It is extremely important to keep accurate records in any form of email marketing. It is only through these records that you can determine which ads pull the best, which advertising lead is the most enticing, and how well your product or service is selling.

Good records are the follow-up of good testing!

Keep copies of all ads and conversion material in a spreadsheet or a reliable file. You may also include in that file, or a separate folder, a record of all of the addresses you have used. The separate records per addresses or publication will help you to compare which ads are bringing in the profits.

You may have your own way of filing these ad campaigns. You’ll need a separate document for each ad you place. At the top of the document, place the name of the publication the ad appeared in, the issue number or date, the date the issue was placed on sale, the address, the size and cost of the ad, which ad you used, and the price of the product or service. This will be needed to calculate your profits later.

The main body of the document has two main categories – inquiries and sales.

First, the number of days should be listed in a column at the left. These don’t necessarily coincide with the days of the month, rather, start with the first days responses came in.

The subheads under “inquiries” should be:

- Date Received
- Number Received
- Running Total

The subheads under “sales” should be:

- Number of orders received
- Running total
- Cash sales
- Running total for cash sales

These records will help you figure out the responses to ads, orders from sales copy, and how much money you’re making.

To calculate the cost per inquiry, divide the cost of the ad into the number of inquiries received.

To find the cost per order, add the total of sending the sales copy to the cost of the ad and divide that by the number of orders received.

The ratio of conversion is the number of orders compared to the number of inquiries. For example, if you get twenty orders from one hundred inquiries, the conversion is twenty percent.

How To Calculate Profit

This is total the amount of cash sales. That is your gross profit. Subtract the cost of the product or service, mailing, conversion of the ad. That is your net profit, the one that counts. Just stick with it and you can watch your profits grow larger with each ad – each conversion – each sale.

How To Segment Your List

Building a email list for your business should be a top priority. It is the most important marketing tool where you can build a mailing list and segment them according to your geographic, demographics, psychographics and product benefits for your target market.

No email list is ever going to pull as effectively as your own email list created from thousands of prospects that your business will have the opportunity to market to, as well as the hundreds of customers who have tasted or selected or used one or more of your products or services.

Just names and addresses aren’t enough. You need to segment your prospective client email list like the big mailing houses do.

The way you do this is ask your clients and prospects their preferences. Why they purchased? Their reading habits? Their spending habits? You could ask them where they heard about you? TV? News? Interent? Radio? Paper? Other?

As soon as they become a customer, you record their purchase whether it was this particular product or that product, this service or that service. Track every purchase, every phone call you make to them, and everything else you’ve ever talked to them about on your computer.

You need to know how long they’ve been a customer. Whether they’re current on their payments. Whether they respond to an advertisement. What other subsequent purchases they’ve
made? What caused them to make those purchases? Was it a letter you sent, a follow-up? The list goes on, and on.

You want to be able to improve and offer them more things based on the pieces of information you know about them. You can segment your customer file as:

- Calculate the value of your customers. This is the value of every lost name that you don’t capture.

- Capture names through registrations, drawings, coupons, free subscriptions, consultations, charge card verifications, and photocopy their checks.

- Design surveys, registrations, etc. to solicit personal information from your customers regarding those variable, important pieces of information for your business.

Of course, testing your campaigns will allow you to clarify and organize many of the foundational procedures and processes of any business. These concepts and processes, though basic and often lost in routine are ones that, if mastered, could potentially bring you immense wealth very quickly.

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You must realize that your product or service cannot be all things to all people. Very few items on the market today have universal appeal. Even when dealing in basic commodities like table salt or aspirin, marketing people have gone to all sorts of extremes to create brand awareness and product differentiation. If your product or service is properly positioned, prospective purchasers or users should immediately recognize its unique benefits or advantages and be better able to assess it in comparison to your competition’s offering. Positioning is how you give your product or service brand identification.

