Balancing the Marketing Strategies of Your Business
There is no point in emphasizing how vital a good marketing strategy is for a business, no matter how small or big it is. It attracts new customers/clients/users/partners and keeps the existing ones satisfied and respected. A good client base always needs expanding, but how much is too much when it comes to marketing. There are numerous strategies, ideas, and approaches, but which ones will work for you and at what cost? Here are some insights on balancing the amount of invested money with marketing benefits you can see.
The Amount of Money per Customer
First of all, you need to know how much money you spend on marketing and how many customers you get. Add up all of your investments in the marketing department. Now, compare the investments to the number of new names that come to you. You will be able to compare them and see how good this ratio is.
There is a thing called CAC “Customer Acquisition Cost” and a rather simple way to calculate it. Once you put all the marketing expenses on one site of the equation, you will get the total amount of invested funds. Then, divide that amount by the number of acquired customers and you will get the sum invested in a single customer.
Unique and Returning Customers
Once you are aware how much a single customer costs you, you can re-evaluate how much you gain. If the latter number surpasses the former, you are good. You make more than you spend on one person only, so your marketing strategy is sustainable. If, however, it is the other way around, change something move to social media, get on the streets, etc. With so many digital agencies available today, you need not do everything on your own, but let other people take care of your account. These professionals can assist you more than you can imagine, in less time and with more visible results.
There is also the element of returning customers expressed with LTV “Lifetime Customer Value”, which means that one person keeps coming back to you. You have attracted them once, and then they bring in cash with every purchase. So, spend your money once, gain money several times. There is no easier way to prosper in the business world.
The Changes and Alternations
If you realize that you spend more than you should and do not manage to attract the right type of customers, you should change your marketing strategy. The two best things you can do are to go viral and borrow ideas.
With so many people on Facebook and Twitter, you can find great campaigns made especially for this format. Countless people see them and visit your page right away, so your message is not only omnipresent but quite cheap. Also, do not be afraid to look towards some of the best campaigns out there. Big brands have their calculations in order and surely approach the right target groups so that you could do the same.
However, it is not all up to you. A big amount of your marketing success comes from exterior factors and the surroundings around you. Sometimes people just do not react to your advertisements, posters, and promotions, and the only thing you can do about it is to adapt your approach. Consider the time of the year, geographical position, part of the world you live in, the number of people on social networks and their expertise, and so on. Personalized marketing is always better, so add something special for every region or town you are appearing.
Marcus is an Australian IT support professional with five years of experience behind him. He’s running his own business, working with companies that outsource their IT maintenance. He’s SF and gaming fan, and has actually seen Star Wars 44 times.