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What's the Score?
You may be aware that in a basketball game the assistant coaches keep an almost unending list of personal statistics for each player. Rebounds, assists, points, minutes played, etc. Why is that? Because they know that these individual statistics all add up to the bottom line. The final score. If they can achieve even a small incremental improvement in these individual statistics for each player this will have a compound affect on the final score. And of course, it helps them know which players to give the most playing time too. In marketing your business you should be just as disciplined. Which products and which ads and which media should you give the most playing time? Do you know? What's the point of designing and implementing an advertising campaign if you don't know if it worked or if it was better than the last one? What a waste. How do you know where the best place is to spend your advertising dollars? By tracking everything. Incoming calls, emails, walk-ins, website visitors, etc. Train yourself and your staff to always ask these questions. Where did they come from? How did they hear about you? Which ad did they call on? Here is an example: Let's say you place a classified ad in the newspaper at a cost of $135.00 offering a free report on your product. You could track the incoming calls in many ways (for instance by directing them to a free recorded message with a unique extension number or simply by asking them where they heard about the offer when they call). Let's say you receive 12 calls on this ad and 2 of them end up as completed sales. What is your cost per prospect? (Cost of Ad) / (Number of Calls) = Cost Per Prospect $135.00 / 12 = $11.25 Your cost per prospect is $11.25
(Number of Sold Clients) / (Number of Prospects) = Conversion Rate 2 / 12 = .17 (or 17%) Your conversion rate of prospects to sold clients is 17%
(Cost of Ad) / (Number of Sold Clients) = Cost Per Sale $135.00 / 2 = $67.50 Your marketing cost per sale is $67.50.
Which ad is performing better? What is your cost per prospect for this ad? (Cost of Ad) / (Number of Calls) = Cost Per Prospect $450.00 / 27 = $16.67 Your cost per prospect is $16.67
(Number of Sold Clients) / (Number of Prospects) = Conversion Rate 4 / 27 = .15 (or 15%) Your conversion rate of prospects to sold clients is 15%
(Cost of Ad ) / (Number of Sold Clients) = Cost Per Sale $450.00 / 4 = $112.50 Your marketing cost per sale is $112.50. Depending on your products and profit margin both of these ads may be performing well enough to merit continuation. However, based on this information we would want to look for other opportunities to expand our use of the classified ad first. This may seem a little basic but this information is extremely valuable and often overlooked. The outcome of most athletic contests is normally decided by a very small margin, sometimes by as little as tenths of an inch or hundredths of a second, missing that pass completion by half a step or missing one basket. One would suspect that most winners and losers in business are also determined by very small margins. Not giving that extra little bit of caring and customer service. Not having your presentation skills honed, not including testimonials with your sales information. Not having the most effective headline in your ad or not having a headline at all. And worst of all, not knowing which ads are working and which should be put on the bench. "If at first you don't succeed, try, try again. Then quit. There's no use being a damn fool about it." - W.C. Fields Shawn Meldrum has spent the last two decades marketing everything from almonds to landscape lighting. He currently specializes in marketing for mortgage brokers, loan officers and real estate agents. For free mortgage marketing articles and much more visit: http://www.MortgageMarketingTips.com/
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Pitched battle over bill to prohibit 'deceptive advertising' at faith-based pregnancy centers The CT Mirror A bill that would prohibit “deceptive practices” at faith-based pregnancy centers drew passionate — and conflicting — testimony from people on both sides of the ... Twitter rolls out new advertising rules to fight political misinformation ABC News The social media giant was once "unprepared and ill-equipped" to deal with political misinformation. It doesn't want that to happen again. Track Takeover: Art replaces advertising in SEPTA station WHYY Dozens of artists have taken over the SEPTA subway station walls at Walnut Street in Philadelphia. For the next month, all the advertising billboards along the ... Intelligent Social Advertising - Bringing Traction To Buisness Globally EIN News 2019 *American Cruising RV LLC* (352) 329-8938 Keirsten@intelligentsocialadvertising.com ISA leads Advertising Revolution - With Launch Of Business ISA. 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The Racism of 19th-Century Advertisements JSTOR Daily Illustrated advertising cards invoked ethnic stereotypes, using black women as foils in order to appeal to white consumers. AT& T to resume advertising on YouTube Marketplace APM AT&T has announced it's putting ads back on YouTube. A couple of years ago, the telecom giant pulled their ads off the platform because of concerns that its ... The Safari browser update that's driving marketers crazy AdAge.com Apple Safari's second iteration of Intelligent Tracking Prevention, or "ITP2"—which prevents tracking cookies from working in the open web—has been causing ... The future of advertising cannabis MarkLives.com For a *fresh*, independent and investigative view of Africa's changing media, marketing and advertising landscape.s. Apple and Google waged an advertising duel at the Grammys: Monday Wake-Up Call AdAge.com Childish Gambino starred in a Google ad that aired on CBS during the Grammys, while Ariana Grande was in an Apple ad. Broward judge violated rules by advertising Democratic endorsement, commission says Miami Herald A Broward County Circuit Court judge violated Florida's Code of Judicial Conduct by revealing his party affiliation and advertising a Democratic group's ... Wallingford coalition protests I-91 billboard advertising marijuana Meriden Record-Journal By Jeniece Roman. Record-Journal staff. NORTH HAVEN — Members of the Coalition for a Better Wallingford gathered on Route 5 Saturday to protest a ... Skittles on Broadway declares 'Advertising Ruins Everything' | Special: Super Bowl AdAge.com For Super Bowl Sunday, Skittles zigs where other brands zag, by putting on a bizarre Broadway musical starring Michael C. Hall. Tricks to advertising Komando There is more going on in the world of advertising then you could possibly imagine. 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