The #1 Indicator To Measuring Your Marketing.

How do you measure your marketing?

I ask this question to a group of contractors and the responses are all over the place.

Some feel the number of leads that come in, divided by the marketing budget gives an accurate measurement. Most, keep track of calls on a spreadsheet. Some of the recent directories have started tracking this information for contractors. This is great information and gets you closer to measuring but doesn't give you the real picture.

Others feel closed business divided by your marketing expense.
Example, if I get 100 Calls and close 25, I keep track of the 25 only? Is that how to measure? Lets look below.

The 25 shows your conversion rate. Taking the number of leads that come in and dividing by closed prospects equals your conversion rate. This number is the indicator for measuring your marketing efforts. 

The best part about knowing your conversion rate is knowing your customer cost per closed business. Typically speaking in our industry the cost to acquire a new customer is between $250-$1200 and depends on your local market. My local market the cost is closer $250.00, If my business was located in NY City the cost would be much higher.

Keeping track of this number alone is key to measuring your marketing efforts.
Do you have any suggestions for tracking or tips to simplify?