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Measure and Test! Stop Wasting Ad Money!

By
Services for Real Estate Pros with Business Attorney and Success Advisor

It is important...no...it's actually critical with any marketing, advertising, or promotional campaign to "Measure and Test".  This is the only way you'll be able to tell if a campaign works.  And when you're talking about ads in the Yellow Pages (or worse, all seven hundred different Yellow Pages), you're talking about a significant cost that you do NOT want to throw away.

Measuring consists of tracking and tallying the response to your ad or promotion.  You must first have a baseline, then develop a way to track responses.  The baseline is important simply because you won't know if you're doing better or worse if you don't know where you started.  If you're a marathon runner, for example, you have to know your time from the last race to know whether your next race is better or worse.

Tracking responses to your ads or promotions may be as simple as a "coupon code" or creating a unique name for a special sale and telling prospects to "ask for the Monday Madness special".  If you aren't running any special promotions or you don't want the expense of a special telephone number (a good technique for multiple Yellow Pages ads), then you can always use this tried and true technique:  ask your customers where they heard of your business.  You're right, it's not that difficult.  Just remember, measuring must be systemized so all members of your team will do this.  Accuracy is important.  Your entire team must be on board!

Once you have your daily, weekly or monthly results, they must of course be tallied and studied to determine the success (or possibly, failure) of the campaign.  Key performance measurements such as the campaign's ROI (considering the Lifetime Value of the customer) are important.  ROI is your "return on investment"...but that number can only be meaningful if you know (on average) what each customer is worth over the lifetime of their relationship with your business.

Testing a campaign can save you a lot of money in the long run.  Test multiple headlines (the headline is the most important part of the ad), multiple offers, and the vehicle of the advertisement.  Make sure you use a different code for each ad...or at least have a way of tracking each different ad!  It's also important to remember that the "sub-campaigns" must be given enough exposure to give a significant measurement.

Don't think measure and testing is important?  Consider what you're spending on Yellow Pages.  What if, for some reason, that ad (or those multiple ads) were not driving customers through your door.  Wouldn't you rather put that money to better use.  If you know what works, you can increase that advertising strategy with funds from strategies that aren't working.  But you won't know where to invest you dollars most effectively if you don't measure and test FIRST.

Here's what I'd like to help get you started.  Email me at jasonromrell@actioncoach.com and I'll send you a simple Measure and Test template.  No cost, no obligation, no sweat.  Just put "Measure and Test" in the subject line and it's all yours!

Comments (6)

Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Jason, I wonder if anybody let's their fingers do the walking, except to pull up 411.com!    And I think it's important with all of the new advertising options that are available to tract what you're using.

Aug 04, 2008 04:30 AM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Gee, what an accurate and informative post. I came out of the marketing and merchandising world, so these are trusims to me...but I bet new concepts to some AR members.

Aug 04, 2008 04:33 AM
Jason Romrell
Business Attorney and Success Advisor - Los Angeles, CA

Patricia, great point.  The internet is changing advertising and marketing...so it's even more critical to know what works and what doesn't.  Thanks for your comment!

Vickie, you make a great point too.  My business (business coaching) isn't rocket science and some people know what do to.  My job is to be there to remind them...and hold them accountable to do it!  I certainly appreciate your endorsement of these concepts!  Thanks!

Aug 04, 2008 04:40 AM
Justin Ukaoma
Vizion KC - Kansas City, MO
Kansas City Real Estate Investments

I agree that testing how well your advertising is doing is very important.  Over the past year we have wasted a ton of money on yellow books ads just out of habit.  I have found we get a higher amount of calls and coversions off of our free internet marketing than we do from any paid marketing service.

Aug 04, 2008 04:52 AM
Jacinta da Silva
Atlanta Communities - Marietta, GA

It just shows times have changed and so we need to change with the times as well.

Aug 04, 2008 05:50 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

I agree that testing is important.  There is no reason to spend the marketing dollars if they don't perform.

Aug 05, 2008 05:31 PM