Planning Your Marketing

8. Measure Marketing Success

Track your progress for every monthly (or quarterly) period, for each salesperson and each product area. Check you are achieving your objectives and reaching your targets.

8.1 Use a standard sales enquiry form to record how people heard of you.

• Use codes to identify the sources. For example, 'PR EX 11/8/05' for an article in The Express on 11 August 2005.

8.2 Calculate the conversion rates for each type of marketing.

• Track both leads and orders.
• Analyse the acquisition cost per new customer. Contrast the cost to the revenue you earn for the first sale, and the revenue you can expect to earn over the lifetime of the customer.

8.3 Monitor how many customers you have acquired, and how many you have lost.

• Contact customers who have stopped ordering and find out why.

8.4 Monitor the average value of a transaction, and how many transactions were completed in the period.

• Focus on chasing the most profitable business - typically large orders, or high margins, or repeat-order business.

8.5 When reviewing the effectiveness of your marketing, take into account external factors.