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How Do You Measure the Value of Your Business?

How Do You Measure the Value of Your Business?

Cash Flow and Risk Create ValueBusiness Value

Business value is generally determined by the amount of cash flow and potential risk of experiencing a loss rather than a profit. Cash flow, also known as “Seller’s Discretionary Earning” is determined by net income before taxes; including: interest, depreciation, amortization and a number of other factors focusing on expenses designated solely to the operation of the business. As small to medium sized business owners, you’re likely to be well versed on the ins and outs of how cash flow and risk are measured.

Many business owners see their company as having less risk than it actually does. It’s important to understand the value of your business for a number of reasons, one of which is for expansion purposes. Without knowledge of your company’s worth, how can you determine potential growth?

Add Value and Reduce Risk with Marketing Automation

Marketing Automation helps to reduce losses in profitability while creating a predictable system to produce cash flow. The technology accomplishes this by carrying out the following:

  • Allows for tracking of every marketing dollar spent
  • Providing data connected to leads that have resulted in a conversion
  • Allows for proper allocation of resources
  • Focus efforts on leads projected to convert

Tracking Marketing Dollars: Marketing Automation is smart, we mean it. The technology keeps track of open, won and closed sales opportunities to help you and others in your company pinpoint which campaign attributed to which sale. Other third party integrations are common with most Marketing Automation technologies to better help track the path to conversions.

An example of this is the connection between Google AdWords and your MA platform. This integration allows you to connect the account associated with AdWords, including keywords, adgroups and budget to better assist in the ROI of your marketing efforts.

Collecting Lead and Customer Data: As mentioned above, Marketing Automation allows you to see the dollar amount spent converting a lead to a customer. As a Marketing Automation partner – we work with companies to implement MA strategies. We can take a list of leads to any of our customers utilizing the technology and ask them which of those contacts converted to leads. This action proves their ROI in real time.

Allow for Proper Resource Allocation: The purpose of Marketing Automation is to send the right message to the right prospect at the right time. As a prospect enters into your database, you want to be able to nurture them with the correct content when necessary. You wouldn’t want to send them a White Paper when they haven’t even reached that stage of the sales process . If we haven’t stressed this enough, customers will tell you when they’re ready, you don’t want to rush the process.

This action sets you apart from your competition (not using Marketing Automation) right away. You’ve stamped a personalized touch onto your marketing efforts which creates a stronger bond with customers.

Focus Efforts on the Right Leads: The purpose of being able to allocate resources in the most efficient manner is one of the steps necessary to focus marketing efforts on the right prospects. You waste time and money when you nurture leads that have zero chance of converting to sales. Traditionally, businesses would have no idea as to who is ready to buy and who isn’t the right type of customer. Luckily, Marketing Automation allows you to see these folks clear as day with lead scoring and behavioral analytics.

Biznet Digital is the only Marketing Automation Resource You’ll Need!

The above reasons are just a number of ways Marketing Automation can help to increase your company’s profitability, ultimately reducing risk and maximizing the value of your business. To find out more about how Marketing Automation can accomplish these and more, contact one of our Marketing Automation experts today!