How Opportunity Costs impact your Marketing

No one likes the idea of wasting time or money, especially marketers. However, no matter the industry, everything you do comes at a cost. This is why it is crucial you weigh up the pros and cons of your marketing efforts and ensure they are helping you achieve your goals in the most efficient way possible. Opportunity costs aren’t something that can be avoided. Instead, you need to learn how you and your business can best navigate through it.

But first, what is opportunity cost?

Opportunity cost is the benefit or opportunity you sacrifice when you choose an alternative option. Understanding the value of the alternative is an incredibly useful skill to have. It means your decision making is precise and done in consideration for what other options were available.

To calculate something’s opportunity cost, you need to predict the return on investment of each alternative and compare it to the chosen option. If the cost is not a concrete figure, rather an opportunity, you will need to decide which you feel will be the bring the biggest benefit long term.

So how does this affect my marketing?

The concept of opportunity cost affects your marketing strategy more than you may think. The aim of a marketing campaign is to efficiently reach a certain group of people and direct them back to a product or service that they then purchase.

What tends to happen is a company’s marketing strategy will be working, so they do not question it. However, what they don’t realise is they could be doing even better had they gone a different route. For example, say you have a successful Facebook campaign in action and that’s where all of your marketing budget is going. This means you don’t have any budget for LinkedIn marketing which would have brought you double the amount of leads.

To avoid losing out on the opportunity cost of your marketing efforts, before committing to an avenue of marketing, explore all of the options. This means looking in detail at how each alternate could benefit you both short term and long term. From there you can decide which option best aligns with your company’s goals.

If you need help understanding and navigating the opportunity costs of your current marketing strategy, give us a call. We’d be happy to walk you through it.

Cost of marketing support vs. doing it yourself

When thinking about marketing and the costs involved, you have to think about the physical cost of it as well. You have two main options. You either hire marketing support or you do the marketing yourself. These are both great options and which is best will differ from company to company. So what is best for yours?

If you’re currently doing all of your own marketing, there are a few things you may want to take into consideration. Similar to what we discussed above, could your time be better spent elsewhere? Are there more profitable things you could be doing instead of doing your own marketing? If so and these things bring in more income than what it would cost to outsource your marketing, it’s probably a smart decision to consider making the swap. That way you can be confident that you’re delivering great marketing content while having more time to dedicate to other aspects of your business.

If you have any questions about outsourced marketing and whether it’s the right fit for your company, give us a call and we’ll help you with everything you need to know.

Four ways to maximise the Brexit Opportunity

image: making the most of the brexit opportunity


It doesn’t matter where you hide, Brexit will find you. Whether you’re in business owner or consumer mode, it will impact your life going forward – whatever happens. The media coverage is split between the doomsayers and those pitching a brave new world, with much of the coverage saying businesses are sitting on their hands and aren’t prepared. Prepared for what is the question many will ask. Many businesses, including no doubt, some of your competitors, are keeping their cash close to their chest. They are not investing in their businesses and that means Brexit offers a big opportunity for you, if you are prepared to invest. Let’s look at how you can take advantage of the Brexit opportunity.

Don’t stop talking

When you stop talking, people are quickly forgetting what you want them to remember. We all see too many messages for everything to stick. Only the really memorable, or often repeated, will remain.

As your competitors stop talking to your target audience, you have the opportunity to make more of an impact. With, at least, one less competitive voice out there, you have a better chance to being the one being listened to and being sought out for assistance.

NEED HELP KEEPING YOUR MARKETING CONSISTENT? CLICK HERE

Change the Topic

There are still too many businesses out there talking about themselves. They talk about how they are “the leading provider of…”, or they talk about the features (and usually complexity – because that means they are clever) of the product or service they provide. The problem here is that they are expecting the target audience to translate that into how it helps them to resolve their problems. Something they simply don’t have time to do.

Take a look at your service/product from the client’s perspective. What is it they are looking for? If you talk about things from their point of view, about how you can help them, they will “get it” faster. They will look at you positively because you’re thinking about them and they are far more likely to get in touch and talk in more detail about how you can help.

Whilst this is something you should be doing anyway, if you are looking to take advantage of the Brexit Opportunity, have a look at the marketing messages you are putting out as part of that process,

Talk to the right people

With reduced investment in marketing comes reduced focus. After all, it takes less time to send, for example, an email campaign to everyone in your mailing list, than it does to segment your audience and ensure the right messages get in front of the right people. Here’s just a few thoughts…

  • Define your Ideal Client(s). The more precise you are, the better you can make the marketing messages you use. You can also use this to ensure your network knows exactly who you want to talk to.
  • Segment your emailing lists, using segment or tags. You may need to add to the data you have in order to do this.
  • Go to topic or industry-specific networking events, rather than the bigger events where you will meet anybody.
  • Consider direct mail campaigns. The higher costs of postage and printing will make you think twice about just how many people you include in the campaign. This gives you the opportunity to make your DM campaigns highly targeted. The more relevant to the reader, the more likely it is to work.

