Tips to Evaluating Your Small Business Marketing Plan

by | Sep 12, 2022 | Financial Advice, Insights To Business

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Most small businesses are under a lot of pressure to stay on top of their marketing plan. This is especially true when it comes to digital efforts in a post-COVID world that created a major shift in the world of marketing overnight. Staying on top of your marketing plan ensures that you have a proactive approach to business growth rather than a reactive one. If you’re working with limited resources and trying to grow your business, then here are some tips for evaluating your marketing plan:

Calculate Return on Investment (ROI)

The next step in the process is to calculate your Return on Investment (ROI) for each marketing channel. ROI is best described as a measure of how much profit you make from each dollar invested in a particular channel, which can help guide your future business decisions. One way of keeping track of ROI is to create a simple spreadsheet. You can calculate it yourself using a sheets application like the traditional Microsoft Excel, Apple Numbers, or Google Sheets. To do this, record how much money you spend on each platform and what kind of results you get from it (i.e., clicks, leads or sales). Then use basic math to determine the ROI for each one by dividing the total revenue gained from a given channel by its total cost. For example, if you spent $100 on Facebook ads that generated $200 in revenue (a 200% return), then your calculation would look like this: ($200/$100 = 2). If there were multiple sources of revenue or expense associated with an ad campaign—for example, cost per click plus cost per impression—it’s important to include them all when calculating ROIs since they all contribute towards profitability. Furthermore, it is recommended exploring third-party tools such as Google Analytics, HubSpot, AdWords, and a robust CRM to give you even more insight into your customers and purchasing habits.

Gather Customer Feedback

Asking your customers for feedback is an important part of building a marketing plan. With each major interaction in the pipeline, you should be asking your audience questions about their experience with your business and what they think of the products and services you offer. The best way to find out what they’re thinking is by using customer surveys, which can be sent via email or through a survey tool like Google Forms or SurveyMonkey. You can also use social media questionnaires to ask your followers questions like “What do you like most about our small business?” or “What could we improve on?” The responses will be helpful in making future decisions about how to market your company. Another great way to get feedback from customers is through phone calls and emails that are sent out regularly with open-ended questions like “What was your experience at our event last week?” or “How do we compare against other local businesses?” These types of communications will help you see where there might be room for improvement within the organization as well as any areas where there may already be strong ties between consumers and brands (or vice versa).

Review Sales Growth Consistently

It’s crucial to review your sales growth consistently. You need to be able to see if your marketing efforts are working by looking at the trend of your sales numbers and whether you’re gaining market share. This means tracking both top-line revenue and bottom-line profit over time so that you can identify areas where improvements may be needed (like a lack of lead generation) or successes (such as the effectiveness of an advertising campaign).

Don’t Be Afraid to Pivot

You should never be afraid to change your business model based on data and metrics. You should always be going where the numbers take you, and adjusting accordingly. So in short, go where the numbers take you. If you see a spike in sales with a specific campaign or marketing channel, it’s wise to invest more in that channel. Conversely, if a channel does not produce desired results; shut it down. There is nothing positive about throwing good money after bad. Staying on top of your marketing plan ensures that you yield the greatest return on your business while ensuring your business’s long-term success. If your current efforts aren’t paying off, try something new instead of sticking with what isn’t working—and remember that patience is key!