I want to share some insights from a recent conversation with the brilliant Dennis Yu on my show. We delved into the challenges companies face in the world of digital marketing, particularly when dealing with extended lead conversion times.
Dennis pointed out a common issue in industries like healthcare, where the sales cycle can drag on for 12 to 18 months due to intricate approval processes. In such cases, waiting for a lead to mature before optimizing campaigns is just not practical. The key, according to Dennis, lies in what he calls “digital plumbing.”
So, what’s digital plumbing? It’s essentially making sure you are passing signals from those who’ve converted in the past to the relevant channels (Google Analytics, Facebook). Dennis used the example of a company selling Employee Assistance Programs (EAPs) to larger firms in the healthcare sector. By integrating CRM systems and passing signals efficiently, the targeting is built into the optimization process. This, he stressed, is where many go wrong with digital ads.
One critical point Dennis made was about the disconnect between sales and marketing teams. Without proper digital plumbing, the blame game between these teams is inevitable. It’s not about assigning blame; it’s about optimizing the process for success.
Dennis shared a fascinating real-world example of a personal injury firm in LA spending a whopping $1.7 million monthly on PPC advertising. Despite generating leads, the firm faced a quality issue. Why? No digital plumbing. Without the right signals, platforms like Facebook and Google couldn’t optimize for higher-quality calls – a significant factor in cases involving accidental death versus a minor fender bender.
The solution, as Dennis sees it, is surprisingly simple. Pass those signals on to platforms like Facebook, Google, and TikTok, and let them optimize for you. It’s a straightforward concept that many agencies and even sizable teams overseeing marketing efforts often overlook.
The key to overcoming the challenges in digital marketing is to embrace digital plumbing. By passing signals efficiently, we enable platforms to optimize effectively. It’s about breaking down silos between sales and marketing and letting the digital engines do what they do best.
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