If you could generate a 409% return on your marketing investment, how much money would you spend?
As much as possible, right?
For every £1,000 spent, you’d get £5,090 in return.
I can’t imagine being wealthy or drunk enough to think that was a bad idea.
So imagine my surprise when a client recently said that they’d decided to stop one of their direct marketing campaigns because it wasn’t generating a high enough return:
And growing – the clients that the campaign generated will spend money year after year. In 6 months’ time the ROI will have increased to around 500% even if our client doesn’t spend another penny on marketing.
In two year’s time it could be 1,000% ROI, and climbing.
This reminds me of three critical factors when planning your marketing investment: