I had someone contact me through LinkedIn the other day, asking to talk about what SME Needs does and, in particular, about marketing ROI.
At this point I must admit I was a little sceptical, seeing as he described himself as a strategy and marketing consultant; why would I want to talk to someone who is a competitor?
The conversation started with a question about how you track the performance of a specific marketing activity. Is it possible? Now of course this depends. Pretty much anything digital can easily be tracked; direct mail can simply use promo codes and you know exactly what happens if you are using telemarketing.
The conversation moved forward to how to attach specific sales opportunities to marketing activities. For me there is a very simple solution to this:
Q: How did you find us?
All you then do is ensure this is recorded for every sales opportunity you have.
From there, its a few calculations to understand your marketing performance.
1. How many enquiries do you get from any particular channel and how much does it cost per enquiry?
Obviously the more you get, the better, but only if they are costing an amount you can continue to fund through sales delivered through the channel
2. How many enquiries do you need for each sale?
This will give you a great idea on just how much marketing you need to do in order to achieve the goals you have for your business.
I hope this proves to be useful and if you need anymore help on measuring the performance of your marketing, give me a shout.