Want to generate more revenue? Duh, who doesn’t. In order to do so we need to be more strategic about our marketing (knowing your customer) and advertising (getting the message out) during down turns in the economy.
Here are some interesting statistics for those you who like evidence.
A McGraw-Hill Research study of over 600 Businesses found that during the recession of 1981-1982, businesses that maintained or increased their ad spend during this time averaged higher sales growth during the recession and in the following 3 years! By 1985, those same companies experienced sales increases of 256% over those that had cut back on advertising.
Likewise in 2001, another study found that aggressive recession advertisers increased market share 2 ½ times the average for all businesses in the post-recession. In 2002, the Strategic Planning Institute illustrated that during economic expansion although 80% of businesses increased their advertising spend there was NO improvement in market share. Why? Because everyone has increase ad spending!
BUT, spending money for the sake of spending money is foolish not only now, but anytime in business. Applying The Level 7 Principle, carefully define the result or outcome you want from every advertising effort and track the results like a mad man (or woman). Make sure your dollars spent are paying off in either increasing your leads and building your brand in a positive and measurable way.
Spending money on advertising and marketing is smart money if the people who receive these leads can turn that spent money into business. Two questions to be answered by business owners: 1) Do you want marketing to generate leads or generate sales? 2) Are your salespeople account managers/ order takers or hunters/closers? If you want marketing to generate sales, you don’t need salespeople, just order takers. that leads to another problem. How will you be able to outsell your competition when your business isn’t designed for your people to have the opportunity to sell? When marketing is relied on to generate sales, those sales are typically earned by price. Top salespeople know how to sell value, when provided with the opportunity.
Great comments Brad. It is true that we need be effective at converting the leads we receive. In addition, we must be able to fulfill and deliver what we sell, keep the promise, so to speak. Great business don’t compartmentalize the functions of the business that generate revenue. They look understand their markets well, deliver a great message, convert and deliver equally well.