You pay for a yellow pages ad, newspaper ads, direct mail, canvassers, yard signs, and maybe even a radio or TV spot to bring in new leads. Some of you spend money on website design, SEO services, or perhaps pay-per-click ads on Google.
Hopefully, you’re not only tracking the marketing expenses to make sure you’re on-budget, but you’re also tracking the real results.
There’s an old quote that applies to those who are not correctly tracking their marketing metrics:
“Half of my marketing dollars are wasted. The problem is – I don’t know which half.”
I’m paraphrasing, but the point is many general contractors and remodeling company owners are not keeping track of what works and what doesn’t.
So what are marketing metrics? Does it mean keeping track of the number of people you talk to at the trade show? Or tracking the number of phone calls you get from a yellow pages ad?
Perhaps, you take your entire marketing budget and divide it by the total number of leads brought in during the year to determine how much each lead costs?
As you can tell, answering those types of questions will not tell you what’s going on in your business. You need to focus on the effectiveness of each marketing campaign. In order for you to know how well “both halves” of your marketing budget are working, you need to track every lead source separately.
A lead source is where you get your leads from. Trade Show #1, Trade Show #2, and Trade Show #3 are all unique sources and must be tracked individually. To say you spent $10k on “trade shows” when only one show really brought in leads will skew your metrics.
If you get 10 leads from 3 shows, you’ll assume each show was equally effective. But if you know 9 of 10 leads came from Show #2, you would spend more time and money and effort next year on the second show only and possibly ignore the other two.
And here’s the most important factor to consider. Don’t focus on numbers and metrics that don’t truly affect the bottom line. Let’s continue with the trade show example: of the 10 leads you brought in – what if you track down to the details to discover that not one turned into a single sale?
Was it effective for you to go to 3 trade shows, spend $10k, and bring in 10 leads that never purchased? If you take the time to analyze the results, you’ll realize this is your most important marketing metric to track.
Forget about how many calls you get, leads you get, e-mails you get, or showroom visits you get…
Track how many sales you get and the lead source that delivered them and how much those sources cost you. That’s all that matters. Ignore how many “likes” you get on Facebook and how many sales appointments you made.
See what’s effective in your marketing activities and eliminate everything that’s not generating sales. Track those things – and make adjustments on where you spend your marketing money – and you’ll earn a whole lot more.
If you’d like a way to track all your lead sources and marketing expenses using an all-in-one business management system, talk to one of our Success Coaches now – 866-421-3360! You can also request of free demo of our contractor lead management application.