Yesterday, I told you I would follow-up with an example of how using metrics has equipped us to save our clients a significant amount of money on candidate advertising.
A few months back, we were interested in buying advertising in a metro area where we had a major client. The client needed to source more than 500 candidates per month to meet its hiring goals. In
this metro area, there is a regional job board that is very prominent—you see its ads on the sides of buses, at bus stops, on trains, and you hear its ads on the radio. It constantly refers to itself as the #1 job board in this metro area.
We inquired about advertising on this company’s job board. The prices were high, but its claims of traffic to the site were high as well. Since we had been advertising in this city for more than a year, we had reliable metrics on this vendor’s competitors “advertising cost per applicant.”
With these competitive metrics in hand, we were able to negotiate a one-month trial at a fairly low price. The trial pricing was based on a one-year commitment assuming the job board was able to hit a cost per applicant benchmark that its competitors were meeting.
As you probably guessed, the trial did not meet the expectations of either party. To this day, we’re able to source candidates in this marketplace through a group of competitive job boards and search strategies at an advertising cost of $3/candidate. The trial with the prospective vendor produced a cost of $15/candidate. Working this backwards, a job posting on this company’s job board priced at $300/month was really only worth $60/month for our application.
With this information (a metric that can be used across vendors, reliable data from a vendor’s competitors, and low-cost trial data from the new vendor), we were in a much better position to understand the true reality of the situation. In the subsequent negotiation, we were able to get this vendor to quickly reduce its prices by more than 50%. It still ended in an impasse because the vendor was not willing to lower its price enough to displace its competitors, but you do have to feel sorry for all the companies paying $300 per posting! With just a little more information and the confidence to ask, they could be paying $150 for the same advertisement.
If you apply this principle across the thousands of candidate advertising impressions we provide our clients on a daily basis, it adds up to some significant savings. Granted, it cost us money to define, develop systems, and track this data, but the numbers do pay off.
I hope you’ll find an application in your business where you can use metrics to save you money or find opportunities that you’re missing. It reminds me of the theme of one of my favorite Mary Chapin Carpenter songs, “The stars might lie, but the numbers never do.”
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