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Contribution Margin: What It Is, How to Calculate It, and Why You Need It - HBR.com

Contribution Margin: What It Is, How to Calculate It, and Why You Need It - HBR.com | The MarTech Digest | Scoop.it
It’s a different way of looking at profit, Joe Knight, author of HBR Tools: Business Valuation explains. Think about how company income statements usually work: You start with revenue, subtract cost of goods sold (COGS) to get gross profit, subtract operating expenses to get operating profit, and then subtract taxes, interest, and everything else to get net profit. But, Knight explains, if you do the calculation differently, taking out the variable costs (more on how to do that below), you’d get the contribution margin. “Contribution margin shows you the aggregate amount of revenue available after variable costs to cover fixed expenses and provide profit to the company,” Knight says. You might think of this as the portion of sales that helps to offset fixed costs.

It’s a simple calculation: Contribution margin = revenue − variable costs

Analyzing the contribution margin helps managers make several types of decisions, from whether to add or subtract a product line to how to price a product or service to how to structure sales commissions. The most common use is to compare products and determine which to keep and which to get rid of. If a product’s contribution margin is negative, the company is losing money with each unit it produces, and it should either drop the product or increase prices. If a product has a positive contribution margin, it’s probably worth keeping. According to Knight, this is true even if the product’s “conventionally calculated profit is negative,” because “if the product has a positive contribution margin, it contributes to fixed costs and profit.”
CYDigital/marteq.io's insight:

An excellent primer for the multi-product company.

 

Click/tap to view the original article.

This news comes to you compliments of marketingIO.com. #MarTech #DigitalMarketing

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The 4 Most Effective Customer/Lead Acquisition Strategies - Paxton Projects

The 4 Most Effective Customer/Lead Acquisition Strategies - Paxton Projects | The MarTech Digest | Scoop.it
1 – Paid Acquisition (I want fast growth)
Paid acquisition tips:
Always add value.
Align your ad, targeting and website experience with your ideal customers
Target your ideal customers first then branch out
Work out your benchmarks (CPA, AOV, LTV)
Be organized and be prepared to do the boring work (rinse & repeat what works)
 
2 – Viral Acquisition (I want huge growth)
This strategy is by far the cheapest way to acquire emails, social followers and more. All you have to do is follow the below steps.
1 – choose a prize that your target audience would get excited about.
2 – build a contest (lots of tools which help you do this)
3 – launch the contest
4 – market the contest
5 – watch the viral growth happen.
 
3 – Join Venture Acquisition (I want guaranteed growth)
Some examples of this:
Joint email promotion.
Joint event and sponsorships (e.g. web summits)
Guest appearance on podcasts
Join contests (what we discussed above)
Joint product launch
 
4 – Content Marketing Acquisition (I want long-term growth)
The best types of content are:
Resource lists
Case studies
Best xxxxx (like this post)
In depth product reviews & comparisons
Personal story (I had this problem & this is how I solved it)
CYDigital/marteq.io's insight:

Most B2B marketers reside in #4, but often ignore #3.  Much more detail when you click through.

 

Click/tap to view the original article.

This news comes to you compliments of marketingIO.com. #MarTech #DigitalMarketing

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Ryan Alford's curator insight, October 3, 2017 12:45 PM

Most B2B marketers reside in #4, but often ignore #3.  Much more detail when you click through.

 

Click/tap to view the original article.

This news comes to you compliments of marketingIO.com. #MarTech #DigitalMarketing

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The enterprise technologies to watch in 2017 | ZDNet

The enterprise technologies to watch in 2017 | ZDNet | The MarTech Digest | Scoop.it
It was a rebuilding year in a sense, as emerging tech for the enterprise steadily proceeded but didn't result in as many new targets to track as last year. Yet it's also abundantly clear the largest digital shifts by far are still ahead of us. Here's how 2017 is breaking down.
CYDigital/marteq.io's insight:

Subscribe to The MarTech Digest: http://bit.ly/miocom #MarTech

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Measuring B2B’s digital gap | McKinsey & Company

Measuring B2B’s digital gap | McKinsey & Company | The MarTech Digest | Scoop.it
We looked at B2B versus B2C Digital Quotient scores across the four dimensions and also peered into the survey data for details on underlying practices for each dimension.

Strategy—attention deficit. B2B companies are behind B2C companies in how they use digital tools and data to set strategy. They often treat overall strategy and digital strategy differently. 

Organization—beyond legacy structures. Most B2B players haven’t taken concrete steps to mobilize the organization around digital tools and data. 

Capabilities—skills deficit. With lower levels of strategic focus and organizational discipline, it’s not surprising that B2B companies are behind those in the B2C sector in digital capabilities. 

