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Mike Lieberman, CEO and Chief Revenue ScientistThu, Apr 12, 2012 4 min read

What Albert Einstein Knew About Optimizing WWith Marketing Software

 Albert Einstein was one of the smartest people to have ever lived. Today, the practical applications of Einstein's theories include the development of the television, remote control devices, automatic door openers, lasers and DVD-players. However, he is best known for his theory of relativity, e=mc2. What most people don't know is that this groundbreaking theory applies to marketing.

marketing metricsHis famous formula, explained in simple English, states that energy equals mass times the velocity of light squared. From a marketing perspective, a simlar mathematical approach can be applied to your marketing. Take a look at the activities required to generate the leads required to grow your business.

These activities include the opportunities for prospects to watch, read or learn about your company while they go about their day. This used to be called advertising. Now we call it content creation and sourcing and the key to success is monitoring and measuring the results of your efforts.

It all comes down to numbers. The number of people who visit your website or reach out to your company as a direct result of that activity. The number of people who convert from visitor to lead on your website or by interacting with your company in some way. The number of leads who are actually qualified opportunities. The number of qualified opportunities your sales team is able to close. The total revenue generated from those sales.

There is a direct mathematical equation between all these metrics above. Marketing software provides business owners, executives and marketing professionals with the data required to actively manage your marketing and ensure you reach the critical mass needed to meet your business goals.

Here is a real world example you can apply to your business.

1. You create a Free Report: 10 Ways to Save Money on Your Home Owners Insurance Policy.

2. You find five websites that would be willing to let you post this free report (there are probably 50 sites like this). Each of the sites has 100,000 visitors each month.

3. One percent (1%) of those visitors click on your report and now your site gets 5,000 new monthly visitors from this effort.

4. Your website is amazing, so you convert 3% of those new visitors and the result is 150 new leads.

5. Not all these leads are qualified, but 10% are, so you end up with 15 qualified opportunities.

6. Since your sales effort is top notch, you close 20% of those adding 3 new clients to your client base in a single month.

The good news is that those 150 leads are still being nurtured by your email marketing campaign, so eventually some of those unqualified leads will become qualified and you will be their first stop.

Marketing software treats marketing as a science and makes this complicated process simple and extremely trackable. The only mistake is NOT tracking and proactively making adjustments as you go.

Start Today – What are your marketing metrics? Find out your exact conversion rate, your close rate, your qualified lead vs. total lead rate. You will need these numbers to start treating your marketing like a science.  

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Mike Lieberman, CEO and Chief Revenue Scientist

Mike is the CEO and Chief Revenue Scientist at Square 2. He is passionate about helping people turn their ordinary businesses into businesses people talk about. For more than 25 years, Mike has been working hand-in-hand with CEOs and marketing and sales executives to help them create strategic revenue growth plans, compelling marketing strategies and remarkable sales processes that shorten the sales cycle and increase close rates.