For my 250th blog, I thought I would write about one of the more accessible 1:1 Marketing strategies, that being Lifetime Value modeling. Under the right conditions for a large organization, Lifetime Value Models can be extremely valuable. And, if you understand the principles, you can simplify this method of evaluating your clients/patients so you can grow and refine your business all at the same time.
The basic principle here is the recognition that each customer is more than a transactional value. So many times we get caught up in cash flow that we don’t take time to look at the big picture, where we can begin to see a customer for the total value they are worth to your business in a lifetime. This includes the transactions they make with you and the referrals they bring to you. If you set up your data management properly and take the time to sort and examine your data, then you can determine who has been of the most value. From there, you can look for similar characteristics and use that profile to seek out customers who are of higher value.
That is a basic application of Lifetime Value. A more sophisticated way of using this strategy that can affect the entire trajectory of your business is to use this method to eliminate the low value customers from taking up your time and resources. In a great book on 1:1 Marketing, Enterprise: One-to-One, they make reference to the Below Zero customer (BZs) who actually cost you money. The following method of marketing helps you identify and eliminate the BZs as well as stabilizes your business for long-term success.
Say you have 100 customers. You divide them into 5 groups of 20, ranking them 1-100 in terms of how much they have spent with you for as long as you have been in business. Then, if you can quantify who referred who, add the value of that referral to the the referring party’s value. This will give you five groups (quintiles) that list all 100 customers in order of the value they have yielded with a gross value, grouped into 5 groups of 20. Now graph the quintiles according to the percentage of the total value of all the customers combined..
The first quintile will have the greatest percentage of the total value and will therefore be the highest on the graph. The second will likely be the next highest but will likely be a significant step lower than the first. Same with the third. The fourth and the fifth will likely be much lower. Now, here is where the business stabilizing effect comes in: Our goal is to equalize the percentage of value in each quintile.
Think about what this means. If you have more customers with higher value, the total value will be distributed more evenly across your quintiles. Seeing your customer value like this has the tendency to make you realize how much you rely on a core few for your business’ survival. It is great motivator to broaden your base of higher value relationships.
Think of the strategies needed to do this. If you identified people in Quintile 2 and 3 that are good customers but could be better if you were able to sell them more value, focusing on improving their value would redistribute the percentages across the model. In doing this, you are not devaluing your leading value customers, you are just focusing on an area of improvement that stregthens your entire model. By simultaneously doing this and identifying your BZs and eliminating them from your customer base, you can achieve a more evenly distributed value model.
This is not a strategy that can occur over night. It is a long-term process but working the process keeps you focused in many ways on things that can make your business healthy. If you have any questions about Lifetime Value Modeling or 1:1 Marketing, please email me at donald@dogstarmedia.com.
Tuesday, September 20, 2011
Tuesday, September 13, 2011
So now... video
Just reporting in on a trend we are seeing rising up. It seems every September there is a consistent item that is requested from us and this year... it’s video. We have had more video requests come in over the past few weeks than we have in the last six months.
For cosmetic surgery and dentistry sites, video can be the best way to create an image of difference. I was explaining to a prospective client just yesterday that elective medicine comes down to trust. Does the patient trust the doctor to perform the procedure? A lot of factors go into trust, ranging from first impression to the subjective evaluation of your mannerisms. Traditionally, the patient does not meet the doctor until the end of the process, in the consult room. Thanks to video and the web, cosmetic doctors and dentist can get a jump on this process by speaking to prospective patients directly with video on their web site. Most doctors who have this “web drop” style of video (a Dog Star Media specialty), report that patients say they feel like they know them already when they meet in a consult. This is because they have seen video that was prepared just for a first greeting and web site welcome. All in all, the web drop gives you advantages over competitors who just have flat pictures.
Here are some great examples of web drop video:
http://www.goodsleepseattle.com
http://www.instituto-orbitofacial.com
http://drjackpeterson.com
http://www.dreamsmile.com
If you are interested in learning about how to add web drop video to your web site to begin building trust as early as possible with prospective patients, please email me today at donald@dogstarmedia.com.
