Here we are the day before the funeral of the late great Whitney Houston. Many shows are paying homage to her this week by breaking out her greatest hits. There is one chart topping song that has stood out this week in many ways. In particularly eight words in the chorus of the song, “How Will I Know“, by the late Houston where she sings, “How Will I Know” and her background singers quietly chime in with “Don’t trust your feelings”.
As the words continued to play over and over here at the Above Promotions Company headquarters, those 8 words kept ringing beyond the romantic feelings the catchy lyrics provide. In speaking to many business owners on a regular basis, they too have been known to pose the same question. They are wondering whether or not their marketing strategy is working. If it is worth attending monthly networking events or posting a blog regularly. Even recently I saw a post where an individual questioned the value of a few social media sites.
The proper response to ‘How Will I Know’ when it comes to your business boils down to measuring your ROI (Return on Investment) rather than going by your emotional feelings. It’s not a fun task for the solo entrepreneur, but one that must be down to ensure profitability at all times. So, how will you know if going to a monthly two-hour networking event which costs you $25 (in entry, parking and gas) to attend each time is worth it? Let’s say your hourly salary is $50. Your salary for time at the event alone, plus admission to the event would mean you would have spent $125 to attend this monthly event. If you’re making the most of your time there by meeting 5 individuals who can either be a direct customer or provide you with access to others who could be a direct customer, your time there may have been worth it.
– On average medium to large companies are spending $50-$150 per potential lead with media buying companies.
– With the numbers listed above, you’ve now spent $25 per lead. (If you have a solid business plan, you’ll know what the amount you should be “paying” for a lead for your company.)
So if you’re selling widgets that cost $2 each, then you would want to step up your networking game at the event and the presentation of the elevator pitch. However, if you are a business whose average customer spends $2,000, then you can see your ROI is high.
Now, this same principle can be applied with your social media campaigns. Remember, ‘Don’t trust your feelings’. Tally up your numbers and you too will see if your “feeling” is right. Are your efforts causing your potential clients to think of you? Are you seeing traffic and positive attention from your actions?
We would love to hear from you. What other ways do you use to determine if your marketing efforts are worth it?