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 . For free articles and much more visit:

---

Printing - How Do I Buy It?

Why should I care where I get my printed material... Read More

Measure the Response of Your Advertising Campaigns by Using Promotional Products

For most companies, gone are the days of spending money... Read More

Three Keys to Crafting Successful Print Ads

Want to create print ads that get results? Below are... Read More

Why Most Advertisements Stink!

Question: What do you think the most important part of... Read More

How to Breathe New Life into Your Advertising Campaign

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

If You Want To Get More Customers, Heres 10 Powerful Stories To Improve Your Ads

Remember, as a child lying in bed and listening to... Read More

Moving Message Display

Moving message display are designed to be installed into environments... Read More

Vinyl Banners for the Right Occasion

The sinage marketplace is competitive! Consequently, some companies are going... Read More

Make Your Business Cards Work

What's the cheapest, most under-used marketing tool you have?The answer's... Read More

What Colors Make Your Services Most Attractive?

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

Predictions for 2010

2005 puts us at the mid-point of the first decade... Read More

Books, Bibles and Fast-Talkers

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

Advertising Copy: What?s Really Important?

You labor long and hard trying to create the perfect... Read More

Womentisements

The unnecessary and extensive use of female models in advertisements... Read More

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

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

How To Create Instantly Compelling Ads Every Time

Use This Quick 3-Question Evaluation Process, So You Can Be... Read More

Marketing Tips - Advertising

Typical methods of advertising-newspapers, radio and television are effective if... Read More

Mortgage Marketing - Broadcast Advertising vs Direct Advertising

Do you know how to design and deploy a marketing... Read More

Nine Power Words To Punch Up Your Ads

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

Localized Advertising ? Door-to-Door Ad Distribution on the Fly!

Have you ever had to distribute door-hanger advertisements for your... Read More

The Motivational Triggers That Make People Buy

In order to sell more products and service, you need... Read More

Take Your Radio Ads to the Next Level

Most small businesses do not have a high powered advertising... Read More

Advertising Costs Getting Too High?

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

A Lunchtime Lesson on Print Advertising

I promise you'll be able to finish this article before... Read More

Cable Ads 5 Bucks!

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