How To Use Data in Marketing Ep 290

In this insightful marketing discussion, the host delves into the power of data-driven storytelling to create compelling campaigns. He emphasizes the strategic manipulation of data to craft various narratives, such as showcasing client success over time or highlighting the proportion of clients reaching significant revenue milestones. By presenting statistics in relatable terms, like "one in 5.5 gyms is a million-dollar gym," rather than dry percentages, the host illustrates how to make data more impactful. He also discusses the importance of presenting averages and medians to appeal to the audience's self-perception of being above average. The host shares his methods for teaching his team to use these techniques to enhance their marketing strategies, ultimately helping more entrepreneurs succeed. He concludes by encouraging the audience to spread the word about the podcast to support the entrepreneurial community.

• Marketing strategies can be more compelling when framed effectively.
• Data can be interpreted in various ways to tell different stories.
• Presentation of statistics can significantly impact the perceived value of a campaign.
• The "One Year Later" campaign showcased significant financial improvements for clients.
• Subdividing data can highlight different aspects of success.
• Three variables to play with in data: percentage of people, the goal, and the duration.
• Upcoming campaign focuses on the proportion of gyms with a million-dollar run rate.
• The framing of data can leverage psychological biases like survivorship bias and the desire to be above average.

"Now, if you're thinking about from a marketing perspective, would you think 18% of gyms that we work with are seven figure gyms? Maybe. I don't think that sounds as compelling as one in 5.5."

This quote emphasizes the importance of how data is presented in marketing. The speaker suggests that framing the statistic as "one in 5.5" is more compelling than simply stating "18%," which highlights the power of perception in marketing.

"So one of the things that I have found has been a consistent source of new marketing for us is understanding data."

The speaker identifies understanding and utilizing data as a key factor in developing new marketing strategies.

"And so the nice thing is that there's always new inferences that you can derive from data, that you can make the same thing mean different things."

This quote underlines the flexibility of data interpretation, where the same data set can be used to tell various stories or emphasize different points.

"One year later, our top 20% of clients have added over $400,000 a year to their yearly revenue."

The speaker uses this statistic to demonstrate how data can be used to showcase success stories within a specific subset of clients, in this case, the top 20%.

"I can play on the desire that people have to win the lottery. It's survivorship bias. Like that people think they're going to be the one."

The speaker discusses leveraging psychological biases, such as survivorship bias, to make marketing campaigns more appealing by tapping into people's hopes of being the exceptional success story.

• Effective campaigns are based on significant differences in client performance metrics before and after engagement.
• Different statistical framings can be used to target various market segments.
• The presentation of data can be tailored to highlight the most successful clients or the average improvements.
• The choice of framing can influence the perceived likelihood of success for potential clients.
• Using medians and averages in data presentation can appeal to those who see themselves as above average.

"One in five gyms who's been with us over a year is over z, right? And so there's different variables that you can play with, right. One is the percentage of people, right. The next is the goal, and then the next is the duration piece."

This quote outlines the different factors that can be adjusted to create compelling marketing messages, focusing on the success rate (percentage of people), the target achievement (the goal), and the time frame (duration).

"And it's usually because it's not good. Right? They already know. They don't have any million dollar gyms. They don't need to go measure that, right? We do know."

The speaker points out that competitors may not track data because it doesn't reflect well on them, whereas their own positive data is a strong selling point.

"Like that people think they're going to be the one. But I can also play on the inverse, which is something that I like doing a lot, which is I love playing on averages."

Here, the speaker talks about playing on the psychological bias where individuals believe they will be the standout success, while also using averages to appeal to a broader audience.

"You can always say after you say an average, that also means half of people are above of this."

The speaker suggests that by presenting an average, it is implied that there is potential for clients to perform even better, appealing to the aspirational nature of consumers.

• Discusses the importance of presenting client success data compellingly.
• Breaks down the data into three components: duration, outcome, and percentage of clients achieving the outcome.
• Emphasizes the flexibility in presenting the percentage of clients, such as top, bottom, median, average, or specific fractions.
• Highlights the ability to invert statistics to present them differently, like "one in five" versus "four out of five."

"Wheel one is over what duration. Wheel two is what is the outcome? And then the percentage of clients that achieve that, right? So it's percentage of clients, the outcome, and then the time, duration."

