Recently, I took some time to think about the marketing for my own small business -- specifically what is and is NOT working -- otherwise known as "tracking results."
During this exercise, I thought to myself, "I don't think there are many small business owners who know what it means or what to do to track the results of their marketing activities..."
And so, in an effort to save the world, I'm going to teach you a very simple, but very powerful way to track the results of your marketing.
If you are not tracking your results, it's time to wake up and smell the money that you're flushing down the drain. If you don't track the results of your marketing, how in the world will you know what is and is NOT working?
How will you know where to focus? How will you know what to ignore? How will you know if you are using your marketing funds wisely or flushing your precious Benjamins down the drain?
Oh, I know... you have a vague idea... "Jeanna, 95% of my business comes from referrals..." great, but that ain' t even close to being specific enough. Specific tracking -- specific information -- that's the key. And you can't just think it, you gotta write it down and see it in black and white.
It's kinda like a saying I once heard, "You never know how much money you have spent until it is staring at you in black and white in your checkbook." It's the same with tracking results... until you write it down on paper, in black and white detail, you really don't know.
So, get out a pen and paper and let's get tracking...now, keep in mind, there are 1,000's of ways to track your results, what I am going to show you here is a simple way that has helped me and my clients
Step 1. Make a list of all of your current clients.
You need to list at least, but no more than 20-30 clients. If you have a ton of clients -- congratulations - just pick 20-30 of your best.
Step 2. Next to each of the 20-30 clients, write down when they became a client.
Write the specific date... you DO know this, right? If not, write down the month.
Step 3. Then next to the date they became a client, write down how much money they have spent with you...do this to the penny.
Step 4. Next to the amount, write down what service(s) they bought from you and if they did any repeat business.
For example, with my business I may write: Jane Doe spent "x" and bought a logo/stationery design, was a repeat client and spent another "x" for website design and then another "x" for marketing coaching. Whatever it is in your world write down ALL of the money and services (repeat or not) they bought from you.
Step 5. Next write down how they became a client.
Here is where you REALLY need to get detailed. And when I say detailed... I mean major, mucho detail. Don't just write "Jane Doe became a client from a referral"... that is WAY too vague -- get detailed!
Here are some examples:
"Jane Doe became a client from a referral of Bob Smith 2-weeks after I met Bob at the Anywhere Chamber of Commerce Business After Hours in June. Bob referred me to Jane when we talked about my new service "___". Bob said Jane would be a good client because of "___."
"Jane Doe became a client from a direct mail postcard I mailed out to a list made up of "___" that I purchased from "___". The offer on the postcard was "___" and it was mailed on this date "___". I mailed this postcard "___" number of times, before Jane Doe called to set-up a meeting."
The key here is to write as much detail as you can.
Step 6. Next to how they became a client, list how much you spent on the marketing activity(s) to get them to become your client.
For example, if they became a client from a Yellow Page Ad, write down how much that ad cost you. If they became a client from a Business After Hours, write down how much it cost to attend. If they became a client from a referral, write down "free" or how much it cost if you have a monetary referral program.
When you finish this process you should have a list containing:
- Clients.
- When (date) they became a client.
- How much money (one time or repeat) they spent with you.
- What service(s) they bought and if they did any repeat business with you.
- How they became a client.
- How much you spent on the marketing activity to get them as a client.
So, what do you see? What are the trends? What are the patterns that emerge? ...Trends and patterns should be apparent.
With this information, you should be able to see exactly how you're getting clients.
Is that Yellow Page ad working? How many calls have you gotten from that free seminar you hosted? Is your chamber membership paying off? Who's giving you the most referrals?
Start asking questions. Start comparing the numbers. Start seeing what is happening with your marketing. Be specific.
This exercise is the ONLY way you will really see, in stark black and white, what is and is NOT working.
Take the results and focus or re-focus your activities. You know what is and is NOT working, don't you? Then stop wasting time and money on the activities that are not relating back to the list of info you have in front of you.
Keep the following items in mind when combing through your completed list of marketing data:
- What you have in front of you is a mini gold mine of info. You can now take this list and pick 3-6 marketing activities that are working the most and really focus on those areas. You can ditch the activities that only brought you one or two clients. If you placed an ad that cost you $1000, but out of the list of 30 clients, you only got one new client that spent $75 with you...you should probably re-think placing another ad.
- If the majority of your business is coming through referrals, take notice of who's giving you the most referrals and reward them. After all, this person is sending you a ton of business. A nice note, a little gift will go a long way to ensure that your best referrer will feel appreciated.
- Did most of your clients come to you during a particular season? Is there a season or span of months that are slower than others? If so, plan your marketing efforts so they will hit prospects a few months in advance of the slow time. Prospects and the sales process takes time... if you wait until the slow time to conduct your activities, it's too late.
Knowing what works and what is NOT working in your marketing is a big key to success. Constantly tracking your results is really the only way to really know... keeping a running total in your head just doesn't cut it.
Be specific, use this exercise, write the information down and always know what is working.
