The balance between advertising costs and revenue is a juggling act. We only want to spend a certain amount on ads but what happens if the revenue stream doesn't pay for it? Spending less may dry up revenue. Increasing sales by spending more can be a money making strategy if done right. It also means basic business growth. But, overspending in advertising is a common mistake that may not produce enough revenue to even pay for the promotion.
A one-time expensive marketing campaign that brings in a rush of business and then flatlines is worthless. Marketing takes time and patience. Increasing sales requires a range of activities including following up on leads and turning leads into sales. "Plus sales," selling more to each individual customer, offering service packages, and expanding offerings to include related products and services will boost profit margins.
Customer loyalty is built by being a business they trust. Offer value, charge a fair price, listen to customers, reward them for coming back for future service and for recommending you to their friends and relatives. The quest for a return on investment is an age-old problem. The department store magnate, John Wanamaker, once complained, “Half of the money I spend on advertising is totally wasted. The trouble is, I don’t know which half.”
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