Achieving your business goals is more than just coming up with an innovative idea or having a driven team. Actually, at the core of any successful strategy there must be resources. It's not all about money, but also about time, expertise and having the right tools.
When we talk about marketing, the first thing we usually think of is the budget. While it's essential to invest in advertising campaigns, the key element is the 'ecosystem' - a set of tools and strategies through which your products or services are brought to your ideal customer. This ecosystem includes it all, from website content and social media campaigns, to paid advertising.
Of course, the perfect ecosystem doesn't exist by default for most businesses. It's a process of trial and error, and many companies face the challenge to rebuild, or even build from scratch, significant parts of this ecosystem, which always involves additional costs.
This is the amount of money you spend to reach your customers directly through different channels: Google, Facebook, LinkedIn, Radio, TV, etc.
A common mistake entrepreneurs make is underestimating this budget. If you have invested a lot of money in creating your ecosystem, but allocate an insufficient budget to promote it, it's like having a racing car but no fuel to drive it.
Finding a balance in your marketing budget allocation is crucial. A high implementation budget that lacks a proper advertising budget, or vice versa, will lead to underperformance.
For example, if you invest €1000 in implementation but only €10 in promotion, you will only get €200 in revenue, but if you allocate €10,000 to advertising, your revenue can increase up to €200,000 while keeping the same implementation costs, based on a customer acquisition cost (CAC) of €10 resulting in 1000 orders, with an average order value of €200.
In this example, with a 10 euro advertising budget, marketing becomes a cost, and in the example with a budget of 10,000 euros, marketing actions yield a 20x return.
When choosing a marketing agency to work with, you should not only focus on the costs they charge for implementation. Expertise matters much more because it can lower the cost of acquisition per client. An experienced marketing agency will know how to create and optimize your ecosystem to reach your customers and convince them to buy.
Marketing is not a cost, it's an investment. It can generate a significant return if done correctly. Why would you pay money every month on a marketing strategy that doesn't get you results?
Allocating resources is not only about having enough money, it's about using that money wisely. Entrepreneurs should understand the value of an experienced marketing agency and the importance of setting an appropriate advertising budget. In an ever-changing business environment, where the competition is intense and the customer is informed, being strategic and investing correctly can make the difference between success and failure.
Clear and specific goal setting is essential to ensure a successful business. Each goal and strategy must be well-defined, customized and closely monitored to maximize effectiveness and results.
Setting clear and specific goals is key to ensure business success. Each objective and strategy has to be well-defined, customized and tracked to maximize effectiveness and results.
If you've found this information useful, don't forget that we are always here for you, and if you would like to work with the Remote Marketing Team, you can contact us, visit us or schedule a meeting online.
We appreciate your interest, and we hope you have a wonderful day!
