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/

---

What Colors Make Your Services Most Attractive?

This information is based on the principles of Laws of... Read More

Humor in Advertising

Many of the most memorable ad campaigns around tend to... Read More

Create Your Own Business Cards, Part 2

This is the second part of creating your own business... Read More

How to Advertise with Flyers

When you first start out on your business venture, money... Read More

How Well Do Postcards Work?

The humble little postcard has been getting a... Read More

The First UK Man To Become a Human Billboard an Interview

Advertising on humans using tattoos is rapidly kind of freak... Read More

2005 Super Bowl Ads... Winners and Losers

Well, Super Bowl XXXIX is history. Too bad for the... Read More

Electronic Display Boards

Electronic display boards signify high priority messaging, allowing you to... Read More

Whats On Your Business Card?

A professional business card says more about you and your... Read More

Never Be Caught Cardless Again: Five Tips to Help You Remember Business Cards

Sorry, I Don't Seem to Have a Business Card With... Read More

Online vs. Offline Advertising

Let's face it. Email marketing and publishing have became very... Read More

Media Savvy ? Media Skills For Rural Women

The ability to lead, persuade and influence are integral skills... Read More

The Graphic Problem

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

What To Do With Your Business Cards

Without a plan to distribute your cards, there's no need... Read More

Why Not Use the Humble Fax in Your Advertising Strategy?

When my daughter complained recently about the prohibitive cost of... Read More

Non-profit Coupon Books and Coupon Mailers for Small Businesses

Many groups like the Chamber of Commerce, ASB at the... Read More

Advertising Your Holistic Business

The most basic answer is the same answer as to... Read More

How Do People Know Youre in Business?

One of the most important things to do now that... Read More

Why Hire an Advertising/Marketing Consultant?

As a business owner, you have the option of taking... Read More

How to Make Your Claims Believable

When you hear claims like??Best Lawnmower in the country?Absolute Lowest... Read More

Advertising, Public Relations, Newsletters, and Newsletters for Your Small Business

If you own a small business you should consider ways... Read More

Why I Like The Ads I Hate!

It's been said that the antidote to liking/loving is not... Read More

How You Can Create Advertising That Sells

A well-planned and properly executed marketing program should include a... Read More

Developing a Formal Brand Messaging Document

Ensure everyone in your company sings from the same sheet... Read More

Double the Effectiveness of Your Company Brochure

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

Choosing a Print Mail Dealer

"Print & Mail is a type of service that... Read More

Cross Cultural Advertising

"Culture is a like dropping an Alka-seltzer into a glass... Read More

Seven Ways to Waste Your Money on Yellow Pages Advertising

Each year there is a Yellow Pages arms race where... Read More

How To Make Your Advertising Work!

Many believe that when it comes to advertising, it's a... Read More

How to Breathe New Life into Your Advertising Campaign

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

How to Make a Fortune from Unique Resistance-free Advertising

One of the most powerful offers you can use in... Read More

The Forgotten Advertising Tip

I'm sure while you have seen many tips on advertising,... Read More

Advertise Where Its Forbidden To

The most common way to drive people to your business... Read More