Use Marketing Data to Achieve Your Revenue Dreams

Step 1: Annual Revenue Target

Start with the end in mind. 

Know how much you want to make in one year. 

Step 2: R&D Solution

Think of painful problems that people would pay for you to solve.  

Step 3: Adding Value

Create a product that’s actually useful, unique, relevant to potential customers and easy to use. 

Step 4: Price

Come up with a price you’ll charge. Be reasonable. 

Step 5: Annual Customer Value

Think about how much a frugal customer will spend on your product in one year. 

Step 6: New Customers to Acquire

Divide your one year revenue target by the amount this “frugal customer” will spend. That’s the minimum number of annual users you’ll need to convert. 

Step 7: Conversion Rate

Next, think about how many people (out of 100) would buy from you if they landed on your website or app install page. Be more conservative and pick a number between 1-5. In many cases, 5% conversion rate is above average for e-commerce websites. 

Step 8: Click through Rate

Next, think about how many people will reasonably click on your advertisement when you advertise. (If you want to make money, you have to). A decent CTR is 2%. 

Step 9: Reach

Lastly, think about how many people you have to initially reach to get them to click on your advertisements. (We’re going backwards in case you didn’t notice). 

Step 10: Compute

Okay. Let’s use some examples. Pretend your annual revenue goal is $100,000, you’re charging customers $10, your frugal customer will only buy one product unit valuing the customer at $10 for the entire year, your conversion rate is 5%, click through rate is 2%. Let’s calculate. 

At $10 Customer Value: $100,000 / $10 = 10,000 new customers to acquire per year. 

At 5% CVR: 10,000 x (100/5) = 200,000 web visits needed per year. 

At 2% CTR: 200,000 x (100/2) = 10,000,000

reach needed per year. 

Marketing Funnel Explained Through Fishing  

Imagine Marketing as the act of catching fish. 

Different terms that’ll be used are:

Marketing 

Market

Marketing channel

Lead source

Lead magnet

Lead generation

Lead nurturing 

Sales conversion

The “Market” represents a body of water where fish live (or customers exist). Markets have to be networked in such a way that customers can talk to each other. 

“Customer Leads” are possible fish you can catch. 

Your “Lead Source” (marketing channel) are ponds, lakes, rivers, or oceans that you can go fish at. 

Your “Lead Magnet” is the fishing bait you’re using. How relevant and tasty the bait is to the fish you’re catching determines how often they’ll bite. 

The act of “Lead Generation” is the act of  fishing at your local body of water (Lead Source). To catch a lot of fish, you need to make the drive over to your local river as often as possible. 

When fishing, “Lead Nurturing” is the act of reeling the fish in until the fish gets close enough to the shoreline and you use your fishing net to close the deal and “Sales Convert”. The stronger the initial hook, the more engaged the lead will be as you draw them closer. 

The Family Tree

Through a union we call a “marriage”, a husband and wife create a tree that must be nurtured.

The branches that form on the tree represent their offspring and the couple have a duty to keep the branches safely intact until they’re ready to be propagated.  

To manage the tree, the roots of the tree (values) must be protected. What keeps the roots healthy and branches intact are a combination of the right nutrients: sunlight, water, soil. 

The sunlight is love, water is communication, and the soil represents human needs. Proper flow of communication makes it possible for us to express love and our needs.

To grow a healthy tree as parents, the places our energy must flow runs deeper.

People Process Execution Money

As managers, we are managers of resources. 

People, process, execution, money, and culture are key resources to manage. 

People = human resource

Process = informational resource

Execution = action resource

Money = cash resource

Culture = behavior resource

Resources are used to gain more resources. 

That’s the game of business. 

People

People attract people. 

People communicate information. 

People convert information into action. 

People generate cash. 

People influence behavior. 

Great people create more of all 5 types of resources. Bad people do the opposite. 

Process

Process organizes information. 

Process converts information into instructions.

Process defines and simplifies.

Process prioritizes. 

Great processes create more time. Bad processes do the opposite. 

Execution

Execution decides. 

Execution converts instructions into actions. 

Execution drives results. 

Great execution management creates more money. Bad execution does the opposite. 

Money

Money is the result of good execution. 

Money keeps the business running. 

Money acquires more resources. 

Great financials create sustainable growth. Bad financials do the opposite. 

Culture

Culture unifies people. 

Culture creates purpose. 

Culture inspires. 

Culture creates consistency. 

Culture creates focus. 

Great culture creates a driving force.  Bad culture does the opposite. 

Resilience through Love

Pain and pleasure are opposites. 

The public generally views pain as bad and pleasure is good. 

But, not always. 

We also recognize that excessive pleasure can be bad. 

Because of addiction.

