Is Your Marketing Budget an Expense or an ROI?
Take a look at this cup.
Is it half full or half empty?
Yeah, ok. I’m not sure I’m not the first one to ask you this question.
Let me ask you… does your marketing analysis look more like this
or like this
Now, what’s the difference?
The top chart labels the marketing budget as an EXPENSE.
The bottom chart labels the marketing budget as an ROI.
A play on words, you say?
… or is it?
Remember that post bout how you can use how the brain works to your advantage by repeating your message over and over again until the brain wave in your customer’s brain is set?
It’s the same paradigm here.
You can control your company’s financial destiny by “training your brain.”
This isn’t a hypothetical or spiritual question..
Do you know why people do things the way they do… and how they do them?
The brain wants to experience pleasure and avoid pain.
Now, is cost a pleasure or pain?
Is ROI a pleasure or pain?
Of course, the answers to those questions depends on YOUR definition.
If marketing budget is an investment where you get a RETURN out of it, do you think your brain will tell you to increase it or descrease it?
On the other hand, if marketing budget is a PAIN… do you think that your brain will actively tell you to increase your budget?
I can tell you this.. among our solar company customers, the ones that label their marketing budget as “ROI” CONSISTENTLY break their revenue and net margin year to year.
Makes sense, right?
Why WOULDN’T you want more pleasure?
The ones that label their marketing budget as “cost” (or “cost per revenue”)… well, let’s just say they’re not rolling in the dough.
So ask yourself… how are you labelling your sales & marketing chart? (Be honest)
If you answered honestly and said “cost”, it’s ok.
Come here, let me give you a psychological remedy that might help:
Ok, now is the time to RE-WIRE your brain… by tricking it with its own set of tricks.
Most people, including you and I, are far MORE motivated by fear than we are by pleasure.
Proof? Just turn on TV… see how much fear talk there is in the news, blogs, etc.
Fear is strong… but instead of fear of losing a part of your revenue to costs… think of it the other way.
If you DON’T increase your marketing budget, you WILL lose out on the RETURNS.
If you DON’T take the money, someone ELSE will.
The only way?
Remember, fear of loss can debilitate you.. or enable you to act.
It’s YOUR choice.