Continuing on the topic from yesterday, analysis is the key to determining what marketing is working best for you. Knowing what to analyze is the key. Yesterday we mentioned three very common ways to analyze your marketing effectiveness, cost per sale, cost per acquisition and return on investment.
Let’s look at more areas you can track to give you a better picture of your business:
1. Pay Per Sale (PPS) – Payment of referral fee for closed transaction.
2. Customer lifetime value (CLV) – Looking at your database, calculate how many repeat transactions and referrals it has produced for you. Example: If 120 past clients are the source of 20 sides per year on average (or .17 sides per client per year) at an average GCI of $2,500 per side, then a 10-year CLV is 1.7 sides per client or $4,250–well worth staying in touch!
3. Customer value (CV) – Your estimate for an average GCI a specific home price will produce from a single transaction. Set your objective to increase your average GCI per unit (working with more expensive properties).
Let us know how often you do these types of analysis on your business. What have you discovered?