Effective marketing is the backbone of a successful business. The growth and success of your restoration business depends on how effectively you attract new customers and retain existing customers. And while most business owners are taking advantage of the various marketing channels available today, few have a clear view of which marketing channels are delivering results, and which ones are simply draining the bank. Here are some tips you can use today to start tracking your leads and calculating your return on your investment.
Identify Lead Sources
Before you can begin tracking the success of your marketing efforts, you first need to identify your lead sources and areas where you are currently spending time or money. For restoration businesses, traditional marketing may include advertising for TV, radio, newspapers, phone books or online directories, or sending out direct mailers. Additional marketing efforts may involve hosting CE classes or events for insurance agents and adjusters, sponsoring community events, social media marketing, digital advertising and marketing of your website. Consider all that you do to promote your business in your community.
Identify the True Cost and Value
After you have identified your lead sources, evaluate the costs associated with each. Whether you rely on traditional marketing, digital marketing, or good old-fashioned word of mouth, each comes at a cost, and understanding the true cost of a marketing channel is the first step toward calculating the ROI. While traditional advertising sources like TV, radio, newspapers, and phone books typically have a fixed cost, other sources like social media, CE classes, and events may be more difficult to calculate. Take a look at all your marketing costs associated with a lead source to get a clear picture of the actual cost involved.
Assigning a value to a new lead or customer is an important step, but one that is often overlooked. By calculating the true value of a new customer, you can determine whether your marketing costs are validated.
Lead Attribution Models
How you decide to attribute leads to your marketing sources will have an impact on your ROI calculations, and you may find that a new customer had multiple “touches” before they called you. The most common type of lead attribution is called “first touch,” and the entire value of that new customer would be allocated to the first impression with that customer. If you are asking new customers where they heard about you, this is likely a “last touch” attribution. You may also choose to allocate value to multiple lead sources. Use the attribution model that makes the most sense for your business and gives you the most accurate calculations.
Effectively Track Lead Sources & ROI
While many restoration businesses invest in multiple marketing channels, very few take the time to evaluate and optimize their marketing efforts. By keeping track of lead sources for each job using a CRM tool like Luxor CRM or DASH’s own CRM, you will get a clear picture of which marketing efforts drive the most business and which are least effective. This data can be used to calculate the cost-per-acquisition of a customer and the return-on-investment for that particular marketing effort. If you use digital marketing or even various forms of traditional advertising, tools like call tracking can help you identify which source a call came from.
By using data to gain a clear understanding of where and how your marketing dollars are being spent and the return on that investment, you can invest in the areas that are delivering the best results, thus improving your bottom line and growing your business.