As much as I hate to say it, most marketing dollars that small business owners spend is getting flushed down the toilet.
I just had a conversation with a client and after asking her three questions, identified $15k in dead advertising spend that they can now channel into other areas that will potentially bring multiple six figures in extra sales.
This conversation highlighted something I’m seeing happen quite regularly.
Folks … please don’t blindly listen to your outsourced marketing specialists telling you that the marketing channel they’re working with you on is performing well. (SEO, Adwords, Facebook, social media or whatever).
Some (but not all) outsourced specialists focus on the mechanics of managing your ad spend not the strategic or creative elements that drive a return on your ad spend.
So – how do you tell if it’s working or not?
It’s as simple as always keep these three questions in the back of your mind …
1. What is the acceptable cost per lead?
2. What is an acceptable cost per sale?
3. Is that channel delivering that or does it have the potential to deliver that?
If it doesn’t, tweak it so it does or can it and channel that money into the areas that ARE working.
If you don’t know how well it’s performing, PLEASE take time to find out.
Put in place mechanisms to measure it.
Otherwise, you can end up flushing five or six figure amounts down the toilet.
When dealing with outsourced managers who manage your spend ensure they know your KPIs and ensure they stick within those parameters.
What about social media that focuses on engagement not leads?
Engagement doesn’t necessarily drive leads or increase conversions but it can.
For every $1,000 you spend on outsourcing social media, you want it to be bringing in at least somewhere between $7,500 and $20,000 in sale s(depending on whether you are a product or service based business).
If it isn’t doing that, consider this …
You could instead spend that money generating 500 new leads a month using FB ads (or something else) and of those leads, that could easily generate $20,000 – $50,000 in professional service sales.
Moral of the story …
Take a forensic look at your marketing KPIs. Every time I do that with a client I identify savings and significant results improvements.
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