4 Steps to Track Marketing ROI with Restoration Management Software
Marketing can be a challenging task for any size company, and many worry whether their investment into different programs or activities will pay off in the end. You may have the most charismatic employee focused on your marketing efforts, spending quality time with industry contracts, but without proper organization and tracking it is difficult to measure your marketing effectiveness.
Here are 4 steps to track and improve your marketing efforts like a pro using ClientRunner’s Restoration Management Software and ensure that you are increasing your profits.
1. Understand Lead Sources
You cannot begin tracking your marketing efforts until you have a grasp on where your leads are coming from. You may be advertising online, sending out direct mail campaigns to targeted neighborhoods, using social media messaging, or maybe you have “word of mouth” referrals courtesy of your excellent customer service on the job site. Wherever your leads are coming from, you need to have a solid grasp on where they come from to begin tracking.
Compile a list of general categories for your leads, such as Online Advertising, Social Media, Direct Mail, or otherwise. Then, break out each of those categories into subsets (i.e. Facebook, Twitter, YouTube, Instagram, etc. for the Social Media category). This is simply a setup stage where you build out your foundation for a more organized process, so consider all the possible ways that your leads find you.
2. Apply Lead Source to Leads
There are companies that simply don’t care where their work is coming from, as long as they are staying busy and paying the bills. Don’t be that company, but establish a desire to have in-depth knowledge about your marketing efforts and effectiveness!
As opportunities come in the door, you must specifically ask how they heard about you and record their lead source. If they respond with multiple answers from different lead categories, it’s typically a best practice to attribute the most recent category. This practice will help you to track what percentage of leads are coming from which category month over month, allowing you to ultimately track patterns and forecast into the future. Make certain that every opportunity that comes into your office has a recorded lead source – whether they become a customer or not.
3. Track ROI
Once you are efficiently tracking your lead sources, you can then start to make adjustments to your current marketing spend based on the data you are now collecting – this is where you begin to make more money by being more efficient!
By tracking your lead sources, you now know how many leads are coming in monthly by each category. You will then correlate that information with how much money you are currently spending monthly on each of those same categories to track your Return on Investment, or ROI. For instance, let’s say that you are spending an average of $1,000 every month on marketing visits to industry contacts. Let’s also say that due to these efforts you are receiving 5 leads monthly, but only 1 of which actually becomes a customer, bringing in on average $5,000 in revenue. Your return on these efforts is $4,000, making this a profitable marketing effort! You may have some marketing efforts that are less profitable or even that are costing you more money than you are collecting in return. In calculating your ROI per category, you will know where you have room to improve, or where you need to start reallocating budgets to be more efficient (and get more leads).
4. Adjust Marketing Spend to Maximize Leads
Like most companies, you likely have a marketing budget you must adhere to, and you want to make every precious dollar count. By knowing your ROI per lead source, you can now begin making adjustments to maximize your lead flow per dollar spent.
Generally speaking, your lead sources with the highest ROI are working well, and you can typically afford to increase your budget in those areas; those lead sources that have low ROI or a negative ROI likely should have a very minimal budget or no budget at all. There are a lot of factors that go into these decisions, such as whether you see an opportunity for improvement in a low-return category that you want to improve. Use your best judgement to make decisions, but be sure to maximize what is currently working well. This process may occassionally feel like “guess and check”, but as you become more proficient with the process you will gain a better sense of what works for forcasting future results.
Automate This Process with Restoration Management Software
Tracking your marketing efforts can be a challenging aspect of managing your business, but it is often a very rewarding and educational process. You get to know your business on a deeper level, you draw deeper connections to help solidify your sales processes, and you often find areas in your company that need improvement. Ultimately, your marketing efforts have a large impact on the growth potential of your company.
Restoration Management Software is often designed with advanced tools to help record these steps more efficiently. ClientRunner Software, for example, provides a marketing CRM where your marketing team can manage contacts, record activities and marketing spend, tie together opportunities and sales, track ROI and report on all your marketing analytics. These systems typically automate all the processes we’ve discussed previous, helping your marketing team to be more lean and successful.
To learn more about the powerful, automated marketing tools that are available to you, visit our website!