GET THE MOST OUT OF YOUR DOLLAR
How to appropriately create a marketing budget
Ever wonder how to get new clients? It’s actually quite simple—marketing. Residential HVAC companies should be spending 5-10% of their revenue toward gaining new clients, while HVAC companies that focus on big businesses should be spending 10-15%. This may seem like a lot of money, but when you split it up into categories such as Facebook retargeting, Google pay-per-click (PPC) ads, and Facebook PPC ads, you’ll hit a large market. Plus, consider the return of investment (ROI) from the marketing. Even if your advertising only brings in a few new clients a month, by the end of a year you will be rolling in new revenue.
- Do you currently have an ad budget?
- Do you know where the ads are going?
- Do you know which specific types of adveritising you are doing?
Step 1: Digital marketing is key!
Retargeting and PPC ads are the best and easiest to use because they can be tracked, and you can set a very specific budget. Plus, given the current internet and social media age we are in, users are more likely to see a digital ad over a printed ad. Remember: everyone uses the internet, but not everyone reads the magazines your ad would be in.
Step 2. Set an ad budget.
As mentioned, residential HVAC companies should be spending 5-10% of their revenue towards new clients. If you feeling your company is almost at workload capacity, keep the budget on the lower end of the spectrum. However, if you are hurting for new clients, spend the extra money to bring them in. It will only help you in the long run.
Step 3. Get the most out of your budget.
According to HVAC Insider, there are 4 steps to getting the most out of your budget. 1st—know how your budget is divided up. Make sure you know exactly how much money is being spent, but also how much in each individual ad. 2nd—track your results. Utilize google analytics, call tracking, and website landing pages to track the success of your ads. You can’t expect your employees to tell you every time someone calls, and you can’t trust a customer to say on the phone “I’m calling because I saw your ad on Facebook”. 3rd—measure your outputs. If you gained 13 new clients last month, you need to know which ad(s) brought them in. 4th—tie back value. This is the same thing as measuring ROI. Not every customer is created equal, but knowing the total revenue income is best for you. If you spent $5,000 on marketing, gained 13 new clients for a total of $15,000 your ROI is 3:1.
HVAC Growth is committed to helping owners, nation-wide, increase revenue through digital strategy and customer-retention.
Contact your local HVAC Growth Specialist for more information!