Culture—a firm base. On average, across cultural DQ measures, B2B companies aren’t far behind their average B2C counterparts in core areas such as trust and internal and external agility.
CYDigital/marteq.io's insight:

Well, #4 is heartening. Need to get off the hamster wheel, folks.

 

marketingIO: MarTech for B2B Marketers. Strategy, Software, Services, Support, Staffing.  Go here to submit RFQs. #MarTech #DigitalMarketing

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5 Disruptions to Marketing, Part 2: Microservices & APIs - Chief Marketing Technologist

5 Disruptions to Marketing, Part 2: Microservices & APIs - Chief Marketing Technologist | The MarTech Digest | Scoop.it
In the short-term, these APIs and iPaaS solutions faciliate best-of-breed marketing stacks — the most popular approach to marketing technology today according to a recent study by WalkerSands.

Many of today’s marketing stacks could be characterized as “macroservice architectures” — big chunks of semi-closed applications that have relatively small pipes of data being exchanged between them.

However, it’s not much of a conceptual leap to see how these best-of-breed stacks can evolve into more flexible microservice architectures with more versatile and powerful interactions that span an entire business.
CYDigital/marteq.io's insight:

Not having a fun time with IT? Contact us: we can act as your buffer to get the job done. #MarTech #DigitalMarketing

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CMOs Are Behind On Disruptive Growth [Research] - Marketing Insider Group

CMOs Are Behind On Disruptive Growth [Research] - Marketing Insider Group | The MarTech Digest | Scoop.it
According to the Accenture research, disruptive growth is defined as “driving the disruptive growth agenda and generating new value for the business.”

There appears to be a misalignment on business priority and accountability. Only 37% of the CMOs surveyed by Accenture viewed disruptive growth as very important and are committing time and resources on innovation. And yet, three in four CMOs say they have total or a significant control of levers that drive disruptive growth at their organizations.

To get started with leading disruptive growth initiatives at their organizations, the Accenture research points out that CMOs need to first make their marketing priorities disruptive. They need to develop their disruptive growth strategy around these objectives:

Focusing on an outcome-driven orientation rather than product or service orientation
Improving and eliminating any friction from the customer experience
Tapping into customers’ unmet needs and creating new needs
CYDigital/marteq.io's insight:

marketingIO.com bridges the gap between your MarTech and your in-house experience. Contact us. #MarTech #DigitalMarketing

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The 1 Trait All Addictive Products Have in Common, Thanks to Evolution - Inc.

The 1 Trait All Addictive Products Have in Common, Thanks to Evolution - Inc. | The MarTech Digest | Scoop.it
What do MySpace, Facebook, Instagram, Snapchat, and Twitter have in common? They're all social. They help us understand the social web we sit within, and they also give us the social reinforcement and support that we crave. In the consumer product world, the "most engaging" (AKA time consuming) apps are all social. Uber, Amazon, and Google are all world-changing, but they don't command the time and attention of Facebook and Snapchat. After all, they're utilities that a person comes to, uses to solve a problem, and moves on.
CYDigital/marteq.io's insight:

marketingIO: One Source for All Marketing Technology Challenges. See our solutions.  Email your comments to joe_rizzo@marketingIO.com. I’ll publish it here. 

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Forrester Predictions 2017: A Year Of Action - Forbes

Forrester Predictions 2017: A Year Of Action - Forbes | The MarTech Digest | Scoop.it
Here are three key findings from our 16 prediction reports:

  • The next wave of Customer Experience will have a profound impact on firms’ P&L
  • CEOs will clean house in search of digital-savvy talent: CEOs will fire one third of CMOs and we will see massive turnover in the business unit leaders that can’t carry the torch forward on digital business or customer obsession. 
  • Catching up with early movers in business technology will spell the end-of-days for at least one traditional firm: In 2017, we predict that a Fortune 1,000 firm will go out of business due to poor resiliency planning following a security breach.
CYDigital/marteq.io's insight:

Email your comments to joe_rizzo@marketingIO.com. I’ll publish it here. marketingIO: One Source for All Marketing Technology Challenges. See our solutions.  

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CMO Spending is on the Rise (Again!) - Gartner

CMO Spending is on the Rise (Again!) - Gartner | The MarTech Digest | Scoop.it
Marketer's have allocated 12% of company revenue to the marketing expense budget to last year’s 11%.

CMOs have taken on responsibility for aspects of sales, IT and customer experience functions in 30% or more organizations.

27% of the marketing expense budget is now allocated to technology, or 3.24% of revenue in 2016 vs. CIO’s tech budget of 3.4% of revenue.

We’re also seeing a strong correlation between a CMO’s willingness to share in the risk and the size of the budget they’re able to command. 

While the majority of marketing leaders expect budget increases again next year, the percentage of marketers bracing for a cut has grown nearly 5X from this time two years ago.
CYDigital/marteq.io's insight:

Highlights from the subscriber-available report.

