The end of the calendar year is coming to an end, so let’s look at your numbers and how to do an analysis of your business that will improve your results in future years. Of course, to work on this analysis you will first need . . .
Your own numbers!
If you are currently not tracking basic marketing information such as customer transactions, total sales, the number of first time customers, or the sales from first time customers – you need to start. If you have a CRM, or in the case of a bank, an MCIF, you’re on your way. A service organization like a bank may be looking at the numbers of new accounts, lost accounts, dollar volumes by product (loans, DDAs, etc.).
To begin the process, It doesn’t matter what you use to track, just that you do track. You can use paper and a file drawer, a table PC, or a super-computer, it simply doesn’t matter. As long as you are tracking the necessary information to gauge your marketing results, your business will be better off.
Now, let’s get into your monthly analysis using a rolling 12 method. This is a common accounting approach which takes into consideration your key marketing figures:
- Customer Counts
- New Acquisition/Sales
- Customer Transactions
- Marketing Expenses
You need this information for your monthly total business, and if possible, your net new and retained business as well.
Start by looking at a 12 month period and calculate the above figures for the total 12 month period. You now have one number for each measure (e.g. customer counts, marketing expenses, etc.). Now move the 12 month period forward one month and do the calculation again. (Or, for a historical look, go back one month.) Repeat the process and continue until you have at least a 12 month view; that is, 12 numbers for each measure.
What does it tell you? Is it seasonal? Are things going up, going down? This rolling 12 view is better than a snapshot or a one month at a time view (which you can use, too). However the rolling 12 calculations will show you visible incremental changes in your business.
Now use this information to make decisions and keep on marketing and tracking those figures!
Good Marketing To You!