Thanks again for coming to our Get Direct Webinar series. Today we’re going to continue our conversation on our marketing truths and your return on your investment. Remember, marketing should be seen as an investment because for every dollar you spend there should be a return, or at the very least a break even.
Let’s take a look at being mindful of marketing money. There are three points that I really want to drill into your marketing mindset today. Again, we want to make sure that you see marketing as an investment and that the three points we stress to you today are superimposed over every marketing campaign that you embark on. Remember, advertising is just a piece of marketing and we want to make sure we highlight the following points.
Point number one is to define your success. What is the actual level of success that we want to tie the metric to? A lead? A sale? Coming to a web page or getting the client to your physical location? We have to determine what that metric is so we can calculate a return. So, for example, you may get a lead and then your sales process will take over and you can go from there. It’s very important to define your success metric because this is really going to take your marketing campaign to a point of understanding what your prospects are doing so you can measure that.
The second point is to constantly track; you have no idea how many times we ask businesses how many times they are tracking this and they are unable to answer the question. There are certain tracking mechanisms you can use to track each of the five different avenues of the marketing campaign. We need to understand whether or not the campaign is working and we can do this by tracking.
Point number three is the making sure the Return On Investment (ROI) formula is correct. Generally, the ROI formula is: Gross Profit minus Marketing Expenses divided by Marketing Expenses. You get a ratio, so if your ratio is 5:1 this means that for every dollar you are spending on your marketing campaign you are getting five dollars back. Again, this is a very simple way of looking at your ROI.
We want to make sure we define the success metric, make sure we track the information and have the ability to calculate the ROI down to the exact dollar. Please feel free to download the marketing assessment at DirectBusinessMarketing.com/ma. Tune in with us again next week at 10am PST for another Get Direct Webinar series. Thanks again for joining us today.