More marketing is not the solution

If you have a well-run marketing organization, the next incremental dollar spent on marketing will be less efficient (and more expensive) than what you’re buying now.

There’s nothing wrong with spending more on marketing if you’re willing to trade margins for volume. But, it’s not going to double the size of your business while also lowering your CPA (cost per acquisition).

Instead, you could introduce new enhancements to your product, which might improve your customer retention rate and increase your customer LTV (lifetime value).

Or, you could optimize your sales process, which might improve your conversion rate and lower your CPA.

Either route offers the potential to transform the economics of your business by increasing your margins. And, of course, higher margins would then allow you to spend more on marketing, if you’re so inclined.

It’s counterintuitive, but successful business growth starts with a focus on product and sales. Marketing is just an accelerant, and an expensive one at that.

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