‘You have to spend money to make money’.
This adage has a grain of truth to it. But if we take it too literally, it can cause significant problems. While there typically is a cost to growth, the true key to making money is to invest strategically in your business: spending in ways that will bring you the greatest return on both your top line revenue and your net profitability.
It’s vital that you take the time to reflect on where you are with your marketing spend and return. In doing so, consider how you could improve this next year’s growth and profit by managing these four concepts:
Establish a baseline for how your company has grown over the last one to three years. How have your marketing expenses changed during that time, and what impact have they had? Which campaigns may be worth reinvesting in? For example, a recent survey indicated that 59% of small business owners could not see an ROI on their social media advertising. Are you in that group? If so, could that be due to the source itself (for example, your target client is simply not active on Facebook) or ineffective use of the source (a lack of training in Facebook advertising)? If the latter, do you have budget for outsourcing your social media? Or time to train your team more?
Ensure that your marketing strategy is a hand-in-glove fit with your brand. Not all businesses will benefit from direct mail campaigns, while others will see fewer results from Google ads. Which are the best ways to reach your target client? On which social media channels are they active, if any? Is your messaging consistent with your voice and branding elsewhere? Does it speak your clients’ language while also reflecting your values? This helps establish your market presence and build consumer trust.
Creating valuable content can be a powerful way to attract new leads and establish your credibility in the field. In creating a content calendar, you may think three blog posts a week sounds manageable — but then life happens. So before you unroll your strategy, make sure it’s doable across all seasons of the business. It’s far better to post once every two weeks and stay consistent, than see your efforts peter out a few months in. In fact, sporadic marketing can harm your brand identity and your consumers’ loyalty.
4) Follow Up:
A personalized follow up goes a long way. For example, your ‘Contact Us’ form may generate a number of new leads each week, and each lead may have written to one or more of your competitors. Replying quickly, and taking an extra five minutes to do so courteously, can make you stand out from the crowd and create a great first impression for your lead.
Spending more money will not generate more income if the above concepts are not tended to and integrated. But if you do all of the above exceptionally well, you will very likely start stretching your marketing dollars beyond what you thought was possible. Spending less but selling more? That’s the perfect combination!
Our RESULTS Members gain 24/7 access to our detailed webinar, “Selling More by Spending Less” (available in video and audio-only content), plus our transcript, Summary and Member Workbook to help work through the learning. Join our waitlist so you’re the first to know when we re-open registration.