What?s the Score?

You may be aware that in a basketball game the assistant coaches keep an almost unending list of personal statistics for each player. Rebounds, assists, points, minutes played, etc.

Why is that?

Because they know that these individual statistics all add up to the bottom line.

The final score.

If they can achieve even a small incremental improvement in these individual statistics for each player this will have a compound affect on the final score.

And of course, it helps them know which players to give the most playing time too.

In marketing your business you should be just as disciplined. Which products and which ads and which media should you give the most playing time? Do you know?

What's the point of designing and implementing an advertising campaign if you don't know if it worked or if it was better than the last one?

What a waste.

How do you know where the best place is to spend your advertising dollars?

By tracking everything.

Incoming calls, emails, walk-ins, website visitors, etc.

Train yourself and your staff to always ask these questions. Where did they come from? How did they hear about you? Which ad did they call on?

Here is an example: Let's say you place a classified ad in the newspaper at a cost of $135.00 offering a free report on your product. You could track the incoming calls in many ways (for instance by directing them to a free recorded message with a unique extension number or simply by asking them where they heard about the offer when they call).

Let's say you receive 12 calls on this ad and 2 of them end up as completed sales.

What is your cost per prospect?

(Cost of Ad) / (Number of Calls) = Cost Per Prospect

$135.00 / 12 = $11.25

Your cost per prospect is $11.25

What is your conversion rate of prospects to sold clients?

(Number of Sold Clients) / (Number of Prospects) = Conversion Rate

2 / 12 = .17 (or 17%)

Your conversion rate of prospects to sold clients is 17%

What is your cost per sold client?

(Cost of Ad) / (Number of Sold Clients) = Cost Per Sale

$135.00 / 2 = $67.50

Your marketing cost per sale is $67.50.

Now let's say you place a display ad in a large local corporate newsletter and it costs you $450. You get 27 calls which turn into 4 sales.

Which ad is performing better?

What is your cost per prospect for this ad?

(Cost of Ad) / (Number of Calls) = Cost Per Prospect

$450.00 / 27 = $16.67

Your cost per prospect is $16.67

What is your conversion rate of prospects to sold clients?

(Number of Sold Clients) / (Number of Prospects) = Conversion Rate

4 / 27 = .15 (or 15%)

Your conversion rate of prospects to sold clients is 15%

What is your cost per sold client?

(Cost of Ad ) / (Number of Sold Clients) = Cost Per Sale

$450.00 / 4 = $112.50

Your marketing cost per sale is $112.50.

Depending on your products and profit margin both of these ads may be performing well enough to merit continuation. However, based on this information we would want to look for other opportunities to expand our use of the classified ad first.

This may seem a little basic but this information is extremely valuable and often overlooked.

The outcome of most athletic contests is normally decided by a very small margin, sometimes by as little as tenths of an inch or hundredths of a second, missing that pass completion by half a step or missing one basket.

One would suspect that most winners and losers in business are also determined by very small margins.

Not giving that extra little bit of caring and customer service. Not having your presentation skills honed, not including testimonials with your sales information. Not having the most effective headline in your ad or not having a headline at all.

And worst of all, not knowing which ads are working and which should be put on the bench.

"If at first you don't succeed, try, try again. Then quit. There's no use being a damn fool about it." - W.C. Fields

Shawn Meldrum has spent the last two decades marketing everything from almonds to landscape lighting. He currently specializes in marketing for mortgage brokers, loan officers and real estate agents. For free mortgage marketing articles and much more visit: http://www.MortgageMarketingTips.com/

---

5 Newspaper Advertising Myths Revealed

What I'm about to reveal are myths that most people... Read More

Direct Mail = Your Money, From Printer to Mailbox to Trash!

I did a quick, very unscientific survey of 25 of... Read More

Yellow Pages Ads - Buying Secrets

Yellow Pages Ads - Buying SecretsOK- let's agree that many... Read More

Magnetic Business Cards: Make Your Marketing Message Stick

What is it about magnets that draw people to leave... Read More

Testimonials Convert Prospects Into Buyers

Big businesses get instant credibility with their well-known company name... Read More

More Cheap Tricks for Promoting Your Business

In a recent article, I shared five of my top... Read More

How to Use the 3 Most Common Direct Marketing Measurements to Increase Your Profits!

John Wanamaker, a 19th century entrepreneur, once famously made the... Read More

Improve Your Promotional Flyers And Improve Sales

Admittedly, I have not seen your advertising flyer. Then again,... Read More

Why People Fail in Mail Order

Mail order is a very complicated business. Every phase must... Read More

Custom LED Display

Custom LED Display, as the name specifies, facilitate control anything... Read More

Books, Bibles and Fast-Talkers

Every community has 'em. Fast talkers who roll into town... Read More

Go Ahead Im Listening

In today's fast paced environment, interaction with family and friends... Read More

Double the Effectiveness of Your Company Brochure

Let's face it - most brochures go straight into the... Read More

Science of Advertising and How to Benefit From It

It is very important to realize that persons buy from... Read More

Top Design and Marketing Tips from a Branding Expert

This month, we wanted to share some general tips relating... Read More

Marketing Tips For Small Business ? Advertising That Works, Part I

Have you ever seen an ad on television that was... Read More

How To Write Super-Effective Ads and Sales Letters!

"The more things change, the more they stay the same".... Read More

Advertising Basics for Beginners

So many of us who have decided to do business... Read More

Make the Right Advertising Decisions

Advertising is a powerful and somewhat frustrating marketing tool. It... Read More

Business Ideas: 5 Uncommon Ways To Generate More Online Business

Sometimes, it is not an obvious business idea that will... Read More

Successful Print Advertising Designs

Do you often see print advertisements outdoors, as much as... Read More

7 Unique Ways To Get FREE Advertising

1. Give Testimonials When you purchase a product or service... Read More

Nine Power Words To Punch Up Your Ads

As every professional politician and public relations man knows words... Read More

Advertising Costs Getting Too High?

Everyone knows that advertising is essential to growing a business.... Read More

Outdoor Sign

Many business organizations that needs to disseminate late-breaking information to... Read More

The Graphic Problem

Digital printing has revolutionized the sign industry. Current printers can... Read More

16 Methods for Getting Free Advertising

1. Place copies of your circular on bulletin... Read More

How to Breathe New Life into Your Advertising Campaign

If you haven't made many sales or perhaps none at... Read More

Classified Ads That Get Results

Classified ads do not have the big market appeal that... Read More

Constructing Business Advertisements

What many may consider the most important part of advertising... Read More

Offline Advertising Tips

Since most of us are always online and our business... Read More

How To Create A Better Brochure

Having a quality brochure makes a positive impression on a... Read More

For All Those People Who Struggle With Benefits and Features

For Everyone Who Has Ever Struggled Sorting Out Benefits From... Read More