Prepare your Business

Nobody knows what is going to happen at the moment. The government is increasing preparation for a no-deal Brexit, but you never know (here is the British Chamber’s Brexit Checklist to help you). Whatever way the country goes, the best way you can prepare is to ensure you are maximising your pipeline. More sales opportunities usually mean more sales. More sales means more money coming into the business and that is definitely what you want to happen. Sitting on your hands (or wallet) is not a good idea. Let’s hope your competitors are doing just that and leaving the Brexit opportunity to you.

NEED A HAND GETTING YOUR MARKETING READY FOR BREXIT? CLICK HERE

How complex is your Marketing?

Why you need multiple strands to your marketing plan

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Developing a marketing plan for your business takes time. It takes you away from generating cash through delivering for your clients. Now I’m asking you to do it multiple times! Read more

Can your marketing protect you from Brexit?

Brexit

March 29th is just 7 months away. Based on the current situation, there is no Brexit deal and it doesn’t look like there will be one anytime soon. Most experts believe the Chequers Proposal (at least in its current form) to be unworkable, so nobody really knows what is going to happen.

So how are you going to protect your business from Brexit? Can your marketing protect you from Brexit?

The simple answer is Don’t Know.

The less simple answer starts with “It depends” and it is from here that I believe you need to start.

Positive Outcome

There is a chance (you can determine how much) that Brexit won’t be a problem and we will all continue trading as we have done. If this happens, how are you going to maximise the opportunities?

Less than Positive Outcome

The simple truth is that nobody knows what is going to happen. The world isn’t going to fall apart and planes will continue to fly, so the absolutely worst thing you can do for your business at this point is baton down the hatches and pray. You need to have a plan. The question is: how do you plan for something where you have (and indeed most people have) no idea what is going to happen?

Plan for the Worst. Pray for the Best

There are many versions of this statement, with Denis Waitley adding “prepare to be surprised”. This combination of planning and hoping is certainly better it happening the other way around.  If you plan for the best and then the worst happens, you are in serious trouble.

So what does this look like for your marketing?

What does the Worst Look Like?

The worst is that all your clients leave and nobody wants to use your services, or buy your products, anymore.  This is highly unlikely to happen all at once, so here are some questions to ask yourself:

  1. What costs can you cut from the business to stay alive?
  2. What is the absolute minimum revenue levels you can cope with?

Now we’ve got the Armageddon questions out the way, let’s look at how you can combat a worst case scenario.

Don’t cut what everyone else does

In a recession, most companies cut the budgets on the two areas they really shouldn’t: training and marketing.

Assuming you are selling something that really isn’t a luxury, there should always be clients for you. If you cut your marketing budget, those prospective clients won’t know you exist and so cannot buy from you.  If you cut your training budget, your staff won’t have the skills to deliver on your promises. This can impact the quality of service and your ability to keep your current clients.

If Brexit does lead to a recession, it’s best that you follow the rules of marketing in a recession.

10 Brexit marketing tips:

  1. Don’t Panic: things may become difficult but if you’re careful, you will minimise the pain
  2. Cut the right costs: we’ve discussed training and marketing, but if you must cut some marketing costs, make sure they are the right ones: the costs that aren’t delivering a positive ROI. Do you know what marketing is working and what isn’t? Click here for some assistance.
  3. Keep Communicating: recessions are distracting and make people forget. If you aren’t maintaining communication with your network, clients and target audiences, they can quickly forget about you. If they forget about you, they cannot buy from you. There are huge amounts of research out there that shows those who cut spend in this area take much longer to recover.
  4. Maintain brand awareness: keep talking about what makes your business so good and the value you provide to your clients. When times are tough, value is a strong driver when prospects are considering a new supplier.
  5. Share your evidence: we all use peer reviews when considering purchases, so use this within your business. To share relevant case studies and testimonials with your prospects, you need to keep producing more evidence.
  6. Focus: convincing prospects to buy takes time and can take longer when times are tougher. If you’re chasing too wide an audience, you risk wasting lots of time on leads that will never convert. By focusing your marketing on those you can really deliver for, you maximise your marketing ROI.
  7. Keep an eye on your competitors: if they cut their marketing budget, take advantage of their mistake and keep talking. Let your target audience forget about your competitors and keep reminding them of the value you deliver.
  8. Support your channels: if you sell through resellers, help them to sell your products and services. This way, you are continuously reminding them you exist and can help their clients. They will sell more for those who help them.
  9. Build your network: if you are quieter, use that time to build for the future. Building relationships takes time, so meet new people, get to know them and help them when you can. They will return the favour.
  10. Retention generates referrals: really look after your clients and then ask them for referrals. We discussed reviews earlier and what better review is there when a client recommends you to one of their network. When is the best time to ask for a referral? Click here to find out.

If these ten tips will help you in a recession, they will help you combat Brexit. There is a real risk that Brexit will create another recession in the UK, at least for a couple of years. If it does, and you’re prepared, you can fight your way through and come out the other side.  If it doesn’t, you will be in great shape to capitalise.

We hope this helps.

Click here for help with your Brexit Marketing.

Does your marketing support your business goals?

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You may want to sell your business in five years’ time. Perhaps you want to keep growing, simply to see how big you can get. Whatever your goal, you have to have a marketing strategy that supports your business goals. Let’s look at whether your marketing will support your goals. Read more