What Half of Your Marketing Is Working?

"I know half my marketing is working, I just don't know what half." 

- Henry Ford 

The marketing manager of a large client of mine called me the other day after she had met with the owner. She said she was going over the pay per click ads they had been running and was so proud of the fact she had generated 495 clicks over the last 2 months. The owner was not so impressed. He challenged her:

"Well we had a lot of clicks but that cost me $500. I can't take "clicks" to the bank. I'm sure 90% of those people are just kicking tires or not even serious when they get to our landing page."

She was at a loss of words and deflated.

The company had no way of tracking the ROI on that campaign other than sheer number of clicks.

We discussed this and I introduced the concept of tracking and measuring every marketing event and campaign. With this information I explained "you can have an "Unlimited Marketing Budget" and never have to struggle justifying your marketing budget."

Yes an "unlimited marketing budget". If you knew of a bank where you could go and give them $100 and they would give you back $150 how often would you go?

Duh! Well track and measure your marketing efforts and then analyze the ROI and you too can have an unlimited marketing budget.

How do you measure? It is easy!

All electronic marketing can be tracked by lead by event, then simply each month track sales against your lead list by event or campaign that created it.

For direct mail, referrals, walk-in's, call-in's have everyone that answers a phone or greets a customer ask them if they have been a customer in the past and if not ask the simple question "Where did you hear about us". Provide spreadsheets that the employee can then note the name, email, etc. and the source of the lead.

Then keep track on an ongoing basis new sales to those leads and also include the lifetime value of that new customer.

I got a call this morning , she went back and tracked down this info for the last 6 months and was excited about the results she was going to be able to show the owner. The ROI on pay per clicks was outstanding and she has facts not guesses.

Here is a short video explaining how you can then calculate the ROI not only on the initial sales but the life time value of this new customer.

 

Profit Multiplier Video

Keep doing the marketing that returns a profit and stop the ones that don't.

All the best, 
Rick Wallace