In the current economic climate, it makes sense that businesses want to trim spending. But knowing where to cut – and, conversely, where best to invest – is really tough. Marketing might seem like one of those non-essential spends that can easily be cut. You might think you can pull up the marketing drawbridge, maintain your existing customers, and not worry about attracting new customers for the time being. But that would be an expensive mistake.

Marketing isn’t just about attracting new business…
…it also keeps your existing customer base engaged. Marketing is how you communicate your brand offering and personality to your customers, so that they see the value in your product or service. And when they see the value, they’re more likely to keep coming back for more. Customers understand how your product or service benefits them, and they feel more connected (and loyal) to your brand as a result. This also makes them far more likely to recommend your business to others – thereby driving new leads.

So if you think you can happily maintain your market position and keep revenue rolling in without spending on marketing, think again. This is why it’s so important to consider your marketing budget not just in terms of how much money you spend, but how much revenue you could lose if you didn’t spend that money.

That said, there may be ways you can get better value for money from your marketing – and this is where return on investment comes into play.

Looking at return on investment (ROI)
Now more than ever, it’s really important to assess your marketing ROI – which, in a nutshell, involves attributing profit and revenue growth to your various marketing initiatives. This gives you cold, hard facts on which marketing activities deliver the most bang for your buck.

You might find, for example, that your e-newsletter and social media activity deliver more reach than, say, direct mail. So if you do find yourself working with a slimmed-down marketing budget, ROI will help you calculate how best to allocate spending to keep delivering the results you want. You can be more strategic with your spending, while ensuring your business continues to grow.

Arbitrarily cutting your marketing could be a costly mistake in these tough times. But there is an affordable way forward. Here at OCTOPUS, we’ll help you get maximum value from your marketing budget by working out which channels and initiatives resonate most with your audience. Let’s get started.

(Photo by Windows on Unsplash)