February 9, 2010
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The marketing myth holds that it's better to do something, even if it produces mediocre results, than to do nothing at all.
Nonsense.
Engaging in marketing initiatives that don't produce a high return on investment waste your money and, equally important, keep the money from being invested in far more productive uses.
This raises an important but often overlooked point: The highest costs any business faces are not those traditionally accounted for--labor, materials, rent, etc.--but opportunity. What the company fails to capitalize on takes the highest toll.
How does this link to marketing initiatives? So often, I ask company owners, if a certain expanses pays off, such as a radio campaign they run month after month.
And so often, they respond, "We don't know."
"Then why do you continue to run the campaign?" I ask.
"We are afraid to stop."
Sounds irrational but this syndrome is very common. However, it must be stopped.
- You must measure every marketing investment.
- You must stop what you cannot measure.
- You must end those that fail to produce, adjust them, or move on to more productive investments.
Lazy marketing loses money and leads to high opportunity cost.
Make 2010 the year you put an end to it.
Check your balance, review recent transactions and pay your bill on the go.
Jill Fehrenbacher 2 years 3 months and 26 days ago
This is a really great point and is one that is often lost on SMB owners. One can't improve that which one can't measure. It's so important to go into any marketing campaign with clear KPIs and a willingness to discontinue what doesn't work. Great advice!