Are you happy with the results from your marketing?
Your marketing should be an investment, bringing more money in than is going out.
And when you are running various campaigns and strategies, how do you know which ones are hitting the bullseye and which ones are missing the mark?
The answer lies in two crucial numbers that can unlock the effectiveness of your marketing efforts.
1) Cost Per Lead
The first number to grasp is your “cost per lead.” In simple terms, it tells you how much you’re investing to bring a lead into your business. Different marketing strategies come with varying costs. Consider the money you’re pouring into referral programs, AdWords, or social media campaigns. But here’s the kicker: if you’re dedicating time to a strategy, remember to factor in the cost of that time. Calculate the total expenditure, both in terms of time and money, and compare it to the number of leads you have generated.
Once you’ve determined your cost per lead, you’ll gain valuable insights into the effectiveness of each strategy. It will become clear which avenues are delivering results and which ones might need some rework. Armed with this knowledge, you can make informed decisions about where to allocate your marketing budget for maximum impact.
2) Conversion Rate
The second critical metric is your “conversion rate.” This figure can vary based on the type of campaign. For example, click-through rates on ad campaigns, response rates to email campaigns etc. It’s a measure of how effectively your marketing efforts turn interest into action. The key question here is: how well is your marketing driving leads to your business?
The great thing about conversion rates is that small changes can often multiple your results. For example if you are getting a 0.5% response rat and can turn that into 1% you will double your lead flow! Remember the name of the game in marketing is cost-effective lead generation. So keep a close eye on your conversion rate. And if it needs improving start by tweaking various elements like headlines, offerings, and placement, so you can enhance this important number.
In a nutshell, if you’re not already measuring these vital metrics in your marketing campaigns, it’s time to start. Your cost per lead and conversion rate are like your marketing compass and can guide you as to where to make changes in your marketing campaigns.
By understanding these two numbers, you can assess the effectiveness of your marketing and take targeted actions to improve your results. It’s all about optimising your cost per lead, boosting your response rates, and fine-tuning your conversion rates until you are producing the leads you need.