Have you ever doubted the value of marketing?
It’s understandable – after all, marketing can involve significant expenses, and it’s often difficult to determine if your efforts are generating a return on investment. Fortunately, there is a straightforward way to assess the effectiveness of your marketing.
The first step is understanding the value a customer brings to your company or brand. Once you have that figure, you can easily calculate the return on investment (ROI). For example, let’s say a customer’s value is $200, and you spend $1,500 on a direct mailer that reaches 2,000 people. From those 2,000 recipients, you would need only 7.5 customers to purchase to break even. Any additional orders made beyond the 7.5 mark would generate profit. In this case, you need just 0.04% of the 2,000 recipients to buy your product to recoup your investment.
So, is marketing worth it?
By understanding the value of a customer to your business and considering the potential reach and impact of your marketing efforts, you can make a more informed decision. Taking calculated risks and investing in higher-quality marketing materials can have a significant impact on your brand’s visibility and ultimately, your bottom line.