Spend more than they do on marketing, but do it properly.

It brings joy to my heart every time I hear a competitor of mine or a competitor of one of my clients complaining about postal rates, or how much they spend on marketing.

“Keep on whining”, I think to myself.

Every time someone else stops mailing newsletters because postage went up – that’s more room for me and my clients. In fact, sometimes I bring it up just to start the conversation topic rolling. Maybe I’m a little mean that way:)

Every time someone looks totally at the cost of their marketing and not the ROI and stops running an ad that is working (assuming they even know), that’s more room for me and my clients.

What they miss is that if you can logically justify spending more because you know your numbers, then you are going to kick their butts while they are digging in the couch for change.

If you are doing the right things, you can spend more on marketing and still make more profit.

In marketing dollars, if you know what a lead costs you and what a new client costs you, you can make better decisions about spending those dollars.

If you know how many leads come from this source vs that source, then you can make better decisions about where to spend those dollars.

If you could put a dollar into a marketing slot machine and get back $1.19 every single time (on average), how much money would you put in that marketing slot machine?

Every dollar you could find, right?

That’s the power of knowing your numbers and using that information to spend your competition into a coma.

Of course, if you have no idea which ads work, and how well, and what they cost to run per lead and what they cost to run per client, well, then you might have reason to complain about the cost of stamps, or whatever media you use.

2 replies on “Spend more than they do on marketing, but do it properly.”

  1. Why businesses would reduce marketing ads/campaigns is always a interesting issue. Of course if a business is throwing money into the wind hoping to hit their target market, reduce the investment is wise. But, like you said, if the business can associate a cost or numbers with their marketing and it’s positive, scaling back is suicide.

    ~the GURU

    The Small Biz. Gurus last blog post..Book Review: Customer Approved Small Business

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