One thing that most business people know is that often less than 50% of marketing and advertising expenditure is effective. The problem is, more often than not, we don’t know which 50% is effective and which is not. This is why Test & Measure activity is one of the best investments in cost saving for a business that uses advertising, promotion and marketing as key strategies to gain and retain business.
A five step strategy in your marketing plan can ensure the return on investment is at its maximum.
1. Plan – plan once, plan properly. Be specific about your target market, what you want to achieve from your marketing activities and finally when & how you want to execute the activity.
2. Execute – execute the marketing activity. Deliver according to the plan.
3. Test & Measure – for every step of the marketing activity measure everything that can be measured. How many flyers were sent? How many phone calls were made? How many replies to the first email? How many replies to the second email? What was the postcode for each enquiry?
4. Review the activity – using the test & measure data review the campaign identifying what worked and what needs to be improved.
5. Execute with enhancements – this is where the time and money is saved. Don’t go back to planning (you’ve already done this). Simply use the information obtained from the test and measure and the interpretations from the review process to execute the activity with enhancements.
It sounds overly simple but think about it for a moment. When you conduct a marketing activity that doesn’t work do you go back to every aspect of the original plan and make minor adjustments based upon where the activity could be improved? Most businesses take either end of the spectrum – they roll out a new activity and hope for better results or they roll out the same activity and hope that something will be different the second time round. On both occasions the key word is HOPE. Following the test and measure five step process turns hope into realistic expectation.
It’s a straight forward process but it’s rarely applied. The result of implementation should be a significant increase on your return on investment for marketing, promotion and advertising expenditure. Just remember the 5 Ps: Proper Planning Prevents Poor Performance.
If you would like to discuss strategies to improve your business results simply call McMahon Osborne Group on 03 9744 7144 for a FREE appointment.