Sharing the Rewards & Risks in JointSourcing Works: Client Revenue Goes Up and Costs Go Down
Given that Sales Renewal’s JointSourcing is truly one-of-a-kind-there are no other Marketing General Contractors that shares the risk and reward-it is not surprising that it requires a bit more explanation than the familiar, fee-for-service, single-marketing-strategy (like PR, inbound marketing, advertising, direct mail, tradeshows, …) approach every other agency takes.
But numbers have a way at cutting to the heart of a matter, so here are three simple charts that show that JointSourcing increases leads and revenue (bar graphs in the charts below) while decreasing the per lead or sale cost (line graphs below). Note: To ensure client confidentiality, all chart data is expressed as relative to their initial period.
Manufacturer Client Performance Over 2.5 Years
During the 2.5 years from 1Q13 through 2Q15, JointSourcing increased qualified leads by 380%, a compound annual growth rate (CAGR) of 87% per year.
Because of JointSourcing’s increased productivity, while the client’s marketing budget did grow somewhat, it grew far, far slower than their leads did. As a result, JointSourcing decreased cost-per-lead by 74% (-42% CAGR).
Our strong, long-term relationship with Sales Renewal has been critical to Metro Sign & Awnings’ accelerating growth.
Because I wasn’t familiar with it when we first began almost 4 years ago, I was a little unsure of the JointSourcing “partnership, ” but I’m a big believer now.
Sales Renewal really treats the marketing of my business as if it were theirs – whether it’s going to bat for us with a vendor on their own or how proactive they are in analyzing and continuously optimizing our marketing.
This saves me time and allows me and my team to focus on sales. In fact, we have been getting so many leads that we are hiring more sales people to close all the new business.”
— Tom Dunn, Owner and VP of Sales & Marketing
eCommerce Client Performance Over 4 Years
During the 4 years 2010 to 2014, JointSourcing increased e-commerce sales by 170% (28% CAGR)
At the same time, JointSourcing decreased cost-per-sale by 33% (-7% CAGR).
Working with Sales Renewal is a real partnership, I know the floral business and Sales Renewal knows technology, marketing and sales.
I’ve been a small business owner for 26 years and I appreciate having someone who, thanks to its financial interest in my success, is almost as motivated as I am to grow my business.
— Helen Halloran, Owner
Different Levels of Marketing Investment Lead to Different Levels of Revenue Growth & Cost Savings
While from the accounting perspective marketing costs are considered an expense, an equally important way to view them is an investment: if you want your business to grow you have to invest in growing it. While the Concord Flower Shop has grown its web sales 28% per year while lowering its cost per sale 7% per year, Metro Sign & Awning has blown past even those impressive numbers, increasing its leads 87% per year and decreasing its cost per lead 42% per year.
These differences arise from the growth vs cost goals each business had which during the JointSourcing Blueprint, translated into the breadth and depth of their JointSourcing Solutions. Metro’s is more comprehensive and includes all of the important digital and real-world strategies for their business with each strategy nicely elaborated. The Concord Flower Shop’s JointSourcing Solution is focused just on online marketing and as you can see from the figure, invests about ¼ of what Metro does in marketing. It is this difference in budget, scope, resources and strategies that leads to their different growth & savings rates.
For a more detailed understanding of Sales Renewal’s unique JointSourcing Solution, please see these JointSourcing™ in Action case studies:
- JointSourcing: a Breakthrough Solution with Stellar Client Results – a more detailed explanation of JointSourcing’s results
- Collaboration Leads to New Strategies, Brand, Site, Marketing Programs and … a Blue Ribbon
- Sales Renewal Corp. Wins Battle Against Google Adwords on Behalf of Its Client Metro Sign & Awning
- How the Concord Flower Shop More Than Double Its Online Sales and was Ranked in the Top 1% of Local Businesses by Google
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Sales Renewal’s insight:
Given that Sales Renewal’s JointSourcing is truly one-of-a-kind-there are no other Marketing General Contractors that shares the risk and reward-it is not surprising that it requires a bit more explanation than the familiar, fee-for-service, single-marketing-strategy approach every other agency takes.
But numbers have a way at cutting to the heart of a matter, so here are three simple charts that show that JointSourcing increases leads and revenue (bar graphs in the charts below) while decreasing the per lead or sale cost (line graphs below). Note: To ensure client confidentiality, all chart data is expressed as relative to their initial period.
