4771 Results Depend On Your SMARTS - Sunspark Communications

Results Depend On Your SMARTS

(02.25.12)

How does your company calculate the results of your marketing and sales efforts?  Does your company operate with Specific, Measured, Attainable, Realistic, Time-Specific goals?

 

Establishing SMART goals is the vital first step for calculating your marketing results. 


Once you’ve identify the desired end result with SMART goals, you have

a performance score card to keep you and your team focused all year.

 

 Cost per sale and cost per lead are two easily measured benchmarks and a good start for determining where you are.  You’ll need a deeper look to make informed decisions about where to set goals for these areas.

 

Simple cost per sale and cost per lead calculation:

 

Annual Marketing & Sales Expenses

             Number of New Clients Acquired             = Cost per Sale

 

Annual Marketing & Sales Expenses

  Number of New Leads Generated           = Cost per Lead

 

            For example:  Your Annual Marketing & Sales Expenses were $100,000 and you generated 100 new clients, your cost per sale is $1,000.

 

You may want to include more analysis on customer lifetime value and retention rates before setting your SMART goals.  Jumping too quickly to set a goal of reducing cost per sale or cost per lead may not be in your best interest for sustaining long term results.               

 

Upon analysis you may find your higher lifetime value customer could also be a higher cost per lead.  You may also discover that higher lifetime customers buy more from you over a greater period of time, driving down retention costs.

 

Although the marketing and sales expenses are added together in the calculation above, generally there are specific SMART goals tied to each discipline.  Counting on your sales team to be your sole marketing source or expecting your marketing efforts to generate only qualified buyers could be costing you lost opportunities.

 

Each industry is slightly different.  Below is a list of easily measured and track-able business development criteria that can help you establish and measure SMART goals for your organization.

 

  1. Number of Leads Needed:                                         ____________________
  2. Average Closing Ratio:                                              ____________________
  3. Average Annual Customer Retention:                       ____________________
  4. Number of New Customers Needed:                         ____________________
  5. Average Lifetime Value of Customer:                         ____________________
  6. Average Number of New Customers Per Sales Rep: ____________________
  7. Total Marketing & Sales Budget:                                ____________________
  8. Marketing Budget:                                                      ____________________
  9. Sales Budget:                                                             ____________________
  10. Industry Average Marketing & Sales Budget:             ____________________
  11. % of Budget Allocated to Marketing & Sales:             ____________________
  12. Annual Revenue Budget:                                            ____________________

 

Define your desired outcome with specific, measurable, attainable, realistic, time-specific goals to ensure your time and resources achieve return on investment results. 

 Results Funnel

If your team could use an outside perspective or facilitator for this process, Sunspark Communications can help you establish a plan for calculating targeted results.

 

Let’s Chat,

 

Debbie Donaldson

President & CEO

Sunspark Communications

 


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