For cosmetic surgery and dentistry sites, video can be the best way to create an image of difference. I was explaining to a prospective client just yesterday that elective medicine comes down to trust. Does the patient trust the doctor to perform the procedure? A lot of factors go into trust, ranging from first impression to the subjective evaluation of your mannerisms. Traditionally, the patient does not meet the doctor until the end of the process, in the consult room. Thanks to video and the web, cosmetic doctors and dentist can get a jump on this process by speaking to prospective patients directly with video on their web site. Most doctors who have this “web drop” style of video (a Dog Star Media specialty), report that patients say they feel like they know them already when they meet in a consult. This is because they have seen video that was prepared just for a first greeting and web site welcome. All in all, the web drop gives you advantages over competitors who just have flat pictures.
Here are some great examples of web drop video:
http://www.goodsleepseattle.com
http://www.instituto-orbitofacial.com
http://drjackpeterson.com
http://www.dreamsmile.com
If you are interested in learning about how to add web drop video to your web site to begin building trust as early as possible with prospective patients, please email me today at donald@dogstarmedia.com.
Tuesday, August 30, 2011
Finding a balance among marketing tools
As most of you know, Dog Star Media loves measurable strategies. You can take for example our insistence on using tracking telephone numbers to measure where calls specifically originate. And, although nothing is better than the certainty of knowing facts like that, the truth is that it is a cocktail of efforts that create a critical mass of exposure and call to action that ultimately results in contacts being generated. And, with that, it is important to understand the value of each part of the cocktail.
A common situation that has arisen over the summer is good evidence of this. A large handful of clients (both cosmetic surgeons and cosmetic dentists) decided to run ads on Facebook this summer. The cost was low at $10/day and the click rates were very high. Some clients experienced more than 300 web site visits in a month from those ads. After seeing this, we redirected the Facebook ads to proxy web sites with tracking telephone numbers to isolate the calls that were originating from the Facebook ads. (A proxy site is a replica of a web site hosted at a unique URL so you can track responses specifically). And, the same result showed up across the board.... almost no calls came from those clicks.
However, all but one client has opted to keep their Facebook ads running. The reason is that the low cost of the traffic had other benefits. In some cases, the added traffic greatly improved the organic rankings and improved our ability to optimize their site. In other cases, the added traffic correlated with sustained increases in emails and calls that did not come from the proxy site, but rather from their regular web site. In other cases, they just liked the additional low-cost exposure.
This reinforces the idea of the marketing cocktail: a blend of strategies that create a critical mass. Every case is different but one thing is consistent. By knowing your benchmarks for web stats, for incoming calls, for conversions, etc. you can better see where you productivity is improved by making changes to the elements in your marketing cocktail. This opens you up to the possibilities of buying exposure simply for awareness like these clients did. And, when you experiment responsibly, every now and then you find a real gem that pays off directly (which we know from the metrics we put on it.) If you are interested in tracking numbers, Facebook ads, or coaching to help you develop a better understanding of the marketing cocktail that is right for you, please email me at donald@dogstarmedia.com.
A common situation that has arisen over the summer is good evidence of this. A large handful of clients (both cosmetic surgeons and cosmetic dentists) decided to run ads on Facebook this summer. The cost was low at $10/day and the click rates were very high. Some clients experienced more than 300 web site visits in a month from those ads. After seeing this, we redirected the Facebook ads to proxy web sites with tracking telephone numbers to isolate the calls that were originating from the Facebook ads. (A proxy site is a replica of a web site hosted at a unique URL so you can track responses specifically). And, the same result showed up across the board.... almost no calls came from those clicks.
However, all but one client has opted to keep their Facebook ads running. The reason is that the low cost of the traffic had other benefits. In some cases, the added traffic greatly improved the organic rankings and improved our ability to optimize their site. In other cases, the added traffic correlated with sustained increases in emails and calls that did not come from the proxy site, but rather from their regular web site. In other cases, they just liked the additional low-cost exposure.
This reinforces the idea of the marketing cocktail: a blend of strategies that create a critical mass. Every case is different but one thing is consistent. By knowing your benchmarks for web stats, for incoming calls, for conversions, etc. you can better see where you productivity is improved by making changes to the elements in your marketing cocktail. This opens you up to the possibilities of buying exposure simply for awareness like these clients did. And, when you experiment responsibly, every now and then you find a real gem that pays off directly (which we know from the metrics we put on it.) If you are interested in tracking numbers, Facebook ads, or coaching to help you develop a better understanding of the marketing cocktail that is right for you, please email me at donald@dogstarmedia.com.
