There are many ways to grow a business.
- You could sell more products to your current customers and so improve your Customer Lifetime Value,
- You could raise the price of your products and so increase your profit margin while selling the same amount of goods,
- You could launch a new line of products, or
- You could sell the same products to new customers.
All these growth strategies will require some type of marketing to connect with the consumer.
Marketing is the key pin around which every aspect of business growth revolves…
The marketing spend recommended for businesses is five to eight percent of the gross turnover of your business, and a key performance indicator in this regard will be your COCA (Cost of Customer Acquisition). In the market place this means:
If the average sales price for your products is R50 000,
and your COCA (money spent on marketing this product, divided by the total products sold in a month) is R2500,
then your marketing spend is 5%.
If paying R2500 in marketing expenses per sales leads to a profitable outcome for your business, why not INCREASE your marketing spend?
This is what we call cost efficient marketing, and it is cost effective marketing that GROWS YOUR BUSINESS!