08/02 – 🪙 The Gold Ratio
- August 2, 2023
- Posted by: The Miracle Twins
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. ️We 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? ️
️Us today ️ 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.
Listen to this Podcast Episode!