Building a Small Business Marketing Budget – Part 5 of 5
Welcome back! If you are following our series, you’ve probably already read the previous posts. If not, check them out here:
Week 1: How do I start building a marketing budget?
Week 2: What percent of sales should I set aside for marketing and advertising?
Week 3: What should I include in my marketing budget?
Week 4: How do I prioritize a limited marketing budget?
Now…let’s dig into our final topic:
Measuring Marketing ROI
Tracking. Tracking. Tracking. Here’s our tips.
Ask. It’s that simple. Ask every new prospect how they heard about you and document that in your CRM system or your spreadsheet. If you aren’t willing to ask this of your sales team, your receptionist, or your customer service department, don’t expect to know your ROI.
Track Conversions. If you are using a lot of online or digital advertising, work with your marketing agency or website developer to customize your website and Google Analytics to help you monitor conversions on those platforms. Track leads to sales in your CRM and sales systems. Understand your cost per conversion and make sure that makes sense when it comes to the bottom line.
Report Regularly. Regularly review and crunch the numbers. Pull reports quarterly, if not more frequently, from your CRM or “how’d you hear about us” spreadsheet, as well as your website analytics, social media stats, and any advertising reports you are provided. Look for trends, set benchmarks ,and adjust your strategies and spends accordingly.
Event Recaps. If you participate in a lot of trade shows, sponsored events, or other activities that are determined annually, make sure you sit down with your team following that show to do a post mortem. What worked, what didn’t? Did we generate leads or awareness? Measure what you can, and “feel” the rest. Take notes so you know if you should include it in next year’s budget.
Be Flexible. Sometimes you simply cannot show a hard return on investment. Brand awareness, especially in small business, is very intangible. Sometimes you have to rely on the qualitative results of your marketing and advertising efforts.
Thanks for following our series of posts on building a small business marketing budget! Hope you enjoyed them and hope they help. If we can be of further assistance as you build your strategy, calendar or budget, let us know. Until then, happy number crunching!