I’ve spent this week blogging about my favorite type of small business marketing, which of course is direct response marketing. If you have understood what I have said so far, you should hopefully embrace the idea of thinking, talking and only investing in measurable results marketing.
But I did mention in an earlier post that there is a 1% added benefit factor inherent in direct marketing. It applies to those who do not respond to a given mailing or other direct marketing effort still will be positively exposed to your company.
In fact, there is a cumulative effect of such exposure that creates additional customers over a long period of time and you will benefit from this.
However, I am opposed to counting it to attributing cash value to it to offset marketing costs. Your marketing should pay its way with current, measurable results.
I will cheerfully tell you that I am not very well liked by certain folks in the ad agency, media and consulting businesses for my strong criticism of non-measurable marketing. However, I insist that any business not devoting at least 90% of its total advertising, marketing, and promotion budget to direct marketing is mismanaged.
I would never buy stock in a company not putting over 90% of its marketing money into direct marketing. I encourage you to be very tough minded in your marketing investments.
Ask the tough questions like, “How will we know how many dollars were derived from this media or method?” If there is no good answer there’s only one good decision.
By the way, do you know what the single most valuable asset you have in your business is? Is it your inventory, your accounts receivable, your unique products, your personnel, your building and equipment?
Well I tell you what the single most valuable asset any business has in Mondays post.
Do you know what it is? Leave your answers in the comment section below.