1. Capture Data on Leads & Clients (referral sources)
Where did leads hear about your business? (Radio, Television, Facebook, Instagram, Phonebook, Referral, etc). Make sure your team knows this is the most VITAL marketing data and they MUST capture it, for every lead! When a lead becomes a client, make note of that, for our next calculations.
Ask all leads and clients where they found out about your business and keep track in a simple chart like the example below:
How Did You Hear | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Year Total | % of total |
5 | 12 | 0 | 9 | 16 | 8 | 12 | 7 | 9 | 16 | 8 | 12 | 114 | 12.87% | |
10 | 11 | 3 | 4 | 7 | 12 | 9 | 10 | 11 | 3 | 9 | 15 | 104 | 11.74% | |
TV advertising | 1 | 2 | 1 | 1 | 2 | 1 | 0 | 0 | 1 | 2 | 1 | 1 | 13 | 1.47% |
Yellow pages | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
Mailouts post office | 2 | 1 | 3 | 2 | 1 | 3 | 2 | 1 | 1 | 2 | 3 | 1 | 22 | 2.48% |
1 | 0 | 3 | 5 | 1 | 0 | 2 | 6 | 1 | 3 | 2 | 1 | 25 | 2.82% | |
0 | 0 | 2 | 1 | 3 | 1 | 2 | 1 | 5 | 0 | 2 | 1 | 18 | 2.03% | |
Signage | 20 | 25 | 12 | 15 | 20 | 25 | 12 | 15 | 20 | 25 | 12 | 15 | 216 | 24.38% |
Newspaper Ad | 2 | 1 | 3 | 1 | 0 | 0 | 1 | 1 | 2 | 3 | 1 | 2 | 17 | 1.92% |
Existing client referral | 25 | 27 | 10 | 11 | 18 | 14 | 19 | 3 | 17 | 20 | 21 | 24 | 209 | 23.59% |
Repeat Customer | 10 | 9 | 17 | 12 | 8 | 16 | 10 | 9 | 17 | 12 | 8 | 14 | 142 | 16.03% |
Radio | 0 | 0 | 1 | 0 | 0 | 3 | 0 | 0 | 1 | 0 | 0 | 1 | 6 | 0.68% |
Total | 76 | 88 | 55 | 61 | 76 | 83 | 69 | 53 | 85 | 86 | 67 | 87 | 886 |
2. Measure and Improve These Key Marketing Numbers for each type of referral source:
Return on Investment (ROI) = income from spend ➗ spend
Cost Per Customer (CPC) = spend ➗ the number of customers who came from that spend
Cost Per Lead (CPL) = spend ➗ number of leads who came from spend
Conversion Rate = customers ➗ total leads
(What percentage of leads became customers?)
3. Analyze and Improve These Numbers
Pricing: Look at the gross profit margins on products/ services to make sure they are not priced too low. Consider raising the price of products/ services, or decreasing the costs
Average Sale Per Customer: Upsell or cross-sell products or increase prices to increase your average sale.
Frequency of Purchase: Focus on getting current customers to shop more frequently, or develop a monthly recurring revenue model!
4. Measure and Improve Your Retention Rate
Measure and improve customer retention rate by:
Conducting surveys & implementing feedback
Hosting focus groups
Interviewing customers
Reviewing internal processes to identify flaws
5. Turn points 1 – 4 into Key Performance Indicators (KPI’s) and watch the magic happen!!!
Turn the previous points, and other key numbers into KPIs for staff, and ensure you track them monthly: goal vs. actual.
Use your powerful coaching tools to get our team to help you hit those higher numbers, and in turn, make a much higher profit.
Make sure you make a plan and put it in your calendar, to execute on these 5 points. If you’re already doing some version of them, make a plan to do them BETTER, because this is where the profit is!
Business can be better™ and it should be!
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