Testing and Measuring
You cannot manage what you do not measure – sound advice for all businesses. Make it a point to measure all of you marketing efforts by asking your customer how they found out about your business. Expand your efforts by measuring even more: What are your customers purchasing, how much is the average sale, how much profit do you make per average sale, what is the cost of a given marketing campaign, and more. Once armed with this information, you now have the ability to test the effectiveness of one marketing campaign versus others, and to use the more effective campaign to better advantage.
The factors you should measure for each advertisement are simple and straight forward:
- Cost of the ad
- Number of leads generated
- Conversion ratio of leads to sales
- Average sales in dollars
- Average profit per sale
- Lifetime value of the customer
- The number of referrals per advertisement
Remember, marketing is an investment in your business only if you test your ads and measure the results. Learn more about testing and measuring (and get free downloads, too) here.
In the next Business Minute we’ll focus on Leadership.
“Anyone can hide. Facing up to things, working through them, that’s what makes you strong.” – Sarah Dessen
Susan Fennema on the Number 1 Key to Project Success
Business Minute 21 – Testing and Measuring