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How Many and at What Cost?

I believe that meditation is good for me. I tend to think a lot and talk a lot. Meditation is simply shutting down the thinking and talking and just…being. When I meditate, for five minutes or twenty minutes, I feel so much better. I am calmer, more relaxed. Happier.

So, why don’t I do it every day? I decided to get a coach, commit with a few dollars, and to practice until it becomes habit. I joined an online group that meditates together. There are scheduled times. All I have to do is show up…and be. I am loving it. My meditation coach is great. He shares sound techniques for getting present, moving energy and tuning in to intuition.

He offers is a “Question and Answer” session at the end of class. One of the students asked, “What can I do to keep my mind from wandering?”

My coach offered, “Imagine bringing your attention to the center of your head. Call your awareness back to you from wherever it is. Imagine it collecting in the center of your head, drawn there by your intention.”

“Ok,” the student replied. “Ummm. What else can I do? If that doesn’t work.”

I laughed. Sure, the instructions were perhaps a bit esoteric. Still, why not try it? You paid to learn from a master. Take a swing and see if it works. Then, at least you can come to the next lesson with some experience and result, or lack thereof. But, you should at least try it and see what kind of success you have. If it works, keep using that technique. How simple and effective is that?

We make things harder than they need to be. 

Take marketing. On a phone call recently, one of my clients was sharing his marketing strategy. “I am sending quarterly newsletters. We have ads in the Yellow Book and Yellow Pages. Of course, we give away magnets and hang flyers on doors. I am visiting with a rep from the radio station to put together an intensive radio campaign. Not sure if I should expand into cable TV, too.”

“Ellen, what do you think?”

“Well, what kind of results are you getting from all this action?” I asked.

Silence.

“Do you track your incoming calls? Do you know how your customer came to call you?” I pressed.

More silence.

“Would it help you make better marketing decisions if you did know?”

Sure it would. You could do more of what works and less of what doesn’t.

How Many and at What Cost?

This isn’t an exact science. While countless volumes have been written on the subject, the jury is still out on why marketing works. We can measure whether or not it does work. At least to a “close enough” decision-impacting standard. Here are the critical statistics you need to make better, faster, more lucrative marketing decisions:

  • How many calls per Lead Source? (Al and I also call Lead Source “drivers”)
  • What is the cost per call per Lead Source?
  • And…BONUS…ROI or Sales generated by a Lead Source divided by the cost of the Lead Source.

Calculate these statistics for these time periods…

  • Per month
  • Year to Date
  • Since we started keeping track

Let’s define a few terms.

  • Lead Source…the marketing “driver.” Yellow Pages, Direct Mail, Yard Signs, Billboards, Radio Ads are Lead Sources.
  • Calls…the ringing phone looking for you to solve a problem.
  • Cost …what you spend on the expense of the Lead Source.

How many calls do you need? How much is an acceptable cost per call? Those answers are found by Budgeting…and assessing your statistics. At the very least, start NOW to get a baseline for these statistics. You’ll gather valuable information. Try it…and see what happens.

Apples to apples…

Make sure that you are referring to the current and consistent Lead Sources throughout your information and accounting system.

In your accounting system, create accounting in your Chart of Accounts to reflect your Lead Sources. You could use Sub-accounts under a header account “Marketing.” For example…

6-1000 Yellow Pages
6-1200 Direct Mail
6-1300 Pay Per Click Internet Referrals
6-1400 Welcome Wagon Program

Then, code your associated expense to the proper account. This will help you figure out the “at what cost?” statistic.

Get the CSRs in on the game!

Line up the Lead Source List with your Customer Service Software. When a call comes in, make sure part of your welcoming script includes this question…

“What prompted you to call us today, Mrs. Fernwicky?” (If your caller’s name is Mrs. Fernwicky. J)

Customer Service Software – Wintac, Bottom Line, Ergos, True Vantage, Successware, Service CEO – will have a Lead Source drop down box. Make sure this Lead Source list matches your marketing efforts and your Chart of Accounts.

Don’t have Customer Service Software? Use a columnar pad and hash mark the answers to the question, “Mrs. Customer, what prompted you to call us today?”

Take “Repeat Customer” off the Lead Source List. While it can make you feel good, it won’t tell us what prompted them to call us today. You existing customers will only stay with you if they remember you and can find your number when they need you.

It’s never going to be 100% accurate data. Mrs. Fernwicky may tell you, “I saw your ad on TV!” And you have never had an ad on TV. Just roll with it. Ask a follow up question to gain clarity, but don’t put Mrs. Fernwicky through a bright-light interrogation. You could even add TV to your Lead Source drop down list. 90% accurate is darn good data, and will give you enough information to make sound marketing decision.

Start with the basics, then get specific. 

If you are new to this, you can determine the overall “How Many and at What Cost” statistics for each Lead Source in total. For all Direct Mail, you may determine that you received – in a one month period – 100 calls with a cost of $15,000 for all Direct Mail campaigns. The cost per call for the Direct Mail Lead Source is $15,000/100 = $150 per call. Super savvy business owners break it down into more detail. They calculate how many calls and at what cost for each different postcard or letter. They test. Then they do more of what works. If the bright orange postcard with the funny looking baby on it draws 300 calls for $50 per call, they will send that postcard out again.

If it works, do it. Until it doesn’t. Then try something else and measure it.

Intend to get the calls.

I was working with a commercial contractor on his Budget the other day. I asked him about his marketing efforts. He said, “Well, you are not going to like this, but my only marketing expense is for business cards. I spend an hour everyday pounding the pavement. My dad calls this a ‘Shoe Leather’ campaign. I target an appropriate business and walk in the front door. I find the owner, and introduce myself. I let him know I am working for his neighbor down the street and just took a break to meet him. I ask him a couple of questions about his kitchen exhaust system and, politely, point out some of the cleaning issues and potential trouble areas. Then, I ask him if he wants me to clean the system. Sometimes he says, ‘Yes!’ He smiled.

I smiled back. “Are you kidding? I LOVE this.” He racked up over $400,000 in Sales last year doing just that.

Xo$, Ellen

If you are asking, How do I get the phone to ring NOW?, Al Levi and I offering the Get More Calls Teleseminar program to help you do just that. We’ll share 3 super simple Marketing Drivers that always work (and we money-back guarantee it!) It always works…if you work it. Interested? You should be. www.GetMoreCallsNow.com

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2016-12-01T14:55:26+00:00