How classic marketing models can fix the situation and increase profits by 165%
In this mini-case you will not find innovative approaches to solving marketing problems or some super-insights. Rather, it is aimed at promoting marketing, recalling that the simplest and most banal marketing models can radically change the situation.
Given
There is a manufacturing company that sells itself. Production of decorative plaster according to Italian technology and from good European ingredients. The product is a gun! But lately (a year) there has been a stagnation of development and a decline in profits. I began to understand, collect statistics (by the way, the first thing that was already embarrassing was that the process of collecting and analyzing statistics was not established), the picture turned out like this:
The graph shows that during the year the number of transactions and profits are declining. Although the quality of the product remains consistently cool, and the pricing policy is very loyal.
I collect data about the company further, and classical problems are found out:
No statistics collection
no CRM
There is no described target audience (not to mention JTBD and ICP)
The funnel is not visualized, the key element is not identified
No understanding of conversion at various stages of the sale
From promoting only SMM on Instagram (owned by Meta, which is considered an extremist organization on the territory of the Russian Federation) and advertising directly from the profile (the company is located in Kyrgyzstan, so advertising tools are available)
Work with content and advertising is unregulated and not systematized
What did they do
The first thing that was done was that the work on collecting and systematizing statistics was put on track. The SMM manager collects statistics from the account (reach, subscriptions, leads, outflow), the sales manager counts leads and deals. Next, we implement CRM to account for the client base and convenient lead processing.
At the same time, we study and describe the target audience. This allows us to highlight several hypotheses for advertising creatives and content marketing. And to increase the impact of communication, we simply implement the AIDA model in writing posts.
We hold several strategic sessions, where we determine the client’s path and highlight the key element of the sales funnel, fix it in the communication script (we try to take an advance payment from the client at this stage).
We analyze competitors by “desk” research (we get data that can be found without leaving your office, that is, what is in the public domain). We understand that a number of products can be significantly (~10%) increased in price. This is what we do.
Increased the presence of the brand in advertising and communication, began to mix advertising content with entertainment and information. When testing hypotheses, we found mega-successful assemblies that still work effectively.
At the same time, they regulated the work with the content plan and advertising, which made it possible to prevent “failures” in publications and advertising activities.
Result
April 2023 – 105800 (April 2022 – 64267)
May 2023 – 667193 (May 2022 – 531054)
June 2023 – 910855 (June 2022 – 139358)
July 2023 – 1358693 (July 2022 – 416900)
* The advertising budget did not increase. Of the costs, only the services of a marketer were added.
Conclusion
Basic systematization, digitization, regulation and collection of statistics make the result. And the introduction of basic research and marketing models, this result is consolidated.
Even if you are a small company – study marketing! And you will be happy and profitable 😉
