The following is part of a conversation with a potential client. The business is succesful and the owner is a wonderful person and inspiration. He says, "Yes, we have both a full-time live receptionist, and we've also retained the services of a Janitorial firm for bi-weekly clieanting. As for marketing and advertising, we don't don't give it much thought are spend much on it, so no, there isn't a marketing and advertising budget."
Why would you not invest 10, 5 or even 2 percent into your marketing and advertising? Answering the phone and keeping the office clean is very important; however, wouldn't your processes and associated budget for bringing in business and keeping business be a worthy cause? I will say there are cases where a business owners are just blessed with a "somewhat perfect flow" of business and therefore they don't perceive the need for additional business, now or in the future. This scenrio is sometimes coupled with a business owner only interested in hanging on or slowly closing there business due to retirment plans.
What is the cost? It depends on the business and whether or not we are talking B2B or B2C. Overall, I would say the advertsing and marketing of most small business should be 5% to 10% with 50% to 60% going to advertising and 50% to 40% going to marketing.
Net Promoter Score (NPS)
NPS is the percentage of your customers who would—or wouldn’t—recommend your company to their friends, family, or colleagues.