What % of your turnover do you spend on Marketing for your biz?

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  12th Sep 2017 - 15:56 12th Sep 2017
Rick Notley
Nettl of Cheltenham ...

What % of your turnover do you spend on Marketing for your biz?

Interested to see how you calculate what or how much to spend on marketing your business and acquiring customers.

Do you set a % of turnover or a fixed amount?

  12th Sep 2017 - 18:04 12th Sep 2017
Cherry Iley
Skills for Sale

Hi. I have heard that 6% of turnover is a good rule of thumb, but it rather depends on the stage that your business is at.  Mature businesses that have plateaued may spend very little on marketing compared to their growth-hungry counterparts.  The really interesting metric is the return on the investment.  Somebody clever once said that 50% of his advertising spend was a complete waste of money, but he didn't know which 50% it was. Any help?

  

  12th Sep 2017 - 18:31 12th Sep 2017
Rick Notley
Nettl of Cheltenham ...

Yep useful. Had it around the 5% mark as what felt right for our type of business on basis we are looking to grow. Totally agree on the ROI and think generally is good to have measures where can look at direct results and those that are contributing factors to the results. 

4n membership quite easy to measure for instance. Cost vs business received over say a 12 month average. Same with an event or expo. 

Social media for instance is one that you notice more when you stop apart from direct offers/linked posts. It helps keep you in clients minds. 

Agree that will hit a plateau at some point in the growth. 

  13th Sep 2017 - 09:55 13th Sep 2017
Cherry Iley
Skills for Sale

Hi Ricky 

Just another observation - we can all get quite focussed on tracking roi on money that we have actually spent, and rarely track the outcomes of free 'pr'. e.g helping out at your local school fete brings you into contact with a new customer.  It is also interesting, if you are brave, to try and identify your organic growth percentage. i.e the growth that comes about through recommendation and zero advertising.   Good luck with the growth.    

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