Unfortunately, if you are still running marketing campaigns without tracking the results you are living in the 90s.
Back then marketing agencies were happy
(and still are) to sell you on the value of branding, getting your name out there, and "top of mind awareness". They got paid big bucks and made big flashy ads. Agencies like this aren't creating ads for the target market. They're doing it for the person writing the check.
For the average business, big branding advertising rarely works. You don't know which customers are coming from where or what is working and what isn't. Huge dollars are wasted and opportunities for customers are lost. Unfortunately, this still goes on today.
To be fair, back in the 90's the technology wasn't really there yet to track the effectiveness of a yellow pages ad, billboard, or television campaign. Today, the world is a much different place. Technology is improving at a faster rate than it ever has before.
If you are not tracking the ROI from your marketing campaigns, how much each dollar you spend brings back to you, you are blind and those directing you are blind; eventually you will end up in a ditch.
So, Step 1 is to track your marketing campaigns.
Remember this: IF YOU CAN'T TRACK IT, DON'T RUN IT.
Step 2 is to prioritize your metrics.
Today you can track everything. I can run a video campaign on Google AdWords and see exactly how many people saw my video ad, who clicked to view it, how many seconds they watched the video, whether they clicked to my website, and how long they stayed before exiting. There is so much marketing data you can gather these days. From Facebook likes, to ad impressions, to phone call duration, to conversion rates, bounce rates, re-tweets, and on and on and on it goes.
To help you sort through all the noise and clutter, here are the 7 most important business metrics you need to focus on to be smart with your marketing and grow a successful, market-dominating stone business:
1. Return on Investment (ROI)
Return on investment is a percentage of how much money you make for the amount you spend. For example, if you run a yellow pages ad costing $1,000 and make $2,000 in revenue your ROI is 200%. If you spend $1,000 and make $500 that is 50% ROI, and you know to instead invest your money in more profitable advertising.
2. Cost of Obtaining a Customer
Cost of obtaining a customer, or cost per acquisition, is essential in marketing. Not only does it help you measure whether a campaign is profitable or not, it can help you benchmark where you are to drive that cost down. Knowing your costs, especially cost per acquisition, is essential to improving profitability.
3. Average Revenue per Customer
This goes hand in hand with cost per acquisition and is easy to determine. Simply divide your total revenue by your total number of customers. Do this for the month, the year, or last 6 months. Use an Excel spreadsheet and track your average revenue per customer by the month and year. This allows you to see if it is going up like you want it to year over year.
4. Percentage of Converted Leads
Resist the temptation to hyper-focus on generating more leads. It’s much more important to focus on turning those leads into sales; after all, that’s where the money comes from. Keep track of your percentage of converted leads to see where you stand, and recognize where you need to be. Just 5 or 10 percent increase in conversion rates can in some cases double your revenue.
5. Business Through Referrals
Your percentage of business by referrals is a good indicator of how effective you are at maximizing your revenue per customer. Getting referrals is easy with the right systems in place. If your business is not maintaining a consistent number of referrals each month, look into fixing this ASAP.
6. Percentage of Returning Customers
I'm sure you already know that research has shown it's five times cheaper to sell to an existing customer than to acquire a new customer. Track the percentage of customers who come back for a bathroom upgrade or care plan, for example, and work to grow this number month over month. Focusing on this area of your business adds directly to your bottom line.
7. Total Business Following
Track the social following your business has on Twitter, Facebook, LinkedIn, Pinterest, etc. Can you assess the return on investment for your social media efforts? Not precisely. But you can track your progress in these areas which are essential to your business' reputability and website marketing. All of which are essential components to the ROI of all your other marketing efforts.
Once you start tracking marketing metrics you will have a mountain of data on your hands. Hone in on these 7 which have immediate impact to your business in terms of revenue.
Stop marketing like its 1999. Implement systems that track your marketing metrics, measure your results, and focus on the statistics that make you more profit.