If a company is investing in online marketing on the new markets, it has to know how to get the best from each of them. That’s where brokerage marketing comes in!
*Warning: Brokerage approach is only for those who like to read numbers. If you really love numbers please continue. :)
So, you are in charge of Marketing department in your company and your boss just gave you a big bag of money to invest in three new markets. What do you do?
Before you do anything – don’t panic!
The first year is actually the easiest one.
During the first year, you have to test how each market is responding to your campaign, website, products or services. Only then will you be able to figure out what works best.
After that first year, you need to collect all important data that will help you continue your future investments in marketing campaigns. To structure the data, you can use a simple Excel spreadsheet. Put all important data and Key performance indicators (KPI) in one column. The KPIs are:
- Number of website visitors
- Number of inquiries (or leads)
- Number of transactions
- Invested marketing budget
- Total income
Most important KPIs:
- CPV = cost per visit = invested marketing budget/visitors on the web site
- Web efficiency = number of website visitors/number of inquiries (or leads)
- Call center efficiency = number of transactions/number of inquiries (or leads)
- Percentage of marketing budget in income = invested in marketing budget/ total income
Multiple market response
Let’s take a case of an online travel agency who has a budget of 30.000 Euro to invest in three different markets: German, French and Czech. To be fair, the equal amounts were invested on each market.
At first, you can notice that the same invested marketing budget brought different number of visitors to the web site. This is the first indicator that one of the markets is already very saturated with competitors.
In this case, the German market appears to be very saturated. For example, just think of all the Google Adwords campaigns in that country, where everyone has to bid to get a better position. When you have lot of competitors, you have to bid higher and, for the same amount of money, you will get less clicks on your ads.
Then, we notice that each market is responding differently on the website. In this case, French are the ones who easily find what they need and make most enquirers. But, if you take a look at the KPI website efficiency, you will notice that the website is performing best on the German market.
One of the most common mistakes on multi language websites is that the main page shows the same offer, the only difference being that it’s translated in another language. In order to get the best conversion rates, it’s wise to highlight different products on different markets.
For example, on the German market, it might be right to highlight a pet friendly accommodation. On the same main page for Czech market, you’ll get the best conversion rate by offering accommodation near Makarska in Croatia.
That means that the same website is performing differently on different markets. It might work great in one market, but it should be adapted to specific needs of other markets. Think about your product portfolio and put a different set of products on each language. With that, you’ll get better response to to expectations of every market.
Call center efficiency
Efficiency of the call center is not the same for each market. In this case, there is a star seller in a call center for the Czech market, but sellers for the French market are not as adept.
Different call center efficiency might occur due to different sales skills of your travel agents, but also due to different purchasing habits on the markets.
For example, it might be easy to find accommodation for 2, or 2 adults + 2 kids. This is very typical number of travelers for the most Western countries. However, in the Eastern countries with strong traditional values, most families are going on vacations with their elderly, grandmas and grandpas. It might take a longer time for these families to find accommodation suitable for 4 adults + 2 kids, preferably in 3 same size bedroom.
ROI on multiple markets
For you, as marketing manager, the most important data is the percentage of marketing budget in the total income. With that information, you can see that the best return on investment was achieved on Czech market. Also, you will know which market is not performing as good in this period.
It might not be a permanent situation, therefore slow down your marketing activities on the low performing markets. But, be ready to rise your investment as soon as the circumstances on that particular market turns in your favor.
So what will you do with your marketing budget in the upcoming year?
That is the right question if you want to make good results!
You will invest the most of the budget on the market in which you’re getting the best return of investment. In this case, you would invest in the Czech market. Don’t put all on one market, because every market is specific. First of all, there is a limited number of people who are going on vacation in your country. Besides that, if you keep a certain investment on a low performing market, you will have valuable statistical data on market performance that will allow you to seize the right moment for raising the investment on that market.
What would you do if you were the owner of this travel agency?
If you take a look at the KPIs that are below average, you will find space for improvement.
Logically, the next step is to find a way to improve the website, in our case on Czech language, as well as the call center on French language.
If you enjoyed reading this article you are probably a natural talent for a broker marketer!
On the other hand, if all of these formulas and interpretations made you dizzy, feel free to contact us at firstname.lastname@example.org, and we will do our best to be your broker marketer.
Looking forward for a nice performance oriented collaboration. :)