This quote outlines the three main aspects used to analyze and present client outcomes: duration of service, specific outcomes achieved, and the percentage of clients who have achieved these outcomes. The significance lies in the ability to adjust these variables to highlight different aspects of success.

• Discusses the challenge of training the team to interpret customer data creatively for marketing purposes.
• Aims to find compelling ways to represent the data to create an effective marketing hook.

"And so when I'm using all of that, this is what I'm running through, and this is what I've had a really hard time teaching my team, which is why I'm making this right now, is that this is what I'm running through."

This quote reflects the speaker's process of analyzing data for marketing and the difficulty in conveying this analytical method to their team. It underscores the importance of interpreting data not just for internal understanding, but for external marketing narratives.

• Long-term clients tend to have higher success rates, which is valuable for social proof.
• Long-term success stories can demonstrate the company's ability to provide continued value.
• Using long-term data is advantageous for established businesses to show their longevity and effectiveness in the industry.

"If someone's been with you for a year, the likelihood that they've succeeded is very high, especially in an education based business."

This quote explains that the longer a client has been with a service, particularly in education, the higher the chance of their success, which can be a strong marketing point.

• Short-term data can also be compelling, especially when showing quick wins or early success.
• The ability to timestamp and slice data allows for the identification of impressive statistics to highlight.

"For us, our average gym in the first, I think it's 1st 15 days, not 15 days, excuse me, first two weeks does 15,500 in additional revenue."

This quote exemplifies how specific short-term data, such as the average additional revenue generated in the first two weeks, can be used to illustrate immediate benefits to potential clients.

• The speaker discusses different ways to present data, such as using fractions or percentages.
• There is a focus on how to rephrase statistics to make them more impactful or relatable to the audience.

"One in 5.5 gyms is a million dollar gym, right? And so I can play with these, with these numbers, because I could have said 18% or I could have said with the percent of the 15,500, I could say that's what's the outcome."

This quote demonstrates the versatility in presenting data, where the same statistic can be framed in various ways to either simplify or emphasize the message. It illustrates the strategic choice in data presentation for marketing purposes.

• Different methods of presenting data increases can impact the perceived significance of the change.
• Percent increase is used to show the change as a proportion of the original value.
• Absolute increase refers to the raw numerical addition to the original value.
• The actual total number made includes the original revenue with the increase added.
• A relative increase contextualizes the numerical increase by equating it to a tangible outcome or benefit.

"There's four ways you can show it real quick, guys, you guys already know that I don't run any ads on this and I don't sell anything. And so the only ask that I can ever have of you guys is that you help me spread the word so we can help more entrepreneurs make more money, feed their families, make better products, and have better experiences for their employees and customers. The only way we do that is if you can rate and review and share this podcast. So the single thing that I ask you to do is you can just leave a review, it'll take you 10 seconds or one type of the thumb. It would mean the absolute world to me. And more importantly, it may change the world for someone else. One is a percent increase, which is, this went up by x percent, right? The next is an absolute increase, which is additional 15,500. Right? The next would be the actual total number made, which would be their revenue, plus the increase. Boom. Right? Which would be different but similar. Right? So you've got just the increase, you've got the total amount made, you've got the percentage increase, you've got a relative increase, which is one that I like, which is what does 15,500 buy you?"

This quote explains the four ways to present data on increases: percent increase, absolute increase, total number made after the increase, and relative increase. The speaker emphasizes the importance of context when conveying data to make it compelling and relatable.

• Presenting data in marketing can differentiate a product or service by making promises more compelling and believable.
• Tracking metrics gives a competitive advantage and allows for the creation of targeted marketing campaigns.
• The three "wheels" of outcome, time duration, and percentage of client success are crucial for slicing data and telling a compelling story.
• Compliance with the use of numbers is essential to maintain credibility and trustworthiness.

"So, hopefully, you're following along with me the three big wheels, right? Wheel number one you've got is what's the outcome? Wheel number two is the time, duration, and wheel number three is what percentage of clients achieve this outcome. And so when you're playing with these three wheels and you're slicing the data, all of these wheels have variables, which is why you can slice data in so many different directions. But for me, this is usually what I will search for. Like, this is what I will hunt for. I will look for the piece of data that tells the story that the copy can't tell, or it can reinforce the story that the copy tells. It makes it far more compelling."

