Is Your Marketing Paying for Itself?
Marketing, in general, does not guarantee results.
Direct mail for a certain industry, in a certain area, at a certain time of year, will produce varying outcomes. The mail piece itself, and its message, also affect the success of the campaign.
Internet marketing is no different. Paid Yelp advertising or Angie’s List might work great for some and be a total waste of money for others. The results could be affected by your location, services, special offers, customer reviews, seasonality, and even your own involvement (or not) in the program.
Try Different Strategies Until You Find Gold
Your goal is to experiment, document, analyze and fine-tune each marketing method you implement to accurately determine whether it’s working for you or not.
Perhaps focusing on one service category and responding to new leads in under five minutes doubles your Home Advisor ROI. By tracking the leads, interpreting the data, and improving the way you manage this marketing tactic, you’ve transformed what you thought was a frustrating and poor investment into one of your best lead sources.
It may be that, after tracking leads from a paid advertisement in a community magazine for a year, you find it to be a poor lead source or that it isn’t attracting your ideal customer demographic. Now you can cancel that ad with confidence and put your marketing dollars toward something more effective.
Simple Lead Tracking Spreadsheet
This is an easy task for a marketing administrative assistant to manage that will pay for itself many times over.
Create an Excel spreadsheet that lists your lead sources down a single column.
In the adjacent columns list the 12 months of the year. This is where you record the number of leads, estimates, and closing percentage by month for each lead source.
Include a Total column that calculates all leads for each source for the year.
Examples of Primary and Secondary Lead Sources
Customize this list based on your own marketing strategies. Be specific.
For instance, if you pay Home Advisor and Angie’s List, they should each be their own line item. If you pay a directory such as Yelp, YP.com, Kudzu or Yellow Book, list paid advertising individually.
If you participate in more than one home show, have ads in various publications, or use several social sites such as Facebook, Houzz, and Instagram, list each of these separately.
• Organic search
• Paid search
• Paid advertising
• Paid lead generation
• Truck/yard signs
• Home shows
• Direct mail
• Print advertising
• Press release/newspaper
• Community involvement
• Veteran Owned Business
• Chamber of Commerce
• Past customer
• Friend/Associate referral
• Customer referral
• Vendor/Employee referral
• Miscellaneous referral
• Unknown source
• Other source
Automatically calculate the number of closed leads (leads converted into customers) divided by the number of leads. Among other things, your closing percentage gives you an idea about:
1.) The type and quality of leads coming from a lead source.
2.) How well you or your sales team are performing. Your closing percentage directly correlates with the number of leads you need. The better you close, the fewer leads you need to achieve your sales goals.
Sales per job
The dollar value in sales for each closed job.
Track which of your services respond to various marketing methods as well as which are more popular and profitable.
Average job size
Watch this number and increase it with upsells or additional services. Higher sales with fewer jobs result in less leads needed or more profitability.
Zip code by job
Analyzing zip codes, or even neighborhoods can help you determine which portions of your service area are performing better as a result of your marketing. It also pinpoints areas where your jobs are more profitable or more frequent.
Cost per marketing tactic
Record how much you pay for each of the strategies you implement to analyze spend and how it fits into your overall operating budget.
Cost per lead and Cost per sale
These figures are important for evaluating how well a marketing tactic is performing, what your return on investment is, and where you should allocate more marketing in the future.
Track Marketing Metrics to Save Money and Increase Leads
As you begin tracking leads, you’ll want more information and can add columns as you see fit. You may also want to add a tab on this spreadsheet to document customer contact information as an easy reference for back marketing (referrals and repeat business).
Knowing which leads sources are producing, how you can improve results, and how to more profitably allocate your marketing dollars will mean less costly and tremendous growth for your business.