Construction Company Marketing Cost
How to Analyze the Cost of Construction Company Marketing
Engineering and construction company leaders are often skeptical about allocating budgets to professional marketing and brand strategy programs, because it’s often difficult for construction companies to correlate the return on investment with the dollars spent.
In fact, business development for construction companies tends to rely on the old methods of customer acquisition that have worked, for better or worse, in the past.
The danger in doing nothing to improve on this important front is that if your competition are embracing new ways of approaching construction company and industrial business development, you’ll be blindsided and could potentially find yourself a long way behind on this important front.
The cost of ‘catching up’ will then be significantly higher than the cost of putting a reasonable program for marketing a construction business in place, year-on-year, to ensure you keep pace in the first place.
So what is a reasonable amount to spend? The answer differs for each company, but the formula used should be based on the customer lifetime value, along with the company’s annual revenue goals.
By using key performance indicators (KPI’s) you can actually calculate how much you should spend on marketing for construction companies to make your revenue goals a reality.
The first KPI to consider is your Customer Acquisition Cost. As buyers are engaged with both construction sales and marketing during a sale, it’s critical to align the sales and construction marketing functions so one is strategically supporting the other.
It therefore makes sense to group the costs of those two functions together for the purposes of understanding the true cost of acquiring a customer. You’ll likely know your customer acquisition costs, but if not INDUSTRI can help calculate them with a simple and proven equation.
The next KPI to consider is the Customer Lifetime Value adjusted with your gross margin, and the attrition rate in the business.
Once you know your Customer Acquisition Cost and your Lifetime Customer Value, you can compare the two figures to get a better understanding of the return on your sales and construction marketing investment. This will allow you to create measurable marketing strategies for construction companies that are essentially growth models that can systematically drive sales.
INDUSTRI has made brand strategy for construction companies a science.
There are well documented best practices for marketing in the construction industry. There are right and wrong ways of doing things and there are no shortcuts to successful return on investment. When shortcuts are taken, the likelihood of success diminishes.
When you invest your marketing dollars you expect a return on investment. To see that you get it, we’ve developed a process that combines the best practices of engineering and construction company marketing into a series of proven steps. (See below). The process is typically executed over an 8 week period and the marketing plan continues to run post brand launch.
Clients that adhere to the process position themselves to win more of the work they want to win and our experienced team is thoroughly trained at successfully applying these brand strategy and construction marketing best practices to help our clients succeed and measurably grow their businesses in the construction industry.
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