Ostrich or Hawk

In my 36+ years in business (oops! I think I’ve just given my age away! ) I’ve gone through a fair few recessions. And time and time again I’ve seen businesses make a big mistake that, in some cases, has been the beginning of their demise.

You see, when the economy is good business people actively engage in marketing; pro-actively look for new business. They are hawk-like, ready to use all their skills and resources to flush out prospects who want their products or services.

Then the economy dips, maybe a recession hits and suddenly some of these companies turn into an ostrich! They bury their head in the sand, stop marketing; stop spending on the one activity that could help beat recession and generate the sales they desperately need.

Why?

Whenever I’ve asked that question I’m invariably told “Because we aren’t getting enough revenue and we haven’t got the money to spend!”

It’s a catch-22 situation, isn’t it? If you stop or reduce your marketing you’re less likely to find new or additional business, which in turn means your revenues slump and there’s less money for your promotions.

But is this a wise decision? History might say otherwise. If you look at businesses that continued their marketing and advertising, in spite of a recession, they not only survived they often prospered. Prospered because their competitors, who didn’t have the courage to invest in their business marketing had gone to the wall, leaving more of the market ripe for picking.

How To Give Yourself Confidence In Your Marketing

It’s a scary time.
How can you be sure your marketing is a good investment?
Is it worthwhile?
How can you be confident about what you’re doing?

There’s only one way that makes any sense to me. . . and that’s by knowing what your customer is truly worth to you in terms of the overall gross profit they generate for you. Not just on the first sale, but on all the purchases they are likely to place with you. And knowing your direct acquisition costs; how much you spent on your marketing to get that customer in the first place.

Then - and only then - can you calculate how good an investment your continued marketing is.

In fact, I think if you carry out the exercise I’ve described above, you’ll discover a stronger, more active marketing strategy could pay dividends.

So why not be a hawk and spread your marketing wings and flush out all that business that’s waiting for you?

~ Carol Bentley

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