Is Your Marketing Making Someone Else Rich?

I want to ask you a question, but I want you to think very carefully before you answer it.

What does it cost you to get a lead?

If you said ‘about 50 quid’ please don’t read any further because you are probably already beyond help. That’s what most would have guessed in 1990

Guesses aren’t allowed, this is your  profit margins you are gambling with.

Why would you want to know?

Because it’s your money, the bottom line profit that pays for those leads. To put it another way every pound you save on advertising and marketing is a pound on your bottom line figure, because it’s a cost. One that most companies don’t monitor properly, if at all.

Advertising in the wrong place is like flushing net margin…your money down the drain. You really don’t want to do that, do you?

But every week that is what hundreds if not thousands of home improvement companies do. Are you one of them?

Here are five simple questions to help determine if you are.
 
Now be totally honest when you answer them, your wealth could depend on it.

1. Do you pay for Advertising?, that includes phone books, canvassers etc.


2. Do you have a means of recording the leads that you generate?. The salesman’s diaries don’t count.


3. Do you always ask where the lead came from?


4. Do you record every lead?


5. Do you sit down every week or month and work out how each lead source has performed?

If you answered yes to #1 and no, or sometimes to any one of the others, you have no way of knowing what your leads cost to generate; therefore no way of managing the cost and quality of the leads your marketing produces.

We have a customer who reduced his advertising spend by over £40K in one year, and saw an increase in the quantity and quality of his leads, and an increase in turnover. Now when you  think about that, it is truly amazing.

Most companies expect to spend between 3% and 5% of their turnover on advertising and marketing.
So if you follow that line of thinking through he should have seen an 800K drop in sales.

The reason he didn’t was simply because most of his money had been spent on lead sources that simply didn’t perform.

If the reduction in advertising had no effect on sales, the company would have seen a 40K increase on their bottom line figure. Even if sales decreased, the bottom line would still have improved.

Ask yourself this, how many windows do you have to sell and install to make £40K net profit in an industry where the average net margin is well under 10%?

Get in touch and let us show you how to save time managing your leads and get your marketing analysis for free.


Stop putting your money on someone else’s bottom line