Many of our clients have increased their spend with either Google Adwords, Banner Advertising or SEO of some form or another. But are they wasting their money?
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I’ve recently bought a pen. A lovely fountain pen. I bought my first one about a year ago and it’s renewed my love for writing again. My pen lives at work all the time but it still do a lot of writing at home or when I’m out and about, so I decided to treat myself to a second pen.
Now here is where the ‘wasting your money on Google’ comes in.
The first time I bought a pen, I did the typical ‘customer journey’ and after a bit of research, I found the kind of pen I wanted and made a purchase online.
Fountain pens use a lot of ink, so as the 5 cartridges that came with the pen ran out, I went back online and bought about 50, from a second supplier.
Today I bought my pen from a third supplier.
Now, because fountain pens aren’t a regular purchase for me, I had forgotten the name of the first company I bought from so when I came to buy the consumables, I had to find a second company, and because I forgot who I bought the refills from, I had to go and find a third.
For each purchase, Google was racking up pay-per-click billings and the pen retailers where having to fund my forgetfulness.
Now, had the first company kept in touch, perhaps an email right after I bought the pen offering me a discount on consumables, and then maybe kept in touch every month or so, they would have gained a far higher return on the initial investment with Google to gain my trade in the first place.
So much time, effort and money is spent on gaining customers it always astounds me how few companies put their efforts into making that ‘one time purchase’ customer a loyal customer. Instead, they seem happy to keep spending with Google not investing in their customer base.
Where does your business put it’s marketing budget, in getting new customers or selling to existing customers? Which spend is most effective?