What is the Problem with My Current Marketing Strategy?

The core issue with your current marketing strategy is that you are investing a significant amount of money to acquire leads, potentially because your cost per click is high and your conversion rate is low. Additionally, you lack clear benchmarks for what constitutes good, great, or excellent results, making it difficult to accurately assess how well your marketing efforts are performing.

Full Explanation

Paying a lot for leads often indicates that the cost to get a potential customer to show interest is higher than ideal. This usually results from a high cost per click, which means you’re spending too much each time someone clicks your ad or marketing material. At the same time, if your conversion rate—how many of those clicks turn into actual customers—is low, then the money spent is not generating as much value as it should.

Moreover, without clear standards or targets for evaluating your results, you don’t have a way to know if your strategy is working well. Not knowing what defines good, great, or excellent performance complicates decisions, making it hard to tell if adjustments are needed or if your efforts are on track.

Step-by-Step Breakdown

Identify where money is being spent: Focus on your spending per lead and understand the cost per click in your campaigns.
Evaluate conversion rates: Analyze how many clicks lead to actual leads or sales to determine efficiency.
Set clear performance benchmarks: Define what results you consider good, great, and excellent to properly evaluate your marketing performance.

Real Examples

Since the focus is on understanding broad problems rather than specific cases, the main takeaway is recognizing high spending tied to high costs per click and poor conversions. For example, if your ads are costly but few clicks result in sales, your marketing budget is not being used effectively. Without established criteria for success, it’s difficult to know whether these numbers are acceptable or signal a problem.

Common Mistakes

Spending without monitoring cost-effectiveness, leading to inflated budgets with minimal returns.
Failing to track conversion rates, which hides the true value of clicks obtained.
Not setting clear goals or benchmarks for evaluating marketing success, resulting in unclear performance insights.

FAQs

Why is a high cost per click problematic?: Because it means you’re paying more for each potential customer, which can reduce the overall return on investment if not balanced by high conversions.
How can I tell if my conversion rate is low?: If only a small fraction of your visitors or clickers become leads or customers, your conversion rate is considered low relative to your goals.
Why are benchmarks important in marketing?: Benchmarks help you understand what levels of performance are acceptable or outstanding, guiding better decision-making.

Key Takeaways

High spending on leads may indicate inefficiencies in cost per click and conversion rate.
Understanding conversion rates alongside costs is essential to evaluate marketing effectiveness.
Without knowing what good, great, and excellent results look like, it is challenging to assess your marketing strategy’s success.
Defining clear benchmarks empowers you to make informed improvements to your marketing efforts.