This is a tough one to talk about, but one we can all relate to. One of the saddest experiences is to see a promising company or campaign strangled, trying to save a few dollars through misguided advice. Perhaps a couple of examples will demonstrate what we mean.
In a recent case a client wanted a direct sell spot. We recommended turning it into a lead generator instead, and doing it as a two-step sale. She was focused on getting as much in direct sales revenue as possible, to offset the cost of the spots. Fair enough.
We suggested testing both approaches, because often a lead generator, with a strong backend sales path, will create infinitely more sales than the direct “buy or die” approach. She wasn’t sure she believed us, but to her credit she agreed to test the two, and the results were almost ten new leads to every one new direct sale. That’s great, but leads still have to be sold, right?
In the backend 41% converted to a sale, for a 410% increase over the sales results for the direct sell spot alone! Had she gone with what appeared to be the faster money, she would have literally tripped over thousands of dollars, to pick up a handful of dimes.
Sometimes, after investing in a crisp and compelling new brochure, a client may choose to print too few to get any benefits of volume. In a recent example of this, the cost was $10,000 for 1000 brochures vs. $12,000 for 5000 or $15,000 for 10,000. For 50% more cost the client could receive 1000% more material. With a longterm marketing strategy, economies such as this can become key elements in successful and profitable campaigns.
Other examples abound: Creating a strong brand image of quality, then changing packaging suppliers to shave a few cents off the package costs; giving customer incentive items that are don’t reflect your brand quality; increasing the “fine print” in a guarantee that virtually eliminates any perceptual benefits, often for imaginary or overrated risk factors. Actions like these result in lowered brand perception that can negatively affect both shorterm and longterm sales.
Money spent is forever lost when we trip over perceived dollars to pick up dimes. At WEB3Direct, we believe in economy, in creating budgets and sticking to them. We also believe in establishing and following a strong strategic marketing plan. And, keeping the balance between the two.
