Measuring your marketing results is one of the most important things you can do for your business.
It is the yardstick that gives you an indication of how healthy or unhealthy your business is across many different areas. It’s your business score–keeping system.
If you don’t have one, you’re operating your business blindfolded. You don’t know whether you're winning or losing. Think of it this way…
How possible is it to beat the world record at 1500m freestyle if you don’t have a timer to time the event and see how fast you swam?
And how easy is it to win a game of Rugby League if you don’t know which team has the highest score?
Downright impossible isn’t it?!
With the right score-keeping in place, you know who the winner is and what score you need to beat. It gives you goals.
So what can you measure?
Conversion rate from inquiry/approach to lead/sign-up – It can show you how effective your people are at selling, product knowledge, and follow-up.
Cost per lead – this is usually used in conjunction with cost per sale and conversion rate to determine quality of leads and quality of marketing material.
Cost per sale – this identifies the need to reduce your cost per sale by improving your sales conversion. The marketing cost per sale for online sales can be calculated using Google Analytics.
Profit per sale – this identifies the need to increase prices, increase conversion rates or reduce costs.
Cost per click-through – This KPI (key performance indicator) applies to online pay-per-click advertising. This type of advertising is charged on a cost per click-through basis. You can use this figure as a starting point and then put in place ways to increase your transaction value.
Number of items per sale – This acts as a benchmark for packaging other products to increase the number of sales
Measuring and recording your results is really only useful if you know what to do next. Make sure to keep an eye out for Part 2 of our series on Lead Generation, coming out next month!
Until then, if you have any questions, contact the YBT team today! You can phone 03 479 3890 or email firstname.lastname@example.org.