Transcript
WEBVTT
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Welcome back to be to be growth. I'm Logan Lyles with feet fish media.
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I'm joined today by Garrett Mayor,
goot, he's president and CEO over
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at Directive. He's a repeat guest
here on the podcast. Garrett, welcome
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back to the show. How's it
going today? Man, thanks for Gually
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Logan. Excited to be or so
looking forward to chatting with you. Absolutely
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man. We're going to be talking
about stages that you guys recommend as you
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look at your financial planning for for
search marketing, but really evaluating all channels
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that you're going to be you're going
to be planning for, executing in and
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then measuring results in. To Tea
up the conversation for folks who aren't familiar
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with you in the team over at
directive, give a little bit of contacts
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where you kind of coming at this
from. Yeah, so you know that
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directive we work mostly with mid market
and enterprise companies. We have a very
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high touch consulting as those execution service
primarily for software companies, but we also
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have a lot of other large organizations
that are in random industries where we're really,
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I think, uniquely structured to service
their needs. We don't have a
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ton of accounts per person and very
high touch model. We're able to solve
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complex problems usually the unique perspective,
and you know we have a deep expertise
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and conversion optimization Seo and DBC absolutely
full disclosure. Directive has been a sponsor
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of this show over the years.
You've probably heard some great customer growth.
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Story is in the results that you
guys have driven. So if you're hearing
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that name directive and you're saying,
and this kind of sounds familiar, that's
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definitely the connection there. So,
Garrett, as you and I were talking
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a little bit offline, you were
mentioning any planning for marketing efforts really have
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has to start with a a broad
look at capital allocation and some people often
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take a narrower view of that.
Then then they really need to and they
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need to broaden that out. Can
you kind of unpack that force a little
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bit as we get into the stages
that you recommend folks do in both the
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planning and then the execution across different
channels? Yeah, I think it's important
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that we'd like to all be data
backed as markers and we really like to
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feel that way about ourselves and about
our strategies and about our campaigns. But
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the reality is most of us have
imperfect data and we haven't pushed hard enough
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to correlate marketing, sales and finance
together, and so we end up making
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decisions that are too much from our
gut and not left from our data.
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And so you know, one of
the things I've been really focused on going
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to q three in q four is
doing an essentially financial analysis on every single
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solitary channel. What's my clothes rate
by channel? What's my cost for empto?
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My cost for S Q's my cost
for deal? What's my LTV from
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a channel? It's my gross margin
from a channel. And taking financial analysis,
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Sales Data and marketing data and putting
into one l TV cap model and
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that has been incredibly powerful to say
where should we spend our money? But
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even more so, money expands into
budget. So ad spend software, resources
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and employees and I think the most
important thing, which is time. And
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so once you really understand those things, that's when I think that focus can
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drive creative strategy and they can drive
growth. And so yeah, I just
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don't think, frankly, most of
us do it. I know I had
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it. I was thought the very
data backed. But there's a whole other
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level of my opinion, when you
get to LTV KAC analysis by channel to
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really drive growth in your organization.
Yeah, absolutely. So step back a
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second there, because you were saying
some really good things about what you were
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looking at. Tell us a little
bit about like what did your analysis look
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like before? Where did it kind
of stop and what were those elements that
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you added on as you look?
Was it just breaking it down by channel
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as opposed to kind of looking looking
at all channels lump together? was that
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the biggest switch, or was it
breaking it up by channel and then also
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getting more granular at the four five
things that you were looking at in each
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channel? Yeah, so I think
like the way the natural progression for most
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markers goes is at first we have
like Google analytics data and we can kind
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of see you at our cost per
acquisition is maybe in Google ads for a
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campaign and add group. We can
see how many conversions we're getting through channels,
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referrals doing well, directs doing while
we're getting right this kind of stuff
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one and step two is, okay, let's get a hubs bother or part
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of our Marquetto and then we can
really see where our channels are coming from
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and what happens with people. And
then this is where things start to really
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break for ninety nine point nine percent
of the marketers. Then they all know
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that they want to do a bidirectional
sink with sales force. So they wanted
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to see which channels are closing the
best, and it goes the sales force
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and at that point I found with
consulting with hundreds and hundreds of the large
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organizations cross the board, we start
having problems right there. So the next
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analysis is like what's our cost per
deal, in other words, what is
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driving revenue? And then, like
within googlides school, googlides driving revenable.
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Key Word is driving revenue. Can
I get the keyword data into sales force
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so that it becomes like this great
gap? And then the final step up
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all of this is can I get
the financials? So can I get the
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gross margin from the product I sold? Take that pulster retention in the average
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order value, create a lifetime value, then look at the total customer requisition
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cost and then see what channels,
frankly, not only closing deals the best,
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but retaining deals the best, is
most profitable and then allocate my capital.
