Why A Lean Marketing Strategy Is Important

Every company has a "marketing" team.

No matter if it's a sole CEO managing it themselves, a group of employees managing it for the company, or an outsourced agency that manages it for you.

The truth remains, in business, you will always need an efficient and lean marketing strategy to stay in front of your customers and generate revenue for your business.

Where it seems a lot of smaller businesses don't take it as serious as they should, I believe having a more lean and efficient marketing strategy is key to any companies success.

Just because you have a "marketing team" or you "do the marketing yourself" doesn't mean you're actually applying good strategy behind your campaigns.

Here is one quick example:

Business A runs their own marketing campaign and has a $5,000 monthly budget. They choose to use all $5,000 on a pay per click campaign that will drive traffic back to their website.

Business A figures if they drive enough traffic back to their website that people will buy and the campaign will be a great success. Build it and they will come, right?

Business B outsources their marketing to an agency and pays $4,000 a month for the strategy and implementation, leaving an extra $1,000 ad spend for their pay per click traffic.

Both Businesses are starting with the same $5,000 budget, but one is managing it themselves and the other is using an experienced marketing agency.

Business A dose not understand how to target their audience so they chose to do a blanket campaign in the local community with the mindset of "we will tell the world".

Business A's campaign isn't targeted at all so they are getting a click back to the website for $1.75 per click giving Business A 2,857 clicks back to the website for a $5,000 ad spend. ($5,000/$1.75 = 2,857 clicks to website)

Business A is sending people to a website their friend built for them and their website isn't optimized to convert traffic into a lead so they are receiving 1 lead for every 500 clicks they get back to the website.

This means Business A has a total of 5.7 leads for the month when paying $1.75 per click. (2857 clicks / 500 clicks for a lead = 5.7 leads)

Business A has a closing rate of 50% when they get a new lead so they generated 2.85 new customers from their $5,000 marketing budget. (5.7 Leads x 50% close rate = 2.85 new customers)

Business B is using a digital/social marketing agency to manage, implement, and come up with the strategy for their marketing campaigns.

Business B pays $4,000 a month for the implementation and strategy services, and has an extra $1,000 a month for their pay per click ad campaign.

Business B's marketing team is better at targeting their audience and because the clicks are more relevant and targeted, Business B is only paying .75 cents per click.

This means Business B gets 1,333 clicks back to their website for the $1,000 ad spend. ($1,000 ad spend / .75 cents per click = 1,333 clicks to website)

Business B has a marketing agency that manages their website and builds it with the idea of generating traffic and converting that traffic into a lead so they get 1 lead for every 100 clicks they get back to the website.

With 1,333 clicks back to the website Business B will get 13.33 leads from their $1,000 ad budget (1,333 clicks to website / 100 clicks for lead = 13.33 leads)

Business B has the same 50% closing rate when they get a new lead so they converted 6.6 new customers from their $1,000 ad spend. (13.33 leads x 50% closing rate = 6.6 new customers)

As you can see from this short story, Business B still generated more customers even with a marketing budget that was 5x smaller than Business A.

Because Business B had a more efficient and lean marketing strategy, they were able to generate 2.3x more customers than Business A even with a substantially lower ad budget.

In addition to generating more customers, Business B is less stressed and pressed for time because they have am agency managing their marketing instead of always trying to do it themselves.

Moral of the story?

Hire or employ a marketing team that is going to implement an efficient and lean marketing strategy for your business.

When you have an efficient marketing strategy it allows you to keep your customer acquisition cost down which will increase your profit and stretch your dollars.

This kind of lean marketing process will help your company grow and will ensure you're spending your marketing dollars more efficiently so you can get the most out of your budget.

Want To Read More About Hiring The Right Team? Read My Article "Work Smarter Not Harder"