Research shows that not understanding marketing is costing small businesses £25,417 PA
Two new surveys suggest that the majority of Britain’s 4.8 million business owners are confused about marketing in general and internet marketing in particular. And this confusion comes at a huge cost — the research pegs the shortfall at £25,417 per business.
Research by Wolters Kluwer has found that small business owners are prone to a “lone wolf” approach to decision-making. The vast majority are much more likely to trust their own instincts than seek qualified guidance from an expert.
The second survey, carried out in association with the Centre for Economics and Business Research (CEBR), found that UK businesses are losing out on £122 billion of sales because of poor marketing.
Poor online performance
More money is wasted on marketing than in any other part of most small businesses.
You only need to have a look at a firm’s website performance to see how unprofessional they can be. A typical website for a small business might cost £1,000 to £4,000 and yet most produce few leads.
One of the myths about internet marketing is that having a better looking website will create more leads. It is simply not true.
There are two key factors affecting online success; traffic and conversion. The average conversion rate on the internet is 1% and that means that 99% of the people that come to small business websites leave without making a sale. This is costing SMEs a small fortune in lost sales and income.
Small firms need to be more prudent with their marketing and do three key things:
- Reduce the money and time that is wasted on marketing;
- Improve the performance of each and every element of current marketing;
- Build new marketing and income streams onto the business.
Where do you start?
The first step is to understand your marketing numbers. This includes numbers like the volume of people that visit your website or the number of networking events you need to attend to get a lead.
Step two is to think about improving your numbers. How can you win more business from referrals?
Step three is to start to build new streams of income in a tested, measured and consistent manner.
Top tips for prudent marketing
- Measure your sales and marketing.
- Never be satisfied with the results you are getting.
- Learn and embrace new technology.
- Use marketing without money strategies before you start to spend.
- Take marketing seriously. Marketing is the key to your success. Consider yourself a marketing company and as such, you need to be better at sales and marketing than your competitors.
tony crutcher Ltd 