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If you’re thinking about the dollar efficiency of your marketing investment, I recommend starting with a simple KPI such as dollar-per-TAM-visit. #B2BMarketing
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Scooped by Hayden Richards |
Scoop.it!
Hayden Richards's insight:
This article written by Chris Golec discusses the inefficiency of B2B (business-to-business) marketing and explores the reasons behind it. The author explains that B2B marketing is inherently inefficient due to the large number of potential target companies compared to the relatively small pool of businesses in the company's total addressable market (TAM). The article suggests that most B2B marketing tools are designed for consumer marketing, leading to financial inefficiencies.
Chris highlights the role of AI-driven technology in addressing marketing inefficiencies but notes that it is not a straightforward solution. Many digital marketing tools used by B2B companies, such as paid search programs, may generate immediate results in terms of clicks and conversions. However, a significant portion of these results come from companies that have no chance of making a purchase because they are not within the target market. This leads to a wasted budget and high costs per conversion. To address B2B marketing inefficiencies, the author recommends focusing on a key performance indicator (KPI) such as the dollar-per-TAM-visit. This approach allows for better evaluation of vendors and channels, enabling more informed investment decisions.
By normalizing results using the dollar amount as a common denominator, companies can identify the most efficient ways to attract and engage their target customers. The ultimate goal is to translate efficiency into business impact, particularly in terms of pipeline and overall business growth.
My take on this article is that it provides valuable insights into the inefficiencies of B2B marketing and offers practical recommendations for improvement. The article correctly identifies the challenges of reaching a specific target audience within the vast B2B landscape and highlights the limitations of existing marketing tools.
By emphasizing the need to measure volume, quality, and dollar efficiency together, the article encourages marketers to make more strategic and cost-effective decisions. Overall, the article provides a thoughtful analysis of B2B marketing inefficiency and presents a viable path toward greater efficiency and business impact. Regenerate response
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