ROI: Return on investment
Effectively measuring success of marketing activities can be tricky for small business. There are many different ways to monitor ROI and really it all depends upon what your idea of “success” means in marketing.
Fruition Business Development have built a system for small business owners using the same values, KPI’s and definitions that are used by big business. The 5/1 metric simplifies the process of tracking your marketing campaigns. How nice it would it be to make an informed and audacious decision regarding your marketing and growth?
The 5/1 metric is based upon the middle of the bell curve of what is considered to be a strong ROI for business. What this means is, five dollars in each sale dollar spent in marketing has a return of 5/1.
Fruition Business Development’s 5/1 metric system is perfect for small business owners who need help setting KPI’s to monitor the cost per acquisition (cost to obtain a new customer) and number of new leads at each phase in the sales funnel.
Managing ROI and evaluating performance is something that requires a little bit of time each week. It is definitely not something that should be done monthly. If a particular area is not meeting it’s KPI’s then it’s better to identify it quickly and adjust, rather than let it slip by for a few weeks.
The 5/1 metric assesses seven key areas
- Cost per lead;
- Cost per acquisition;
- Customer acquisition marketing percentage;
- Customer lifetime value V customer acquisition;
- Acquisition payback;
- Percentage of customers originated from marketing activities; and
- Percentage of customers influenced by marketing activities
Contact us for more information on 5/1 metric.