Until now, there’s been a gaping black hole when it comes to funnel measurement that has caused countless business owners and entrepreneurs a truckload of grief. This black hole is the point between a prospect ‘touching’ your business once or more (whether it be through website, advert etc.) and them making a call.
This is a particularly large pain for businesses that rely heavily on the phone to generate an inbound response. Where are these phone calls coming from? Which are bringing in the most qualified leads? How many of these potentially qualified leads am I missing? These are all questions that desperately need answering.
Marketing analytics has come a long way, and that include call tracking. Luckily, the right call tracking solution can answer the questions above – and more. Let’s get clear about what kinds of attribution it brings though, and how this truly benefits you.
Cost Per Enquiry
Thanks to advanced analytic technology, you can actually discover what each enquiry is costing you to attain. This gives you a lot more perspective as to whether or not your advertising and other marketing efforts are worth the continual investment.
In this respect, it’s important to set some benchmark metrics. How much are you really willing to spend per enquiry and when does it get to the point where that particular channel is no longer working for you?
Cost Per Sale
The next step, after an enquiry has been made of course, is to calculate how much each sale costs you. The difference between this metric and the cost per enquiry boils down to what the goal of the phone call actually is; lead generation or to convert the prospect into a customer.
By having the ability to calculate your cost per sale, it’s much easier to discover the true ROI of any particular channel or marketing effort. But it’s not always this simple, as the sales funnel can easily evolve depending on the point at which the customer is at within it. Let’s create a fictional example:
Let’s say you’ve set up an advertising campaign in three different publications, all with three different phone numbers attached to them. We’ll call them A, B and C for simplicity. Let’s take a look at how each of them performed:
|Attribute||Advert A||Advert B||Advert C|
|Cost of advert||£1,000||£1,200||£800|
|Avg. Sales Value||£50||£50||£50|
You can see all across the board how identifying these attributes gives you a much greater vision of what’s happening with your marketing budget. I use imaginary figures in this instance, and some of them might seem quite unrealistic, but the point should be clear.
This is where the importance of defining the adverts purpose comes in – is it to gain leads or make an immediate sale? Or could it perhaps be a mixture of both?
The table above might indicate a loss on your adverts for immediate sales, but what about A) lifetime value of each new customer and B) the nurturing process for enquiries not converted?
This is where attribution opens up a whole new world of analysis for your marketing. We often talk about using call tracking to discover which marketing efforts work and cutting out those that aren’t converting. Oftentimes, however, it’s a case of rescuing what might be seen as a ‘wasteful effort’ that aren’t making an obvious conversion, but are in fact adding to the greater sales funnel and becoming profitable further down the prospect’s timeline.
Attribution is all about vision! You can get a clear view of the bigger picture this way because now you have sight on the missing links. Call tracking technology can give you this insight.
The world of analytics is continuously evolving, and by taking advantage of this you can really start to make a difference to your bottom line and prove which of your efforts are working, which really aren’t, and which might seem to be failing in the first instance but actually contribute to the marketing funnel in the long run.