Wednesday, August 24, 2011
Three things to look for in a great web site design
This year, a lot of doctors and dentists have come to us looking for a new, fresh look for their web site. These days, there is not a lot of variety in the format of the sort of sites preferred by cosmetic surgeons and cosmetic dentists. Nearly all want the same thing: searchable, code-based sites that are highly functional that can also be designed for a high level of aesthetic. Some Flash for aesthetic effect and to show video but otherwise, a coded site.
And, there lies the problem. What is aesthetically pleasing to one person may not be for the next. As custom designers, we tailor our work to our client’s preferences. Our designs are based on fine arts standards. However, some clients play a heavy role in art directing their projects so they turn out for their vision. We offer input when this happens and hope that the client takes into consideration a few of these basic standards that make design work.
1) Good, effective design has a hierarchy. Elements should be placed in an order which guides the eye and does not confuse flow. This has as much to do with the size and placement of elements as it does which elements to use and how they are shaped and positioned.
2) Eye Contact - In advertising (and your web site is a de facto ad) photos of people making eye contact with you draw you in. Sure, an attractive picture works and often works very well but if the model or models in the photo are looking at you, you are more likely to connect with their eyes and stay on the ad longer. Try it yourself next time you look at a magazine full of ads. Find one with a great model shot and one with a great face shot with the eyes looking outward. Which connects with you?
3) Pleasing color palettes are a must. Certain color palettes connote certain feelings. Just because you like a certain color does not mean that it is the best color to promote your business. If you are trying to project a soothing, relaxing, safe image, maybe using alert colors such as red, yellow and orange is not a good idea. The lesson here, choose a look and feel that projects the right image, not necessarily your personal set of preferences.
These elements may seem semi-serious but the fact is that many great designs die on the drawing board because clients don’t embrace some of the very basics. Are you interested in redesigning your web site or designing a new one? We can walk you through these steps and others to help you design a unique look and feel for your site. In September, we are offering a special price on web site design for a limit of four HTML/Flash web sites... first come first served. Please email me at donald@dogstarmedia.com for more information.
And, there lies the problem. What is aesthetically pleasing to one person may not be for the next. As custom designers, we tailor our work to our client’s preferences. Our designs are based on fine arts standards. However, some clients play a heavy role in art directing their projects so they turn out for their vision. We offer input when this happens and hope that the client takes into consideration a few of these basic standards that make design work.
1) Good, effective design has a hierarchy. Elements should be placed in an order which guides the eye and does not confuse flow. This has as much to do with the size and placement of elements as it does which elements to use and how they are shaped and positioned.
2) Eye Contact - In advertising (and your web site is a de facto ad) photos of people making eye contact with you draw you in. Sure, an attractive picture works and often works very well but if the model or models in the photo are looking at you, you are more likely to connect with their eyes and stay on the ad longer. Try it yourself next time you look at a magazine full of ads. Find one with a great model shot and one with a great face shot with the eyes looking outward. Which connects with you?
3) Pleasing color palettes are a must. Certain color palettes connote certain feelings. Just because you like a certain color does not mean that it is the best color to promote your business. If you are trying to project a soothing, relaxing, safe image, maybe using alert colors such as red, yellow and orange is not a good idea. The lesson here, choose a look and feel that projects the right image, not necessarily your personal set of preferences.
These elements may seem semi-serious but the fact is that many great designs die on the drawing board because clients don’t embrace some of the very basics. Are you interested in redesigning your web site or designing a new one? We can walk you through these steps and others to help you design a unique look and feel for your site. In September, we are offering a special price on web site design for a limit of four HTML/Flash web sites... first come first served. Please email me at donald@dogstarmedia.com for more information.
Tuesday, August 16, 2011
Mobile Use Tipping Point
It’s a familiar headline by now that use of mobile devices for Internet use has boomed in the last year. Since November 2009 when Google began tracking mobile device use on its Analytics, we have seen a steady increase in the use of mobile devices to access our clients’ web sites Steady, we have watched statistical ceilings being broken as clients passed the 5%, 10% and even 20% mark. By the end of the year, we expect some clients to be at nearly 25% or more in mobile site visitors.
