In your justified haste to bump up the sales and go beyond breaking even with your ROI, as an entrepreneur kicking off your next business venture, it can be very easy to overlook one key factor, which is that of putting measures in place to effectively and accurately measure the ROI which comes from your marketing and advertising efforts. It is of utmost importance to be able to measure right down to the tee how much each marketing campaign brings in.
Oftentimes you’ll be working with some fine margins, in which case you can identify pivotal areas in which to tilt your focus so that you can perhaps scale things up and fast-track the revenue through the implementation of strategies such as those which target volume. To put it simply, when you’re working with fine margins then ensuring your profitability is all about sales volumes.
Getting back to the tools with which to measure marketing and advertising ROI though, naturally some of these tools available at your disposal are easier to deploy and make effective use of than others. Getting your web developer to create a piece of code that tracks the sales made by your affiliates who market your offerings digitally is a very easy way to accurately track sales and match the subsequent profits with a specific advertising campaign, for example, whereas something like a radio advertisement you put out is a bit more challenging to track the subsequent sales of and match the turnover with that specific campaign.
It’s not impossible however and although it is indeed quite the challenge, it’s really something not to take lightly.
Unique Campaign Identifiers
I could very well expand on the radio ad example, but in addition to that I’m also going to discuss those booth displays which businesses often love to erect as part of local trade shows and the likes. In both cases of running a marketing campaign, the only real way of pairing sales with those specific campaigns is to create a unique identifier to go with those campaigns. For example, if you want to measure how many of your customers bought your product or service as a result of a radio ad you put out or as a result of some marketing material you handed out at your custom trade show displays at a selection of trade fairs, there would have to be some sort of special promo code buyers use to complete their purchase or something along those lines.
You could also build a unique identifier mechanism into your core sales recording operation, such as asking customers to answer one easy question of where they heard about the product or service they’re buying from you.
100% accuracy is an ideal which will perhaps never be reached, but one which must be aimed for nevertheless. It’s a simple matter of gathering the type of marketing and sales intelligence which can guide your decision-making progress to such an extent that one small adjustment could make for the difference between breaking even, making a little bit more profits or ideally sky-rocketing your profits.