Pay Out or Get Out

Photo of Michael Gelfano
Date: 2010-01-21 10:27:00 // Categories: ROMI,
By: Michael Gelfano
Date: 2010-01-21 10:27:00 // Categories: ROMI,

We’ve all heard it in business a million times:

“Half the money I spend on advertising is wasted;
the trouble is I don’t know which half.”

This phrase continues to be repeated with frustration in boardrooms across America. We knew someone had to turn that on its head. Why not us? We see a world where agencies can provide business intelligence tools that enable data, even the smallest pieces, to be tracked, integrated and analyzed – all in real time.

Track. Measure. Refine. Repeat.

    1. Know what you can spend to sell your client’s product or service – It sounds obvious, but do you know the answer? How much can you spend to sell one unit and still make a healthy profit? If a specific market media outlet or day-part doesn’t perform, eliminate it. If a buy is “on the fence” economically, renegotiate it or eliminate it.
    2. Tirelessly track your results, online and offline – You can’t make informed decisions to optimize and adjust without reliable data. Everything must be tracked in real time with high precision.
    3. Inject yourself into the sales conversion process – Who cares if you’re driving traffic if customers aren’t buying? You must influence and be accountable for the sales process as well. Objectively measure and evaluate the representatives who are selling the product. Retrain or remove the ones that don’t meet fixed targets.
    4. Analyze, analyze, analyze – Invest in the tools and people that can tie all the information together – no matter how small – in a meaningful and actionable way.
    5. Be ready to adjust your strategy and media buys daily and make a point of doing it weekly – Clients should designate a point person who is responsible for reviewing the previous day’s results every morning and is empowered to make immediate adjustments if objectives are not being met. Don’t be afraid to experiment and take on some measured risks – you might be pleasantly surprised.

It’s not unusual for us to track the results for 200 specific media buys on one client campaign alone. When done right, we have reduced acquisition costs by more than 60% from the start of a campaign. Simultaneously, we work with sales, retail and operations to lift closing rates by an average of 25 to 40%. Imagine the impact to profitability that follows. It’s why we invested so much in building zTrac – our proprietary tracking/measurement system that measures everything we do, in real time – and apply all that learning against ROI for every dollar spent.

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