Today’s businesses are much more efficient with their marketing spend than any time in history. Disciplined companies can quantify marketing spend, rank it for effectiveness, and optimize it for results. This can (and should) include stopping marketing activities that do not yield sufficient results. Every dollar spent on marketing should be returned back to the business in profit. Marketing is the businesses equivalent to a slot machine, however we can (and should) rig the machine. If you put a nickel into the machine, you should get 6 cents back. Marketing is the Perpetual Money Machine.
John Wanamaker‘s famous quote is “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”
There is a lot to this quote. First and foremost, it paints advertising in a negative light. He could have said “…half the money I spend on advertising is effective”, but the quote would have lost its cache. Secondly, it has a “defeatist” tone, he admits that he has a business problem that cannot be fixed. Thirdly, he’s speaking in plain terms. Had he said that “my marketing attribution model is insufficient”, very few people would have raised eyebrows.
Undoubtedly, Wanamaker’s pain still exists today. These circumstances still persist, especially in larger companies that have many marketing activities acting at the same time. However, the power lies with smaller businesses. There are an arsenal of free marketing techniques available to small businesses that can yield new customers and new revenue. A business owner can (and should) post a compelling message on their website, send pointed-emails, and post eye-catching social media. These free techniques grow companies if they are used effectively. The great thing about the perpetual money machine in today’s society is that it does not even require a nickel to play the game. It’s time to rig the slot machine.
If you are interested in growing your business on a limited budget, we can help you–let’s chat.
A lot of organizations do not know how to allocate their time and resources. Every new organization faces two big challenges. The first challenge is the mountain of things to do. The second is that there is not enough time or resources to get them all done. The organizations that can prioritize their mountain of things to do and get them done efficiently will be on a path to success. This approach to learn and repeat the best marketing efforts and deploy them over time is the crux of data-driven marketing.
Building a Marketing Foundation
One of the reasons that so many companies struggle early is because they do not put in a marketing foundation. This foundation tells the organization which marketing efforts are working–and why. The marketing efforts that do not work are expensive. Unfortunately, when an organization does not have a lot of resources, these efforts can be crippling.
Learn by Doing Marketing
Admittedly, sometimes these advertising efforts can work. However, if there is not a marketing foundation in place, it’s impossible to know exactly how to do it again. The most-effective marketing strategies improve on previous marketing strategies. The smart organizations build a system that allows them to test different marketing strategies. Once they have figured out what has worked, they repeat these efforts to add more customers and expand their business.
There are many ways to build a system of continuous marketing improvement. However, the most effective approach starts by understanding how the organization is valued by its stakeholders. Once they understand that, there are a lot of approaches to find the best way to broadcast that message. The organizations that prioritize and dial-in the marketing efficiently are on a path to success.
If your organization wants to efficiently grow its customers, creating the foundation for a data-driven marketing ecosystem is the best avenue to pursue. If you want to understand how best to put this foundation in place, let’s talk about the most-effective techniques for organization growth.