Why should I spend money on marketing when my company is the busiest its ever been? A lot of companies are asking themselves this question. If you are part of a small to medium-sized business that provides any home, construction, real estate, legal, or healthcare service, that might be the case for you. Your revenues might be growing, customers are still calling, and your biggest problem is trying to find employees to help you do all the work.
So what sense does it make to spend money on marketing when you are doing just fine without it?
The short answer is, yes, you should continue to invest in marketing. Let’s dive in deeper.
1. What happens if the good times stop?
Many consumers today are making buying choices based on how long they are willing to wait to receive the service that they want, and not necessarily choosing to hire a company based on their brand or their reputation. It can be easy to believe there will always be such a high level of demand, but that’s not always going to be the case.
What if a new competitor moves into the market and can handle more work?
What if consumers suddenly stop spending money on the services you provide altogether?
If demand reduced for any reason, will your business be able to weather the storm?
If you’re not investing in your marketing when times are good, you will struggle to attract new customers and create repeat customers without a solid strategy in place.
2. Marketing Is a Long-Term Strategy.
Marketing is a long-term strategy. There’s no switch you can flip to start suddenly seeing results. Marketing is the key to communicating your value proposition to keep your company viable and competitive in the marketplace. It's what keeps your company in the game because without it you’re just another business with a product or service that has no discernable difference from the rest of the industry. Businesses who fail to communicate their value end up winning or losing business based solely on pricing, and more often than not find themselves struggling to survive.
It doesn't matter if you're a small shop or an enterprise; marketing should be part of your business plan from day one. If it isn't, now is as good a time as ever to get on board!
3. Marketing Is an Investment
Would you rather invest in the longevity of your business when you have the revenue, or when you are struggling with cash flow? The chances are you probably want to invest when you have the money to do so. If you are cash strapped, you’ll probably focus on how to improve your situation as soon as possible and taking less time to think about a long-term strategy.
Marketing is an investment, and just like any other investment you should expect to see some return on that investment (ROI). You might see it pay off immediately, or it may take some time to fully realize the value of what you are doing, but prioritizing marketing today will help the long-term health of your business.
4. Grow your margins
Having a good marketing strategy in place can help you grow your margins. There are two ways this can happen. The first is by attracting customers who are looking for your higher-margin products or services and the second is by creating repeat buyers. In either scenario, marketing can help you increase your Customer's Lifetime Value.
But what is Customer Lifetime Value? Customer Lifetime Value (CLV) is the amount of money a business can expect to earn from a single customer throughout their relationship with your brand. However, it's important to remember that CLV calculations are not magic 8 balls or voodoo dolls—they're simply an approximation based on historical data about customers' behavior and spending habits, as well as market trends.
The most accurate way to calculate CLV is by using a statistical model that takes into account several factors: price sensitivity, purchase frequency, quantity purchased per transaction, average order size, and lifetime duration. This method allows marketers who are interested in increasing their revenue stream through increased retention rates or cross-selling opportunities with other products/services to know exactly where they need to invest resources to achieve these goals (i.e., more expensive item upgrades).
Do you want to continue investing in marketing, but you don’t have time?
Hopefully, the information above has convinced you that the time to allocate resources to marketing is when you are booming. So now you might be thinking, I want to invest in my marketing but I don’t have the time. What should I do? The simple answer is to work with a marketing agency. Hiring a marketing agency is a quick and cost-effective way to gain access to experienced marketers who can help you achieve your goals. Be sure to choose a marketing agency that is willing to provide tailored solutions for your business and try to avoid companies who are pitching “our program” or “marketing secrets”. There is no one secret to successful marketing. The only way to be successful is to put the work in. Finding an agency that understands that will be the key to a successful, easy-to-manage situation.
Conclusion
Thousands of businesses across the United States are experiencing an unprecedented demand for their products and services. If you are one of those businesses it can be tempting to focus on the short-term gains and ignore the long-term health of your business. Don’t do it. Invest in marketing and other areas that will help keep your business sustainable for years to come.
If you find yourself looking to outsource, talk to us today. JSX Marketing is based in St George, UT, and specializes in creating tailored solutions for your business’s unique needs. There is no one-size-fits-all approach to marketing. We serve customers across the focus on helping you overcome the challenges you are facing to succeed. Shoot us an email at info@jsxmarketing.com to speak with a representative today.
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