Most Owners Have No Clue How to Measure
if Their Marketing is Working
It's not easy to tell if your marketing and advertising is making you money. We know that most people take anywhere from 30 to 90+ days from the time they decide to get off their butt to the time they sign an agreement with you. If you run a full-blown campaign to drive new membership sales, you may not see the full effects until late summer or fall of 2010. Here's how to measure success of your campaigns and lead generators...
Follow the Money Trail
Your prospects leave a trail that we can follow. You never have to guess as to what works and what doesn't work. Like a good detective, let us show you how to track someone from the moment they appear to the time they join your club. Once you put your tracking system in place, all you need to do is look at the results every few weeks to see what works (and more importantly to see where you can make improvements).
If you can trace the path of your prospects, you'll save a ton of money on 'trial and error' marketing. And it's not hard. In fact, all you need to know the answer to are the following five campaign success questions:
1. How many people called my club?
2. How many people dropped by my club?
3. How many landed on my campaign landing page?
4. How many of those people toured?
5. How many of those who toured joined?
Follow this trail with every campaign you run. You'll never guess as to what your ROI was from the investment you made.
Not All Campaigns Are Created Equal
We talk to owners and ask them to define a campaign and we'll often hear, "A campaign is centered around a strong direct mailing to the community." Yes...and no. Part of the frustration with marketing is what we like to call "wide net" vs. "targeted bombing". Targeted bombing is the concept of spending a boat load of cash on printing and postage and then hoping and praying you'll get results. There is a better way.
A successful campaign doesn't have to break the bank. You need to take the Theme of the campaign and apply it everywhere in your club for a set period of time. You may include posters, banners, table top displays, flyers, print ads in magazines and local papers, and maybe even a direct mail piece. But here is where most campaigns fail - many clubs fail to integrate the campaign into every facet of their sales and service process.
Make sure your campaigns are fully developed, explained and tested in these areas, before you launch:
A) Have a landing page on your website where people go for more
information and details,
B) Make sure your Front Desk Team has a script of all details for
calls and drop ins,
C) Have your staff track drop-ins and call-ins who have responded
to the campaign.
How'd You Do?
Give yourself credit where credit is due. Make sure your analysis is done properly. Here are some actual statistics from a recent client campaign:
Calls to the Club: 64
New Web Visitors: 88
New Sales: 17
The cost of the campaign was $3,750. It included banners, flyers, lead boxes and a few other tactical pieces to drive new leads from the community and from members. This club sells memberships for $49 a month, or $500 paid in full. How well did the campaign perform for this owner? Let's take do the math.
The quick 'down and dirty' would lead you to think pretty crappy. 17 new members at $49 a month is $833 dollars. Spend $4 and get $1 back. But that's bad math!
This club's lifetime value of a membership is $882 (18 months at $49 a month). That's $14,994 for $3,750 spent. A 399% return on investment. We wish our stockbroker could match that!
Plus, the club also had 88 new leads from their website that subscribed to the e-Newsletter and Free Pass. They received a series of messages from the club, encouraging them to come in for a free trial. They are still in the buying cycle. No other area health club evens knows these people are looking at memberships. But you do... because you captured their information when they stuck their hands up!
The moral of tracking the success of a campaign? You can't just base it off the number of new memberships you get in the first 30 days. You are not giving you and your marketing the proper credit!