Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
What?s the Score? > NetSparsh - Viral Content you Love & Share

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/

In The News:

Adios amigos, iPod  ETBrandEquity
From Online Advertising to Bible Study  Adventist News Network
Live facial recognition: new technology, same rules  Advertising Standards Authority

Unlock The Power Of Online Groups

Yahoo Groups: I see countless marketers on shoestring budges turn... Read More

Lamination of Signs

I suspect that everyone has an idea of what lamination... Read More

Should Your Small Business Hire an Advertising Agency?

So, you own a small business, sales are down and... Read More

Getting the Most Out of Your Networking Group

Here is my personal list of things to do at... Read More

How to Make a Fortune from Unique Resistance-free Advertising

One of the most powerful offers you can use in... Read More

Tips On Writing a Successful Ad

When knowledge is based on truth it is powerful!When it... Read More

Giorgio Armani: A Persuasive Campaign

Lets examine the use of Giorgio Armani Company's advertisements for... Read More

Cable Ads 5 Bucks!

Cable has grown from 13 houses connected together in 1948... Read More

Sex in Advertising: Does it Sell?

We're surrounded by advertisements that desperately compete for our attention.... Read More

9 Tips for Better Billboards

It is a given that billboard advertising "outdoor" is not... Read More

The Benefits of Specific Advertising

The great Claude Hopkins (Author of Scientific Advertising) once said,... Read More

Media Savvy - How To Lead, Persuade And Influence

The ability to lead, persuade and influence are integral skills... Read More

Seven Ways to Kick Up the Power of Your Print Advertising - More Small Business Power Tools

If you're a retailer and the only kind of advertising... Read More

The SKINNY on Radio Advertising

From meager beginnings in 1920, radio has grown with us... Read More

Why People Fail in Mail Order

Mail order is a very complicated business. Every phase must... Read More

Whats On Your Business Card?

A professional business card says more about you and your... Read More

Push vs Pull Advertising

Push vs. Pull Advertising - Understand the Consequences for your... Read More

Boost Headline Believability With Specifics

Don't use vague generalities in your headlines. Be as specific... Read More

How To Get Big Sponsorship Money for Your Band, Tour, Event or Production

Touring is a bands greatest opportunity for success. But, touring... Read More

Placemat Ad Advertising

Starting a placemat ad business can create more business for... Read More

Avoid The Big Advertising Mistakes

Is your advertising copy getting the results you want? If... Read More

Science of Advertising and How to Benefit From It

It is very important to realize that persons buy from... Read More

Whats The Frequency?

The more things change, some say, the more things stay... Read More

The Not-So-Hidden Persuaders: The Power of The Media Upon Us All

In 1957, a perspicacious young journalist from Pennsylvania named Vance... Read More

Using The Popularity of Celebrities and Currrent Events to Promote Your Business

In this article, we want to explore the idea of... Read More