I promised a quick tip.
Here it is: Double down on what’s already working.
Most businesses try too many marketing initiatives. You can’t execute every marketing tactic because you don’t have infinite resources. And they don’t all work equally well. Some perform better than others.
It’s crucial to allocate your marketing resources accordingly. That's why you should identify your best performing marketing spend, and increase it using the money you save from your worst performing spend.
To find out which tactics are currently working so you can spend more on them, follow these simple steps:
- Write down a list of all your marketing initiatives, campaigns and channels.
- Determine the return on investment from each distinct initiative, campaign and channel.
- Take the money from your poorest performing marketing initiatives and put it into your best performing marketing initiatives.
For our purposes, to calculate return on investment you can just take the money you spend on that marketing initiative, and divide it by the customers you acquire from that initiative.
There is only one difficult step here, and that is determining your return on investment from each initiative. Here are two suggestions to do that:
- If you use digital marketing channels such as Facebook and Google to market to customers, they will calculate and provide return on investment information to you. Simply log-in to your account and navigate to the appropriate section.
- If you have online and offline marketing efforts, simply ask your customers how they found you. Make sure you ask enough customers (probably over 100) to get a good idea of which channels are working. Then compare the money you spend on each, to the customers acquired through that initiative.
So it’s simple. If something is generating returns for you, do more of it.
Before you go...
We all know that small business is about doing the little things right.
The little optimisations, the high-impact tweaks and the 1% gains you can make to your business to make it a little better, a little more profitable and even a little bit more pleasant to run.
I have interviewed 500+ business owners, surveyed thousands more, and I am always probing for their best tips, tricks and hacks to improve their business. There are three that stand out above the rest and I want to share them with you.
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