Commandment 7: Stop Wasting Resources

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Companies want to earn profits, not just revenues. With more profits, the company can further create value-adding products and services and reach other markets. This cycle creates more customers. Digital marketing is not effective if it does not contribute to the bottomline.

This can only happen when you continuously add more value — which is rewarded by the customer with a purchase. A concrete sign of success in this happens when you get repeat purchases and referrals from that customer.

Profits, if you break it down to its components, is made up of revenues and expenses. The more revenues you make and the less expenses you have at any given period, the higher profits you earn.

A lot of marketing managers and CEOs still do not understand how digital marketing works. They have not yet realized that the internet has become a two-way street of communication. Marketing managers and CEOs often waste their resources by blindly spending on ads or hiring more people without having a proper knowledge on its effect and the return on investment.

This lack of understanding is the main reason why these managers often don’t achieve the results they intend to do. And if they do, they often go over-budget.

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