Sensible Spending

The value brought to every dollar spent on marketing and advertising has never been more important than right now. The current economic and industrial climate requires all of us to be more frugal with every investment. It’s time to treat marketing decisions the same as any other decision made within your business. Look at it this way…you don’t pay an employee by the hour they work in the office, you pay them for the value they bring to that hour. You need measurability and accountability within every department in order to effectively manage the business.

The same mentality needs to be used when managing your marketing dollars. Ask yourself…can I track and manage the success and effectiveness of each campaign? Am I focusing on the correct demographics? Most of you are probably spending money on Newspaper and/or Television ads. Can you realistically track the success it is bringing you? Most likely you cannot. Be involved in the marketing choices you make and don’t just continue doing the same marketing campaigns because they are the most popular or because you’ve been doing it the longest.

Specialized & strategic database marketing is by far the most effective route. Focus on marketing that is defined from start to finish…from the list selection to the ROI at the end of the campaign. Your past customer data is a gold mine. Use it to the best of your ability. Have the data dissected and analyzed in order to target the correct people based on the message. Nothing beats the value of a long-term customer, so make sure your message is being received by those who have already spent money with you. Personalize the message in order to build an ongoing relationship with your active and inactive customers. Building that trust will significantly increase the likelihood of them returning not just once, but for good.

Bottom line, spend your money wisely. Spend it with a clear goal and full understanding of what that money is being used to do. Be able to measure and adapt to market changes. Too many people are investing in marketing that is archaic or simply does not work. Use the tools you already have and start increasing revenue and profits by making smarter decisions.

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