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Results Rule! Use Tracking and Measurement in Your Marketing

Written by: Elizabeth Ruiz

Article Overview: Ask yourself two questions before spending your marketing budget: 1. What does it cost to get a new customer? 2. What will I pay to get a new customer? The following article will help you track and measure the results of your Marketing dollars spent.

Results Rule! Use Tracking and Measurement in Your Marketing

Direct Marketing is the clearest way to answer these questions and measure results. If you use a TV commercial or yellow page ad the cost keeps you stuck with the same message with little way of testing the response rate.

With direct response marketing you can test two different marketing messages and see the results right away…no need to wait months or even a year to change out your marketing message. You can do a split test of two different marketing messages at low cost and you’ll find out quickly which one works better.

Doing the math to find the best results can be a little complicated but worth it in the final analysis. Promotion #1 may pull in new customers at $135.00 in cost and Ad #2 at $242.00 so you might think Ad #1 is the test winner.

But when you consider the average purchase amount of those coming from Promotion #2 is $410.00 with the average from Ad #1 being only $275.00. Now which is better?

Next, 30% of those from Promotion #2 may return and buy again within 30 days, while only 9% from Promotion #1 buy again. Now which do you think is better?

It’s not too complicated if you set up systems to capture the data you need. Then make time to analyze the data and keep running the promotion that’s bringing in the most money.

Or you can spend even less money and send out two different emails to two different parts of your customer list. Message #1 goes to first half of your list and message #2 goes to the remaining half. Each message directs you customer to take a specific action.

Depending on how many customers respond to which message you can calculate your results and determine which message got you the better sale. Then you can repeat the most successful message to bring in more sales during your next email campaign.

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Article Tags: marketing, results rule



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