The Key to Turning Your Marketing from an Expense into an Investment.
Hello and welcome to Business Know-Hacks, where I'll share with you tips to grow your company, improve your team and stop working too many hours in your business.
Today, I want to talk about testing and measuring to grow your marketing, cost-effectively. Testing and measuring is a concept that you can apply to any aspect of your business but it becomes very powerful in your marketing because what you can do is turn it from an expense into an investment.
Now here's how you do that. Let's say that you're running either different marketing strategies or different marketing tactics and you want to figure out which one brings you the best results. Let's take for example an advertising campaign that you're running on Google or Facebook and you have different versions: different graphics, different texts, different offers. You could run those different variations with a limited budget simultaneously and then look at the results.
So you're testing all the different options that you have and then you measure the results. You're measuring two numbers: the acquisition costs, how much it costs you to bring a new lead or a new customer and then the lifetime value. How much are they purchasing? How long are they staying? And you can do this in a short period and just asses, how many people actually clicked on the ads and what were some of the conversations that came from that?
Now, we're looking at those results out of, let's say 10 options that you have. You can figure out which one is the best one and to that one, you can assign more budget.
So this way you're really turning your marketing from an expense into an investment because you're getting that lifetime value, which should absolutely exceed that acquisition cost. And that's how you run effective marketing growth for your company.
So think about testing and measuring and how you can apply it to marketing so that you can grow it gradually in a cost-effective manner.
Thank you. And I'll see you in the next Business Know-Hack.
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