GoConvert is a unique offering with a unique philosophy and a unique vocabulary. Many of the terms below are common and well-known. Others are unique to GoConvert and/or require a bit of explanation because we use them in unique ways.
From CRM to RGRM
At the highest possible level, GoConvert is a value creation machine. Specifically, it creates value for customers by building revenue-generating relationships for them. Unlike other CRM solutions, agencies, and ad vendors who exclusively focus on customers (either explicitly or implicitly), we recognize that a number of different kinds of relationships can have positive impacts on an organization’s bottom line. Instead of customer-relationship management (CRM), then, we might say GoConvert is focused on revenue-generating relationship management (RGRM).
GoConvert is like a traditional CRM, though, in that it anticipates moving contacts (more or less linearly) through a number of different stages. These follow.
We almost always inherit audience-stage relationships from our customers during the deep dive process. Audience-stage relationships have a lot of aggregate power in that, as a group, they can give us insights into important geographical and demographic trends. However, they are frequently less well known as individuals and, often, have never generated any direct or indirect revenue for our customer.
GoConvert wants to help customers build net-new, revenue-generating relationships. As such, by default, we don’t include any audience-stage contacts in application dashboard reports or graphs. Those resources reflect kinetic marketing activity, lead flows, and the kinds of revenue-generating relationships outlined below.
If an audience-stage contact submits a lead form as a result of our outreach activity, our application will promote him/her to a relationship-stage contact. At that point, we also begin including the contact in dashboard reports and graphs. While contacts who follow this lifecycle aren’t net new, GoConvert has helped him/her re-engage with our customer. Since there’s analytical and financial value in this re-engagement, we think it’s fair and useful for our data to reflect it.
Whether s/he is net new or promoted as a result of “raising a hand” via form submission or other engagement, GoConvert uses the following relationship taxonomies by default. We’ve successfully used GoConvert to find customers, recruit teammates, connect with investors, develop evangelists, and run marketing experiments. As such, we anticipate these taxonomies might not be sufficient (or necessary) for every one of our customers, and they can be edited and removed at will.
These relationships have the following things in common: (a) we can assign them a financial value and (b) their actions contribute quantifiable revenue to a customer’s bottom line.
A person who purchases goods or services from one of our customers.
Evangelists are people who can influence other people to form relationships with our customers. They may or may not be customers, investors, partners, or teammates themselves. Evangelists can testify about our customers within their own social networks, within our customers’ social networks, on social media, in person, via email, via online review, or in any other forum where others may be exposed to their views.
A person or organization that contributes money to our customers with the expectation of achieving a profit. An investor might also be an evangelist, but that isn’t always the case (and vice versa).
Most relationships begin at this stage. Whether they’re net new or began as audience-stage contacts, leads have “raised their hands” via form submission or other engagement. This allows a conversation to begin.
Partners take and share risks and profits as part of a mutual undertaking with our customers. They may or may not have invested money in that enterprise.
A teammate is someone a customer hires as a result of a recruitment effort.
Other important GoConvert terms follow. These appear in our application dashboard, in our demo and proposal decks, and elsewhere on the marketing website (eg., in our performance calculator).
Ad Clicks/Site Visits
The number of people who click on our ads.
The number of times our ads were displayed.
Average Relationship Value
The average value of the relationship one of our customers is trying to build. For example, $100,000 in gross sales from 100 customers would give you an average relationship value of $1,000. This could be a business’ CLV or the average amount each employee generates for a business.
The number of people who see our ads.
Budget under management. The dollar amount a customer gives us to invest in marketing efforts on his/her behalf.
For every dollar the customer spent, we gave them this many back. Calculated as
Total Value of Income-Generating Relationships / BUM.
The number of relationships that become income generating. Equal to IGRCR.
Cost per click. The amount we pay for one ad click/site visit. Calculated as
Adspend / Ad Clicks/Site Visits.
Cost per income-generating relationship. The amount we pay for a new income-generating relationship (eg., “customer”). Calculated as
Adspend / Income-Generating Relationships. As with CPR, one could argue this would be a more accurate representation what each customer is paying per income-generating relationship:
Total Budget Under Management / Income-Generating Relationships. However, this wouldn’t give us as accurate a sense of our real-time performance. The cost of each IGR would be high early in our engagement with a customer and fall over time. Using our formula, we always have an up-to-date sense of how our current efforts are performing.
Cost per thousand (mille) impressions. The amount we pay to show our ads to 1,000 people.
Cost per relationship. The amount we pay for one relationship. Traditionally, this metric is referred to as “CPL” (“Cost Per Lead”). Calculated as
Adspend / Relationship Network Size. For example, if we’ve spent $100 on ads and generated 10 relationships (leads), the CPR would be $10. One could argue this would be a more accurate representation what each customer is paying per relationship (lead):
Total Budget Under Management / Relationship Network Size. However, this wouldn’t give us as accurate a sense of our real-time performance. Lead cost would be high early in our engagement with a customer and fall over time. Using our formula, we always have an up-to-date sense of how our current efforts are performing.
Click through rate. The % of people who click an ad. Calculated as
(Interest / Awareness)*100.
The number of people with whom we establish a kinetic relationship (via form submission, social media follow, &c). Calculated as
(Network Size / Ad Clicks/Site Visits)*100. Equal to RCR.
Income-generating relationship value. The total value of relationships in our customer’s relationship network worth > $0.
Income-generating relationship conversion rate. The % of people who generate income. Calculated as
(Conversion / Engagement)*100.
The number of relationships in our customer’s relationship network that have a value > $0.
The number of people who click on one of our ads. Equal to CTR.
vs. traditional digital benchmarks.
Real-time rates from the GoConvert customer network.
Cost per BUM and customer network rates.
The number of people in a customer’s relationship network. (Does not include audience-stage contacts.)
Relationship conversion rate. The % of people who become relationship-stage contacts. Calculated as
(Engagement / Interest)*100. Traditionally, this is referred to as a “Lead Conversion Rate.”
The number of people who saw our ads.
The total net dollar amount generated by marketing spending. Calculated as
Total Value of Income-Generating Relationships - BUM ($) and
Total Value of Income-Generating Relationships / BUM (x/burn).
The amount of paid ad spending we do on a customer’s behalf.
Total Relationship Value
The total value of all a customer’s income-generating relationships.