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So let's kind of like the natural
progression. If we can do that
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whole progression, you are now the
one percent, in my opinion, of
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marketers in the world who can do
the right types of allocation of people,
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budget, time, etc. Yeah, absolutely, because then you're getting the
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entire picture, not just okay,
this is doing well, and for folks
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just listening this, I'm putting air
quotes around. Well, so you mentioned
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ninety nine point nine percent of marketers
that you guys talk to they hit that
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gap of not being able to get
that full picture between the channels that they're
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driving and responsible for marketing, the
revenue and then the status of the deals,
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what's closing and then the financial record. So, as you mentioned earlier,
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it's about that overlap between marketing,
sales and finance. What's the biggest
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driver of that gap? Why is
there that chasm? Their water marketers facing
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where they where? They hit the
end, the edge of that gap,
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and there's no bridge there for them
to walk across? I mean there's a
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billion reasons and they're not all marketings
fault at all. You know, a
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lot of times are now in a
marketing or finance it's above marketing on reporting
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to the executive of the board.
CFO last longer traditionally in organization, and
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a Cmo Dost, you know,
cmi nds up being the scapegoat. And
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a lot of times the CMO doesn't
get all the information or chooses not to
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ask, both our, you know, viable reasons, and but even more
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so, the SEO person doesn't choose
to ask. They don't see it as
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their job. So everybody essentially gets
pushed down to focus on their focus.
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And so the culture from the top
is that, I know, you just
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focus organic, you focus on traffic. Will tell you if it's working or
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not. Keep your head down,
keep doing what you're doing. And then
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there's the PBC team and they're toll. Will just get a lower cost proposition
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or get us more leads for the
same amount of money, AKA lower cost
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preposition. But in ninety nine percent
organizations lower cost proposition doesn't equal more valuable
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campaign. In other words, some
of your most expensive key words resulting your
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most valuable leads which have much likelierhood
of closing and close at a much higher
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price point. And so there isn't
it's not like in B tob if you
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lower your CPA, you drive more
or a lie is it's not one,
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the one like that, and so
everybody gets focused down to focus on what
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their explicit areas and then they operate
with imperfect information, creating misalignment from the
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bottom, the people pushing the buttons, with the person who's owning the strategy
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is the top, and that misalignment
causes this whole kind of thing. And
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I love what you said there.
I think you just unpacked a very common
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misconception. Even if the folks listening
to this or like yeah, that makes
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sense, I've kind of thought that
before, but I'm not operating with that
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in mind, where I know that
our team isn't operating with that in mind.
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So if there is a marketing leader
listening to this, Garrett, and
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they're like yes, I realize what
you're saying here and I want to get
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to this, I want to have
more visibility by channel and I also want
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to have more visibility further through through
the life cycle of that deal, all
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the way to profitability beyond closed one
those sorts of things. What are some
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of the first steps that you're recommending
to the clients that you're consulting with?
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Is it realizing asking that first question. Hey, I'm not asking the question.
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Or Finance isn't giving it to me, or sales as and allowing me
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to integrate with sales force. What
are kind of the first steps to break
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this down into manageable next steps for
them? Yeah, so I think the
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most important thing of all this is
that our technology platforms that we need to
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get the data out of can be
managed by the people who need the data.
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So let me explain. Pindn't that
ends? You know, I used
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to do really involved like sequel databases
with bidirectional stinks and all that data.
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We live in a platform called license. The problem scense those you need it
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a developer to write the sequel and
all the integrations need to be maintained and
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a SEO consultant, our PPC consultant, couldn't maintain the database and so when
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things break, when they need it
themselves, they can't get the data out
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of it. So we move the
data studio. Once you get into data
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studio, Everything's native, prebuilt and
consultants can do all the analysis themselves and
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don't need to rely on someone else. Really important. Well, that concept
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translates to everything. In other words, if you're using Marquetto as your marketing
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ops platform, but your se if
no person can't figure it out out could
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so darn complicated, by the way, which it is. I used to
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be a market of customer and then
you put the PPC person in there and
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they can't use it, and now
you have underfunded marketing ops department because,
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frankly, a complementary, supplemental role. It's the gap between marketing and cells
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development, and so it's underfunded.
But then no one who's in marketing or
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cells development can use it. So
there's a usable connector of two different organizations
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that has all the data. That
breaks your actual infrastructure. So you need
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to move to something like a hub
spot where the SEO person, of the
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PPC person can get the data,
manipulate the data understand it with the same
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technical competency as the marketing ops person. The point here's you have to democratize
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information so that the analysis can be
occurring at every stage, not at the
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top and not, and then forgot
about that, the bottom, since the
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bottom, like marketing, needs to
essentially put from the bottom up. And
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so definitely the crux of this is, like the data does exist in all
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these organizations. The ability to get
it out yourself. Doesn't? We have
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a data team who does that?
