When times get tough, it’s easy for Finance Directors to cut marketing budgets and hard for marketers to stop them.
You don’t need me to tell you how daft that is – the money you are spending is generating new business.
The problem is that marketing is often seen as a cost centre, not a revenue generator like sales. Historically, marketers have often been guilty of treating advertising as an art not a science. If you can’t set up metrics that show that your acquisition costs are much less that the profits generated, how can you expect to explain it to the bean counters?
Admittedly, that can be harder to achieve with traditional media. But email marketing allows you to track each customer from opening the email to clicking on your links to making a purchase. Combine campaign ROI metrics and data about customer lifetime value and it becomes crystal clear what your return is for every pound you spend.
Once you know that, you’ll be in a position to ask your Finance Director to take away your budget completely.
Because, if you can prove that your ads make money, a marketing budget is just a way to restrict how much money you can make. And your Finance Director won’t like the thought of that one little bit.
*This blog was inspired by the inestimable Seth Godin. If you haven’t signed up for his words of wisdom yet, do it here. www.sethgodin.com
Posted by: Peter Simmonds