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:


Never Be Caught Cardless Again: Five Tips to Help You Remember Business Cards

Sorry, I Don't Seem to Have a Business Card With... Read More

Offline Advertising Secrets: Using Offline Advertising to Get the Most from Your Name Squeeze Page

Many people online are not using one of the best... Read More

Should You Advertise on TV?

When people discover my background in advertising, the questions flow.... Read More

7 Tips for Better Ads

The content of advertising is basically the same no matter... Read More

Advertise Where Its Forbidden To

The most common way to drive people to your business... Read More

Mobile Detailers; Customer Window Displays

Mobile detailers have all types of customers, many of whom... Read More

Business Cards: Why Waste Valuable Space?

So many business people neglect this valuable asset that may... Read More

The Inside Secrets Of Free Publicity For Your Business

Product publicity is the "secret pathway" to business success... Read More

Trade Writing - For Cash!

Often considered as "plain Jane's" of the print world, trade... Read More

How To Tame The Buying Beast Inside Your Customer

What if you can understand and control your customer's mind?... Read More

Dont Be a Secret Agent

This tactic of the game was hard for me to... Read More

Can I Write and Print My Own Business Brochures and Business Cards?

If you have a computer and a printer, preferably one... Read More

Forgot The Ad Budget? Dont Panic!

Bob is excited about his new business. He secured funding.... Read More

How To Write More Powerful Brochures, Leaflets, And Catalogues

Probably the most interesting thing about brochures and leaflets is... Read More

Direct Response Advertising; Radio vs TV

Radio advertising vs. television advertisingMany new advertisers assume that they... Read More

7 Questions to Ask Before You Advertise

Most business owners and managers keep a fairly close eye... Read More

Make Your Business Cards Work

What's the cheapest, most under-used marketing tool you have?The answer's... Read More

Not Another Calendar! - Choose Advertising Specialties That Sell

As I was searching through a kitchen drawer the other... Read More

Does Post Card Advertising Really Work?

You've decided to try advertising your business with post cards.... Read More

Mortgage Marketing - Broadcast Advertising vs Direct Advertising

Do you know how to design and deploy a marketing... Read More

Promotional Vehicles

It is difficult to miss a Hummer, but how many... Read More

3 Inside Secrets To Making You Richer Using Direct Mail!

Making money using direct mail isn't easy. And anyone who... Read More

Just What Are Consumers Thinking?

Research would indicate that consumers don't know what they're thinking.... Read More

Avoid Being Vague

We are bombarded with thousands of marketing messages daily?on television... Read More

How to Write Great Headlines

According to experts, just changing the headline of an ad... Read More