This is something that’s cropped up recently from speaking to a reasonably large potential client.
This potential client had two big agencies working for them and they were spending A LOT on advertising across many different mediums (well into 6 figures annually).
When I asked “How much business are you getting as a result of said spend?” …the room fell silent.
I won’t go into more specifics than that, because, as I discovered… this thing goes far deeper than them.
So without naming names, I was casually telling this story, standing in a circle of pretty reasonably sized business owners / partners at a recent event. Again, those listening went silent…
“Yeah… I don’t think we do that”
“We don’t either”
“We should probably talk to you about that”
Firstly, it’s important to understand that nobody knows everything. Furthermore, nobody needs to. I don’t need to know how to plan my investments, how to represent myself in court, how to install my boiler or fix my car. I have those who are specialists in their field to do it for me.
So when I’m taking about this, it doesn’t come from a patronizing place, it comes from a whoever you’re getting your advice from should really have this down already place. I don’t want my mechanic to half fix my car when I take it into the garage.
This can vary for different companies. Anything from specific goals or targets down to simply measuring where your customers are coming from. We’re focusing on the latter here because it’s basic and you should get started TODAY.
Now, this is a little easier if you’re a freelancer given your volume is relatively low. You can tell where each client comes from on the fly. By the same token you should be assessing once a month where they come from. You’ll find the 80/20 rule comes in to play pretty heavily here. Getting loads of business from a particular source? Do more of that! (while still exploring new avenues of course, you never know where your next 20% rule is going to come from).
As I explained to the potential client, if you take nothing else from this meeting – I don’t care if it’s literally a sheet of paper with a tally your receptionist sits with: When someone comes off the street or you get a call from a potential customer YOU RECORD HOW THAT PERSON FOUND YOUR COMPANY!
…also, begin some sort of campaign to find out where previous / existing clients came from and garner some historical data.
What’s the point in spending all that money on advertising if you have no context for how well it’s working? Spending 80% of your marketing budget on stuff that isn’t yielding results? Spend more of it on the 20% that is! …with a little left over to explore new mediums.
• Are spending thousands on advertising
• Are getting enquiries
• Don’t regularly have a conversation with your marketing company / department about basic KPI
• Aren’t recording where your leads come from and have no context for spend
• Aren’t refining your spend to focus on what works (with some change to try other mediums)
Get it done…