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 real estate agents.� For free mortgage marketing articles and much more visit: http://www.MortgageMarketingTips.com/