With all the number crunching going on over the past week, including fiscal reveals and election promises, I thought it timely to offer some number crunching of my own – numbers you can use to directly to support your own business growth, and support conversations with your accountant when discussing 2021’s profit goals for your business.
You see, there’s a perception that marketing is an art, reserved for the creative, clever-with-words types who can tap into your customers’ psyche. And while there’s no doubt this plays a critical role in communicating your brand’s messages and offering, you need to master the science of execution and value generation to understand whether your marketing investments are sound.
Like we mentioned last month, you can’t sell a secret. Award-winning ads that can’t be seen, or that dilute profit are, at best, useless and, at worst, destructive. To be effective you must check two things.
- Is your marketing is aligned to your target customers?
- Do you understand your ROI levers well enough to optimise your marketing investments?
Grow NZ can help with both these questions.
For the former we have our registered Marketing Strategy service with the Regional Business Partner Network where you may be able to access subsidised support.
And for the latter, we have just launched our Marketing ROI calculator. This tangible tool demonstrates how you can leverage the power of the marketing levers for exponential profit growth. And best of all, it’s free to Grow NZ members.
Move aside Grant Robertson, we’ve got some numbers that could really raise some eyebrows…
The Power Of The Marketing ROI Levers
Many mistakenly think that spending money on advertising allows you to sit back and wait for the money to roll in. While we hope the money does roll in for you, there is of course, much more to do than shell out for an ad.
The best businesses in the world are all great marketing companies, they understand the marketing levers in detail and build capability around each in order to maximise their returns.
Maximising your marketing return on investment requires you to carefully balance each of the marketing levers:
Attracting potential customers – marketing/ leads
Sales – either people or digital delivering conversions
Price – including up-sell opportunities
Costs – being as efficient as possible
Repeat purchases – re-marketing & customer lifecycle management
Get Started With Our Calculator Tool
To experience the difference a tweak to any of these marketing levers can make, take our calculator and play around with the following questions:
1/ What happens if I lift my conversion % from 35% to 38%?
2/ What happens if I increase my up-sell so revenue per sale increases by 5%?
3/ What happens if I decrease my marketing investment by 50% (we call this the cashflow spiral) or increase it by 50%?
4/ What happens if I sell more and gain volume discounts from my suppliers of 3%?
Experiment with your numbers and see what happens. All yellow cells in the calculator are variables – simply enter the number and hit ‘tab’ or ‘enter’ to see how each of the levers can impact your business.
The Power Of 3
While you’re at it, I encourage you to test the ‘power of three’. What happens if you can move each of the marketing ROI levers by just 3%? My guess is you might just get an inspiring surprise that gives you some motivation to prioritise for 2021 and beyond.
And remember, if you want expert assistance to gain the best returns on your marketing investment, Grow NZ Business has proven expertise with marketing strategy and marketing execution.
Are You Eligible For Free Strategic Marketing Advice?
As a registered service provider with the Regional Business Partner Network, Grow NZ Business is offering companies assistance with business continuance and marketing strategy, and your business may be eligible for 100% subsidised support. Read more below about how to access these subsidies. We would love to help you.