Marketing can, and should be, one of the biggest expenses in your business month by month (if it isn't, then we need to talk about how you're investing in growing your business...). However for too many business the return they get for that monthly spend is 'variable' at best, more likely 'unknown' in practice.
The secret of being a truly effective and ultimately profitable marketer is to be crystal clear on the Return on Investment (ROI) you get from your marketing spend. As a responsible business owner your focus should always be on getting the maximum possible benefit from any money you spend and, despite all the hype and voodoo superstition that goes around, marketing is no different from any other part of your business.
Putting it into its simplest terms marketing is the art of "buying profitable customers" - for every dollar you spend on marketing you should be getting more than a dollar back in profit. If you're not, your marketing plan is broken (or more likely missing...) and we need to fix this as soon as possible.
We'll talk elsewhere about understanding the true value of a customer to your business, and the ways you can improve this value, but here we are going to look at one of the easiest things you can do to dramatically improve the profitability of your marketing spend. Sounds dramatic doesn't it? But in reality it's really simple, 3 little steps:
1. measuring how your marketing is currently performing.
2. find out which marketing strategies or ideas aren't profitable and stop them.
3. find out which marketing strategies or ideas are producing profitable results and do more of them.
There, told you it was simple...
Stop Wasting Your Money.
We'll come back to the mechanics of how you do step 1 but in my experience its step 2 that most business owners seem to struggle with.
There seems to be an unwritten rule that every business has to be in the Yellow Pages, needs an expensive website, or must run weekly ads in the paper. And I .....
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