Masterful Marketing » marketing roi

Marketing Execution – Plan, Execute, Track, Measure

Debra — Tue, 30 Dec 2008 00:47:42 +0000

Marketing your business has four stages: plan, execute, track and measure.

Four Stages of the Marketing Execution Process

If you haven’t had a marketing plan in the past, we’ll start with a review of last year so we can see how you did. Can you directly attribute revenue to your marketing activities? If so, which ones gave you the highest return? Don’t know? That’s ok – we’re looking forward to the New Year, not into the past. From this point on you will plan, execute, track and measure on a regular basis so that there are no more year end surprises.

Create a simple plan for your business

Having a great marketing plan is critical to its success. You absolutely must do it before you begin marketing. It’s not difficult or time consuming to write a marketing plan – just a few hours is all you need. Register for a simple worksheet to help you get started. If you download this worksheet, I’d appreciate your feedback in the comments section.

Execute the activities consistently

A great marketing plan is done to guide you in your marketing activities. The plan helps you understand how each activity works in synergy with your other marketing activities and it ensures you give a consistent message throughout. But the real key to success in marketing is the ability to execute the plan, working each activity until you have attracted more clients than you can handle. I’ve seen many businesses put together a plan but then don’t follow through with the plan, wasting so much time and missing real opportunities to build a successful business.

Develop a system for tracking marketing effectiveness

Determine now how you will track sales against the activities. Make sure you always ask how someone find you. Put it on your web site as part of the contact form. Have your office manager ask everyone who calls. Use the online tracking mechanisms available with Google Adwords and Yahoo Search. Knowing what’s working and what’s not will help you make budget decisions when you get an opportunity and you need to “find” some money in the marketing budget.

Measure

Review at least quarterly to see how your activities are working. I wrote a more lengthy post on this subject a few weeks ago so I won’t go into great detail. However, it’s important enough to remind you to be aware of where and how you spend your marketing dollar.

Continuous Cycle

Make a resolution this year to plan, execute, track and measure on a regular basis. You’ll find that your marketing becomes more effective and you can make adjustments along the way. Being flexible with your plan helps you take advantage of opportunities without wondering how you will fit it into your budget.

A Simple Marketing Review

Debra — Thu, 11 Dec 2008 22:28:38 +0000

As we enter the final days of 2008, I’m spending time with clients reviewing their marketing results in order to determine their marketing plan for the new year. You can do this yourself by spending a few hours looking at how your marketing has helped your business grow. Ask these questions and don’t be afraid of the answers. If your results aren’t the best, now is the time to make some changes.

What Are We Measuring?

Marketing is used to generate leads and awareness. You need to balance both so that you have the revenue you need to stay in business while developing your reputation or brand. Each marketing activity should be developed with a specific goal – i.e. public relations to build awareness and Google AdWords for lead generation. However, every marketing campaign will accomplish both at some level.

Can the business directly attribute revenue to marketing activities?

If you are not asking clients where they found your business, you are missing the opportunity to track your results. Make sure your Web site asks the question on the contact form. Train whoever answers the phone to ask the question, “How did you hear about us?”. Most people will tell you and you may just be surprised by their answers. By asking them, you get a better understanding of where your clients look for your types of services.

How much did you spend on each activity and in total?

First you should determine the cost of your sales tools:

Web site / Blog (development / hosting)
Business cards
Brochures
Promotional items (unless part of a specific campaign)
Designer and marketing coaching fees

Then determine how much you spent on each marketing program:

Internet marketing (Google Adwords / Yahoo Search / other sponsored ads / article marketing)
Social media marketing
Direct mail (printing / postage / list purchases / follow up)
Advertising
Networking and referrals (memberships in BNI / Chamber of Commerce / Better Business Bureaus)
Public relations (fees to a specialist)
Events (seminars, tele-clinics, etc.)

The Big Picture

Take the total revenue attributable to marketing and divide it by the total marketing dollars spent, including the sales tools and marketing services. This number better be at least 4 or more. If you are spending $1 and making $4 or better, you’re in good shape in general. Remember we’ve included all the “overhead” costs in this number which I do to make sure the business is covering all of its marketing expenses.

Which ones gave you the highest return?

Now we will measure each activity specifically. Take the revenue attributable to each activity listed and divide it by the marketing dollars spent directly on that activity. You can do each individual campaign or combine those that were developed to work together. For example, a direct mail postcard campaign would include the costs of the postcard design, print, postage and mailing list. However, you may want to measure your Internet marketing ROI as one major effort. Did you recoup your investment and then some (the number is greater than 1)?

Ideally you want at least a 3 times return or better or the campaign may not be worth your time and effort. In addition, you may want to use the money on something else. Look at each activity with a perspective on what you gain monetarily as well as from an awareness and reputation perspective. In a service based business, sometimes awareness and reputation are just as valuable as the dollar return.

What to do next year?

Now that you have a good idea about how your marketing has performed, you can determine what marketing you will invest in next year. Look at each activity and ask the following questions:

Which activities were the most successful?
Do they make sense to continue?
Which activities were marginal? Do you know why? Could they be improved?
Should I invest the money somewhere else?
What new activities should I look at?

If your marketing is working, keep doing what is successful, eliminate what isn’t, and leave some room in your budget for unexpected marketing opportunities if they should arise.

Marketing during a Down Economy

Debra — Sat, 18 Oct 2008 22:40:47 +0000

Smart business owners know that marketing is an investment that needs to be consistently executed when times are good or bad. Here are some tips to continue marketing your business effectively without spending a lot of money.

Keep your brand visible to your prospects. Make sure you don’t cut back on campaigns that keep you visibile in the market. Attend networking events, send postcards, blog and execute article marketing to keep your company brand in site. When your prospects have money to spend, they will remember you first.
Continue with your plan. If you are in the middle of executing your plan for the year and the activities are working, stay the course. Evaluate the outcome of different activities and take money from one that may not be working well and put it towards another that is.
Market to your customers. Many businesses forget to market to their client base. These people already know and trust you – why not market new products or services to them? The barrier to the sale is much lower and if the need is there, people will spend the money.
Use new media tactics. New media marketing is low cost but has a high ROI if you do it well. Listen to Gary Vaynerchuk, one of the most successful social media marketers, discuss ROI.
Look for ways to add value. People will still buy valuable services. Rather than discount, add more to the package and market the benefits of why people should do business with you. Once you get used to not discounting, it is very easy to say no to people who are merely price shopping.

Don’t be foolish with your marketing dollars, but spend them wisely on areas that reap the most benefit to your business. When the economy takes off again, your business will be positioned as the leader.

Footnote

Since early September, life has thrown a few punches that got in the way of my social media activities. Family matters come first and they have taken precedence over my socializing on many fronts. But that’s what life is about. It’s dealing with what gets thrown your way and coming out the other end stronger and more resilient. The challenges are not over, but I do want to get back into blogging, Twittering and following those of you who have taught me a great deal. Although my business is strong and thriving, I’m sure my personal brand has lost some of its sparkle. I’ve missed the interaction with all of you and welcome getting back into the community of social media friends.

No related posts.