What you measure you can manage!

Posted by admin on 20 July, 2008 under Business advice, Business development, What you measure you can manage | Read the First Comment

An example of one aspect of your business that you should measure and manage is your advertising spend and how well it is working.

I would hazzard a guess that most businesses do not monitor their advertising spend and what I mean is they don’t bother to gather information about how many leads are generated from each advert placed!

If you don’t monitor how many calls are coming from a particular advert you are not able to gage the return on your investment in that advert. For example if you are spending, say £500 per month in a particular local newspaper and you did monitor the calls received and they amounted to just 2 per month, then you might need to consider either changing the add content or the paper you advertise in. Please note the cost per lead is £250 in his case.

So long as you are monitoring all your adverts you might find that you are receiving say 20 calls per month from an industry magazine that costs say £750 per month. In this case the cost per lead is £37.50, which is very much less than the above £250 per lead.

With the above information you are better placed to place your adverts where your type of customers are looking for you. You can then decide to re-direct the first £500 being spent on the local news paper to either increase the size of advert in the industry magazine or find another medium to advertise in.

You could also, try changing the wording of your advert in the local news paper to see if this increases the number of leads, but it that fails then you must change where you spend the money.

Read more about how develope your business click here

Learn the 6 ways to grow your business