Bleeding Ad Spend: Why Logical Marketing is Sabotaging Your ROAS

As a multi-million dollar business owner, you have hopefully cracked the code to a compelling offer, identified your micro-niche, and discovered how to craft your marketing messaging to appeal to your dream customer's deepest emotional pains. But I have seen so much bad marketing lately that it is time for a brutal reality check. The market is saturated with terrible, feature-driven campaigns. If you are not actively revisiting and refining your messaging, you are leaving massive amounts of money on the table. Refining your product offer and your marketing messaging is an iterative process that continually improves with time and attention, and if you fail to adapt, your competitors will inevitably eat your market share...

 

The Data-Driven Avatar

As a seven-figure founder, I am sure you have a captivating offer, but can you improve on it? We most certainly always can. The benefit of doing the hard work is a more effective marketing campaign, significantly lower client acquisition costs, and long-lasting customers who actually love to buy from you.

Look closely at your previous customers. Who is the absolute best to work with? Identify the ones who are low maintenance, buy regularly, purchase your most profitable products or services, and tell others how great your company is.

Once you have compiled a list of your top 10 to 20 best customers, start analyzing the data to look for commonalities. Take into account demographics, psychographics, marital status, geography, and financial situations. The more data points you have, the better. You must look for the hidden common threads. Do your top 10 best customers all have kids? Do they live in a particular area? Do they share specific hobbies, jobs, or interests?

 

Becoming a Student of the Customer

Once step one (data collection) is finished, I always like to incentivize them to participate in a brief interview. Give them a call to thank them for being a loyal customer, incentivize them for taking the time to help you, and ask them pointed questions about why they purchased your product or service and what you can do to improve.

Here are a few very important questions I like to ask:

• What was going on in your life when you decided to buy for the first time?
• How could we have appealed to you earlier, so you could give us a try?
• If you were the CEO of the company, how would you improve your product or service?

You must become a relentless student of your best customers. Work to thoroughly understand their unique circumstances, their stressors, fears, and concerns.

 

Selling the Destination

The goal is to become a specialist in your industry for a sub-segment of the market—to discover where to find them, how to find them, and how to appeal to them specifically. Effective marketing enters a conversation already occurring in your target prospect's mind.

Consider life insurance. There comes a point in everyone's life where they feel less invincible than they used to. They have a family or loved ones to think about. As a result, they decide they should look into life insurance. But people don't actually want to buy life insurance. It's boring, costly, and no one wants to think about dying. You may be the best life insurance agent in the world with the best coverage, but if you market logically ("our life insurance products are rated A+ by the reviewing agencies and our customer service is rated best in the nation")... Boring!

However, if you market to your dream prospect about the peace of mind in knowing that their loved ones will be fine when they aren't around to take care of them—if you paint a picture of their children getting a great education and having an amazing, fulfilling life whether you are there or not—you are finally selling the destination.

Now you are starting to appeal to the emotional drivers of your target customer. Remember, people buy emotionally and justify the decision logically. By aligning your offer and marketing message to those emotional drivers, your return on ad spend (ROAS) will jump through the roof and your customer acquisition cost (CAC) will drop significantly.

This is a bit of a left turn from our usual enterprise architecture articles, but it is deeply pertinent. Analyze your offer, messaging, and dream client avatar regularly. Regardless of the revenue currently being generated, it can always be improved upon.

 

P.S. I keep hearing about how every market is saturated with competition, and it's true. However, if you put the "hard work of thinking" into the points listed above, you will have a major advantage competing in your marketplace. The competition has set the bar tremendously low.

 

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(Please note: we are extremely selective about the caliber of individuals that we choose to work with. This offer is only valid for privately held, 7-figure business founders. If you do not make it past the filter process, we will provide executable suggestions to increase your chances in the future.)