![]() I assure you will be surprised at the effectiveness (or lack thereof) of your marketing tactics. If you don’t do it now, you should definitely try it. Some of them are FREE and most are inexpensive. Instead, you should use a vendor that specializes in call tracking. Many people say they ask their customers “how did you hear about us?” but this method does not yield very reliable data. However, the only way to find out the cost-per-call is to track calls. Each marketing tactic has a different cost-per-call and knowing this for all your marketing activities will help you allocate your marketing budget more wisely. If you don’t know this number (cost-per-call=amount spend on marketing tactic/number of calls received from that tactic) then you need to find out what it is! This calculation should be done per every marketing tactic you use (money mailer, direct mail, tv, radio, Google Offers, Yelp Offers, Groupon). So even if an offer looks like a losing proposition at face value, when you do a financial model, you will be able to tell if an offer is profitable for you or not.Ī key component of this model is cost-per-call. However, if you take into consideration the lifetime value of the customer, then all 3 promotions look profitable. If you look closely, you can see how the number of calls you get directly affects the ROI of the promotion, and after only one month, only 2 of the 3 promotions look profitable. The answer is: you have to run the numbers.Ĭalculate the ROI of your advertising tactics.Īnd it takes into consideration the redemption rate (in this case number of calls). So the question is: How much should you discount? If your “redemption rate” is not high, then your offer is not good enough. Although we would want the consumer to try our product just because our ad looks amazing (note tone of sarcasm), the truth is the consumer needs an incentive to depart from their current habits and try something new. ![]() The goal of any offer or coupon is to encourage the consumer to try the product or service. If you are currently doing coupons in traditional coupon magazines, booklets, and mailers, you need to read our blog post on Facebook ads for Restaurants! Coupons Encourage Customers to Try Pssst….big tip here for those of you who are restaurant owners ….įacebook ads are an incredible tool for coupon advertisers. The reality is that for most, it takes a good offerto get a person to come in for the first time, and then it takes both a good product and good service to keep the customer from leaving to a competitor. The truth is we live in a place where coupons and offers are a mustfor a small business. I kept wondering how it was possible that this woman lost a potential client that was probably worth between $250 and $550 (lifetime value), considering that the company was already prepared to give $30 with the coupon! Needless to say, I canceled the class and went online, and booked another teacher for my son in about 10 minutes. I said to her that there is no worse feeling than getting upset with the company you are about to do business with, even before they take your money. She proceeded to say that that’s the way those coupons work and that they’ve been in business for 25 years and they would not be in business if they would just give the first-class away. I told her that the prior lady had known about the coupon and had told me nothing about that. The lady on the phone (now a new lady) told me that I had to pay an enrollment fee plus an entire month of classes (about $140 total) in order to redeem the coupon. A day later, I had to call the company to confirm my address and give them payment. When I called to book the class, I told the lady on the phone about my coupon and she said she’d put in the system so that the billing department would apply it at the time of payment. As my son had been asking for guitar lessons for some time, incentivized by the coupon, I decided to call and get him a lesson. I saw a coupon for $30 OFF a music lesson, first-time clients.
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