One of the difficulties in running any marketing activity is effectively evaluating the overall success.
It is important to have a marketing plan that clearly details the marketing activity and the objectives for each. Depending on the marketing budget, the marketing activity will vary. But whatever the activity is, measurable performance indicators should also be developed.
Measuring marketing activity is important to ensure you know what activity is working in terms of appointments, referrals, leads and ultimately sales, what activity isn’t working and in monitoring your marketing budget/spend.
Measuring the relationship between marketing activities and the actual returns they bring has traditionally been relatively vague with financial planning practices. Capturing the effectiveness of marketing activity in practices is the key to justifying budgets, increasing profits and creating a pathway for a more profitable and realistic future.
In today’s market it is becoming increasingly important to:
- Educate and engage customers
- Capture market share
- Retain customers
- Acquire new business
- Get more from existing clients
- Be very, very compliant
Benefits of measuring marketing activity
Evaluating marketing activity is critical to ensuring you achieve your marketing goals and objectives and ultimately increase your bottom line.
Measuring marketing performance helps you to:
- Understand the return on your investment
- help to provide future direction for marketing activity as you identify activity that works for you versus activity that is not so effective. This enables you to learn from your activity and modify future marketing efforts to get the most out of your marketing spend.
- Begin to track marketing return to help set targets for future activity
- Assessment of best use of resources assigned to the task
- Identify gaps and opportunities to improve performance / targeting of clients
- Measurement of target versus actual results
- If you can’t measure your activity, is it worth doing?
- Begin measuring responses for your marketing activity immediately. This ensures results are captured at the point in time and not left to best guest scenarios.
Marketing Activity Measurement Indicators
There are several ways to measure your marketing activity. These may include:
- Client email readership
- Number of responses
- Number of attendees at events
- Number of appointments
- Number of leads
- Number of referrals
- Media exposure
- Sales converted (business written)
Example of measuring activity
The following is one example of how you can measure marketing activity. Lets look at an advertisement in the local newspaper.
The cost to advertise in the local newspaper may be $1000.
The response can be measured by asking customers a simple question: How did you hear about my Practice and/or services? This will give you an indication of how many customers saw your advertisement in the local newspaper.
An outlay of $1000 may lead to a response rate of say 25 customers. Therefore, each customer cost is $1000/25 = $40. This can be tracked over time and compared to other advertising opportunities.
Hints and Tips
- Set realistic targets for each marketing activity
- Set expected targets before commencing the marketing activity
- Look for ways to enhance your response rates ie, follow-up phone calls etc.
- Review your successes and equally your failures regularly
- Modify your marketing activity to reflect your lessons learnt
Example costs to consider
- Measuring marketing activity can be as simple as recording targets and activity on a spreadsheet. Therefore, minimal upfront costs.
- Resource should be given to ensuring measurement is recorded.
Begin measuring marketing activity today!
Even better, why not look at implementing an automated solution like Feedsy that does it all for you, check out this video.
For further information, just ask 🙂
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