Reduce spend without damaging revenues
During difficult economic conditions, sales & marketing departments are often asked to
reduce spending in order to satisfy a wider corporate need to reduce costs.
The crucial question is how do
we cut investment without damaging revenues? LCP’s Marketing Analytics offering can deliver
significant cost savings from your marketing budget whilst maintaining your
expected revenue performance.
"LCP strongly believe that we can help most businesses wipe 10% off their marketing
costs whilst maintaining the same revenue and profit expectations"
Phil Boyle, Partner
This service uses analytical techniques to determine the link between marketing investment and revenues.
The chart below shows the maximum revenue that can be achieved for any given sales and marketing spend.
The current planned spend is below this line and the two red arrows show possible scenarios where spend
may be reduced and revenues need not suffer.
Two possible scenarios for reduced spend:
Reducing the spend by the maximum possible amount in order to maintain the same revenue
(profit, not shown here, usually increases under this scenario)
Simultaneously reducing spend and gaining improvements in revenue
Naturally, when looking to reduce spend, any scenarios have to take into account the many constraints
under which the business is operating such as funds already committed. It is also very important that
careful attention has to be paid to the long term effect on the revenue and profit.
