50% of your advertising budget is not hitting the mark, but which of your various initiatives is at fault? And how can you focus more money on your top client producing activities?

Firstly, you must clearly identify all of your initiatives. Here is a sample list that includes most of the most common techniques in advertising:

- Word of mouth

- Your location

- Yellow Pages

- Billboards and signs ads

- Radio

- Television

- Newspapers

- Conferences

- Relationship marketing

- Internet marketing

- Cross-marketing initiatives

- Other

Then, start making a list of your all your clients and find out how they got to know you.

Once this is done, my tool of preference is to take the overall annual budget for a given promotional activity and divide it by the amount of client that this activity produces. This will allow you to use a common denominator to compare all your promotional activities: the cost of producing a client. Do not forget to consider the overall success of each activity, but when taking both aspects into account, you will be able to make more enlightened decision on the distribution of your advertising budget.

If you have questions or if you would like to talk about how this technique can be used for your company, do not hesitate to contact us. It would be our pleasure to be part of your success.

 

Stéphane Elmaleh-Riel, MBA
President - Senior consultant

 

Email: info@groupe-principio.com