Pretty much any business owner will tell you they want to grow.  However, not all know the most efficient way to grow their business, particularly when it comes to spending money on marketing. 

That is the challenge one of our recent clients had.  As a newer chiropractor with an already successful business, they had minimal insight into which marketing channels worked best for their business.  They knew they needed to keep growing as a business, but also didn’t want to spend money on marketing that wasn’t working for them. 

That’s where Simplified Analytics was able to help.  We worked with them to learn their business, collect the necessary data, put it into a format that allowed us to analyze it, and identify the most effective marketing channels. They’re now able to make informed decisions about where to leverage marketing spend for the most return, and save money on those that weren’t performing well.

Messy Data

It can be intimidating to think about how you could end up getting value from information you collect as part of your day to day operations, especially if its in different places and in various systems. We worked with the Chiropractic practice to identify the systems and data necessary to analyze their marketing channels. To say their system wasn’t designed to easily extract data is quite an understatement. However, through a few rounds of trial and error, along with the company’s helpful customer service team, we were able to get all of the data we needed.
Once we had all the data we needed, the next step was to combine it . The bulk of the data came from two systems that don’t talk to each other, so we had to find a means to bring the data together. While usually not ideal, we were able to utilize the name of clients to bring the data together. With any dataset, oddities with the data will come up! From an analytics client perspective, this can be a challenging and potentially frustrating part of the process. However, this is a very normal process, regardless of how clean your data already is!

Analysis

With our goal of answering which marketing channel gave the best results, we now had the data we needed.  We opted for a common approach in marketing measurement called “attribution”.  This allows the revenue from a marketing channel to be attributed for a certain period of time.  For the Chiropractor’s practice, measuring in 30-day increments ended up making the most sense based on their business cycle. 

Measuring the success of marketing channels can be challenging, as there is a lot that needs to be considered and accounted for.  While retention of clients are important, how does retaining a client for 12 months that spends $50 a month compare to a client who stays for 6 months (half the time), but was spending $200 per month (spends 4 times as much in their time)?  In our analysis, we accounted for this by looking at the total revenue generated by each marketing channel over time.  The end result?  We found one of their marketing channels far exceeded the other marketing channels.

The below graph is a generalization of our client’s actual results to protect their identity and actual revenue numbers.

How the Analysis Can Be Used

For this Chiropractic practice, the first marketing channel far exceeding the other marketing channels allowed their team to not only know it was a successful channel (something they already suspected), but know how successful it is. When making decisions to spend on marketing, they’re now able to make a more educated decision when allocating marketing funds.
Beyond understanding their current state, they can also look for similar marketing channels to marketing channel #1 to see if the same success can be observed.

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