One question that’s often left over from the moment business owners realise they need call tracking is this; “what are some of the key metrics that I should be focusing on?” There’s no use having a torch if you haven’t got a map to show you the way.
So we want to share with you 3 key metrics that, when uncovered with call tracking and used to make informative decisions, can help accomplish any marketing goal you may have.
Golden Metric #1: Cost Per Lead (CPL)
When you rely heavily on the phone for gaining leads, this metric is an absolute no-brainer. Call tracking fills a massive gap in your sales funnel in terms of finding out how much each lead is costing you.
Let’s say you’re spending £1,000 on a full page advert in a magazine during the month of May, for example. In that month, you acquire 400 phone calls, but how many of those calls came from that full page advert?
Investing in a call tracking number can help you work out the CPL of your marketing efforts, both offline and online (which is especially great for your SEO and PPC efforts).
Golden Metric #2: Conversion Rate (CR)
This works in a similar way to the above, but it depends on what you are defining as a conversion. Is it a phone call from the ad, or is it a goal within those phone calls such as a sale or an opt-in for more information? Call tracking will help you figure this out.
Going back to our full page advert example, if it’s bringing in 400 calls and 10 of them take action with you inside of that call then the CR would be 2.5%.
Now we can use this data to decide what to do next (see below for more specifics on this), but you can easily begin to increase the CR of your marketing efforts by split testing different elements. This is super easy with online methods (Google Analytics “Experiments” feature, as well as AdWords for your PPC campaigns) but most offline channels should allow you to do this, too.
Golden Metric #3: Return On Investment (ROI)
This is probably the golden goose of our collection of metrics. At the end of the day, it all boils down to this; has this particular marketing effort paid for itself or is it sucking the life out of our marketing budget?
We’re spending £1000 on an advert that’s giving us 400 calls and gaining a 2.5% conversion rate. Let’s say that the end goal for this advert was to generate sales, and the average transaction value (ATV) of those sales was £73 — totalling £730. It’s not quite breaking even, but then we did gain some extra leads to our list for us to nurture.
They may not have purchased yet, but they might do in future. We can do one of several things here; do we cut the ad completely from next month’s budget, put it on the back-burner to see if any of these leads convert later down the line, or shall we keep going and see how June’s edition fares?
Whatever choice you make, you can be confident that it’s more accurate with the help of call tracking. An educated decision is better than an educated guess.
Image credit: Chris Isherwood