Small business owners or managers, how do you measure your ROI for marketing?
If you are not familiar with the acronym ROI, it stands for Return on Investment. How do you know if your marketing efforts are working? This is a giant challenge for small business owners. For this week’s tips, we explain some ways for you to measure your ROI.
Here are 5 ways that may help you monitor your marketing efforts:
Before we discuss some ways to measure your marketing efforts we should discuss what your marketing goals are?
Do you want your customers to know more about what you offer by expanding your brand recognition? Do you want more customers or more leads? More sales?
When a company identifies their marketing goals, it is easier to track what is working rather than trying to do everything at once as just ‘marketing’. By identifying your marketing goals clearly, you may be able to track them and identify what is working.
1. How did you hear about our company?
One of the best ways to track your marketing is to ask you clients or rather your new clients how they heard of your company? Was it through an ad on Facebook? Sponsoring an Event? Or Newsletter? Most sources agree to track the ways in which a customer interacts with your firm or how they found you.
2. Use a unique URL
Another suggestion would be to use unique URLs with the same information but different landing pages. For example, you can have clients responding to an advertisement on Facebook go towww.yourmainpage.comand then have clients responding to an advertisement on Twitter go to www.yourmainpage2.com. Ideally, the landing pages would be the same but the URLs would then indicate which method may work better.
3. Use a promotional code
Use a promo or promotional code into each separate method of advertising. For instance, put a code on coupons distributed through a channel such as direct mail. Then put a different code on coupons distributed through an event. See which methods are more successful or which method should be ended as not profitable.
4. Use your analytic software
Companies can monitor their website traffic through a variety of analytic programs. Many web hosting companies offer this information as part of their service. There are also free programs online including one at Google: Google Analytics.
5. Customer Relationship Programs (CRM)
There are many customer relationship programs (CRM) available for tracking existing or potential or prospective clients. It's best practice to do your research before committing to a particular CRM software package to see which program will fit your needs best.
Measuring the ROI for your marketing does take time and effort on your part however, the information that you gain may be useful to your company and help you identify which marketing strategies are helping you achieve profitability or leading you to losses.
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Contact our firm for a complimentary consultation to discuss the details of your business. Our clients range from medium-sized companies to entrepreneurs! We offer you a peace of mind by providing you with customized accounting services in our Boutique Accounting Company. We are bilingual and offer services in English and Spanish.
Here's to your success!
CEO, FL-Accounting & Advisers, LLC.