We don’t have any clients that are less than 5% mobile use and I would expect that this is the case for everyone at this point. So, if you do not have a mobile web site for smart phones (at least), this should be your next purchase. Why? Because with increased adoption, we move closer to a tipping point, not of all-out use but of expectations.
If we are not there already, we will be soon. With this much market saturation, users begin to expect a certain norm for their web surfing experience. With more and more users and rising use statistics, that tells us a growing amount of surfing opportunities are being conducted on mobile devices. Along with this grows the expectation that what is seen on the mobile device will perform as it should on a mobile device. In other words, it will present for the best use on the smart phone or mobile device being used. After the tipping point, if your site does not meet expectations on mobile devices, you will be seen as a dinosaur and your online effort will be dismissed by a growing percentage of mobile users.
Here is an example. If any of us expect to find something, we go to a search engine. Prior to the tipping point on search engine use, it wasn’t that big if you were not listed. Now, if you are not listed it is an absolute crisis. Why? Because everyone expects to find what they need by searching.
We may look back soon and say the tipping point on mobile site expectations happened in 2011. Use is up, percentages of users is up and the devices keep getting more web friendly. People on smart phones expect to be able to push to call. This fact alone is compelling enough to make sure your Internet presence is up to date with a mobile site that will appeal to mobile users.
If you want to stay ahead of the tipping point, please email me at donald@dogstarmedia.com today to get a mobile web site started soon.
We don’t have any clients that are less than 5% mobile use and I would expect that this is the case for everyone at this point. So, if you do not have a mobile web site for smart phones (at least), this should be your next purchase. Why? Because with increased adoption, we move closer to a tipping point, not of all-out use but of expectations.
If we are not there already, we will be soon. With this much market saturation, users begin to expect a certain norm for their web surfing experience. With more and more users and rising use statistics, that tells us a growing amount of surfing opportunities are being conducted on mobile devices. Along with this grows the expectation that what is seen on the mobile device will perform as it should on a mobile device. In other words, it will present for the best use on the smart phone or mobile device being used. After the tipping point, if your site does not meet expectations on mobile devices, you will be seen as a dinosaur and your online effort will be dismissed by a growing percentage of mobile users.
Here is an example. If any of us expect to find something, we go to a search engine. Prior to the tipping point on search engine use, it wasn’t that big if you were not listed. Now, if you are not listed it is an absolute crisis. Why? Because everyone expects to find what they need by searching.
We may look back soon and say the tipping point on mobile site expectations happened in 2011. Use is up, percentages of users is up and the devices keep getting more web friendly. People on smart phones expect to be able to push to call. This fact alone is compelling enough to make sure your Internet presence is up to date with a mobile site that will appeal to mobile users.
If you want to stay ahead of the tipping point, please email me at donald@dogstarmedia.com today to get a mobile web site started soon.
Wednesday, August 3, 2011
The Cosmetic Channel™ passes 300 members
Every week, more cosmetic surgeons and dentists are creating profiles on TheCosmeticChannel.com. This week, this unique web site enrolled its 300th member, making it one of the largest video directories for cosmetic procedures on the web.
TheCosmeticChannel.com has a simple concept. Cosmetic surgeons and dentists can open a profile at no cost and link video from YouTube to their profiles or make new video using The Cosmetic Channel. In essence, this becomes a filter for YouTube, allowing site visitors to navigate among many doctors and dentists and see all kinds of video all in one place.
Subscriptions are free and the more you add to your profile, the more detailed and competitive your presentation will be. There are very inexpensive options for creating your own video as well. As membership increases, we will be introducing some new and highly beneficial elements to The Cosmetic Channel that will help you take advantage of the power of video in marketing your elective services. For now, though, if you have not signed up for TheCosmeticChannel.com please do. And, if you have and have not completed your profile, log-in to do that soon.
If you have any questions about video production or TheCosmeticChannel.com, please email me at donald@dogstarmedia.com.
