How can you ensure your marketing tactics are generating profitable revenue? Heather Davis provides a strategic approach to doing so in her article on PrintingNews.com (The Sign Connection: Is Your Marketing Resulting in Profitable Business? 7/1/15).
“One way to increase profitability is to increase revenue. A better way to increase profitability is to increase your profitable revenue. If you sell more products with a higher profit margin, you will naturally decrease cost of goods sold and increase revenues. But in order to sell more profitable products, you need to pinpoint what products have the highest profit margin and which clients are buying those products.”
– Heather Davis, PrintingNews.com
Valuable techniques discussed in Davis’ article include:
- Track Customers and Order Origins: Ask new clients how they heard about you and ask repeat customers what made them come back. This data will outline the lifetime value of each client, providing better insight into the marketing program’s overall value.
- Create Profitable Customer Segments: Generating additional revenue from existing profitable clients is easier and more cost-effective than acquiring new clients. Identify clients within lucrative customer segments who aren’t currently buying high-profit items and sell to them.
- Implement Targeted Marketing Programs: Invest additional revenue generated from current customer marketing into profit-producing acquisition tactics and evaluate other aspects of your business to further increase profitability.
“With advancements in print technology and the options and features of presses today, profitable, niche markets can be created with minor additional investment. Providing customers with differentiated, unique options not only drives profitable work, but also presents opportunities to earn more business as a result of drawing in new customers or satisfying an existing customer’s needs more effectively.”
– Rebecca McConnell, Associate Product Marketing Manager, Fujifilm
Developing and implementing the right strategy to increase profitability is essential to the success of any marketing tactic.