If you build it, they won’t necessarily come. In fact, it is more likely that they won’t. That is why every business should have a marketing strategy. But, how much should you spend on your marketing budget? There are many factors to consider.
1.What We Know
At FieldRoutes we have worked with a lot of companies, many of them represent top 100 companies in the field service industry. We’ve found that there is a strong correlation between growth and the percentage a business puts toward marketing. While there is certainly no magic number, we have a good idea of what a business should invest in marketing. Here are a few things we know:
- Data indicates that a business that spends less than 5% of revenue on marketing isn’t likely to grow. While there are certainly exceptions to the rule, the overall statistical data is against any business that chooses to be tight on its marketing budget.
- A business that spends between 5% to 7% of its revenue on marketing should see slight but steady growth.
- The businesses we serve, spend an average of 8% on marketing. • If you start at 8%, you should be encouraged by the results and be inspired to increase to the next level. • A business that invests 8% to 10% can expect to see a growth of 10% to 20% of their revenue.
2.Set A Budget That Works For You
Your marketing budget will have a big impact on how fast you grow, so you need to make sure that it is in line with your growth goals. You need to consider:
- How fast you want to grow
- How fast you are able to grow without putting an undue strain on your team
- How much growth is needed to stay competitive in your industry
- What type of marketing is needed to achieve the results you desire
All Businesses Are Not Created Equal Some industries benefit more from marketing than others. Through the years, we’ve seen that the field service industry thrives on marketing. The field service businesses we’ve seen skyrocket to the top are the ones that put a strong emphasis on marketing. The numbers we provided above reflect this. Some industries, and some businesses in particular, can get away with less marketing. However, no business should go without some form of marketing. It is possible for a business to die, even on a busy street with lots of customers traveling by daily.
The more you spend on marketing, the faster your business is likely to grow. If you’re finding that this is not the case, you need to alter your marketing strategies to achieve better results. The team at FieldRoutes will review your data regularly and assist you in making adjustments to your existing strategies.