Are you a business owner who has ever wondered what you were “getting” for all the money you spend on advertising? You’re not alone. It is difficult, toilsome, and, most times, downright arbitrary to calculate the return on the investment you make in marketing and advertising. Especially in this market.

[img credit: http://www.deploy511.org]
Here’s one good place to start:
Recently, I saw a seasoned CEO in action during a staff meeting with his top sales executives. When they were reviewing the firm’s 2010 ad budget, the CEO made a decisive, clear directive that made perfect sense. Basically, it was to spend “smart,” and the ROI will naturally follow. “Smart” spending means you must answer and then perform the following:
- First, list out where your current customer leads are coming from. Break it down by percentage. (ex: radio, website, newspaper, walk-in, referral, etc)
- Next, list how much you’re spending per lead source, as a percent of the whole budget. Once you have these two lists, put them side-by-side. Do the two lists match? Is there a good reason why not? If not, match the two.
- Example: One local firm recently reported spending over 75% of its annual ad budget on newspaper ads, when only 2% of its customer leads came from those print ads. This is a clear mis-match. Ensure you have the proper lead generation sources, then invest in the ones that yield good leads. Then, go about your business. Very quickly, you’ll figure out if you are spending “smart.” And, ROI will naturally follow.
Hit up Cogster today to learn how you can spend wisely and sell more. It’s three easy steps: (1) Register a business profile. (2) Post some Deals. (3) Initiate a loyalty campaign. Tell all your current customers about it. Ask them to tell their friends. Cogster is a win-win for everyone – customers and you. And it’s smart marketing, with a true ROI.






