Is your marketing an investment or an expense?

If you aren’t testing and measuring every part of your marketing and sales process you could be costing yourself a small fortune! Have you heard the old saying that ”half your marketing works and half doesn’t” …

People also say that “you never know which half“! That’s absolutely Rubbish; the only reason you don’t know what does and doesn’t work is that you aren’t testing and measuring it.

“If you test and measure your marketing, you can ensure that it is definitely an investment and is all about buying customers!”

Let’s say you spent £1,000 on a marketing strategy, how many sales would you need to make to break even? What is your cost per lead and per sale?

Now, you need to look at the average profit from each sale. If you are earning less than £100 from each sale, then it costs you money to buy those customers.

You do need to take into account the number of times that customer buys from you as it may cost you money if they only buy once, but make you money as long as they buy 2, 3 or 4 times. If you need them to buy more than once you need to make sure you stay in touch so they remember you when they are ready to buy again.

As long as your profit per sale is over £50 then you are making money and it is a successful investment. All you need to decide is which strategy makes you the most profit and how many times you’ll invest in it?

There have been so many occasions when a business starts testing and measuring their marketing and they find that, for example, a strategy they regularly use, never actually brings them any clients in.

“As soon as they know, and modify or scrap that one, they make instant savings in the business!”

If you’re not yet testing and measuring the marketing activity in your business, then do give me a call on 07590 584642 or click here to ping me an email and let’s see how I can help you.