Marketing: cost or investment?

All companies want to market their business as cost-effectively as possible. But by whilst costs need to be kept at a minimum, purely viewing marketing as a cost may mean you are missing out on a return on investment (ROI).

Let me explain this another way. First, think of your ideal customer. How much would their first order with you be worth? And subsequent orders? How often would you receive repeat business from them - once a month for a year?

Then, work out how much business that one customer would bring you through the lifetime of your relationship. It may be £100, $500 or even 1million Euro.

Now, decide how much you would be willing to spend on getting that lifetime business.

Whatever the figure, that is the investment you are willing to make for each new, ideal customer and this should be the basis of your marketing budget.

Marketing works over time and regular reviews are needed to ensure that marketing you investing in is effective and producing a return.

If you'd like more information on marketing budgets and evaluating return on investment, call us on 01283 808460 for a no-obligation discussion.

Written by Hannah Sookias, founder of Sookias Media www.sookiasmedia.com