Your marketing efforts can make it rain money...
I spoke with a young lady today who spends a considerable amount of money on marketing every month. When I asked her why she invests so much in her marketing efforts her response was: “you have to market in order to grow your business.”
Great answer! I then asked her what her response rates were on those marketing efforts-but she didn’t know. I asked her what the conversion rates were from prospects into customers -again she didn’t know. Finally, I asked about her return on investment (ROI)-she had no clue!
Does this sound familiar? Many businesses spend their limited marketing budgets on campaigns while having no idea if their efforts are paying off.
“Marketing without efforts to determine what is working is no different than throwing a bunch of pasta at the wall and seeing what sticks. Defining your returns and ratios are critical in your success,” says Joe Malinowski, of Business Networking Life.
To dissect the ROI of your latest marketing campaign ask yourself the following questions:
- What campaigns or initiatives generated the most leads over the past two years?
- What is your conversion rate for leads to customers?
- What campaigns generate the most revenue for dollars spent?
- Was your marketing successful? Did you conduct a ROI analysis?
- If so, what was your return on investment?
Analyzing your marketing performance can turn your marketing efforts into an investment, rather than an expense. How much is one new customer worth to you? Is that profit worth your investment?
Amanda Moore
