Five Metrics for Marketing a Successful Service Business
There aren’t fifty, and likewise there isn’t just one “weird tip” for digital marketing success. Here are five metrics that can help guide the improved performance of online marketing for your service business.
Surprise surprise, the majority come from your ability to track a lead straight through to a sale. That is, it’s more than just a single website stat. Refer to our earlier blog post on the value of doing this.
How do you manage your sales leads? Let’s start with those stats, to see how analysing your leads en masse can help you increase the effectiveness of your marketing.
1. Number of leads required to get to a sale
This is one straightforward way to measure the quality of your online connections. How many contacts made through digital advertising do you need to talk to, or present to, to make a sale? Is this number going up or down? This simple metric helps you gauge the return on your marketing spend, and evaluate and refine the relevant channels.
2. Average sale value
Out of those leads who become customers, what is their average sale value? Are you bringing in the right type of new customers, or are there small orders coming in when you want larger ones? This is another indicator of your leads’ quality and value.
3. Conversion rate of your website
Now we get back to the website and its performance, which of course still plays a role. This is your main “shopfront”, even if you’re not selling physical goods. Monitoring changes in your visitor traffic, and how many of those visitors become leads, will help to guide future developments.
4. Allowable marketing cost per lead
As the quality of your leads improves, and thus also the effective quality of your customers, you can afford to spend more to get each new customer. This important progression can allow you to enter online marketing channels that may have been too expensive before.
5. Allowable cost per advertised click
When this measure moves upwards, it’s a sure sign that all the above factors are working well for you.
Looking at the graphic below, the cost per click was higher than the business could afford. However, as the lead quality improves – only needing five leads instead of seven on average to make a sale, AND a conversion rate that goes up to 10% from 5% – this company can now purchase clicks at up to $2 each, while Google will “sell them” at 95c.
So while there are no quick fixes, there are reliable ways to measure and enhance your digital marketing performance.
To find out how to harness the power of these metrics for your service business, talk to the professionals at Ark Advance today.