Marketing 101 - How do I know my marketing is successful
To help YOU promote YOUR business, Falkirk based Minuteman Press are sending out a series of emails on how to do just that!
My name is Keith and I own this local business. This is the second in a series of emails with simple tips on improving how you promote yourself and your business. Here are two questiions I am often asked?
- How do you KNOW if your marketing is successful?
- How much should you spend on your Marketing?
How do you KNOW if your marketing is successful?
The simple answer is SALES levels. After all that's what we are all looking for - Profitable Sales. Put quite simply the better the marketing the better your sales. Ok now we have the 'twee' bit out of the way it does not really tell you what parts of your marketing work and how well. The key to all marketing is measurement (yep kinda boring, but that's it) - in marketing we refer to that as Return on Investment or R.O.I. No matter what your business you should try to track what is effective (and what's not) - you can track campaigns via offers, coupon codes, traffic on your web site, facebook likes or sales. It doesn't take long to do but it works - IF YOU DO IT. We once helped a small wedding supply company that was spending £8k a year on magazine advertising, with no measurable return. We suggested promoting at table top wedding shows, with postcards to take away, with a small free gift for every order, and cut their annual spend from £8k to £1k and more importantly they got immediate sales and doubled their turnover in less than 12 months.
How much should you spend on Marketing?
Your marketing has to be sustainable - and affordable but the more marketing, effective marketing (see ROI) the more sales! Here is a rule that you can easily adopt - your total sales and marketing effort should be in the region of 15% - 20% of your turnover Don't panic that does not mean 20% of your turnover in Marketing purchases, but also in the time you spend. If you are a 1 person business then approximately 1 day per week, or 1/5th of your time should be spent trying to get new sales and repeat sales. Your sales and marketing efforts are a series of campaigns and each campaign should have a goal - new customers, awareness, or perhaps even a retention campaign (as it pays to look after previous customers).
To calculate what you actually want to spend on each campaign one looks at 'Cost of Acquisition'. How much is each client worth to you? If you sell double glazing each job might be worth £5,000 to you and £1,000 of profit, but is a one off sale. You might be willing to spend £200 to acquire that client. If you are a hairdresser, and each new client is worth £60 on their first visit, but they come back every month that client is worth £720 per year to you - year after year! For the new hairdresser it might be worth spending a total of £200 (if you can afford the cash flow) to get that new client based on yearly or lifetime sales. (It might also be worth noting that to keep your current clients is worth a wee bit of effort every year). Each business is different, with different acquisition costs. People react to different marketing, in different ways, at different times. The key is to measure, find what works and repeat! Simple - but it needs to be done.
Over the next few emails we will take you through different marketing methods and approaches and what might work, and what might not. If you want any help with your marketing contact me today.
We provide a full suite of products and services to help you promote your business including ...
- creative design
- promotional products
- custom apparel
- signs and banners
... and more. Please call me now if you have any questions at all.
KEITH 01324 613636