TheCosmeticChannel.com has a simple concept. Cosmetic surgeons and dentists can open a profile at no cost and link video from YouTube to their profiles or make new video using The Cosmetic Channel. In essence, this becomes a filter for YouTube, allowing site visitors to navigate among many doctors and dentists and see all kinds of video all in one place.
Subscriptions are free and the more you add to your profile, the more detailed and competitive your presentation will be. There are very inexpensive options for creating your own video as well. As membership increases, we will be introducing some new and highly beneficial elements to The Cosmetic Channel that will help you take advantage of the power of video in marketing your elective services. For now, though, if you have not signed up for TheCosmeticChannel.com please do. And, if you have and have not completed your profile, log-in to do that soon.
If you have any questions about video production or TheCosmeticChannel.com, please email me at donald@dogstarmedia.com.
Tuesday, July 26, 2011
Mobile Stats Way Up
Mobile sites are on my mind this week as we are launching two new smart phone sites and two new iPad sites this week. As expected, the use of mobile devices for surfing the Internet has increased greatly this year. Most of our clients are well over the 10% traffic mark and the ones with the strongest mobile traffic are up over 20%. When we started to measure this trend, I anticipated that the trend might top out at 25%. But it did not take long for some to get over 20% so the subject needs a little re-examination now and then until it settles.
Clearly the iPhone is the leading source of mobile visits among our clients. In nearly every case, the iPhone is the #1 source of mobile visits. In general, the degree to which the iPhone is #1 is shrinking however. In many cases, the iPad has risen to a strong #2 ranking. This trend began in the spring with the release of the iPad2. However, in general specific terms, the increased use of the iPad does not account for the volume increase mobile use. Across the board, mobile use is up on our clients’ Analytics.
For the first time there are conversations about full site design for smart phones and iPads. When we were at the 5% mark and clients began adding small versions of their sites for smart phones, most of those sites were 7 pages. The most important 7 pages of content were chosen for these starter sites. When clients passed the 10% mark, most added another 5 pages of content. With the emergence of the iPad sites, with their more graphical look, the 12-pages mobile site became the standard. Now as 25% nears, especially with the full graphics capability of the iPad designs, the talk has turned to the design of full web sites for mobile users.
I think 25% is the jumping-in point for this. You are definitely taking a risk in presentation when you are not making a full presentation to 1 of every 4 web visitors. And, another reason why 25% seems like a good buy-in for a full mobile and iPad site is that now it seems like that will be another milestone on the way to the ultimate plateau for mobile use.
Given the forecasts on mobile use for the next 3-4 years by the big tech companies, it now does not seem out of the question for mobile use of your site to be in the 30% range or even more in the next year. If you want to get out ahead of this and are ready to put up a full site for your smart phone or iPad visitors, please let me know at donald@dogstarmedia.com.
Clearly the iPhone is the leading source of mobile visits among our clients. In nearly every case, the iPhone is the #1 source of mobile visits. In general, the degree to which the iPhone is #1 is shrinking however. In many cases, the iPad has risen to a strong #2 ranking. This trend began in the spring with the release of the iPad2. However, in general specific terms, the increased use of the iPad does not account for the volume increase mobile use. Across the board, mobile use is up on our clients’ Analytics.
For the first time there are conversations about full site design for smart phones and iPads. When we were at the 5% mark and clients began adding small versions of their sites for smart phones, most of those sites were 7 pages. The most important 7 pages of content were chosen for these starter sites. When clients passed the 10% mark, most added another 5 pages of content. With the emergence of the iPad sites, with their more graphical look, the 12-pages mobile site became the standard. Now as 25% nears, especially with the full graphics capability of the iPad designs, the talk has turned to the design of full web sites for mobile users.
I think 25% is the jumping-in point for this. You are definitely taking a risk in presentation when you are not making a full presentation to 1 of every 4 web visitors. And, another reason why 25% seems like a good buy-in for a full mobile and iPad site is that now it seems like that will be another milestone on the way to the ultimate plateau for mobile use.
Given the forecasts on mobile use for the next 3-4 years by the big tech companies, it now does not seem out of the question for mobile use of your site to be in the 30% range or even more in the next year. If you want to get out ahead of this and are ready to put up a full site for your smart phone or iPad visitors, please let me know at donald@dogstarmedia.com.
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