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December 11, 2017

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Marketing ROI

Part 1 of 2

If you could take $1,000 out of the bank, invest it for 60 days and get back $2,000, would you? What if you could get back $10,000? Or $50,000? Of course you would--it’s a no brainer! And that’s why marketing is so important in a recession.

Companies that invest in marketing during a downturn gain four and a half times more market share than their competitors who do not invest in marketing. But of course, when business is tight, the last thing you can afford to do is waste money. So how can you make sure you’re getting the best bang from your marketing buck? It’s simple. Measure everything!

Measure Your Marketing

The beauty of marketing is that just about everything you do can, and should be measured. While every marketing activity may not translate into immediate sales, there are things you can do to measure the results of all of your activities.

Tracking Tools You Can Use

Here are some examples of useful tools to measure the results of your marketing campaigns:

  • Coded response forms – Each piece of direct mail has a response form with a unique code, so that every response can be tied to a specific campaign.

  • Keyed phone numbers – This is a special unique phone number that is only used in a specific campaign, allowing you to measure the exact response to that campaign. Oftentimes the phone company offers analytical tracking tools that give detailed information on the calls received at the keyed number.

  • Campaign-specific landing pages – Your direct marketing can drive people to a single web page or mini-website created specifically to coincide with the campaign. Using web analytics (such as Google Analytics, which is free) you can see how many people your marketing drove to the web page.

  • PURLs (Personal URLs) – Your marketing pieces directs recipients to a web page with a URL that is unique to each recipient (e.g.,http://www.abcstaffing/JohnDoe) With a PURL, you can track everyone who reacted to your mailer or other direct marketing.

  • E-mail reporting – Many e-mail campaigns offer reporting such as open rate, click-thru rate, and opt out rate.

  • Website reporting – Responses to offers and job board applications are ways to measure the effectiveness of your website.

Direct Mail Campaigns

Assessing the return from a sales-oriented mail campaign can be relatively easy. Just add up the costs of producing the campaign and compare it to the sales generated. Coded response forms and keyed phone numbers can be used to measure the exact response to a specific direct mail campaign.

But what about campaigns that don’t result in direct sales? Here are some metrics you may want to track:

  • Number of inquiries / responses
  • Number of appointments generated
  • Number of qualified sales leads produced
  • Cost per inquiry
  • Cost per appointment
  • Cost per qualified lead
  • Cost per sale

The secret to effective direct mail is to set specific goals, determine the minimum level of response you will find acceptable, and then track the most appropriate results. Of course, you’ll have to create the right tracking tools. For example, you could:

  1. Convert your mailing list into a tracking spreadsheet.
  2. Set specific follow up dates, and closely track activity by each sales rep.
  3. Mail in batches so that your sales reps can easily follow up with every prospect.
  4. Compare call to appointment ratios for all sales reps. If one rep is excelling, determine what tactic they are using that is making them so successful.
  5. At the end of the campaign, or at set intervals such as the end of each month or quarter, review your tracking spreadsheet to determine:
    • How many appointments were set.
    • How many sales were generated.
    • The full value of those sales plus full lifetime value.

Email Marketing

The great thing about email marketing is that any good e-mail marketing campaign comes with built in reporting that allows you to measure the effectiveness of the campaign:

  • Email open rate – The percentage of recipients who read your email.
  • Email click-thru rate – The percentage of recipients who click on a link in your email to visit a web page.
  • Inquiry rate – The percentage of recipients who complete a form, call you, or email you.
  • Conversion rate – The percentage of recipients who inquire that actually become clients.
  • Opt out rates – The percentage of recipients who ask to be removed from your mailing list.

One of our clients recently sent out an email as part of their HaleyMail program that listed some of the top candidates they had available. They were amazed at the response they received. Within a day of sending out the email they received several orders including one for a $135K position for their IT division!

Conclusion

Remember, none of your sales and marketing efforts are done in a vacuum, so it can be difficult to come up with an exact ROI for many of your initiatives, but if you use the tools in this article you should be able to analyze the results of your campaigns more effectively.

Next week we will look at measuring advertising, your website and the sales force.

Stay tuned!

Read Part 2

-Matthew Faso

www.haleymarketing.com

Remember, Haley Marketing can help! Whether you need assistance with direct marketing to get the door open or nurture marketing to keep it open, call on us. We have two new, and very cost effective solutions that can help your business to stand-out, stay top-of-mind, and increase sales.

Just give us a call if you'd like to know more: 1-888-696-2900.