As a business owner or leader, you constantly look for ways to grow your business. We know it is not always simple. It takes discipline and hard work to build and run a successful business, but the rewards can be great!
Marketing is key to achieving those rewards. When you treat marketing as an investment and it’s done well, it will help your business thrive. In this blog, we explore why and how marketing is an investment, and why it’s worth your time and money.
1. Marketing is an investment because it increases brand recognition and awareness
Have you ever had a colleague who is your “bestie” when they need something but seem to disappear the rest of the time? Pretty quickly you work out that this one-sided relationship is not worth your time.
Your business is the same. Consistent marketing and communication with clients builds recognition and trust. If they only hear from you every now and then, when you “want” something, they lose interest and may even forget about you.
Marketing is an investment when it’s done consistently, as it ensures people not only remember your brand but are also aware of your services and think positive things about you. This is key to the sales funnel, because people need to know your brand before they’ll consider buying from you!
Start by creating a solid marketing strategy so you are clear about where and how to create awareness that helps you stay top of mind with current and new clients.
2. Marketing helps you attract new customers
To build a thriving business attracting new clients is a must! And marketing is that tool that attracts new clients, boosts referrals, and grows your business.
To do this you need to invest in the right type of marketing. When a business is looking to attract new clients we recommend a marketing campaign approach. This means that you are consistently communicating with your target audience group – this may be over 3, 6 or even 12 months depending on your product cycle. You are building awareness with them, credibility and starting a “relationship” with them in the channels they use.
A marketing campaign is an investment when it’s managed well – that means targeting specific audiences and marketing communications that are integrated and consistently include a call to action.
So, to ensure your marketing is an investment don’t use scatter-gun marketing tactics, but create targeted marketing campaigns to win new clients. Remember, once you have the clients ensure you keep nurturing relationships to keep clients loyal.
3. Marketing is an investment because it increases loyalty
You know that loyal clients are the best. But have you ever quantified by how much? Here’s the facts.
- Gaining a new client it’s five times more expensive compared to retaining an existing customer. Improving client retention by just 5% can result in a profit boost of 25-95%.
- It’s 60-70% easier to sell to an existing client compared to selling to a new client (only 5-20%).
The good news is that marketing helps increase your customer loyalty. Businesses must engage with your current clients and proactively build relationships through consistent communication on social media, email or events, to ensure repeat business. Not to mention creating positive customer experiences through sharing valuable content, offers and service. When customers know and hear from you they will be more likely to stick around.
4. Marketing demonstrates your competitive advantage
In today’s business landscape beating the competition is challenging. The market and clients’ preferences are constantly changing, making it difficult for you to stay ahead of competitors.
In some industries, like insurance, there is minimal opportunity to differentiate based on price and product. So, how does Marketing help? And how is it an investment in building a business?
Well, when businesses view their brand, marketing and communications as a strategic lever they create strong, integrated and focused action. With a solid marketing strategy and action plan you will be able to:
- Differentiate your brand: Effective marketing helps a business differentiate its products or services from those of their competitors. By highlighting unique features, benefits, or values, a business can create a perception of superiority in the minds of its target customers.
- Stand out in the marketplace: A strong brand can be a powerful source of competitive advantage. A well-known and respected brand helps businesses gain customer loyalty and trust, making it more difficult for competitors to ‘steal’ customers.
If you want to know more about why marketing is an investment and how to use it successfully, get in touch via hello@wearesavvy.com.au to see how we can help.