|
Author: Shawn Meldrum Article source: http://www.forewordmagazine.com/. Used with author's permission.
You may be aware that in a basketball game the assistant coaches keep an almost unending list of personal statistics for each player. Rebounds, assists, points, minutes played, etc.
Why is that?
Because they know that these individual statistics all add up to the bottom line.
The final score.
If they can achieve even a small incremental improvement in these individual statistics for each player this will have a compound affect on the final score.
And of course, it helps them know which players to give the most playing time too.
In marketing your business you should be just as disciplined. Which products and which ads and which media should you give the most playing time? Do you know?
What's the point of designing and implementing an advertising campaign if you don't know if it worked or if it was better than the last one?
What a waste.
How do you know where the best place is to spend your advertising dollars?
By tracking everything.
Incoming calls, emails, walk-ins, website visitors, etc.
Train yourself and your staff to always ask these questions. Where did they come from? How did they hear about you? Which ad did they call on?
Here is an example: Let's say you place a classified ad in the newspaper at a cost of $135.00 offering a free report on your product. You could track the incoming calls in many ways (for instance by directing them to a free recorded message with a unique extension number or simply by asking them where they heard about the offer when they call).
Let's say you receive 12 calls on this ad and 2 of them end up as completed sales.
What is your cost per prospect?
(Cost of Ad) / (Number of Calls) = Cost Per Prospect
$135.00 / 12 = $11.25
Your cost per prospect is $11.25
What is your conversion rate of prospects to sold clients?
(Number of Sold Clients) / (Number of Prospects) = Conversion Rate
2 / 12 = .17 (or 17%)
Your conversion rate of prospects to sold clients is 17%
What is your cost per sold client?
(Cost of Ad) / (Number of Sold Clients) = Cost Per Sale
$135.00 / 2 = $67.50
Your marketing cost per sale is $67.50.
Now let's say you place a display ad in a large local corporate newsletter and it costs you $450. You get 27 calls which turn into 4 sales.
Which ad is performing better?
What is your cost per prospect for this ad?
(Cost of Ad) / (Number of Calls) = Cost Per Prospect
$450.00 / 27 = $16.67
Your cost per prospect is $16.67
What is your conversion rate of prospects to sold clients?
(Number of Sold Clients) / (Number of Prospects) = Conversion Rate
4 / 27 = .15 (or 15%)
Your conversion rate of prospects to sold clients is 15%
What is your cost per sold client?
(Cost of Ad ) / (Number of Sold Clients) = Cost Per Sale
$450.00 / 4 = $112.50
Your marketing cost per sale is $112.50.
Depending on your products and profit margin both of these ads may be performing well enough to merit continuation. However, based on this information we would want to look for other opportunities to expand our use of the classified ad first.
This may seem a little basic but this information is extremely valuable and often overlooked.
The outcome of most athletic contests is normally decided by a very small margin, sometimes by as little as tenths of an inch or hundredths of a second, missing that pass completion by half a step or missing one basket.
One would suspect that most winners and losers in business are also determined by very small margins.
Not giving that extra little bit of caring and customer service. Not having your presentation skills honed, not including testimonials with your sales information. Not having the most effective headline in your ad or not having a headline at all.
And worst of all, not knowing which ads are working and which should be put on the bench.
"If at first you don't succeed, try, try again. Then quit. There's no use being a damn fool about it." - W.C. Fields Shawn Meldrum has spent the last two decades marketing everything from almonds to landscape lighting. He currently specializes in marketing for mortgage brokers, loan officers and real estate agents. For free mortgage marketing articles and much more visit: http://www.MortgageMarketingTips.com/
Public Relations & Advertising: A Perfect Marriage
The use of public relations strategies can significantly increase the effectiveness of your advertising. Are you taking advantage of this powerful marketing te...
Lack of Iodine and Silica Can Create Hair Loss
Iodine is vital to your hair growth. Sheep farmers long ago found that vegetation-lacking iodine due to iodine-depleted soil would adversely affect the growth o...
If I Wanted To Sell For A Living, I Would Of Majored In It In College
If you think selling is not an honorable profession, think about how you affect other people's lives.
Choosing a Digital Camera
Choosing a camera can be confusing. However, this article will help dispel some of the myths and furnish you with some important information when choosinga digi...
Pros & Cons of Investing in Bonds
A bond is a debt security, by which you are lending money to a government, municipality, corporation, federal agency or other entity known as the issuer. In ret...
After the Affair - Part 1
Has your world fallen apart? How do you deal with infidelity? Can this relationship be rapaired? A look at trust, betrayal, and love in relationship.
Youve Got Mail
It seems that Google is revolutionizing the Net in more than one way. Recently they announced that they will be offering a free email service called Gmail. It w...
Chinese Dumplings on Chinese New Year
This article is about the fond childhood memories of Chinese New Year celebrations. The entire family had a tradition of coming together to make dumplings for t...
Get The Finance You Need With UK Secured Homeowner Loan
Secured homeowner loans in UK provide large sums to borrower at cheap interest rates. The repayment terms of such loan can range up to 25 years. The borrowers s...
Five Tips & Five Steps --- To Sell or Not To Sell My Business
You've thought seriously about selling your business but you really don't know where to start. You have heard some horror stories about different selling proces...
Small Business Marketing, According to Seinfeld
What could Seinfeld possibly have to do with marketing a small business? As it turns out, all small business owners could take a few lessons from the show that ...
Attracting Clients With Incremental Marketing
Do you ask prospective clients to go too far?
MLM: Powerlines vs. Downlines
Discover why most participants in MLM fail to succeed -- and why it's not their fault!
Selling Mobile Homes
Statistics show that there is a spurt in the number of people opting to own and live in mobile homes. For some, selling mobile homes is a business, while for ot...
Top 7 Small Business Tax Tips
Here are seven ways for owners of small businesses to save
money on their taxes.
Guide to Bridging Loans
Here is a useful guide to bridging loans...
Canine Diabetes - Diets Are Important
When a dog has canine diabetes, it is important to regulate their food intake. The diet that you feed your dog can certainly help in controlling and stablizing ...
The Skinny on Billboards
Outdoor is not a "quick fix". If sales are
down, you can't quickly put up a few boards to
boost the numbers.
Linking Strategies That Bring Results
Find out what linking strategies can help your search engine ranking.
Checklist for Hiring a Private Investigator
Looking for an old friend? Want to know if your spouse is cheating? Need to check out a potential tenant or employee?
Web and Computer Security
This article is about Computer and Internet Security.
Great Franchise Opportunities
One of the most popular franchise opportunity nowadays is the "EmbroidMe" franchise opportunity where you can create custom-made apparel as well as merchandise ...
Walt Disneys Failures Could Inspire Entrepreneurs
You are a struggling entrepreneur and sometimes it feels like you are pushing a 3 ton boulder up a steep hill. Costs keep mounting and you are considering givin...
Traffic Generation Tutorials - Article 1 of 10 Bi Weekly Articles
This article will be continually updated with your feedback and updates will appear http://www.its-brilliant.com/0001.html. Please See Contact and Reprint deta...
|
Print this page