“Establish specific numerical criteria and goals to measure results.” — Peter Drucker
In today’s business climate, it is more important than ever for managers to understand their costs and sources of profitability. One common mistake managers make is analyzing marketing and selling costs only at the gross levels.
When aggregating at a gross level, management teams can’t tell which marketing and sales activities produced which results. As a result, ROI on specific activities is unknown. Without a loan level analysis, it is impossible to determine how much of your marketing and sales activity produces little or no results. Likewise, what activities produce the biggest bang for the buck is not known either.
To obtain an accurate financial snapshot, marketing and selling costs must be examined at the asset level or loan level. Only then can you determine the true value and costs of your firm’s lead generation.