One of the first questions I ask new clients is what types of advertising they’re doing.
And then I ask what’s working and what isn’t.
And more often than I’d like to admit, I’m met with a blank stare.
It is SHOCKING to me how a business can spend tens of thousands of dollars a month (or more) on “shotgun” advertising and not take the tiny amount of time needed to see what’s returning a positive ROI and what isn’t.
If you’re not tracking your advertising ROI it’s one of the biggest and easiest to fix profit leaks I come across, and if you are already tracking, here are some ideas you can use to do it more effectively…
1. Use different phone numbers for different campaigns. Simply use a service like Grasshopper.com and use a different number to track each campaign. One for your website, one for print campaigns, yellow pages, direct mail, etc.
2. Use coupon codes. Coupons (done right) not only drive customers, but they’re easily tracked. Use a unique code for every different ad and medium you’re advertising in, and you’ll be able to easily see what sources are paying off and which ones are a waste of money.
3. Ask your customers. It’s a simple question, “how did you hear about us?” But many businesses have absolutely no clue where their customers are coming from.
There are many other ways as well.
Before you invest in ANY advertising campaign, figure out how to track the ROI. It lets you quickly scale out the promotions that do work, and cut out the stuff that wastes your money.