Yesterday we talked about being intentional with your marketing and promotional decisions. When you set a sales goal, attach it to the way in which you will promote your business. This forces you to think about how you will invest time and money in your business to achieve sales results. (Our Promotional Goal Sheet is a great download for making these goals.)
Once you’ve defined the expectations for your marketing promotions how will you measure the results?
You will want to determine the ROI (or Return on Investment) for those promotional activities that you spend money on. Here’s an example:
You spend $1000 on an ad with XYZ magazine each year. You ask your customers how they found you, who referred them to your business. At the end of the year, you are able to total the results and you see that customers who found you in XYZ magazine spent $5000 on your services. Your ROI calculates as such:
$ earned / $ spent = ROI
$5000 / $1000 = $5
This means that for every $1 you spent on XYZ ad, you earned $5. That’s a nice ROI!
Once you start tracking ROI, you’ll want to set some goals. Is a $5 return good for this ad? Should it be more? Are you OK with less?
Get started tracking your promotional ROI…
We recommend you do the following:
- Ask each inquiry how they learned about your business?
- Track this information. (We love excel!)
- See which inquiries turn into sales.
- Determine how much money each of the clients spends with you.
- Figure how much in sales $ each promotional activity has brought you.
- At the end of the year, decide: was this ad (or other promotion) a good investment for my business?
We’ve made this easy for you… here’s an Excel tracking sheet for you to track your leads and categorize them according to how they were referred to you.
Sage Wedding Pros – Promotion & Advertising ROI Tracking Sheet – $10
(This is an Excel spreadsheet for you to track your leads and referral sources. The spreadsheet calculates the ROI and conversion rate for each referral source so that you can see which ads, bridal shows, and other promotional investments are paying off.)
If your goal is to make a return on your promotional investments, this is necessary to do! Otherwise, you’re not making intentional decisions about where and how to promote your business and you could be throwing away a lot of money.