07/11/2015
Here's something to think about!
How much advertising do you do in your business each month?
Maybe you do it every 2nd month?
Here's a bit of homework...
Count up what you spend on advertising and promotion - lets go for the past year - advertising, leaflets, postcards, radio ads, exhibitions and trade events (make sure you include the cost of travel, accommodation, preparation time, etc).
Its probably a much bigger number that you first thought it would be! - for the purpose of this exercise - lets just say it €7000 - that's 140 per week - so probably not a lot!
Now look at your business income for the same period - your turnover.
What percentage is the advertising and promotion - of your turnover. If you're not good at maths - that's the first number divided by the second and multiply by 100.
Now, at this point, just be aware that you probably haven't included a cost for all the time spent answering calls an emails, going out to meet potential customers, preparing quotations, samples, presentations, etc.
That will be another big number - but it will be more difficult to calculate - as you'd have to estimate your time and apply an hourly rate to it.
For now, just be aware that we haven't included it.
Why does it matter? Because it's a big part of your marketing cost. Probably much bigger than the advertising cost!
Again for the purpose of this exercise - lets say it is another €8000 - and that's a very small number for most businesses.
So that's a grand total of €15000 for you marketing costs for the year. (just a guess to walk you through this example).
Next part...
How many leads did your advertising and promotion generate? Lets say 500 for the year - or 10 per week
and how many of these leads did you turn into paying customers?
Lets estimate it to be 150 paying customers for the year.
Okay so far?
First lets look at the cost of a lead - a potential customer... You had 500 of these and your marketing spend for the year was €15k. That means that your cost to generate a lead was €30.
Now, look at the cost per customer. €15k divided by your 150 customers. That's €100 per customer to get them in through the door to talk to you.
In the real world, depending on the number of customers you get right now - that number could be much, much higher.
Did you every work this out before?
So, what can we do for you?
We can guarantee that we can get you more leads in to your business - for the same marketing spend or less.
We can hep you convert more of these potential customers into paying customers - guaranteed.
In fact, if we were getting you more leads and helping you convert a much higher percentage of those leads - to customers - you'd be way more profitable - because your cost of acquiring a paying customer would fall dramatically.
At that rate, you'd be happy to spend much more on your marketing - because every time you'd spend - you'd make more profit!
Hop on over to our main web site at www.JAMMarketingIreland.com and drop us a line - maybe pick up a freebie or two?