When to Pull the Plug- Internet marketing has a higher return on investment than any other form of marketing.
Though this is true it does not mean that all forms of Internet marketing will have a high return on
investment for your particular business. It is important to know when adjustments are needed to a
marketing strategy including when it is time to pull the plug on a particular aspect of your
marketing plan. In a nutshell you want to make sure your marketing efforts are being fruitful.
Measuring Success Vs When to Pull the Plug
There is one key statistic for you to focus your analysis on – the cost per conversion.
You want to measure what each of your Internet marketing efforts are costing you for
every conversion. A conversion is a sale. When setting up your various Internet marketing
initiatives you want to make sure you know where each conversion is coming from.
You do this by installing website analytics such as Google Analytics. Pay-Per-Click campaigns
are easy to measure the success on. In fact, Google and Yahoo will tell you the cost per
conversion as part of their standard reporting. This is an important tool. Other forms of online marketing
will require you to set up your analytics properly so you can identify each source of a
conversion and the cost of that conversion. If you have a search engine optimization
plan in place that is costing you $1,000 per month, you want to see how many conversions
you had that month from search engines (non-PPC) and determine the cost per conversion
for that campaign. Do the same with social media campaigns, email campaigns, etc.
Measure the True Costs
When you are analyzing your costs per conversion make sure you put in all
costs including shipping costs, advertising costs, the value of your time, etc.
If you are engaged in social media marketing, for example, and you are putting
in 40 hours of time per month on the social media sites you need to determine
your hourly rate (what your time is worth) and factor that into the analysis. You may
discover that some of your marketing efforts are resulting in sales but not profits.
Since every business wants to make money you need to hone your marketing efforts
to ensure that the only marketing efforts you allocate resources to are those that
have a positive return on investment. This is how you manage your overall Internet marketing initiatives.