October 30, 2014
Measuring marketing effectiveness isn’t just for C-Level Marketing Executives at Fortune 500 companies and marketing geeks like me; it’s also what separates successful small businesses from the failures.
Without putting sound tools in place to measure your marketing effectiveness, you’re going to be wasting a ton of time, money, energy and resources on the wrong marketing activities. How can you know what gives you your biggest bank for the buck if you don’t measure? Guessing can only get you so far. When we perform ROI analysis for the small businesses we work with they are always surprised to see how poorly most of their marketing is actually performing.
To make sure your business is on the right track to maximum profitability and marketing effectiveness implement these 5 marketing metrics immediately!
- Profit margin – Yes, I consider this a marketing metric because if you don’t know the margins on every type of work you do, product you sell, and/or every client you work with, you are most likely not operating at peak performance and profitability. Study this – constantly – and re-price, restructure, or abandon products, services, and customers that are bringing down your bottom line. Focus on what is most profitable and you will be more successful. Knowing your niche is half of the battle in marketing!
- Customer Acquisition Cost – How much does it cost you in marketing and advertising to earn a new client? This needs to be tracked and measured by each source. For example, does it cost less to acquire a client through networking than it does PPC advertising?
- Live Time Value of a Client (LTV) – Knowing the cost to acquire a client is great, but then you need to know the value of a client. How much is that new client worth to you over the life of the client? Is it a one-time sale or an ongoing sale? Do you cross and upsell knowing the LTV of your best clients is key to studying and learning where and how to attract more of them!
- Number of Leads by Source – If you don’t know this you may as well as grab your wallet, head into the restroom and flush all your money down the toilet now. Because that is exactly what you’re doing if you’re investing in marketing and not measuring whether or not you’re getting (leads from it. It’s imperative that every business knows exactly how many leads they get from every marketing; from advertising, to social media, to networking – and yes, even referrals.
- Conversion Rate – Leads are great and all but if they aren’t converting to actual paying clients, who cares? Knowing which sources convert the most leads to actual business (and the value of each conversion) is going to be key in measuring the success of any marketing campaign or promotion you do!
These are just the basic KPIs to track, there are literally dozens more that can be tracked to further refine your marketing and increase your profitability. But start here and become an expert at these 5 before moving on. And if you need help, this is what we love to do! Feel free to contact us to find out how you can get a professional ROI and KPI Analysis!
October 10, 2013
June 1, 2012
As business owners we rely on a strong network of people and resources to help us – whether that’s helping us just get through the day or accomplishing our short and long term goals for our business.
Sometimes it’s tough to know where to turn for help and guidance. So this week I’m putting together a list of my personal favorite business resources:
9 Business Resources I Can’t Live Without
- Hubspot is an amazing resource for small business marketing articles and reports. I’m on their email list ad every single thing they send me I want to read. They are great at targeting my interests and sending me information that I am most interested in.
- Biznik not only has great articles, but they’re an amazing resource and social networking site geared solely toward small business owners like us. Join for free or upgrade to a premium membership to get more benefits.
- Bizsugar – I’m an online shopper and customer reviews are a critical part of in my online buying process. BizSugar is the Amazon of business articles for me. The community submits articles and the community rates them. So I can choose to read what people like me rate as the best of the best. It keeps me up to date on what’s hot and what people care about in small business from marketing to finance, to management, and technology.
- Facebook – Your target market may not necessarily be the Facebook crowd, but it can still be a great resource. I have actually built and developed relationships with strategic partners, colleagues – and even friends over the years simply by following them and staying in tune with their businesses, passions, and goals. I even use it as a sounding board for blog articles and topics sometimes.
- Chamber of Commerce – Finding a chamber that is right for you is like finding the right BFF. Not all are created equally. Find the one that offers the most value, gets their members involved, supports their community, and has enough opportunities for you to get involved to make it worthwhile. And joining is NOT enough. You need to get involved. Join a committee, volunteer at an event or two, or offer to speak on your area of expertise or hold workshops for members.
- BNI – My networking group of choice. I love BNI for its structure, built-in accountability, and training. BNI is the best group I’ve experienced for making quality connections and getting referral business. But like any other group – SHOP around and be sure to find the right group for you!
- Google – “My name is Carolyn and I’m a Google-aholic”. Seriously, what did we do before Google? It’s like my best friend who knows EVERYTHING – but without the annoying “know-it-all” attitude. Need a business tip? Google it! Need a form letter? Google it! Need info on a prospect? Google it! Really – what would the world be without Google?
- SBA and SBA.gov – Yeah a government program that is actually useful! They offer a ton of FREE information, tools, and resources that you can’t pass up; including training and counseling, online videos, information about loans and grants, and much more!
- Others in my industry – Yes, I keep tabs on what others in my industry are doing and talking about on a regular basis. I learn a lot from them. What are they blogging about? What new programs or services do they offer? What are they charging? This is one of the best research tools there is!
Ok, so those are my top 9 favorite business resources.
What are some of yours? By the way – if you like this post, I would REALLY appreciate your ReTweet! Thank you!!!!