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/
Contact Us Today For Ad Information... Ebooks, Scripts,
Websites, and more... When used effectively, classified ads can be one of the... Read More Don't use vague generalities in your headlines. Be as specific... Read More Boring is one thing you can't afford to be when... Read More Not everyone is aware of what are text adverts? Text... Read More Many believe that when it comes to advertising, it's a... Read More How much money have you spent in Advertising, Promotion &... Read More Traditional brochures typically tell the story of your company, i.e.... Read More This is the second part of creating your own business... Read More Different Types of Station ContactReaching radio hosts (for the purpose... Read More From meager beginnings in 1920, radio has grown with us... Read More I'm sure while you have seen many tips on advertising,... Read More Several years back the billboard people put a big picture... Read More When my daughter complained recently about the prohibitive cost of... Read More In the sign industry we commonly refer to the material... Read More Yellow Pages Ads - Buying SecretsOK- let's agree that many... Read More A good annual direct mail solicitation program can produce unrestrictive... Read More Reach and frequency are terms generally used when planning advertising... Read More If you are an ardent web surfer and MLMer like... Read More When, some little time ago now, I first descended upon... Read More In order to sell more products and service, you need... Read More Buyers Don't Rely on the Yellow Pages Like They Used... Read More In the marketing world, radio has earned the reputation of... Read More Imagine tossing a pebble into a crystal clear pond on... Read More 1. Give Testimonials When you purchase a product or service... Read More Banner advertising is an effective way of getting your advertising... Read More
Cheap Domain Names
The Secrets of High Money Classified Ads
Boost Headline Believability With Specifics
Marketing Messages with Add Zest & Appeal
What are Text Adverts?
How To Make Your Advertising Work!
How to SAVE Yourself from Spending too Much Money on Advertising!
Do You Really Need a Brochure?
Create Your Own Business Cards, Part 2
Radio Interview 101
The SKINNY on Radio Advertising
The Forgotten Advertising Tip
The Skinny on Billboards
Why Not Use the Humble Fax in Your Advertising Strategy?
How to Save Money by Making Your Own Sign
Yellow Pages Ads - Buying Secrets
Raising Funds For Your Nonprofit Using An Annual Direct Mail Program
Reach vs. Frequency: Touch 100 Once or 25 Four Times?
Juice - Scam of the Decade or Opportunity of the Century
What Is Most Important ? Copy Or Pic?
The Motivational Triggers That Make People Buy
If You Lost 70% of Your New Customers, Would You Notice?
Why Radio Advertising Could Be The Best Thing You Ever Did For Your Business
The Key To Marketing New Ideas!
7 Unique Ways To Get FREE Advertising
Understanding Internet Banner Advertising
Contact Us Today For Ad Information... I'm sure while you have seen many tips on advertising,... Read More The task of executing successful advertising campaigns for products made... Read More One of the keys to strong positive mental attitude is... Read More We have a Great News that we think that may... Read More Don't use vague generalities in your headlines. Be as specific... Read More Solution: You can protect yourself by partnering with other lead... Read More One of the most important things to do now that... Read More Cinema advertising has always been an effective marketing tool for... Read More Ah, my very favorite promotional product of all, the refrigerator... Read More Reach and frequency are terms generally used when planning advertising... Read More Often considered as "plain Jane's" of the print world, trade... Read More I caught myself wracking my brain over what kind of... Read More For most companies, gone are the days of spending money... Read More You offer a reliable, quality service. You know that if... Read More Let's face it. Email marketing and publishing have became very... Read More Different Types of Station ContactReaching radio hosts (for the purpose... Read More Do you often see print advertisements outdoors, as much as... Read More In a recent article, I shared five of my top... Read More Many groups like the Chamber of Commerce, ASB at the... Read More Scrolling LED signs is type of LED signs that displays... Read More Many prospects skim through catalogs and brochures, glancing at the... Read More Most small businesses do not have a high powered advertising... Read More Let's face it - most brochures go straight into the... Read More Digital printing has revolutionized the sign industry. Current printers can... Read More Tired of pouring endless money into advertising? Do you wonder... Read More
Affordable and Reliable Web
Hosting Starting
The Forgotten Advertising Tip
Diamonds Are For Evil
How You Measure Yourself Is How You Motivate Yourself
See How to Advertise and Gain More Money to Blast Another Project
Boost Headline Believability With Specifics
Dont Put All Your Eggs in The Same Basket
How Do People Know Youre in Business?
Cinema Advertising is Big Business, So Mergers are a Natural
God Bless The Refrigerator Magnet!
Reach vs. Frequency: Touch 100 Once or 25 Four Times?
Trade Writing - For Cash!
How to Write Ads that Increase Your Business
Measure the Response of Your Advertising Campaigns by Using Promotional Products
Advertising - Should You Be Advertising Your Services?
Online vs. Offline Advertising
Radio Interview 101
Successful Print Advertising Designs
More Cheap Tricks for Promoting Your Business
Non-profit Coupon Books and Coupon Mailers for Small Businesses
Scrolling LED signs
Direct Mail Catalogs & Brochures: Write Captions That Sell
Take Your Radio Ads to the Next Level
Double the Effectiveness of Your Company Brochure
The Graphic Problem
How To Track Your Advertising Like A Hawk
Advertising |