Positioning involves analyzing each market segment as defined by your research activities and developing a distinct position for each segment. Ask yourself how you want to appear to that segment, or what you must do for that segment to ensure that it buys your product or service. This will dictate different media and advertising appeals for each segment. For example, you may sell the same product in a range of packages or sizes, or make cosmetic changes in the product, producing private labels or selecting separate distribution channels to reach the various segments. Beer, for example, is sold on tap and in seven-ounce bottles, twelve-ounce cans and bottles, six-packs, twelve-packs, cases, and quart bottles and kegs of several sizes. The beer is the same, but each package size may appeal to a separate market segment and have to be sold with a totally different appeal and through different retail outlets.

Remember that your marketing position can, and should, change to meet the current conditions of the market for your product. The ability of your company to adjust will be enhanced greatly by an up-to-date knowledge of the marketplace gained through continual monitoring. By having good data about your customers, the segments they fit into and the buying motives of those segments, you can select the position that makes the most sense. While there are many possible marketing positions, most would fit into one of the following categories:

Positioning on specific product features

A very common approach, especially for industrial products. If your product or service has some unique features that have obvious value this may be the way to go.

Positioning on benefits

Strongly related to positioning on product features. Generally, this is more effective because you can communicate to your customers about what your product or service can do for them. The features may be nice, but unless customers can be made to understand why the product will benefit them, you may not get the sale.

Positioning for a specific use

Related to benefit positioning. Consider Campbell’s positioning of soups for cooking. An interesting extension is mood positioning: “Have a Coke and a smile.” This works best when you can teach your customers how to use your product or when you use a promotional medium that allows a demonstration.

Positioning for user category

A few examples: “You’ve Come a Long Way Baby,” “The Pepsi Generation” and “Breakfast of Champions.” Be sure you show your product being used by models with whom your customers can identify.

Positioning against another product or a competing business

A strategy that ranges from implicit to explicit comparison. Implicit comparisons can be quite pointed; for example, Avis never mentions Hertz, but the message is clear. Explicit comparisons can take two major forms. The first form makes a comparison with a direct competitor and is aimed at attracting customers from the compared brand, which is usually the category leader. The second type does not attempt to attract the customers of the compared product, but rather uses the comparison as a reference point. Consider, for example, the positioning of the Volkswagen Dasher, which picks up speed faster than a Mercedes and has a bigger trunk than a Rolls Royce. This usually works to the advantage of the smaller business if you can capitalize on the American tradition of cheering for the underdog. You can gain stature by comparing yourself to a larger competitor just as long as your customers remain convinced that you are trying harder.

Product class disassociation

A less common type of positioning. It is particularly effective when used to introduce a new product that differs from traditional products. Lead-free gasoline and tubeless tires were new product classes positioned against older products. Space-age technology may help you here. People have become accustomed to change and new products and are more willing to

experiment than was true ten years ago. Even so, some people are more adventuresome and trusting than others and more apt to try a revolutionary product. The trick is to find out who are the potential brand switchers or experimenters and find out what it would take to get them to try your product or service. The obvious disadvantage of dealing with those who try new products is that they may move on to another brand just as easily. Brand loyalty is great as long as it is to your brand.

Hybrid bases

Incorporates elements from several types of positioning. Given the variety of possible bases for positioning, small business owners should consider the possibility of a hybrid approach. This is particularly true in smaller towns where there aren’t enough customers in any segment to justify the expense of separate marketing approaches.

As you continue to expand your business in the months and years ahead, use the tips presented here. Prepare a budget and review it frequently. Select your items for advertising to help solve consumer problems and then present your advertising message as a form of planned communication to strengthen your market positioning.

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Thinking about going into business for too long and you’ll risk it from ever starting. All successful businesses offer their customers something of value, but that’s not enough. Customers constantly evaluate what they get against what they pay, and their criteria for making repeat purchases are very simple. They want everything better, faster and cheaper! Even if you’re clever enough to build a perfect business the first time and your product or service is ideal for your customers, your position will eventually erode because
the marketplace is not static.

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