While from the accounting perspective marketing costs are expenses, an equally important way to view them is as investments. And from that perspective, if you want your business, to grow you have to invest in growing it (a.k.a. marketing it). The chart below makes this plain.
While the Concord Flower Shop has grown its web sales 28% per year while lowering its cost per sale 7% per year, Metro Sign & Awning has blown past even those impressive numbers, increasing its leads 87% per year while decreasing its cost per lead 42% per year.
These differences arose from the growth and investment goals each business had when they began their respective JointSourcing Blueprints (the first step in JointSourcing's 3-Step process): not too surprisingly, the larger or faster you want to grow, the larger the marketing investment that will be required.
During their respective Blueprints, their growth and cost goals determined both how broad (how many different Strategies they were to employ from JointSourcing's universe of strategies & services) and deep (how much they did within each Stragegy) their JointSourcing Solutions would be.
- Metro’s is more comprehensive and includes all of the important digital and real-world strategies for their business, with each strategy nicely elaborated.
- The Concord Flower Shop’s JointSourcing Solution is focused just on online marketing, and, as you can see from the figure, invests about ¼ of what Metro does in marketing.
It is this difference in budget, scope, resources and strategies that leads to their different growth, savings and return-on-investment.