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 .

You might also be interested in...

Why not leave us a comment, or share with a friend...

Want free advice for your small business?
Sign up to our blog

Browse our other Small Business posts

Our latest blog

by Carole Jordan 11 Aug, 2017

HMRC have released their new advisory fuel rates for drivers of company vehicles. These came into effect from 1st July and allow reimbursement of fuel tax free at these levels.

by Carole Jordan 04 Aug, 2017

Nobody wants to pay tax on divorce. So how do you keep your tax bill down while coming to a sensible arrangement with your spouse?

by Carole Jordan 28 Jul, 2017

Since the change to Dividend tax came in you may be wondering if there are more tax efficient ways of drawing funds from your company.  Read more for an idea that can save tax each year.

by Carole Jordan 18 Jul, 2017

I love the summer for sitting back and reflecting on the year. Thinking back to the dark days of winter and forward to the joy of Christmas time. Now is the ideal time to review how your business is going and as you revive yourself through holidays and sunshine you’ll be well placed to make any changes come the autumn.

by Carole Jordan 17 Jul, 2017
Landlords will be expected to use Cash Basis Accounting from 2017/18.  
So what does that mean for your rental property accounts and tax?
More posts

Which Small Business support are you looking for?

Share by: