Want To Make More Money With Your Business? Perform a Business Review
Step Three: Evaluate Your Current Marketing
In this series of blog posts we’re looking at how you can increase your profits by performing a thorough business review. In the previous blog post I talked about making money by saving money, or “cutting the fat”. As part of that post, I touched on how to review your marketing budget to make sure the money you spend is actually bringing leads and customers to your door.
In this blog post, I’ll go more in depth on that topic, because marketing is one of the most powerful tools we entrepreneurs have when it comes to finding new clients and customers.
The purpose of marketing is to bring customers and leads into your business’s sales funnel. Marketing is a bring umbrella and includes things like purchasing advertisements on your local radio station, attending a tradeshow, handing out flyers, engaging in a Google Adwords campaign, blogging, writing and publishing articles online, sending out a newsletter, posting on your business’s Facebook page and a whole lot more.
Marketing takes money, time or both, so it’s imperative that you make sure it’s working for you. In our current online environment that’s easier to do than ever. A lot of business owners assume that marketing cannot be tracked well. You spend money on ads, write blog posts, send out your newsletter and hope for the best.
Not so! There are analytics programs that will show you how much traffic you are getting to your website, where that traffic came from, how long visitors stayed on your website and which pages they visited. Google Analytics is a great example of a free analytics software that you can easily add to your website.
If you take one thing from this blog post let it be this: whenever you spend a single penny or a single second of your time on a marketing tactic, make sure you have a way to track your results so you can determine if it’s working for you.
Let’s look at an example. Let’s say you spend three hours each week posting updates to your company Facebook page, engaging with people who like your company on Facebook and posting on relevant Facebook group pages. At the end of the month, look at how many people like your Facebook page. Has that number gone up? (It better if you’ve been spending 3 hours a week on it). How many new people have liked your page? If that number is 100, then calculate how many hours you spent in a month vs. how many new connections you made. In this case, 100 connections divided by twelve hours of work equals a little more than eight new connections per hour.
Is that worth the time you spent? You’ll have to make that decision for yourself. You’re not done yet, however. Just because someone “likes” your Facebook page doesn’t necessarily mean they are a lead or referral source. Next, let’s take an extra step to see if these Facebook “likes” are quality leads. Check out your website analytics. You should be able to look in your “Referrals” section to see how many people came to your website from Facebook. How long did they stay? Did any one of them purchase a product or fill out a form for a consultation? All of this information is freely available to you if you know where to look.
With online analytics, you can observe how much activity each marketing effort created and divide that by the time, money and effort it took to implement. The result is, you’ll be able to determine how much each lead “cost” you.
Even offline marketing efforts can be tracked. Ask everyone who calls you or purchases at your store how they heard about you. Add special promotions to different offline marketing pieces and ads so that when customers use them, you know how they found you.
By evaluating your marketing efforts as part of your business review, you’ll get a much better idea of what is working and what’s not. From here, you can pour more money, time and effort on those marketing tactics that are working and pull away from those tactics that aren’t. Just make sure to give each marketing effort some time to work.
Feeling a little lost, overwhelmed, or ready to take your business to the next level? Consider setting up a FREE Discovery Coaching Session to see how coaching can help you start getting better results now.