You’ve probably heard you should track your marketing/advertising spend, track your clicks, track your leads, track your conversions, track your sales, track your repeat business, and … track…track…track. But, WHY?
The short answer is, so you know if you have made progress in your business or not.
The long answer is, so you know that the progress that you are making is in the right direction. Not only do you need to track the data but you need to do some analysis on the data that you have collected.
At the raw level, let say you’ve collected the following metrics from your data collection and overall you feel very happy that you have doubled your revenue.
1Q2QFacebook Ad Budget$500$1000Clicks on the Ad25006000Leads, sign up20004200Conversions to Sales (number)15003200Revenue ($$)$15,000$30,000
At first glance, this looks like you doubled your Facebook spend and directly doubled your revenue. However, if you look closer at the numbers, you really should have more than doubled your revenue. Your Ad Clicks have gone up. Better copy? However, the percentage of clicks that turn into leads has declined by 10%. What changed on the sales page? If the tweak that improved the number of clicks on the Ad remains and the originally leads to sales ratio would remain, your overall revenue would go up.
1Q 2Q Numbers if % remainedFacebook Ad Budget$500 $1000 Clicks on the Ad2500 6000 6000Leads, sign up200080%420070%4800Conversions to Sales (number)150075%310074%3600Revenue ($$)$15,000$10 per sale$30,000$9.67 per sale$36,000 ($10 per sale)
So, what changes need to be made to gain the potential revenue? You may want to do some A/B testing on the Sign-Up copy and determine if it’s a color and wording or the offer? Again, measure these.
What do your numbers tell you? Have you looked at them over time?
Please note, there are more metrics that are valuable to your business than just these. We selected this small sample to demonstrate the value of reviewing the numbers.
Janice is President of Marketing with JR – Common Sense Marketing with Extraordinary Results. Janice spent years in Corporate IT interwoven with various Marketing stints. Janice brings her Fortune 50 experience to you with a focus on traditional offline marketing strategies. However, she is pretty savvy online to make sure that the online and offline strategies complement each other.