The Economic Costs of Not Doing Growth Marketing
"I know half of my advertising budget is wasted. The problem is I don't know which half."
(Attributed to) John Wanamaker
19th Century Department Store Magnate
If only that were still the case. Today it's often worse.
It's well documented that without understanding what modern day analytics, research and assessments can provide, most businesses find marketing an expensive mystery. Consider all the costs if you don't know about Growth Marketing:
The Immediate Costs
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A company typically spends 3-7% on marketing
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40-60% is wasted on wrong channels, poor messaging, or ineffective targeting
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For a $10M company, as an example, that's $120K-$420K annually in direct waste
The Opportunity Costs
Lost opportunities can often be more expensive than immediate costs:
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Companies with unclear positioning take 2-3x longer to close deals
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Lower conversion rates: Generic messaging converts leads at 1-3% vs. targeted messaging at 4-6%
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Customer acquisition costs: Can be 3-5x higher without proper targeting
The Time Costs
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6-18 months of trial-and-error marketing attempts
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Multiple failed campaigns (like that manufacturer's "three new attempts in two years")
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Delayed growth goals - companies typically achieve targets 6+ months faster with proper foundation
-- leading to team frustration, lost market share while competitors gain ground and missed revenue opportunities during plateau periods
Total
For a $10M company, the total annual cost of not understanding their strategic marketing position often ranges from $900k-$1.2M when you factor in direct costs, opportunity costs, and delayed growth.
In today's world marketing shouldn't be a waste or cost. It should be an economic driver. Today we have the ability to research the market and our marketing activities with deep analytics. Today we can plot a course for marketing which leads to profitable growth and unimaginable sales achievements.
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Cut the waste,
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Optimize your marketing spend,
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Grow faster...