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Is Your Marketing Strategy Scalable?

By November 19, 2019 No Comments

The primary objective of advertising (for small to medium-sized businesses) is to generate sales; however, advertising doesn't always translate into sales, do you know why?

Well, mainly because there are a lot of moving parts involved when it comes to making a sale, and tracking that sale back to the dollar invested can get quite tricky.

Technology has improved the way we measure marketing campaigns and thanks to these improvements; we can actually track which digital channels are bringing in the leads or sales.

But that's not all; we can also work out which channels are actually profitable marketing platforms which will allow you to scale your business 10 times faster than ever before.

So, how do you determine whether your marketing strategy is profitable or not, and how can you be sure it's scalable?

The short answer here is that if it's profitable, it's scalable! So, whichever strategy is the most profitable, will most likely be the one that you want to scale!

However, in some cases, this might not always be possible. You see, a strategy might be profitable, but it doesn't mean you can throw more gasoline on the fire.


For example, if magazine ads (a traditional media approach) has been working for you, then ideally you want to put more money into the magazine; however, the downside is that the magazine is capped at a certain circulation.

Think about it; the magazine only reaches a certain amount of people every month, if the magazine's readership is not growing, your sales probably won't grow either, because you can't get in front of more faces.

Of course, you can take out more ad space within the magazine itself, but that doesn't necessarily mean you will be making more sales. You will just be punting the same message more often to the same audience.

Alternatively, you can hire ad space in more magazines. Again, if the audience reading the magazine is not your core audience, then you have no scientific data to prove that your money will yield any returns.

On the flip side of the coin is digital marketing.

Ps. Yes, you can use coupon codes, but keep in mind, you will need the infrastructure to track it accordingly, which in most cases can be expensive to set up.

Most importantly, it's really difficult to track whether a sale has come from a magazine ad or not; this is mainly due to the fact that there are no tracking mechanisms in place.

The above is a classic example of a non-scalable marketing strategy.

On the flip side of the coin is digital marketing.

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Working Out if Your Marketing Strategy is Scalable

With that said, you can start scaling your business with a lot less risk.

If you can see what it costs you to make a sale, and what your returns are, you can start to predict what kind of returns they will generate from a platform if you invest more in it.

The tracking capabilities of these platforms have opened up the doors for brands to start scaling their companies.

Digital platforms like Google, Facebook, Instagram, and LinkedIn came along, and for once we can see what we are spending our money on, and we can work out what it's generating back in returns.

With that said, you can start scaling your business with a lot less risk.

Knowing this, if you put R30,000 into your advertising next month to reach another 200,000 people, there is a high probability that you might make R60,000 back on your invest.

If your average basket size was R1000, then you generated R30,000 back on your R15,000 investment. That's a 100% return.

Let's say you are targeting 2,000,000 people on Facebook that might be interested in your online fashion store. After 3 months you spent R15,000 (R5k per month) on Facebook, and reached 200,000 people, in this time you've also made 30 sales at R200 a sale.

Do you see how this now becomes a scalable strategy?

  1. You have a clear indication of what you are investing and what you are making back. 
  2. You are making enough profit back on the strategy in order to reinvest and grow the business. 
  3. And lastly, three you haven’t fully tapped into the whole audience size yet which means there is more room for growth. 

Make sure you measure these metrics when it comes to your marketing, it's essential if you are serious about growing your business.

Do you see how this now becomes a scalable strategy?

The above three things are essential in determining whether a marketing strategy is scalable or not.

Jandre de Beer

Author Jandre de Beer

In a nutshell... I'm an online marketing expert with an appetite for #entrepreneurship! I'm the Managing Director of Version Eight and a contributing author to Entrepreneurs Mag SA and SME.

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