Addiction happens because we have a tendency to offset pain with pleasure. And in our pursuit to create this balance, we sway too far towards pleasure. 

So let’s explore why we seek pleasure.

Does it mean the more pleasure we seek, the more pain we’re in? 

Possibly. 

But what about those people who seem to endure pain, while not faltering to excessive pleasures? 

It could be two things:

  1. They have their own secret relationship with pleasure to offset pain that we don’t know about
  2. They have their own secret relationship with pain to offset pleasure

Number two is my definition of resilience. 

I choose to endure pain because of the joy it brings me knowing that I am creating safety, joy, and happiness for those things and people I love. 

Remember when we use to look up at the sky?

As adults, how often do we look up at the skies to appreciate its beauty? No matter what weather, the sky is so vast, powerful, and great. 

As children, it seems like that’s all we saw. 

Could there be a correlation to “looking up” and our rate of growth? 

As children grow with accelerating speed, they constantly look up at taller beings, hoping to reaching those new heights one day. 

Even if we’ve grown physically taller as adults, we can still figuratively look up to bigger, taller, and greater reference points to continue our growth. 

One challenge many of us experience as adults is that we often compare sideways for comfort or down for pride such that we forget that there’s another direction to look; up. 

Importance of Communication for Business Performance

The goal in business is to generate results.

Precursors — data, decisions, actions

Data is a precursor to decisions. 

Decisions are precursors to action.

And actions, to results.

Input, process, output

Data is information that is inputted into our minds.

Which we then process by analyzing the information using heuristics and logics.

Decisions are made which stimulates action. And with the correct action, we get results.

Therefore…

Data is the First Principles of (possibly) generating results.

High quality data means accurate information.

High quantity of data means greater statistical significance. 

Effective communication of all of this data allows for faster processing, decision making, actions, and ultimately, results.

Curiosity Value

Today, I want to highlight a value that drives us: Curiosity.

Imagine the limitless wonder of a child. That’s the curiosity we aim to bring to our work. There’s no ceiling to what our minds can absorb and how we can grow.

Let’s stay eager to learn and open to change. Our curiosity is not just about finding answers, but about enjoying the journey of discovery.

Together, let’s embrace each day with the joy of learning and the spirit of exploration.

My Personal Continuous Improvement Journey and Practical Insights for You

Today, I want to share a few of many personal experiences that have fueled my continuous improvement journey throughout these years:

  1. Writing
  2. Reading
  3. Strength training

Writing

Writing has never been easy for me. From elementary school all the way up to college, I’ve always struggled with writing essays. Math was typically easy (to a certain point), but I have vivid memories of always struggling with writing. Even in business, I can recall countless the countless hours I spent refining a single business email. I experienced brain fog, and the entire process of articulating my thoughts into words while expressing my personality was difficult. As I continued to practice, I improved but not overnight. In hindsight, the huge leaps in improvement is only noticeable years later. 

Reading

It feels like yesterday when I started my habit of active reading and learning. I started roughly 12 years ago at a coffeeshop where I often studied in Koreatown, Los Angeles. I remember sitting down one day; I opened a book (I think it was Peter Lynch’s: One Up On Wallstreet), and I couldn’t get past the first page for over 30 minutes! I remember my eyes getting dry and tears forming in my eyes from yawning from the severe cognitive strain. But I kept at it for the next 30 days. There were marginal improvements and no significant improvements initially. What motivated me was, I reasoned that being steadfast and consistent was the only way I would ever get good at reading because improvements were so slow.

Strength Training

I think I l have one of the worst genetic types for gaining strength and muscle. When I was 18, I started working out. All of my friends that I worked out with made me question if I had some sort of testosterone deficiency. It’s possible. Although my friends and I would still meet up for the gym, I started going to the gym by myself more often. I was able to comfortably experiment and learn what works for me, and eventually developed my own unorthodox strength training routine. my body responded better to significantly less volume, which I believe allowed my central nervous system to recover much faster than before. Strength gains were exponential which surprised my friends. But, as with anything you keep at it long enough, I experienced occasional setback injuries which slowed my rate of growth. So as these setbacks slowed down my speed of progress, I reasoned that the only way I could sustainable grow was to be more consistent than everyone else. 

Practical Process for Implementation — Copy, then Innovate

“Copy, then innovate” is my own iteration of the quote “good artists copy, great artists steal”. For anything I’m not an expert at (most things), I copy and leverage existing work as a baseline and then add my own twist to it. I’ve successfully applied this tactic to writing, where I would save well-written emails, deconstruct the sentences, and extract the words and phrases that I liked so that I can use it later. I would copy others until their writing became my own.

Takeaway

Never, ever, let anything you’re not good at now demotivate you from continuously improving at it. If anything, it’s more of a reason why you should put in more effort, daily.