Nothing is better in business than being busy. Sales are flying out, the staff are happy, the company is growing, you’ve got 12 months worth of work booked in and no signs of slowing down. Great, you’ve made it! Time to relax a little?
Absolutely not! Taking your foot off the proverbial accelerator can be the biggest mistake a business can ever make, especially in a competitive market where maintaining or growing market share takes considerable effort. Rapid and continued growth, while it can seem relentless in the here and now isn’t always here to stay.
External forces, competitors of old and new, staffing issues, or even just a small hiccup, can have huge unplanned repercussions on a business further down the line that will inevitably hinder sales. But the more a brand is trusted, known and recognised by way of great customer service and products – and a continued, consistent marketing effort, will help protect your position in the market and growth aspirations through a steady pipeline of new acquisitions and retention.
As a rule of thumb we advise businesses that their marketing spend should equate to around 5% of your total turnover, or 10%+ for market leaders or challengers looking to grow significantly.
There’s a reason Coca Cola, Apple, Nike and Microsoft all continually maintain or increase their marketing spend, despite being market leaders. The red and white Coca Cola logo is recognized by more than 85% of the world’s population, with the drink commanding over half of the carbonated beverages world market share. Yet Coca Cola continue to spend more on advertising than all of its rivals and more than Apple and Microsoft combined!
The point we’re making is don’t stop when you’re ahead. Being the market leader is a vulnerable, yet powerful position that allows a business to recycle revenue to reinvest in your business in the form of marketing.
As consumers, we’re all a fickle bunch, so educating your customers subliminally, by positive experience or otherwise of why they chose your brand or product in the first place is of huge importance.
Live your brand values, treat every new acquisition with the love and attention that you did the first and keep your foot on the accelerator, regardless of how busy you are.