Advertising Percentage (too high)

wpowers11
Contributor II

As we start August, we all know a shoulder season is coming for some. Marketing and advertising are a way to maximize the leads and dollars we have coming in during these seasons. What happens though when you see your advertising dollars and percentage running above the industry standard? How do you react to getting it back to standard or make sure you are doing the right type of advertising? Management action is necessary to create the ROI needed and the bottom line expected. 

Like last week we are going to look at two areas you need to manage to achieve both the ROI and bottom line:

  1. You’re experiencing operational challenges.
  2. You’re experiencing marketing challenges.

Management Actions (solutions):

  1. Review your operation’s Key Performance Indicators (KPIs) and repair any problems:
  • REVENUE PER LEAD
  •  AVERAGE INVOICE
  • CLOSING RATIO
  • TECHNICIAN-GENERATED LEAD PERCENTAGE
  • CALL-BOOKING PERCENTAGE
  • REPLACEMENT AVERAGE SALE
  • REPLACEMENT CLOSING PERCENTAGE
  • SERVICE CLOSING PERCENTAGE
  • SCHEDULED SERVICE REPAIR AVERAGE
  • SCHEDULED SERVICE CLOSING PERCENTAGE
  •  CALL BOOKING
  •  LEADS GENERATED PER DAY
  •  REVENUE PER REPLACEMENT LEAD
  1. Evaluate and address any marketing challenges.
  • Develop expectations for your advertising efforts and build a marketing plan.
  • Create a budget for your marketing for the year.  Your advertising expenditures should not be excessive.
  • Create tracking systems so you know where every one of your leads has been created.  This will help you determine which advertising initiatives have been effective and which ones need to be eliminated in the future.
  • Determine what type of consumers you’re going to target—get the right audience.
  • Test your messages in your advertising.  Determine which ones homeowners respond to and which ones do not generate a response.  It’s absolutely essential that you track how each phone call is generated.
  • Duplicate the message that resonates most with your target audience.
  • Present offers that entice homeowners to contact you.
  • Every advertisement should include some type of an offer.
  • Track to see which offers get a bigger response.
  • Duplicate the offers that get the biggest responses in your future advertising.
  • Continually do small tests with other offers and analyze their response.
  • Find the medium that homeowners best respond to in your marketplace.
  • Every marketplace is different.  Your community may respond better to newspaper advertising than radio or internet advertising.  You might live in a community that responds highly to direct mail.
  • Try different mediums and carefully track how people respond to each.
  • When developing your next marketing plan, allot more money to be invested on the mediums that have been more successful.  Continue to evolve with each year.
  • Make sure that your direct mail is being delivered on time.
  • Ensure that the mail is being dropped on the days that your plan calls for it to drop.
  • Experiment with drops on different days of the week to see what generates the best response.
  • On all mailings, include your own address—that way you’ll know that your pieces were mailed, and you’ll have an estimate as to when homeowners will receive your piece too.

You may find that your marketing is not going to the right customer at the right time or the geographic region you are marketing does not have the right number of single family roof tops or operationally you are not performing to convert every lead being generated. Whatever the case may be by knowing your numbers and being ptoactive in the areas of opportunity in your centers you will achieve the ROI and bottom line expected.

Use the tools that ST provides for you. MarketingPro has shown when used correctly it can and will help you market the right way. I know I admit to myself marketing is my greatest weakness and I have alays needed help. If this is you also do not be afraid to use a ST Certified Provider it will educate you and pay dividends in the long run.

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