M5 – What to Expect from Marketing

On this week’s M5 I want to discuss marketing expectations.

Marketing is a powerful force. It’s the growth engine of a business.

But you have to be clear about what marketing can and cannot do.

A good marketing campaign is capable of bringing in returns of 1,400% or more. . . But over time – not all at once. When you track it, you will probably find that the initial ROI on a marketing campaign is about 30%. But if you follow the customers the campaign brought in, and account for their lifetime value, then you would see a sizable ROI.

If you search for examples of successful marketing on the Internet, no one wants to break it down into dollars and cents. Everyone talks about tweets, follows, engagement, reach and exposure.

It reminds me of the phrase, “lies, damn lies, and statistics.”

Let me just tell you the truth:

40 – 60% of the time, your marketing campaigns will be duds. The rest will seem to pull in from 30 – 60% ROI on average. Some will do much better, but 30 – 60% is a good, typical range.

But it’s the lifetime value of the customer that is important. If you track that number, you will see the real value of a campaign.

Your first goal is to get a customer. Then lavish them with service and show them how lucky they are, and how good they have it with you.

Businesses grow on relationships and repeat business.

Realistically you can’t market your way to instant success. You can expect 30 – 60% return on your money half of the time.

Sure you can’t get a 30% return in the stock market like you can in a business, but a 30% return isn’t enough to support your business unless you are investing one-hundred, two-hundred, or three-hundred thousand dollars a month in your marketing.

Marketing is a short and long game. In the short term, it’s enough to keep the ball rolling and set up the repeat purchases a customer will make over their buying lifetime with you. In the long-term, it will create a large, highly profitable business that you can be proud of and profit from.

Feedback

How are we doing? Is there a marketing topic you would like to hear more about? Let us know in the comments below.

About Michael Miller

Michael Miller is the owner of Mindwhirl.com, a sales and marketing coaching and training company in Atlanta, Georgia.

Michael’s mission is helping small business owners understand, and organize their marketing so they can make money and grow.

Mindwhirl helps business owners plan and implement effective, profitable marketing campaigns and sales programs.

If you need more sales, we know how to get leads and grow businesses. Call us today at (404) 858-3105, or email me at mmiller@mindwhirl.com.

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