Evaluation and ways to increase the effectiveness of marketing

All the actions that you do to attract customers, it is worth to evaluate. Marketing techniques should work, attracting the attention of potential customers. The return on these efforts should be maximum.

1000 flyers and 10 calls can in one situation help to achieve the desired goal, and in another will be an unacceptable result. Especially this is a desirable goal for businesses that offer expensive services.

To begin with it is necessary to understand technologies and ways of an estimation of efficiency of marketing.

What indicators should be oriented and how is it done? How correctly to measure them? You can imagine several ways:

1. Total costs for the advertising company.
2. Total number of responses.
3. Percentage of responses-hits from the total number of messages.
4. The price of one treatment.
5. The number of responses, according to the results of which new customers were received.
6. Percentage of hits in new clients.
7. Price for each customer involved
8. The ratio of the value and value of the new attracted customer.
9. ROI - returns in the form of a classic indicator in the case of sales (margin per one ruble of marketing costs).

Some indicators should be considered in detail. What is the total cost of an advertising campaign? These are all the tools that you could invest in a campaign to attract new potential customers.

The number of appeals is how many people turned to you for help. Percentage of responses from the total number of all messages. If we consider the example of 1000 flyers and ten incoming calls. This means that you received approximately 1% of the hits.

What is the price of one response? If each flyer cost you 5 rubles, then your total costs were approximately 5,000 rubles. The price of each individual appeal will be 500 rubles.

How to calculate the number of responses that resulted in the acquisition of new customers? For example, if five people decide to purchase something out of these ten calls, then the conversion percentage will be about 50%. Mathematical calculations are quite simple, but in this case you can always calculate for yourself, so as not to remain in the minuses. You can also compare the various channels with each other.

The price of attracting one potential client. The cost of each person will no longer be 500 rubles, as mentioned above, but 1000 rubles. We perform simple calculations, multiplying this figure by two, and get the cost of one customer, which will equal 1000 rubles.

If the value of each potential customer is ten times greater, in this case this variant of the advertising campaign will be the most successful for you. You can safely use this channel for marketing purposes. Each ruble, which was invested in marketing, will bring you more than 10 rubles of net profit.

Is this a lot or not? You yourself will eventually be able to appreciate this fact, focusing exclusively on the profitability of your business. Such indicators should be measured based on the results of each individual advertising campaign. Today we will try to present the situation on the following examples.

Example number 1. Evaluation of the advertising company.

The businessman made an unaddressed mailing list with an invitation to enroll in his fitness club, which works for adults and children.

In total, more than 5,000 letters were mailed to the city's mailboxes.

1. The cost of printing costs exceeded the amount of 16,300 rubles.
2. 10 people called.
3. The overall response rate, based on the figure, was 0.2% (10/5000)
4. The price of one response will be equal to 1630 rubles, for this you need to divide the total amount in 16300 by 10.
5. The number of appeals that led to the acquisition of new customers - 5.
6. The conversion percentage of new customers was 50% (5:10).
7. The cost of attraction for each new client grew to 3260 rubles.

The businessman remained dissatisfied with the results and continued the advertising campaign. Flyers were launched into the people.

A very important nuance

The question may arise: is it worth considering the costs of the advertising company, which are connected with managers and with communication? In any case, do not expect that the client will get you for free.

For every new customer you will have to pay, even if your point is located in a huge shopping center, and potential buyers come to you for their own goods. The cost of each client can be calculated.

You regularly pay for renting premises, pay salaries to employees, pay utility bills monthly, etc. Most of these costs go to ensure that customers come without any additional marketing efforts.

Now we will consider an example with the evaluation of advertising companies.

If regularly your store is visited by more than 100 people every day, then after the launch of the advertising company, this figure will necessarily double. This is the essence of the effectiveness of marketing, because you need to take into account only newly arrived customers, and constantly compare what is cheaper. Perhaps, SMS-sending will be an excellent way to attract new potential customers who want to buy your product, or flyers may be effective. Advertising on the radio can play its role in the same way as a billboard in places where large numbers of people are crowded.

Example № 2. Evaluation of the advertising campaign.

If the mailing list does not meet all your expectations, then it's worth trying to use flyers to attract new customers.

1. In the press were given 1000 leaflets, which cost 1,100 rubles. 1280 rubles will cost the work of promoters, who for several days will distribute flyers to all passers-by. In total, 2380 rubles are received - costs.
2. Received 14 calls.
3. The overall response rate was 1.4%
4. The cost of each of the responses is estimated at 170 rubles (2380: 14).
5. The number of responses, which resulted in the acquisition of new customers - 5.
6. The percentage conversion is 36% (5/14).
7. The profit from each new customer is 476 rubles (2830/5).

The results of the conducted advertising campaign, Alexei was quite pleased. He decided to use this option as soon as possible to attract new potential customers.

If you compare the results with the mailing list, the flyers were much more effective. In addition, they cost much less, and as the main source of customer value, these data were arranged by the entrepreneur Alexei.

He is using this option now. We are completing the leaflets and thus creating a stronger proposal in order to increase the percentage of responses.

Example 3. Evaluation of an advertising company

The chain of shops decided to make sms-mailing on the basis of subscribers.

1. Expenses for each message cost an average of 1 ruble.
2. About 25% of those who received this message came to the store, and about 30% of customers made an average purchase of 3000 rubles, a margin of at least 500 rubles.
3. The percentage conversion of messages into the purchase was 6.25%, that is 25% x 25%.
4. If you take into account that of the hundred subscribers, six made a purchase and brought in the amount of 3000 rubles, then each ruble spent on the advertising company brought 30 margins.

This variant of the advertising company is very effective, and similar results are very typical for SMS-sending, if it is done correctly.

Well-formed proposal does not imply the sending of advertising messages every week. It is necessary to send messages at least once every two weeks, then we can safely rely on such results.

Do not discount the SMS-sending, as well as mobile marketing. It should be used if the target audience treats your actions as loyal as possible.

Example number 4. Evaluation of the advertising campaign

The advertising company was made in "Yandex. Direct ", based on the key phrase" bathroom repair ", with a series of ads like:" You urgently needed repairs in the bathroom? Discount 5% only until September 15! Right now click! ".

1. The total cost was more than 3982 rubles.
2. As a result, there were 230,169 impressions of your ad.
3. Transitions to the site - 1199.
4. More than 100 calls from the site.
5. More than 25 orders with a margin of about 40 000 rubles.
6. The percentage of responses was 0.52%
7. The price of one request is 3.32 rubles
8. The cost for each new customer is 159 rubles (3982/25).
9. ROI amounted to 1,258 rubles of additional margin per one ruble of marketing costs.

Such an advertising company with high competitiveness and minimal costs has brought quite good results. This system works, and the number of new customers only increases.