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/

---

Moving Message Board

Moving message boards are used in the areas where continuous... Read More

Not Another Calendar! - Choose Advertising Specialties That Sell

As I was searching through a kitchen drawer the other... Read More

Media Savvy ? Media Skills For Rural Women

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

The Power of...

You certainly must know that Many Big Marketers consider COPYWRITING... Read More

3 Simple Steps to Getting Thousands in Free Advertising

Many entrepreneurs believe that they understand what public relations is,... Read More

Tips for Using Paid Advertising

Quite a few business out there can't survive without some... Read More

Media, the Internet, Yellow Pages, and Your Business

If you are reading this article, chances are you could... Read More

Advertising Primer for Fast Learners

Advertising, when done well is a very effective way to... Read More

Understanding Internet Banner Advertising

Banner advertising is an effective way of getting your advertising... 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

A $40 Million Dollar Little Known Referral Strategy

Would you like to know how a car wash chain... Read More

3 Things Every Yellow Pages Advertiser Needs to Know

Too many business owners and marketers know that Yellow Pages... Read More

Cable Ads 5 Bucks!

Cable has grown from 13 houses connected together in 1948... Read More

Create A Killer Brochure: 9 Steps to the Perfect Piece

If you are creating a brochure, make sure you follow... Read More

Why Not Use the Humble Fax in Your Advertising Strategy?

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

How To Make Your Yellow Page Ads Work

I hear it often, "advertising in the Yellow Pages directory... Read More

Fax Advertising : Hitting Your Target Immediately

In the business of marketing and advertising, it used to... Read More

The SKINNY on Radio Advertising

From meager beginnings in 1920, radio has grown with us... Read More

The Man With The Grasshopper Mind

The title of this article also happens to be one... Read More

Custom T-shirts -- Put Your Company Logo on Cotton!

An effective way to gain company recognition is to order... Read More

Information To Include On Your Business Card

The logo and graphic elements that you include on your... Read More

How To Tell If An Advertisement Costs Too Much

People say it all the time: "This advertising costs too... Read More

Avoid The Big Advertising Mistakes

Is your advertising copy getting the results you want? If... Read More

Write Attention Getting Advertisements

The most important aspect of any business is selling the... Read More

Successful Print Advertising Designs

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