There’s no point in playing a game if you’re not going to track any data behind-the-scenes. If you don’t know how you’re leveling up, then you’re not going to make much progress, are you? When it comes to marketing, you need to be double-checking your bottom line numbers each and every day. You may get by every other day but it’s best to develop a habit of doing this daily.
The Most Important Numbers You Should Check
Your Bank Account and ROI
This can be whatever account you tie to your marketing budget. If it’s a separate savings account, monitor that. It doesn’t matter. What matters is that you are able to compare how much you’re spending and how much you’re getting back in return per campaign you’re investing in.
Let’s say you’re running a Google Ad and a Facebook Ad. Each platform has a budget of $1000 per month, give or take. Which of those ads are generating actual leads for you? Meaning, converted leads – the ones that turn into paying customers. If the money doesn’t hit your account, it doesn’t count as a ROI. Impressions don’t bring you money. Clicks don’t bring you money. What brings you money is you landing the deal.
If you’re not seeing dollar signs increase in your bank account, it’s time to rethink your strategy and reconsider if one or both of these ads are worth $1000 each month. It’s difficult to justify paying a lot into something you hardly get a return on. Even if one of your customers is $8000 in profit, that’s a $7000 return on your investment. But let’s say you only got one client after four months of paying toward an ad. That’d be $4000 in marketing with a $8000 client, leaving you with $4000 in profit.
While it may still be a profit, and can easily be justified, some business owners would look at the loss of $4000 rather than the gain. It then becomes hard to justify spending all that money just to receive a client in four months and especially only with a 50% profit. For many businesses, four months is a hole in the wallet. If you only received one converted lead every four months for one year, that’s still a $12000 marketing expense to receive $32000 with a total ROI of $20000. Spend $12000 to make $20000? That’s only $8000 in profit for the year!
What we’re trying to say is, for beginner business owners, that looks like a major gain. For more established business owners, that seems like an expensive campaign not quite worth the result. Although, some businesses have that kind of marketing money to play with and spend. Though, why not maximize your return? Why not keep even 50% of that marketing budget of $12000 for other investments?
The decision really comes down to you and your goals, as well as your budget. However, we encourage you to look at the truth of what you’re spending and what you’re getting back. One lead per month would be better than one lead every four months. What do you need to do to get that? Careful here, these campaign hosting platforms will tell you to spend a higher amount to get more leads. While that may be true, since they control how often you’re seen and who they show you to, the real price that matters is the one that sits in your bank account.
Again, it’s nice to get impressions and clicks, but how does that increase your profits? They don’t. A true ROI is when your bank account grows. Take time every day assessing whether it is and as fast as you’d like.
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