We have one marketing ops pursuit as that,
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but that marketing ops person is now
serving ten different masters, all who
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have ten different things and none of
those masters can get the data themselves.
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It's just creates this giant reality of
frustration where organizations of value the complex functionality
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of a marketing OPS system like Marquetto
instead of the USABILITY and it ends up
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being something that they have to overfund
and then they undervalue. So it sounds
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like there's a technology problem. There's
also a culture in an organizational problem.
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Like you said, the marketing ops
person serving ten masters. Have you seen
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some customers not only, you know, make a change in either the technology
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they're using how they're using it,
but also the reporting structure, the way
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these different functions work together? Where
have they started to break down some of
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the barriers that have that have been
the challenge there? If they realize we
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do have that kind of structural organizational
problem that you're describing, Garrett, what
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are they able to do next there
or first through now? So I need
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to Ltvk analysis because see they are
evaluating the marketing ops channels of value driver.
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They're only evaluating it primarily as a
cost. So they can't fund it.
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More so they can't like some other
words, they're underfunded and then under
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delivered. And because it's under deliver
because it's underfunded, you can't get more
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funding. Yeah, it's a vicious
cycle. Correct. And so what we
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need to be able to do is
try to change everything we do in marketing
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from a cost to a value driver. And then that creates a Ligne.
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That was finance. That creates alignment
with sales, that creates buying with the
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board and the executive team, that
expands the light cycle and value of the
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marketing function in the organization and that
creates now the positive cascading effect. Or
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we're getting more budget the board and
finance fields, more cat confident in our
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allocation of budget and resources. It's
more aligned with the bigger vision and now
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we're making momentum and that's what's so
important. Yeah, absolutely. So walk
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us through, Garrett, as marketers
are saying, yes, we need to
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get to this analysis. What are
the the four or five data points that
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you're looking for per channel to get
to this overall LTV TO CAC high level.
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Every marketer listening to this understands LTV
to cact but hasn't broken it down
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across channels and then by channel this
way. So what are those data points?
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Even if they just start with one
or two channels and start to gain
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some momentum and in leadership starts to
say man, this visibility, this is
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really good. Can we get more
of this? Where should they start?
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Because it's kind of like they need
a little win in order. They need
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to win that that battle in order
to fight the war. Right. Yeah,
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not totally. So what I'm looking
at is by channel. So I
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have my channels and columns and in
my rows I'll walk through the rows.
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Right. So the top crows total
cost and then there's three complementary roles.
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There's team cost, software cost and
aspen tasks. You want to get a
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really nice understanding of each channel and
then normalize it. You don't need to
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take in weighted cost necessarily, your
shared costs like account executives or cells development.
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Just just look at it all uniquely, one to one. Right.
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And then for this for the channel
analysis, because, holding all things constant,
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your shared cost should be equally shared
across all your channel so we can
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ignorem model then we want to look
at how many mqls are generating, in
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other words like leads that we can
send the cells, development sqls, intro
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calls. People have expressed in ten
opportunity these people. We've actually given a
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proposal to people, we've given a
demo to deals. How much? How
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many deals do we close? And
then how many rev how much revenue resulted
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from those deals? So I want
to look at that. And then when
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I need to know is like,
what's my average contract value? What's my
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clothes rate? What's My sql operator? What's my Mual Sqo? Right,
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right, because now, once I
know all of my rates of transition in
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the funnel, I can create a
forecast and say cool, as Lo,
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long as I get x amount of
MQLS, I get hit the revenue target
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that we've set out as a growth
team with sales. And then I want
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to know my LTV data. What's
my monthly average or value? What's my
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gross margin? What's the lifespan of
a customer? And that now creates my
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LTV number. So now I just
take my toll customer position cost the LTV
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based on the deals required, and
now I have a ratio. As long
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as I'm getting a ratio, I
say, of greater than two, it's
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worth experimenting and and once it gets
to a ratio of greater than three,
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it's worth scale. And so now
you have a framework that says, cool,
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we're going to do experiments, we're
going to try new channels. If
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we get to LTV V of cap
of greater than two, we can start
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trying to optimize it. Once we
get it too three, we can start
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scaling it. Keep Focus. Allowed
your Bole team have a framework. Or
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what is a new idea require to
get approved? So, as long as
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we can now do a lot more
testing, we can now build a framework
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that allows for future growth. We
know how to spend our money, we
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know how to valuate what we'll get
approve what won't. Everything's aligned with a
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comp on target and we of a
function now foundation as a team to make
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sure that were a line of finance
for a line of sales and that we're
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driving value as a marketing work.
