3 Questions to Answer Before Investing More Into Your Marketing Budget

It’s tempting to sink large amounts of money into your marketing budget when sales lag or the economy drags and revenues drop. However, you may be throwing your money away.

Before you jump on that new marketing fad or sign the pricey contract with the trendy boutique agency, take a few days to formulate crystal-clear answers to each of the following three questions.

1. Do you actually need more customers?

This might seem like a no-brainer. The impulse is to think “of course we need new customers!” However, that’s not necessarily always true.

Here’s an example to illustrate: Consider a subscription-based SaaS business that’s currently experiencing increasing levels of churn — that is, customers who sign up but then cancel the subscription. At first, it might seem that adding more customers is the proper solution.

However, simply pouring more customers into an emptying funnel like that won’t do your company’s financial health much good. At some point, you’re simply going to run out of potential new customers, especially if the fleeing customers are talking about their experience with your brand on social media.