Sugar Cookie Marketing

08/02 – ūü™ô The Gold Ratio

I know some of you are screaming at your computer screen right now sayin’ “IT’S GOLDEN¬†RATIO!” But hold up, now ya hear! It’s a play on words (but trust that 99.9% of other times it’s a typo – but¬†this¬†time it isn’t… surprisingly).¬†
 
In marketing, it’s easy to fall prey to numbers. Numerical evaluations are THROWN at us daily. Just consider all the math problems we see as marketers turned business owners turned back into marketers.¬†
  • Followers on Instagram
  • Reach on Facebook
  • Comments on Group Threads
  • Open Rates on Emails
  • Class Tickets Sold on Eventbrite¬†
Hey – I thought we promised ourselves we’d never take a math class again, right?!¬†Well = welcome, class is in session, get your bottom in a seat like your bottom line depends on it, because it does.¬†But not in the way you¬†think¬†it does.¬†
 
I’d be lying if I didn’t say math wasn’t important in business. It is. I live and die by my spreadsheets (which are essentially my digital children at this point). Math lets us predict, decide, and determine which direction we need to head towards. But¬†addition¬†and¬†subtraction (outside of the business bank account) ain’t the move. ÔłŹWe want… drum roll… ratios¬†
 
*screams in Algebra 2*
 
Ratios are comparisons. One number,¬†related¬†to another number, knocked up against each other to give us a percentage. The numbers we’re comparing?¬†ÔłŹ
 
ÔłŹUs today ÔłŹ¬†vs. ¬†Us yesterday.¬†
 
You see – comparing how many followers a baker-influencer has to your hyper-local bakery in rural America ain’t doin’ your mental state any favors. And it’s not a good barometer for effective marketing progress either. But you know what¬†is?¬†You today compared to how many accounts you were reaching in your target local audience this time last year.¬†
 
So – here are other “gold” ratios (still destroyin’ some of ya with that play on words, huh?).
  • Engagement Ratio¬†– how much¬†engagement¬†in relation to your total follower count are you getting per post? If you had 20 followers and got 20 comments, you’d have a 100% engagement rate (and 1:1 ratio).¬†
  • Class Seating Ratio – we only can seat 10. If I sell 9 seats, my 9:10 ratio means my class is at 90% capacity. If someone is teaching a class to 20 seats and sells 9 tickets, their ratio is 45% even though we sold the same number of tickets¬†comparison truly is the thief of joy (except when we compare ourselves to ourselves).
  • Presale Ratio – presales work on made-up numbers (or how many Miss Cookie Packaging boxes you ordered). “I sold out!” can literally mean anything. In fact, folks be “selling out” and¬†then¬†selling 10 more FOMO orders. It’s relative. ¬†
  • Booked Ratio¬†– same with the “I’m BOOKED” posts. Booked in relation to…? See – it’s relative. It’s a ratio. If they were¬†only¬†going to take 5 orders this month, and took 5 orders – they have a 100% booked ratio. If you were going to take 30 orders and took 20, you’d only be 66% booked.
  • Click Through Rates¬†– emails just like this one are relative too. The last week’s Onesday Wednesday was sent to 3,834 emails and 1,971 of you opened it (for the free transfers, I know, but I can pretend otherwise). That’s a¬†51% open rate.¬†
  • Profit Ratio¬†– probably the most important one to a business owner – let’s knock up our profit % against last years’. Are we increasing our profits by decreasing costs, increasing efficiencies, and increasing price through added value? Yes? YOU’RE DOING GOOD THEN.¬†
 
Snag this Podcast on any major podcast player (Spotify, Apple Music, Audible, Amazon Music, or your desktop) by clickin’ here – Episode 123 – the Gold Ratio.

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