The speaker outlines the three key factors—outcome, time duration, and client success rate—used to analyze and present data effectively in marketing. These factors can be manipulated to tell a story that complements the marketing copy and enhances the message's impact.

"And on top of that, we have pretty decent metrics around this stuff, especially around client success. And so with that, I can hunt and say, okay, let's look at new clients first eight weeks, right? What's the increase in revenue? Okay? And the thing is, everything I just talked about was one stat, right? I just talked about revenue. I could use those same three wheels with time, the customer outcome, and then what percentage of them achieved it. I could use those same three wheels with any of the stats. I could use it with profit. I could use it with revenue. I could use it with churn. I could even use it with growth percentage, right? I could use it with, like, there's. There's so many different ways I can use those three wheels in my marketing, but usually this will be the central core concept that I will make an entire campaign around, right? Because at the end of the day, there's only so many ways for me to say, we make gyms more money, right? And the thing is, at the end of the day, everyone promises that. So the question is, how can I make a different, more unique promise, and how can I make it more compelling and believable that they will achieve it, right?"

This quote emphasizes the versatility of the three key factors in analyzing various metrics such as profit, revenue, churn, and growth percentage. The speaker highlights the importance of crafting a unique and credible promise in marketing campaigns, which can be achieved by effectively using these factors.

• The speaker emphasizes the importance of using statistical data as a central selling point for marketing programs.
• Conviction in statistics is highlighted as being straightforward due to their definitive nature.
• Statistical data allows for clear communication of success rates to potential customers.
• The speaker provides an example of how varying the presented statistics can change the perceived value of a weight loss program.
• Marketing strategies can be developed based on finding a "sweet spot" in data that represents a compelling success rate for a product or service.

"Data as most of the times, the central selling point that I have for any program that I sell."

This quote explains the speaker's reliance on data as the primary feature when selling programs.

"It's easy to have conviction in stats, because those are what they are."

The quote highlights the speaker's belief in the power of statistics to convey certainty and reliability in marketing messages.

• The speaker discusses adjusting variables such as the percentage of customers achieving a certain result and the magnitude of the result itself.
• By manipulating these variables, marketers can present the most attractive success rates to potential clients.
• The speaker suggests that sharing top-tier results can be more effective in certain industries, such as business, compared to others like weight loss.

"There's two variables that I'm playing, actually, three, again, which is what percentage of the customers achieve x result, right?"

This quote identifies the variables at play in creating marketing statistics: the percentage of customers and the specific result achieved.

• The speaker introduces a different angle for marketing hooks by focusing on the frequency of achieving results over time.
• They use an example from their experience with gyms to illustrate how to communicate success in terms of time, such as creating a certain number of seven-figure gyms within a time frame.
• This approach translates outcomes into more relatable and impressive time-based achievements for potential customers.

"Every x days, x minutes, x hours, x weeks, x months, we achieve a y."

The quote explains how to frame marketing messages in terms of the frequency of achieving results, making them time-specific.

"Every 7.7 days, we create another seven figure gym."

This quote provides a specific example of using time-based metrics to showcase success rates, in this case, the creation of seven-figure gyms.

• The speaker urges the audience to consider all aspects of data when creating marketing campaigns.
• They highlight the importance of analyzing the outcome, the percentage of people achieving it, and the time duration over which it is achieved.
• The speaker encourages playing with these variables to find the most effective marketing message.
• The method is deemed compelling because it is rooted in truth and actual performance data.

"Let's look at the data, right? And let's think about the three wheels. What's the outcome, what percentage of people hit it over what time duration, and then play with all of them."

This quote advises on how to approach marketing strategy by considering and adjusting different data points to create a compelling message.

• The speaker concludes by reinforcing the effectiveness of using truthful, data-backed marketing strategies.
• They share that this approach has been highly profitable for them and encourage others to use it.
• The speaker leaves the audience with the notion that accurate data provides countless ways to slice information for marketing purposes.

"It's one of the most compelling things in the world because it's just true."

The quote underscores the speaker's belief in the persuasive power of marketing strategies that are based on factual data.