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A Publication of:
How To Increase Your
Earnings By
Measuring Your
Marketing
Boosting Your Earnings
By: Gil Zapata
A Publication of:
Increase Your Earnings By
Measuring Your
Marketing
Measuring the success of your marketing is a
vital task. Many businesses decide to engage
in a marketing campaign based on the wrong
reasons rather than the right ones. Measuring
your return on investment (ROI), showing you
what works and, crucially, how worthwhile it
has been to spend the money you have.
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Also, to have an effective marketing strategy
you can combine it with financing. Business
financing can be an effective tool when
implementing your marketing campaign.
Most marketing efforts may take 3 months to
6 months to see results.
In addition, marketing is only effective when
you are consistent at it. Not every marketing
campaign will result in business even if you
are consistent at it, without utilizing the
following techniques. In this guide, we
expand the use of capital and how to utilize in
your favor to increase in your earnings.
We evaluate a sample marketing campaign in
very simple terms to understand how to assess
each marketing campaign you engage in. The
objective is for you to increase your earnings.
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Measurements help you develop and refine
your marketing strategy. This guide introduces
to:
1. Setting objectives
2. Measuring success
3. Techniques to help measure success
4. Short-term financing as a marketing
tool
1) Setting objectives Setting objectives will show you further down
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the line how effectively your marketing has
met them, giving you the basis of an
ROI metric. Create marketing plans that tie
marketing activities into the company's
bottom line. Your marketing plan should
focus on the delivery of results aligned to
business goals, not just on spending. Most
businesses are eager to invest the company’s
earnings or obtain financing to implement
their marketing. First, you need to set the
objectives. This will help you focus on things
that count to the business. Make sure you
account for any extra processes needed to
measure ROI in terms of time and money.
Your objectives should connect the level
of investment to the achievement of
quantitative results
Don't forget to allocate budget and time to
setting up the processes you'll use to
capture data to measure your success
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2) Measuring success
What you measure will depend on what you
were trying to achieve. What gets measured,
gets managed. You might measure, for
instance, the number of new customers/leads
generated (keeping an eye on any you lose as
well), number of new products bought by
existing customers (which helps identify the
most strategically useful clients), brand
awareness, market share or customer
satisfaction levels. If you track leads,
remember to track conversion rate to actual
orders as well.
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At our company we utilize different
measuring tools for different campaigns. For
instance, on our outbound call marketing
campaign; we measure
the number of dials,
number of contacts,
time per call, etc. We
do this for a number of
reasons to detect if the
the list we are utilizing
is good or bad or to
determine skill weaknesses and strength in our
outbound agents.
For instance, many people place
advertisements on newspapers, the internet,
etc. A month goes by and you spent
thousands of dollars and there are no calls.
First, you may need to assess the content of
the advertisement. Once the content is right
and your phone begins to ring you may want
to assess the time that new customers call, the
days that they call, etc.
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What you measure depends on your objectives
3) Techniques to help
measure success Put sales enquiry forms or allocate a different
sales phone number to each of your
advertisements so you can identify where the
enquiry came from. Many businesses run
different marketing campaigns and use the
same phone line. After several months you
begin to gain traction, but you lose track of
where the customers are coming from.
Utilizing different numbers, surveys, or other
measuring tools to track where the customers
are coming from will help you determine what
campaigns to continue and discontinue. Also,
it will help you allocate your funds or
funding into the appropriate marketing
channels which will increase the Return on
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Investment on your marketing campaign.
Use web metrics and keep an eye on the most
popular search terms customers use on your
site. Online pay per click advertising gives
you an immediate feedback mechanism. Carry
out regular written and verbal client surveys.
Use sales enquiries forms or different
phone numbers
Make the most of web metrics
Carry out client service surveys regularly
4) Short-Term Financing
Can Be a Powerful Tool in
Marketing Most marketing campaigns can take 3 months
to 9 months to see
results. Let’s
assume you have
$50,000 in your
company bank
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account or $50,000 of new revenues came in.
You take the $50,000 and you will not see a
return on your marketing campaign until 3, 6,
or 9 months into the future. You just depleted
$50,000 from your company’s bank account.
Instead, you can obtain a loan for $50,000.
Even if the payment was $10,000 for the next
5 months and you took $10,000 from the
$50,000 in your bank account to cover the
first month’s payment; you would still have
$40,000 in reserves.
