Too often in marketing and advertising we focus on the 'cost' of the program or run.
While this is essential to operating a sound business, the real consideration must be the question: 'What is my return on this investment / ad spend?' As an example, I'll tell the tale of 2 Brokers (Real Estate - but you can fill in your own industry here as well).
Let's call one Big Joe and one Little Joe.
Big Joe and Little Joe both had the same need: marketing effectively to short-sale prospects. The solution they were presented was to automate a custom marketing campaign via postcard / US Mail to the weekly NED (Defaulted Loans) list in their local market area(s). Now, the cost to set this up was fairly inexpensive, but it required commitment on both Big and Little Joe's part to engage with their target audience via campaign, over time.
Little Joe decided to send only the 1st mailing, and then determined that since he hadn't gotten a response he would discontinue his effort (the campaign). Big Joe on the other hand, remained committed to his original plan and continued his campaigns over the course of 3 mailings (3 separate groups, with a 5-card campaign to each group member over a 6-week period). Big Joe had the proper perspective: To fully assess the ROI on the program, he needed to allow the program to 'run it's course'. From there, he could later easily evaluate the effectiveness (ROI) and determine if it was worthwhile to continue with that specific marketing effort.
So what was his ROI you ask? Well, for Little Joe, the return was Nothing. In fact, considering his initial investment of time, money and effort, he actually LOST money with his campaign.
Big Joe later shared that he 'earned a $4,500 commission from a 59-cent postcard' and that his continued marketing will be paid for in full for the next 24 months and beyond. In actuality, Big Joe invested more than that 59 cents - but you see his perspective and the difference. Making the phone ring and getting that ONE deal from your marketing is what the goal is - every time. ROI is essential.
Remember to count more than the cost when assessing your marketing plan. Count the Return on Investment as well.
If you need more help, you can contact me today to learn more about 'what works' - - and also what doesn't. It will save you time, money, and trouble.
Best to You! -Tim!
Tim Mancuso is a speaker, trainer, and author working with business owners and real estate professionals throughout the US. He is the Co-Founder of the GLS, and is currently working on his upcoming book on relationship marketing for business owners.