Invest in marketing even when sales are strong
MarketingStrategy

Strong Sales Today Do Not Guarantee Success Tomorrow (but marketing does)

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We’ve encountered various obstacles over our 10 years in business, one of them being convincing people they should invest in marketing even when sales are strong.

It’s not uncommon for companies to question the need for additional investment in marketing when their sales are already performing well. After all, if the sales are healthy, why ration more resources to marketing, right? However, this perspective overlooks the long-term benefits and strategic advantages a strong marketing strategy can bring a business.

While it might seem counterintuitive to spend on marketing when sales are already strong, marketing plays a crucial role in sustaining and growing a business in the long term.

Here are a few consequences of not investing in marketing:

  1. Stagnant Market
  2. Brand Decline
  3. Missed Growth Opportunities
  4. Customer Churn Rate
  5. Adaptability

Here are the benefits when you invest in marketing, even when your sales are soaring.

Maintaining and Expanding Market Share:

Sales can fluctuate, and strong sales periods may only last for a while.

Markets are dynamic and competitive, and your competitors won’t sit idle. Investing in marketing allows you to maintain and even expand your market share. It ensures that your brand remains top-of-mind among consumers, making it harder for competitors to intrude on your territory.

Building Brand Equity:

Marketing is not just about immediate sales; it’s about building and nurturing your brand over time. A strong brand can command higher prices, foster customer loyalty, and attract top talent. Investing in marketing activities like branding, content creation, and social media engagement helps build brand equity that pays off in the long run.

Staying Ahead of Market Trends:

Markets evolve, and consumer preferences change. Effective marketing includes market research, trend analysis, and staying attuned to customer feedback. By investing in marketing, you can proactively adjust to these shifts, ensuring that your products and services remain relevant and appealing to your target audience.

Fostering Customer Loyalty:

It’s often said that retaining existing customers is easier and cheaper than acquiring new ones. Marketing plays a crucial role in nurturing customer relationships. Loyalty programs, personalized communications, and excellent customer service can all be part of your marketing strategy, helping to strengthen the bond between your brand and your customers.

Exploring New Opportunities:

Marketing isn’t limited to promoting existing products and services. It can also be a valuable tool for exploring new opportunities. Investing in marketing research and innovation can help you identify unmet needs in the market, develop new product offerings, and enter new features or locations.

Crisis Preparedness:

No business is immune to crises. They can range from industry disruptions to economic downturns. A strong marketing presence can help your company overcome these obstacles more effectively. Investing in marketing during good times helps to create a buffer for when sales slow down or face challenges, ensuring a more stable revenue stream and pivoting your strategies as needed. 

Diversification:

Relying solely on strong sales can be risky. A sudden downturn in the market or a shift in customer preferences can significantly impact your revenue. Marketing investments can help you diversify your customer base, product offerings, and revenue streams, reducing your vulnerability to economic fluctuations.

Maximizing Customer Lifetime Value:

Customer lifetime value (CLV) is a critical metric in business. Marketing efforts can extend the lifetime value of each customer by encouraging repeat purchases, upselling, and cross-selling. The more you invest in marketing, the more you can ask from each customer over their lifetime.

Enhancing Data and Analytics:

Marketing activities generate valuable data and insights. By investing in marketing technology and analytics, you can gain a deeper understanding of your customers, track the effectiveness of your campaigns, and make data-driven decisions that optimize your sales and marketing efforts.

Staying Relevant and Competitive:

In today’s fast-paced business environment, complacency can be fatal. Investing in marketing signals to your competitors and customers that you are committed to staying relevant and competitive. This can deter competitors and attract customers who value innovation and progress.

While cutting back on marketing when sales are strong may be tempting, this approach is short-sighted. Investing in marketing is an investment in your business’s long-term health and sustainability. It ensures that you remain competitive, adaptable, and prepared for whatever challenges the future may bring. Strong sales today are an opportunity to fuel your marketing efforts, not a reason to scale them back.

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