Get To Know The Numbers
I have been speaking to some of the members about the differences between branding and direct response marketing as well as the psychological side of sales and marketing, so today I wanted to spend some time with you making sure you understand the numbers. With any sales and marketing campaign there are two elements to the numbers.
There is the response rate of your sales and marketing, and there’s the return on investment or ROI. These two components make up all elements of your sales and marketing campaign. If your response rates are not high enough, don’t continue to do that type of marketing. Very importantly, if you can’t track your response rates, don’t do the marketing. You’re only wasting your money. As far as your return on investment is concerned, this is where you need to measure how much it costs you to run that particular campaign versus the amount of money that you get back. Just because a campaign might cost you $5,000, and you might only make two sales, means you may have a very, very low response rate. But if you take into account that each sale is worth $20,000, we have an example where you’ve made $40,000, but it cost you $5,000 to make, so your return on investment is $40,000 divided by $5,000 equals 9, and this is a great return on investment.
So you always need to look at the cost of running the campaign versus your actual return, and also your response rate to give you a final return on your investment rate.
P.S. If you want to fast-track the implementation of your sales and marketing and get more sales enquiries within the next 42 Days call now 1300 887 865 (int +61 7 5630 1155) or email: customers@crocodilemarketing.com) and ask about the Crocodile Implementation Club.
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