Here are 4 metrics to regularly measure to maximize the effectiveness of your ad dollars.
1. Unique Visits to your website - With 9 out of 10 people visiting your website before reaching out in any way (Google), it is a vital gauge to the success of all the other marketing. If unique, direct traffic is low, it's time to make some adjustments in branding/advertising efforts. If you don't have Google Analytics or another tracking software implemented on your website, call your website provider.
2. CPM Cost per thousand- This formula allows you to uniformly calculate the cost of your advertising across multiple channels and media. This has given me great negotiating room with advertising vendors in the past.
CPM=((total ad placement cost/audience size)*1000)
3. CPL Cost per lead- This number helps motivate marketers and sales managers alike. A marketer should set goals for what the target lead cost is to keep ad dollars in check, while a sales manager is educated on how important each and every lead is to the organization's growth and well-being.
CPL=(total ad cost/total number of leads)
4. Acquisition Cost- And the crux of lead generation is this: the sale. Failing to measure how much each sale costs could be incredibly expensive. After all, if you're spending tens of thousands on advertising, shouldn't the sale far outweigh the cost to acquire them, so you're not simply funding a media agency's New Year's party?
Acquisition Cost = (total ad cost/revenue)
It may seem easier to skip measuring all aspects of your marketing, but doing so will hurt your business in the long run. The bottom line is obviously important, but understanding the importance of the other marketing measures will help you run a more effective marketing campaign.
We have a saying around our office... "If you can't measure it, you can't manage it." If your office takes this message to heart, you will better manager your business and experience growth. It is time to go forth and start measuring the results of your marketing efforts.