Take control of your marketing and sales
?? Elmo Lombard - Unlocking Business Value
Visionary Business Strategist | Deal Maker ?????
I cannot recount the number of times people told me “Marketing does not work”. My first response is normally, “How to do measure your marketing and sales?” to which the answer is normally “No we do not measure it, anyhow, can you measure it?
Well, there is good news, marketing and sales can be measured with the right business processes and systems.
Measuring your Marketing
The formula to measure marketing is actually easy:
Marketing spends divided by customers acquired by the marketing efforts = Marketing cost per customer or Customer Acquisition Cost (CAC).
Example: R50 000 / 10 = R5000
Thus it cost R5000 to get a customer through the marketing process.
Measuring your Sales
Also an easy calculation:
Potential customers (Leads) entered into the system divided leads that become customers = sales conversion percentage
Example: 100 / 10 = 10% sales conversion rate
Thus for every 10 leads entered into the system 1 become a customer.
Why is it difficult to measure?
The short answer is inadequate business processes and systems.