When we talk about Sales and Marketing, the details are everything. Small and almost imperceptible changes in the message can mean the world to those whose goal is to show potential customers that they’re in the right place, and that they’ll leave with one less problem.
Marketing is complex. People are complex. But the truth is that this mysterious science can be reduced to two variables: exposure and conversion.
Reaching a lot of people is important for many businesses.
Converting potential customers—people who are aware of the brand—efficiently is vital for all businesses. Without exception. Selling is about getting the potential customer to understand the problem and convincing them that you hold the solution.
It is common for social media advertising, for example, and online advertising in general, to represent mere expenses. It doesn’t even fall into the investment category. The old saying “There’s no such thing as bad publicity” holds true when it comes to exposure. If the goal is for people to know about the brand’s existence, then there is a chance that, even poorly executed, the exposure will serve its purpose.
However, if the real aim is to build something of great value, a few principles must be adhered to. Having some focus on the long term, and having customer satisfaction as the ultimate goal—customers who will recognize the value of the product or service for what it truly is—are non-negotiable principles. In this case, the previous strategy might not be the best idea. This approach sacrifices the future for “attention” in the present.
If there is a secret, it lies in precision, in conversion. It’s the difference between firing aimlessly and firing with intention and purpose. Cheap attention doesn’t sell. Maybe it will, but it’s like picking oranges by waiting under the tree for them to fall. With enough time, some will fall into the basket.
Let’s take the example of a service provider. We have two scenarios:
10,000 people see our ad, post, or video, and 50 buy the service.
2,000 are exposed to it, and 200 are converted.
Let’s do the analytical work:
In the first option, five times more people now know about the service compared to the second. The exposure is five times greater. If the goal is for people to come into contact with the company, then the strategy is approved.
In the second option, something stands out. For every 10 people exposed, 1 bought the service. A 10% conversion rate! The conversion in the first case was 0.05%. Twenty times lower!
Why do cases like these happen? Consider the impact these different approaches have on revenue and business growth. The same service, sometimes the same audience → polarized results.
The good news is that this type of decision is actually simpler than it seems.
People can’t care about the solution if they don’t care about the problem first. And the problem isn’t always something directly negative. It could simply be not selling more, or not knowing something valuable, or owning a tool that is inferior to what’s needed. It could be inefficient time allocation.
The vast majority of service businesses solve precisely this problem: they allow companies to do what they’re experts in by delegating tasks where they lack a competitive edge in knowledge compared to their competitors. Hiring a professional or an agency competent in a particular area is exactly that: closing the gap in information and expertise.
The focus of any sale, therefore, is, above all, ensuring that the person knows what problem is being solved and how. One of the main indicators that the process failed at this stage is very low conversion rates, as seen in the first case we mentioned. Either the exposure was poorly targeted, and those exposed couldn’t even be classified as potential customers, or the content lacks direction because it fails to show what problem is being solved and how. Without this, the truth is that no one cares who solves it.
Once these principles are met, the business is aligned to function and compete at any level.
The power of conversion is immeasurable in the long term. But in the short term, it can be estimated.
Let’s look at the classic example of email lists. A list of customers and potential customers gives us the ability to know, with great accuracy, the state of our conversion capability. An email sequence or a newsletter are direct invitations to purchase. The effectiveness of this invitation can and should allow us to draw different conclusions about the state of the company.
Is the message unclear?
Do people perceive no value at all? → Do they not understand the problem?
Do they perceive more value in the competition? → Do they not understand the solution?
The conversion rate is a symptom. Once diagnosed and treated, results like the following are produced:
20,000 views → 200 conversions (1%)
20,000 views → 400 conversions (2%)
A 1% increase in conversion = 100% increase in revenue (x2).
Raising conversion by 1% is much simpler, faster, and cheaper than doubling the advertising. Or doubling the staff. Or raising twice the funding.
And fortunately, there is no limit to improving marketing effectiveness.
There are email offers with 40% conversion rates!
Improving conversion does not inhibit improving exposure as well. In fact, it can fund it.
Value alone is not enough. It needs to be perceived as such.
Sometimes, all it takes for a business to stand out from the competition is having people who know how to make value clear and widely perceived.
That’s what we do at Jelly.