Yeah, absolutely, a framework and predictable
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forecasting. Those are two things that
bring a lot of a lot of clarity,
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a lot of feeling of stability and
if there's anything we're all grasping for,
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this year. It's stability, whether
you're in marketing, you're an executive,
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whatever the case is. Well,
Garrett, this has been a great
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conversation. If listeners tuning in today
take one thing out of this conversation,
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what do you want that to be? Yeah, I think I want them
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to know they can do it.
I think so many of us have asked
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for a lot of this information,
not gotten it or felt like a guarject.
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I want you to hopefully realize you
can get it. We need to
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push for we shouldn't give up on
it, and it's critical to proving your
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value and then, you know,
increasing your salary, increasing your career,
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moving vertically. It's better. I
mean this, this is truly important and
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it changes the way everyone the organization
looks at a marketing when you can communicate
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like this. So I did encourage
everyone to keep asking for that data and
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just get after and try to get
it. Yep, absolutely, put your
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sales head on and go sell internally
and tell them you know why you need
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it. I love that. Well, Garrett, if anybody listening to this
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has become a fast fan of yours, like we are over here at sweet
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fish, what's the best way for
them to get in touch, reach out
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to you or stay connected with you
in the directive team. Yeah, if
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anyone's listening and they want you know, the end of the day, this
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right here's not what we as a
whole organization intrinsically offer. We offer SEO
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and PPC. But I want everyone
listening and know the framework from which we'd
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base our recommendations. I think that's
so important. Is that what we make
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a recommendation? Stop because there's this
new hot tactic or we tried this new
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idea, but it's because we have
a framework or what how your business actually
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makes its money and what it's going
to be most successful with. So if
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you're really interested in, frankly,
a different type of Seo and PPC that's
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about true business value that really does
aligned with executives and drives true material change
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your organization, we'll love to chat
with you. See, I feel I'm
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always on twitter at Marygo on Linkedin. But also, you know, sales,
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that directive, consultingcom and we also
have a training course toting ninety nine
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dollars a month if you just want
to learn how to do this. You're
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like, look, I don't have
necessarily the biggest budget. I don't.
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I love what you're saying, though. Go Learning Yourself. It's about the
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00:18:21.990 --> 00:18:26.180
directive, Institute, Directive, consultingcom
Forward Slash Institute. There's a free trial,
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00:18:26.339 --> 00:18:29.579
so check it out. And so
ninety nine dollars a month. And
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00:18:29.700 --> 00:18:33.059
we talked about how to do almost
all these things with the spreadsheets and templates
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to fall. Pretty cool. I
love it. Thank you for sharing that,
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Garret, and thank you again for
being a guest on the show yet
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again and bringing the fire. I'm
taking notes fast and furious and I'm sure
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that the folks are going to get
a ton of value in the framework that
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you shared today. Really appreciate you
joining me on the show. All right,
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thanks so good. I up.
Hey, everybody, Logan with sweetfish
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00:18:59.079 --> 00:19:02.640
here. If you're a regular listener
of BB growth, you know that I'm
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one of the cohosts of the show, but you may not know that I
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also head up the sales team here
at sweetfish. So, for those of
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you in sales or sales ops,
I wanted to take a second to share
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00:19:11.630 --> 00:19:17.390
something that's made us insanely more efficient
lately. Our team has been using lead
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00:19:17.430 --> 00:19:19.910
Iq for the past few months and
what used to take us four hours.
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00:19:19.990 --> 00:19:26.220
Gathering contact data now takes us only
one or seventy five percent more efficient.
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00:19:26.460 --> 00:19:30.700
We're able to move faster without bound
prospecting and organizing our campaigns is so much
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00:19:30.779 --> 00:19:34.980
easier than before. I'd highly suggest
you guys check out lead Iq as well.
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00:19:36.339 --> 00:19:41.730
You can check them out at lead
iqcom. That's Elle a d iqcom
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00:19:45.490 --> 00:19:48.210
is the decisionmaker for your product or
service. A BB marketer, are you
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00:19:48.329 --> 00:19:53.720
looking to reach those buyers through the
medium of podcasting? Considered becoming a cohost
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00:19:55.039 --> 00:19:59.559
of BB growth? This show is
consistently ranked as a top one hundred podcast
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00:19:59.599 --> 00:20:03.200
in the marketing category of Apple Podcasts, and the show gets more than a
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00:20:03.279 --> 00:20:07.430
hundred and thirtyzero downloads each month.
We've already done the work of building the
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00:20:07.509 --> 00:20:12.309
audience, so you can focus on
delivering incredible content to our listeners. If
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00:20:12.349 --> 00:20:15.670
you're interested, email logan at sweetfish
Mediacom.