 

Email your comments to joe_rizzo@marketingIO.com. I’ll publish it here. marketingIO: One Source for All Marketing Technology Challenges. See our solutions

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Gartner: A.I. to become a top business investment priority - ComputerWorld

Gartner: A.I. to become a top business investment priority - ComputerWorld | The MarTech Digest | Scoop.it
In the next three to five years, Gartner predicts that 50 percent of all analytical interactions will be delivered via artificial intelligence, and many of the insights will be gleaned through verbal interactions.


IT moves to open workspaces, but not everyone is happy
In an effort to boost collaboration and attract millennials, even old-school organizations are tearing
READ NOW
Spending on intelligence, normally referred to as business intelligence as well as analytics, is the top business investment priority in all types of organizations, according to Gartner's latest CIO survey.
CYDigital/marteq.io's insight:

However you define it...

 

Email your comments to joe_rizzo@marketingIO.com. I’ll publish it here. marketingIO: One Source for All Marketing Technology Challenges. See our solutions.  

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An Existential Threat - Forrester

The way forward is complex, but here are a few hints on how you should manage now. 1) Ask your CIO to parse out how much of his or her budget is IT (internal technology) versus BT. Depending on your industry, you should be in the 70/30 range, with a long-term plan of moving to 50/50. You will drive revenue and customer experience with BT -- guaranteeing your company's future. 2) Assess your CIO as to whether he or she has the capability to actually build and manage BT. If he has a high operational IQ but a low customer IQ, you may have the wrong horse for this race. 3) A noxious idea in the tech space is increasing your risk -- "Bi-Modal IT." This philosophy mandates slow change in core systems -- a risk that could ultimately sabotage your customer-facing systems, as we have seen recently in the Delta Air Lines outage. If your CIO is espousing this approach (versus a speedier strategy), your antennae should go up.

CYDigital/marteq.io's insight:

Absolutely, positively applies to the Marketer.

 

NEW: Experience Remarkable Planning Accuracy With New, FREE Growth Hacking Tool. Go here: http://goo.gl/UjcA8x 

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A Critical Shift is Happening in Technology Markets - Gartner

A Critical Shift is Happening in Technology Markets - Gartner | The MarTech Digest | Scoop.it
While investment in new technology for products and services continues to be a priority (55% of the CEOs ranked it in their top 2), a focus on innovating in the way their companies engage with customers was a top priority for more CEOs (58%).      They are recognizing that changing market conditions, particularly more tech-savvy business buyers, requires them to become more industry and business focused, to adapt their sales practices, and to think about new delivery models.

And, more importantly, they feel this shift is paying off where it counts.  42% of the CEOs cited improvements in customer experience and service as the key change that has driven more wins (Incidentally, the combination of new or better products was only 15%).
CYDigital/marteq.io's insight:

NEW: Experience Remarkable Planning Accuracy With New, FREE Growth Hacking Tool. Go here: http://goo.gl/UjcA8x 

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How to Make Progress on Your Marketing Excellence Journey [Infographic] - Profs

How to Make Progress on Your Marketing Excellence Journey [Infographic] - Profs | The MarTech Digest | Scoop.it
General Management - What do best-in-class marketers do better and differently in their pursuit of marketing excellence? Find out in this infographic, packed with data from our annual benchmark study.
CYDigital/marteq.io's insight:

marketingIO: One Source for All Marketing Technology Challenges. See our solutions.  

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Growth Mindset: 10 Principles to Growth - Pierre Lechelle

Growing a business is a difficult sport. Discover these 10 principles to take action and grow your business exponentially.
CYDigital/marteq.io's insight:

marketingIO: One Source for All Marketing Technology Challenges. See our solutions.  

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10 secret ingredients of a 10x marketer | Search Engine Watch

10 secret ingredients of a 10x marketer | Search Engine Watch | The MarTech Digest | Scoop.it
They understand the importance of structured data – and build marketing as such

They know vendor weaknesses and tech idiosyncrasies

They automate for the win

They speak multiple business languages – finance, tech and operations

They build great relationships – but don’t treat fools gladly

They can measure their performance – but also know the grey area

They take joy in creative optimisation

They bring energy and urgency to their teams and colleagues

They really understand the customer

They don’t stop learning
CYDigital/marteq.io's insight:

And they have a kick-butt product desired by a market, which often makes a fool look like a genius.

 

marketingIO: One Source for All Marketing Technology Challenges. See our solutions.  

