, Cisco Systems and 3Com. His responsibilities included developing, implementing and driving customer acquisition programs with proven revenue of over 100 million USD.
In 2003 Jeff co-founded 3D2B in Rome, Italy. Today, Jeff is the CEO of 3D2B and resides between Rome and New York City.
Picture this. It’s the late 90s. A friend comes up to a wealthy businessman, John, at a summer barbeque, smiling broadly. He has started a new business. It’s a search engine that helps people to find what they need on the Internet. He’s just registered a crazy name for it, Google, tells John it’s going to make a lot of money and asks if he’ll invest $100,000 in it.
The friend doesn’t tell John how he plans to spend the money, how this Google thing is going to generate a profit or how much money John could potentially make. John apologetically tells his friend that he cannot offer his support, not knowing he’s missing out on a money-making opportunity.
While this story of loss is fictional, it illustrates data-deprived decision-making which is what is happening to many B2B events today. Marketing and sales leaders know events are essential to grow sales successfully, but sometimes they go underfunded because it’s difficult to forecast returns, costs and expected ROI.
By calculating your event ROI, you’re able to play “what if?” with alternative marketing scenarios and examine how adding new tactics into your event-marketing mix can increase your return.
Here’s how you can do ROI projections.
Calculate the Costs
The first step in calculating the predicted ROI is to project the costs. If it’s early in the game and you don’t know the specifics, you can generate a ballpark estimate. Typically, the ideal tradeshow expenditure is three times the cost of the exhibit space. So, if your space costs $10,000, you can approximate the total expense, including travel, booth-creation and setup, staffing, utilities and other incidentals will be around $30,000.
However, you’ll probably feel more comfortable with an itemized budget. In this case you enumerate each of the following costs:
How can you get a handle on the return on your investment? You’ll need to forecast the number of booth visitors, leads, and sales. Multiply the closed deals by the average sales value for total revenues. Then calculate the ROI as follows:
(Total Revenues – Total Event Costs)/Total Event Costs = ROI
Now that you have the costs and revenue of your current event plan, you can play around with alternative marketing scenarios to see if you can generate increased returns. If so, request the funding to support more ambitious goals or reallocate your budget from other areas with a lower payoff.
For example, a highly successful but sadly underused tactic is telemarketing. You can use it to:
Our calculations on event return on investment show that telemarketing can increase returns by a phenomenal 857%. Don’t go bare bones when a little extra investment in event marketing can mean big bucks. Get our eBook: “The Complete Guide to Calculating and Maximizing Event ROI.” Discover how to calculate event ROI and evaluate the profitability of leveraging additional event-marketing tactics.
Are you guessing or do you know how your prospects make buying decisions? If you don’t know, don’t guess. Why? Because when you make assumptions about how your target audience makes decisions, you give up the opportunity to develop a B2B marketing strategy that gives your business a competitive advantage.
You need to create buyer personas that describe your prospects’ buying cycle, the questions they ask and the reasons why they decide to buy. When you have a buyer persona, it’s like going to MapQuest®, typing the “to” and “from” addresses, and getting detailed instructions on how to get from “creating awareness” to “sales.”
According to International Data Corporation (IDC), the market for marketing automation technology will expand from $3.2 billion in 2010 to $4.8 billion in 2015. It’s not surprising given that this technology can automate all the routine aspects of sales lead generation, lead nurturing, lead scoring, customer retention, testing, measuring, and optimizing marketing campaigns.
As amazing as it is, there’s one critical element that’s missing—human beings. That’s right—technology just can’t do everything. Marketing automation is best used for repeat tasks that require no judgment; steps in a process that need to happen like clockwork.
People, of course, have qualities that technology cannot duplicate. They can develop one-on-one relationships with your prospects and customers, ferret out the information you need to qualify leads, and add the judgment required to go beyond lead scoring, which is based only on a sales lead’s actions, and determine whether a lead meets your qualification criteria.
So how do you decide which marketing processes to automate and where you should be using people? Simply follow these two rules.
Even the best tele-services agency cannot generate leads from a bad marketing list. Whether you’re using email, direct mail or telemarketing, the list is the foundation for your marketing initiatives. So, while it may be time consuming, it’s essential to build out the details of your list and keep it up-to-date.
If you’re marketing a complex product or service with a high price tag, you’re likely selling to a web of decision makers within an organization, each analyzing your offering from a distinct perspective and interjecting their opinions at different times in the buying cycle. You need to understand as much as possible about the prospect’s decision-making process and who is involved so you can move forward with your marketing outreach in an intelligent way.
Have you noticed that your competitors are outsourcing marketing functions-everything from channel development to social media? Why is that?
It’s because marketing is changing more rapidly than ever before. This turbulence within the marketing discipline is driving the trend toward specialization. And outsourcing enables companies to work with marketing partners that have a depth of knowledge in the best practices for specific areas of marketing.
On average, only about 30% of webinar registrants attend, but strategic event recruitment can increase attendance rates to 65%, doubling conversion rates and ROI. The tips below will help your webinar approach (or exceed!) that 65% attendance target.
Much attention is paid to the cost per lead in B2B lead generation. However, what’s more important is the cost per sale. After all, that’s the outcome you’re seeking.
Let’s say a company sells technology solutions to operations managers. Its marketing and advertising efforts result in a list of 200 leads that costs it, for the sake of simplicity, $5,000. The company shares these leads with its sales people based on their territories. The sales people follow up and walk away with five closed sales. When you divide five into $5,000, you come up with the cost of $1,000 per sale.
If you follow the “sales is a numbers game” metaphor, you might think the salesperson who makes the most calls or follows up on 100 percent of the leads that cross his or her desk is the victor clutching all the spoils.
Metaphors (and their literary cousins—proverbs and adages) are convenient ways to define situations clearly. But choose the wrong metaphor and you can be headed for trouble. In the case of playing a pure numbers game with marketing leads, you’re probably hovering on the edge of a black hole— and you know that’s a metaphor for disaster.
When it comes to B2B lead generation and determining the top producing marketing activities, ROI matters. A report by the Pedowitz Group says that “ The top-tier of highly effective and efficient marketers calculate ROI or similar financial measures to assess their marketing effectiveness (62% vs. 23% of all other marketers) and are more likely to indicate they are experiencing much greater growth than their competitors (55% vs. 13% of all others).”
It sounds so attractive to pay appointment setting companies fees based on the number of appointments they set up for you. It seems there’s no risk, and would appear to make it simple to compare one teleservices company to another. It comes down to dollars and cents you pay for each appointment.
But is that really true?