The return on investment formula:
Times have changed when you had only several directories or avenues that customers can find you. Often times customers can find your website from one of your mailers that you do during the year. They can also call the number on your Facebook business page. Perhaps they find you on Google, then visit your Twitter page before calling. Besides that if you have any idea on using the local directories that are used in local SEO companies, you can also submit your company to multiple sites as well. That makes it almost impossible to measure if say for instance you are using several phone numbers of gimmicks of that nature that were used in the past. At Falcon Consulting & Marketing, we have be asked many times by our clients how to measure their return on investment (ROI). Below is some ways we believe work best:
1.. Train your sales team to ask every new prospective customer how they heard of you before you can schedule an appointment. This allows you to track their ability to convert. It also can show you what is working for you and what is not. For instance, if you run a mailer and get 15 new customers scheduled from it but only 2 show, you may need to evaluate whether the design of your mailer is sufficient or in the alternative whether you are investment your money in the right technique.
2. You should have an employee or several in place that is able to analyze you referral sources. Break down each referral source by month and put the number of new customers from that source.
3. Analyze your advertising budget constantly. You should consider how much it cost per advertising vehicle per month by how many customers you are gaining by it. For instance, if you are paying $2,400.00 per month on your Pay Per Click (PPC) and Search Engine Optimization (SEO) campaigns and retaining 12 new projects then the average would be $200 per new job. Compare it to say your mailer campaign which can cost say $450 per customer. You also need to take into account what the value is of the contract you will sign with the client. If the six contracts has you gain $60,000 in revenue then you are only gaining only $50,000 on the mailers then that should be taken into consideration as well. It is important to constantly do this as your techniques will need to adapt to current conditions. You have to adapt to the times when it comes to advertising like anything else in business. These numbers are crucial in determining where to place your marketing budget. Also as your marketing strategies grow, so will your ROI if you are doing things right if you are vigilant about it.
If you are interested in maximizing on your ROI and want someone to monitor it for you, Falcon Consulting & Marketing will be able to assist you with all your consulting needs. We are a full service digital marketing agency located in New York City assisting small and medium sized businesses one client at a time.
Visit us at www.falconconsultingandmarketing.com
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