Continuing the theme of Money Mastery
A guy goes into a betting shop and makes a €2,000 bet on a horse that is running the same day.
The guy leaves the betting shop and never checks the results of the race! He never goes back to the betting shop to see if he won. This would never happen, right?
Yet business owners spend multiples of €2,000 promoting their business and it often happens that they never check to see which promotions are working and which are not. They do not measure the return on investment on each promotion.
To get the best return on this promotional expenditure, it is essential to measure the results of your various promotions.
This is done by asking everyone who makes an enquiry of your business – where did you hear of us? The profit from these sales can be divided by the investment in the relevant promotion to get your return on investment.
Even regular customers should be asked if they have seen or heard of any of your promotions.
Only by recording the answers to this question is it possible to measure the return on investment of each promotion.
With this knowledge money and effort can be taken from the promotions that are not working and be re-directed to promotions that are working.