An enormous problem small and medium businesses face is working out whether the cost of advertising is warranted, related to the number of sales the advertising produces.
For example, company “ABC” spends money on 3 ads:
| Enquiries | Sales | Conversion rate | |
| Ad 1 | 120 | 4 | 3.33% |
| Ad 2 | 80 | 20 | 25% |
| Ad 3 | 60 | 1 | 1.6% |
| Total : | 260 | 25 | 3.72% |
Every business should be tracking the results of their advertising like this, but many businesses do not. Throwing money at something, hoping it works, is never the best approach.
If those three ads cost you R2500, the assumption is that you will have to spend R5000 to get twice the number of leads.
But wait! Let’s take a look at the sales process (or sales funnel) for this business.
The ad is shown to prospective customers. A percentage of the people who see the ad click through to the website. A percentage of those prospects make a call. Some of the callers schedule an appointment. Some of the people who schedule an appointment actually show up, and a percentage of those people actually buy.
The business is losing prospects all the way through the funnel. There are people who visit the website, but don’t make a call. There are people who call, but don’t make an appointment. There are people who make an appointment, but don’t show up. There are people who show up for the appointment, but don’t buy.
The most expensive customer for any business is a new customer. You’ve already spent money and had people visit your website and enquire about your product or service. Most businesses forget that an enquiry which doesn’t result in a sale does not always mean NO, it often only means Not Now.
So what do we do with the 235 enquiries / potential sales, and how do we convert them into qualified leads?
Every business should be capturing the contact information of their website visitors, and engaging them in a planned follow-up sales process in order to improve their sales.
Are you a business owner or decision maker with an advertising budget of twenty thousand rand and up?
Are you converting enough potential prospects into customers or clients to justify your adspend?
IdealMedia Marketing can help you maximize your marketing budget to convert prospects into qualified leads that generate extra income.
Please note that we only deal with a small number of clients at a time to ensure quality and overall satisfaction on both sides. So do not delay act today!
Just click on the “Get Started” link at the top of the page…