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New unicorns will rise from the ashes of 2016’s funding downturn - VentureBeat

New unicorns will rise from the ashes of 2016’s funding downturn - VentureBeat | The MarTech Digest | Scoop.it
ust as the public market slide for tech stocks triggered a tightening in the funding environment for existing startups and helped subject some high-flying companies to markdown valuations – CloudFlare, Taboola and Twilio, for starters, there’s also been a negative trickle-down effect on the youngest of companies. The torrent of venture money seemingly available to nascent, early stage companies may be slowing to, well, a trickle.

Despite the obvious pain for the affected companies, this resetting of the VC-entrepreneur ecosystem could be a good thing. Over the past couple months, several venture investors with whom I spoke saw evidence of a silver lining.

“Some of the best companies get started during difficult years in our economy,” said Aileen Lee, founder and partner at Cowboy Ventures. “Later this year, or in 2017, will be a really good time to start a company.”

 

marketingIO: One Source for All Marketing Technology Challenges. See our solutions.  

CYDigital/marteq.io's insight:

CT for details. It's about the blocking and tackling...always.

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Let’s Face It, 2015 Was A Pretty Lousy Year For Unicorns | Info @ CrunchBase

Altogether, just five companies with billion-dollar-plus valuations have gone public this year. They include Box (in January), Shopify (May), Pure Storage (October), Square (November), and Atlassian (December) as seen here on the CrunchBase Unicorn Leaderboard.

That’s a small number, compared with the 156 companies globally that are privately valued at above $1 billion, according to CrunchBase. In comparison, CrunchBase tracked 88 private unicorns this time a year ago.

Part of the problem is that some of these companies genuinely aren’t ready. Then there’s also the much discussed argument that Silicon Valley companies are reacting to a deep-seated antipathy for going public following the dot-com burst of 2000, followed by the financial crisis of 2008.

Whether true or not, the rationale for some companies today is that it’s better to raise more money in the private market rather than in the public markets — and in some cases, much more.


marketingIO: One Source for All Marketing Technology Challenges. See our solutions

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How to Gain Focus and Define Your Strategy: A Template - Profs

How to Gain Focus and Define Your Strategy: A Template - Profs | The MarTech Digest | Scoop.it

marketingIO: One Source for All Marketing Technology Challenges. See our solutions

CYDigital/marteq.io's insight:

More blocking 'n tackling, i.e., the basics.

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Farid Mheir's curator insight, December 8, 2015 3:41 PM

A very simple template to help you create mission, vision, strategy, objectives and tactics - and stay away from most common mistakes

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How Executives Feel About Tech: Top Opportunities and Fears - Profs

How Executives Feel About Tech: Top Opportunities and Fears - Profs | The MarTech Digest | Scoop.it

marketingIO: One Source for All Marketing Technology Challenges. See our solutions.

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CEOs, CMOs, And Executive Recruiters Make Predictions For Marketing Leaders in 2016 - Forbes

CEOs, CMOs, And Executive Recruiters Make Predictions For Marketing Leaders in 2016 - Forbes | The MarTech Digest | Scoop.it

marketingIO: One Source for All Marketing Technology Challenges. See our solutions.

CYDigital/marteq.io's insight:

Some insightful, some with a grain of salt, none will take place overnight.

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Avoiding Pitfalls of Go-to-Market Model Adoption - SiriusDecisions

Avoiding Pitfalls of Go-to-Market Model Adoption - SiriusDecisions | The MarTech Digest | Scoop.it

marketingIO: One Source for All Marketing Technology Challenges. See our solutions.

CYDigital/marteq.io's insight:

Don't forget about outside constituents: suppliers, partners, shareholders, BOD, VCs, etc.

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You’re Still Modeling Growth Incorrectly - TechCrunch

You’re Still Modeling Growth Incorrectly - TechCrunch | The MarTech Digest | Scoop.it

Predictive Analytics is the next step in Marketing Automation. 

CYDigital/marteq.io's insight:

Psssst...the secret is....Work. Backwards. Click through for insight.

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CMOs' Top Goals and Challenges - Profs

CMOs' Top Goals and Challenges - Profs | The MarTech Digest | Scoop.it

MarTech requires constant optimization to continually squeeze ever improving performance. No time for continual CRO? Contact us.

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Innovation Excellence | Peter Thiel’s 4 Rules For Creating A Great Business

Innovation Excellence | Peter Thiel’s 4 Rules For Creating A Great Business | The MarTech Digest | Scoop.it

iNeoMarketing’s Outsourcing delivers the vetted talent you need under your complete management and control. Contact us to see how.

CYDigital/marteq.io's insight:

More than just rules: a Theorem. 

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SaaS Metrics Cheat Sheet - David Cummings

SaaS Metrics Cheat Sheet - David Cummings | The MarTech Digest | Scoop.it

Receive a FREE daily summary of The Marketing Technology Alert

CYDigital/marteq.io's insight:

The information comes from The Ultimate SaaS Metrics Cheat Sheet, and its a must-read if this is your bailiwick. 

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