Are You Measuring Your Lead Generation Advertising ROI?
Let me ask you a question: Do you measure your results?
If you’re an entrepreneur or a marketer, you kinda HAVE to.
Let me tell you a little story.
Fat Kid Turned Track Star
When I was a kid, I was fat.
Wouldn’t say, VERY fat,.. but chubby enough to be picked on.
In high school, I had a crush on this girl for 3 YEARS.
As this chubby nerdy kid in that awkward teenage phase where pimples and insecurity ran my life, I was a nervous wreck.
Ask her out? PSSSH… didn’t have the balls.
But I remember this scene from Back to the Future where George McFly gets the courage to ask out his future wife… and everything turns out ok.
And of course, George becomes this cool guy:
I didn’t want to be that wimpy, chicken-poop George.. I wanted to be the cool George.
So I decided to take a leap of faith by asking her out.
But first I needed to lose some weight.
So I started looking for ways to lose weight.. FAST.
My careers as a runner began
By know means, did I consider myself a runner.
But some ODD reason, a friend of mine convinced me that running, particularly sprinting, was a cool thing.. and that girls digged it:
I didn’t even like running, but heck, for sake of getting this girl I was in fascination with, i’d do anything.
So I tried out for the track team.. and failed MISERABLY.
The tryouts was a 2 mile run, with cut off time being 18 minutes.
I don’t know if you run, but that’s a VERY SLOW jogging speed.
But I was out of shape and i finished in 22 minutes. Ugh.
Persistence Pays Off
I worked my ass off on my own and tried out again.
This time, 18 minutes.
Still didn’t make the cut. Too many trying out for only few spots.
Took the WHOLE summer to train and I tried out again.
This time, 17 minutes. I thought i made the cut because I beat at least 1/2 the people trying out.. but i still got cut.
This time, the rejection hit me like a ton of bricks… I even pleaded with the coach to let me be on the team, but she was firm.
I remember crying the whole train ride home.. feeling sorry for myself.By this 3rd rejection, I was sure I wasn’t cut out.
But of course, my beloved grandma gave me a gentle encouraging push: “Try again”.
Ok in all honesty, i think she said something more like this:
Measure Your Progress
This time, instead of just running like hell when I trained, I used a stop watch to measure myself.
This way, I can pace myself throughout and not use up all my energy in the beginning.
Guess what, it WORKED.
After 3 solid months of training with this new method, I tried out again.
This time, I ran the 2.2 miles in 14 minutes and 30 seconds.
After 9 months of training, experimenting, testing… I FINALLY made the team.
And here’s what I learned.
You can improve (a lot more) if you can measure it.
But more importantly, during the whole 9 months, I rarely thought about the girl I had a crush on.
Are You Measuring Your Lead Generation Goals?
Let me give you an example.
I have a client that was generating leads in excess of $400/lead to sell their solar panel systems.
Of course, all of you who have any experience in marketing whatsoever probably are thinking
- they don’t know what they’re doing
- they’re wasting money
- they must be in very expensive vertical
In their defense, I really think that their problem wasn’t any of that, but more so, they lacked marketing goals.
How do you improve something if you have no ruler to measure the results?
If someone says “I have a goal: to lose a lot of weight.”
But what is “a lot” of weight? 10 lbs? 20 lbs? 100 lbs?
It’s all relative to the person, right?
A person weighing 400 lbs who loses 10lbs isn’t going to throw a celebration party… and likewise, if you weigh 150 lbs and lose 10 lbs, that’s going to be a MAJOR change.
Going back to that example, for that customer, we (at Solar One Media) were able to generate
- leads at a FRACTION of the cost
- approximately 50 leads per WEEK.. instead of 50 leads in 9 months
And the result?
That company was generating barely $20k in sales from web leads in those 9 months… to over $1.8m in 7 months.
- we came up with a marketing plan and cost structure that we can strive for
- implemented various marketing messages
- tested, got results, and optimized
- repeat 3 & 4 till #1 is satisfied.
I’m not a fan of using powerpoint slides and MBA lingo.. but this is pretty similar to what im talking about: