Dental Advice | Revitalize Revenues through Increased Investment

Dental Speaker

Every business experiences trends of increasing and decreasing revenues. When new business slows and income begins to dip, many business owners react by cutting back on the item in their budget they think is most expendable: marketing.

The unfortunate reality is that this is almost definitely the wrong step to take. When you cut your marketing budget, you reduce your revenues as well.

Today’s business cannot survive through only word of mouth referrals. Your company needs to attract new clientele on an ongoing basis, not just in the weeks following a postcard blast or mass email. In addition, you need to engage and maintain the loyalty of your existing customers.

Consistent, effective marketing helps you achieve both ends.

One recent study examined the marketing budgets of several publicly-traded companies. The researchers found that businesses that were spending an average of 16.5% of revenue grew up to 15% annually, and those that spent an average of 22% grew 16% – 30% annually.

When your marketing budget increases, your revenue follows suit.

There are several factors that can influence how much your business should be spending on marketing.

  • Are you a new startup company? You may need to invest more until you have established a client base.
  • Is business established and you want to maintain growth? Compare your current rates of new customers to those lost annually to determine how your current budget is doing.
  • Is business stagnant or decreasing? Consider investing an additional 5% or 10% above your current marketing budget, at least until the trend reverses.
  • How competitive is your local market? Higher competition requires greater investment to grow business.

For more advice regarding your marketing budget and business growth, contact our office.

Theresa F. Narantic, Inc
Phone: (855) 929-2555
Url: https://speaker.dental/

Contact Us

Dental Consultant in Illinois

Dental Consultant Blog

Illinois Dental Consultant

Converting New Patient Calls during an Economic Downturn

March 23, 2020

By Beth Gaddis A lot of people are worried these days. That’s normal. The crazy stock market. Coronavirus. Travel changes. There’s a lot going on in the world. And let’s face it: that may mean fewer people will want, or...

The Pro’s Checklist to Selling A Dental Practice|Dental Consultant

December 17, 2019

As a Dental Consultant and Business Owner for over 16 years, nothing scares me more than a dental practice without a transition plan. So, when a new client informs me they have never even thought about selling their practice and...

Dental Consultant | Windows 7 is Dying––Is your practice prepared?

November 12, 2019

If you haven’t heard by now that support for Windows 7 is ending, you’ve likely been living under a rock. But, just in case that rock has sheltered you from being aware of the dangers that loom, here’s a quick...

Achieve More by Embracing Organization | Dental Consulting

April 15, 2024

In the realm of dental practice, time is undeniably a precious commodity. The efficient management of time can significantly influence the economic prosperity and overall success of your practice. Conversely, disorganization and chaos can hinder productivity, ultimately impacting your practice's...

Strategic Steps for Dental Equipment Investments: A Comprehensive Guide | Dental Office Consulting

April 1, 2024

When it comes to enhancing the efficiency and success of your dental practice, investing in the right dental equipment is crucial. As technology evolves and the needs of your practice change, strategic decision-making becomes even more essential. Here are some...