Also, you need to prepare a projected profit to
loss analysis on your marketing campaign and
take into consideration the cost of capital.
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Very simple example:
Cost of Marketing Campaign: $10,000
Projected Earnings: $14,000
Return on Investment: 40%
Time Frame: 6 Months
Black Out Period: 3 Months
Loan: $10,000
Rate: 10%
Term: 6 Months
Monthly Payment: $1833
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Now, you are ready to make your money work
for you.
You have a black out period for 3 months.
This means that for the first 3 months you will
not see money from the marketing campaign.
Month 1: You may need to implement the
campaign and this consumes time and will
require a certain amount of money.
Month 2: You begin to measure some of the
results from both month 1 and 2. Here you
begin to make some adjustments. What works
and what does not work. You begin to
analyze your metrics and customer feedback.
Month 3: You have now the consistency
factor working in your favor. By this time
you begin to see some revenues.
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Month 4: You begin to see revenues. If you
projected that you will make back $14,000 in
6 months; in month 4 you need to make close
to $4500 to assure that you reach that target
and assure that you can yield a 40% overall
return.
In this example that we utilized; you are using
a loan to launch this campaign. The cost of
capital is 10%.
YOUR PROJECTED OVERALL RETURN:
40%
YOUR COST OF CAPITAL:
10%
YOUR NET OVDERALL RETURN:
30%
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Since most marketing campaigns can take 3 to
6 months, in this example we said there would
be a black out period of 3 months.
The Black Out
Under this scenario you need to have
sufficient revenues from your existing
operation to assure that you can cover 3
months of the loan payment.
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The loan payment is $1833. Every month, for
the first 3 months you need to make sure that
can cover this payment.
It’s better to pay $1833 per month; than to lay
out $10,000 from your reserves or from your
existing revenues.
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Let’s assume you had an extra $10,000 for
this campaign and you have two choices:
Choice 1: Take out the $10,000 and place it
into the marketing campaign.
Choice 2: Pay $1833 and stay with $8,167 in
reserves in your company’s bank account.
WHICH OF THE TWO WOULD YOU
CHOOSE?
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It’s most obvious that retaining capital in your
company’s bank account and having reserves
is a better choice.
You project your results and your earnings.
However, if anything goes wrong at least you
have some reserves to keep the campaign
running and make adjustments until it works.
Our company has consulted and has assisted
many clients in obtaining capital for numerous
purposes.
This is what most clients say:
“I have $40,000 in contracts out due in 30
days”
“If the $20,000 come in I’ll resolve this issue”
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When we ask them the following questions,
they don’t have an answer?
1) How is it possible that you are generating
$150,000 per month and at the end of the
month there is only $1,000 left over in the
bank accounts?
2) When was the last time you worked on a
budget and a projected profit to loss
statement?
3) If you are projecting revenues on your
marketing; did you prepare a project to loss
statement that is specific to this campaign?
4) What are your metrics for this campaign?
5) Do you have an Action Plan for this
campaign with actions steps, goals, and
deadlines?
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There are more questions. You would be
surprise the answers that we obtain.
You guessed it. Most companies begin to
spend without thinking.
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Most entrepreneurs are ambitious, positive,
and project great results. These are all good
traits to have.
It’s better to make a right decision, rather than
making a fast one.
However, when running a marketing
campaign you need to be more analytic to
assure that you achieve your financial
objectives.
SUMMARY In summary, there are many strategies and
planning methods you can utilize to assure
that you boost your earnings when
implementing your marketing campaigns. In
this guide we shared some of them.
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To Address Any Questions or Comments
Please Print This Page And Fax It To:
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A Publication of:
By: Gil Zapata,
About Gil Zapata
Gil Zapata is a business consultant,
speaker, and writer. He has written
for several publication, appeared in
radio shows, and has been booked for
several speaking engagements. He has
assisted in excess of 400 business owners in
numerous ways. As an entrepreneur he
founded two start-ups with no capital. The
first company generated in excess of $1
Million in gross earnings within 4 years. The
second company he started with only $500
dollars and grew earnings in excess of 200%
within 2 years. He holds numerous
professional licenses and college degrees
including post-graduate studies from Harvard
Business School.
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www.lendinero.com
Fast & Simple Business Funding
888-505-5835