Have you ever felt SUPER FRUSTRATED about marketing?! Or perhaps confused? Maybe even “done with it?” Don’t worry, a lot of business leaders feel the same way! That is, until they learn these secrets: marketing is TESTING, MEASURING, ANALYZING, and CHANGING!
THREE STEPS TO INSANELY INCREASING YOUR MARKETING ROI
1. Tracking your lead and client sources is IMPERATIVE. Your staff need to understand that every single lead and client who is not answering these questions electronically (through a website form, click through in an email, etc.) needs to be ASKED and RECORDED, then summarized monthly for the report! The very important questions to ask are:
a. Where did you hear about us?
b. Where else have you seen or heard about us?
You also need to make sure your bookkeeper is accurately recording your advertising and marketing expenses so you can pull those from your monthly reports.
Finally you need to make sure your TEAM is tracking their TIME accurately so that you can use the cost of their time (add labour burden) in your calculations (I’ll get to the calculations soon).
2. Using that accurate data to make a monthly spreadsheet, showing how many leads came from each source (i.e. Facebook, Insta, Google ads, etc.), and how many clients came from those same sources is A MUST DO. This way you can create a nice little pie chart and see the percentages of your leads and clients that are coming from each source, then make better decisions on where to spend your marketing time and money! You should be able to find a template like this on our website if you don’t want to build your own.
3. Using that accurate data we keep talking about means we can calculate these four very important numbers for each type of marketing spend, and THEN make better marketing decisions; i.e. stop doing Facebook ads and do more Google ads.
Return On Investment (ROI): Money coming in from Facebook spend/money you spend on Facebook (include labour costs as well as ads!).
Cost Per Customer (CPC): Money you spent on Facebook/number of clients you got from Facebook.
Cost Per Lead (CPL): Money you spent on Facebook/number of leads you got from Facebook.
Conversion Rate: The number of leads from Facebook who converted to clients/the number of total leads from Facebook.
YOUR MONTHLY MARKETING REPORT IS CRITICAL
Make sure to do all four of these calculations in your monthly marketing report; if you don’t have one, you can also find this on our website. If you only do one, for example, cost per lead (CPL) you may think that Facebook is great! However, if you haven’t calculated the other three, you may be LOSING MONEY on that activity and not even know it.
Remember, marketing is TESTING, MEASURING, ANALYZING, and CHANGING!