Measuring your marketing

  • by Carole Jordan
  • 02 Aug, 2016
 Marketing, promotion and advertising can be one the largest costs we see on the Profit & Loss Accounts of our clients, quite rightly, it’s important to invest in marketing to keep your name in your customer’s mind.  But, in today’s competitive environment, costs can run away as you chase new business and your budget may run out before you have seen results.

What's the return on your marketing investment?

The key is to connect sales and enquiries with marketing activity . A simple example is that the ongoing cost of running a website for a set period against the enquiries or orders received in that period.  If you run advertising campaigns to generate traffic to your website, measuring the increment over the period of the campaign will give you an indication of its success and value for money. 

All marketing strategies should be tested and measured before being fully implemented at a higher cost. Where marketing strategies have proven successful they can be repeated or maintained. Where they have not repaid the investment in time and money they should be cut out of the marketing mix so those resources can be fed into a more successful strategy. 

For small businesses the purpose of marketing is to generate sales and so measurement of conversion rates is also essential. Often this is where small businesses do not perform well. 

Brand building and general awareness is often too expensive and long term for small businesses but where this is needed (such as in the fashion industry) it can be measured by monitoring how the business is perceived in the press, online or amongst others in the industry. Nevertheless, in the end the brand needs to deliver consistent sales and a realistic timescale should be set for visible and measurable results to be seen. 

The smaller your budget the more focused and productive sales and marketing need to be . This is possible so long as the correct strategies are adopted by the business. This is the key, establishing the right marketing mix for your business. 

In today’s world, with so many choices available, we need professional help. I would recommend any small business to appoint a knowledgeable and pragmatic marketing consultant to help them establish the right strategies for their business, and talk to us about setting up good recording systems to make sure they earn their keep. 

BusinessHeads help small business to manage their money effectively to grow their profits. Call Carole Jordan on 01273 882200 for a consultation to review your accounts to see where you may be able to get better value from the resources in your business.

All details above were correct at the time of publishing - for more up to date information please get in touch .

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