Most businesses spend good money on advertising and marketing
Some works and some doesn’t, but here’s the problem.
Most entrepreneurs have very little idea – other than gut feel – as to what works and what doesn’t work.
There’s a saying that goes, “50% of marketing spend is wasted; problem is which 50%?”
And that’s why it’s so important to measure key performance indicators (KPIs) for all your marketing activity. For any marketing campaigns you have going on it’s critical that you have KPIs.
What is a KPI?
Essentially it’s a measure of a critical success factor. Here’s an example:
Just imagine you’re focused on growing revenue in your business. In order to do that, you need to generate some new work. To generate that new work, you need to generate leads and knowing where to find opportunities for new work. The KPI around that would be the number of new leads you’re generating every day, week or month – whatever the time period that can be best measured.
For each marketing activity it’s crucial to understand that return on investment (ROI) and knowing what’s working well so that you can continue to do that and stop doing the things that waste 50% of your marketing spend.
Consider this: ROI and KPIs apply to all functions of your business, not just marketing.
Measuring ROI is critically important as you consider your marketing spend. Do you know which marketing activities work, and which don’t?