Marketing Ratio

Today i have known something new about marketing. Marketing isnt something about skills or technique but is all about mathematics. Well indirectly it is still touching a little about skills and technique but to rate the effectiveness of the marketing, its all back to the basic mathematics.

Its all about RATIO. Let me explain it.

When a sales or marketing person is doing their job, they are to follow a certain guidelines or pre-prepared scripts from the company to make their calls and to negotiate with their customers. These scripts could be refined versions or even could be some old skool scripts which was created at 'who knows when'.

When they use this specific scripts, they are only getting that specific amount of feedback or reply from their customer. Lets say the ratio is 10 calls, 5 appointments, 3 presentations, 1 business closure.

This means the ratio of this marketing or sales script is 10:5:3:1. Therefore plainly said, in order to get 2 business closure, the employee will need to make 20 calls to get 10 appointments which will result in 6 presentations and 2 business closure.

A company will always need to review and upgrade their so called "scripts" to increase the effectiveness which can be easily evaluated via the numbers on the ratio. Some really refined scripts will not obtain a 100% effectiveness but through all the fine tuning, it would really get there.

A lot of companies out there actually do not work via a script and thus unable to evaluate their own company's performance thus causing no adjustment or tuning to be done. All companies out there have a sales and marketing department and i always strongly agree that they perform their duty via script basis. They could even come up with multiple strategic "scripts" which they could use over the time to judge how effective they are.

This is highly important espacially during economic downturn times like this.
When the times are good, all company will prevail and make big bucks BUT during hard times like this, only the most disciplined company will outlast the economic meltdown. Think about it and let us know what you think.