I have become quite a fan of Bob Parsons… the owner of Go Daddy. He was a marine, built and sold a wildly successful company - Parsons Technology - and now is running Go Daddy. They were the only people to try something bold as a commercial in last year’s Super Bowl.
He has an interesting blog here:
Hot Points ? A blog by Go Daddy founder and president Bob Parsons
He spends a lot of time on his blog and consequently he has some really inspiring and helpful advice.
His most recent post I’ve found applies to so many areas of life… not the least of which is marketing.
The secret John D. Rockefeller used to build Standard Oil.
He’s talking about tracking. He’s an avid tracker of his business. He writes:
I learned that Mr. Rockefeller was one of the few people in his industry (perhaps the only one) who knew exactly how much it cost to extract, refine and deliver a barrel of oil. In fact, he was entirely aware of all his costs. Knowing this information (and acting on it) gave him a huge competitive advantage. He knew how much he could price a barrel of oil for and still turn a profit.
Tracking is definitely not the most glamorous part of marketing. It’s not going to directly make your phone ring, it isn’t going to give you the nice shiny ad in your trade magazine and it’s not going to get you to the top of the search engines.
But without tracking, all of those actions are probably costing you too much money.
If you are like the majority of businesses, you probably can’t tell someone right away where all of your clients came from. You’ll likely say, most of your business comes from “Referrals”. That could very well be true. But what referrals? Are there people or companines that are generating leads for you more often than others?
It’s really easy to do. In fact, we’ve put together a tracking spreadsheet that you can download here:Marketing Tracking Spreadsheet. It’s in a zip file. Just unzip it and you should be ready to go. It should be pretty straight forward.
This is how the spreadsheet is laid out:
- In Column A record your marketing activities for the year
- In Column B place the amount of money it cost you
- In Column C put the costs of your labor to execute the marketing activity
- In Column D record the # of clients you acquired through that marketing activity (if this is 0, put -1 so it won’t crash the formula)
- Column E will be generated for you and shows you how much your marketing cost per client.
- In Column F record the total dollar amount of sales that marketing activity gave you.
- Column G is generated for you and shows you, on average, how much money that marketing activity made per client.
- Column H is generated for you and shows you your times return on investment.
If you spend a little time on this, you are very likely going to be amazed at what you find out. Once you know where your best return on investment is, you can much more easily focus your marketing where it is most effective.
Everything that is watched improves. This is especially true for marketing. Filling out this spreadsheet is going to go a long way in helping you become a much more effective and savvy marketer.