In fact, unless you have some form of measurement system in place, how will you even know if your business is growing or making a profit?
Of course if your net income is greater than your costs, you know you’re making money, but how do you know that cost of one marketing strategy isn’t eating all the profit of another? You need to know that each penny of your marketing budget is bringing in an acceptable return on investment so that your business grows and stays profitable.
Too many business owners fail to test and measure their marketing, and end up spending way beyond their budgets or leave heaps of money on the table. I find that there are three reasons for this:
- They don’t know how to test their marketing
- They think the testing process is too time-consuming or complicated
- They don’t know how to evaluate their results or make decisions based on them