What is The Tactical Triangle?
Perry Marshall calls it the e=mc2 of marketing.
The basic principle of the Tactical Triangle is the following:
- To sell something you need Traffic
- You need to be able to Convert the traffic into leads and customers, and…
- The Economics need to result in a profit when you’re done.
Those three core components form the three points of the Tactical Triangle and 80/20 is always in the middle.
The 80/20 rule represents the imbalance of a very small number of inputs, investments or actions being responsible for a large majority of results and outcomes.
If you don’t know about 80/20 you are ignoring one of the most powerful laws of business and nature.
80/20 is critical to successful business growth – this is what you are looking for when you “rack the shotgun” and identify the leverage points that allow you to implement force multiplication.
When you get the right segment of targeted, high quality traffic and you have a systematic method in place to capture, convert and close new business cost-effectively, you have a sustainable way to grow your business.
One of the obstacles to a successful tactical triangle for many businesses is a lack of accurate measurement and reporting.
Traffic and conversion are difficult enough for most businesses to manage, but the third point of the triangle – economics – is the hardest part to measure for most business owners and executives.
To better understand the economics of your marketing you must measure customer acquisition cost, revenue from marketing campaigns and return on investment or return on ad spend.
Once you have the right system in place to attract, convert and win new customers, with accurate measurement of the economics, then you know what works and what does not work, and you can eliminate wasted spend and re-invest into the campaigns with the highest ROI.
When you repeat this loop re-investing into more profitable traffic, better converting leads and compounding increases in your business income and marketing economics, you have a winning formula.
That is what Perry Marshall and Jack Born have dubbed “The Tactical Triangle” and it is a very powerful tool to keep your objectives aligned and moving forward at all times.
