Another subject that is covered by a thousand books, prompted by a business running an on-line shop selling stylish products for the home and garden.
Assume a marketing spend of £1,000, how much of this should they spend on getting past customers to come back, and how much on finding new customers?
My view was a split of about 20:80, with the majority of spend on finding new customers. The type of products on sale are not daily purchases (think Christmas, birthdays and special occasions), so customers may come back, but maybe only twice or three times a year tops. To me, the key to driving revenue up is to find new customers.
How do you allocate your marketing and advertising spend?
Tags: Advertising, Cashflow, Finance, marketing, turnover
Tags: Advertising, Cashflow, Finance, marketing, turnover
December 18th, 2008 at 8:40 pm
Whilst it’s tempting to keep seeking new customers it’s generally easier to secure additional sales from existing/previous customers.
In the example you give, with season sales I’d make an exception for a short term campaign and do as you suggest