Establish an Advertising Budget


We establish budgets based on all aspects of our business:  inventory buying, salaries, utilities etc. but very few of us establish an annual advertising budget.  A carefully developed advertising plan can establish a game plan on which a marketing strategy can be put in place.

The first thing to do is determine is an annual advertising budget.  The typical Edge user allocates 7% of annual sales towards advertising.  A monthly budget should be determined based on a percentage of sales that is established for your store. The typical Edge user’s annual budget allocated to customer retention ranges from $3,000 to $8,000.

As a store owner and operator, we recognize that you need to always be acquiring new customers, but at the same time we encourage you to maximize the purchasing power of your most loyal and better customers. With this in mind, we recommend that you allocate your limited advertising budget as follows:

  • Allocate 90% to acquiring new customers.
  • Allocate 10% to maintaining and developing customer loyalty among your existing customers.

A sample advertising budget might be laid out as follows:

Annual Sales $1,000,000 x 7% = $70,000 Annual Advertising budget

$70,000 x 10% = $7,000 Annual Customer retention Budget

This would equate to a monthly budget of $583.33 earmarked towards monthly birthday, anniversary, thank yous, missing you, and service postcard mailings.

Focusing on customer retention and consistently communicating with your base will reduce your marketing costs and increases your store's profitability because satisfied, repeat customers will come back time and time again and refer like-minded friends to do the same.

The Edge Postcard Program is all-inclusive and easy to execute because we will do ALL of the work for you for just one low price of 89 cents per piece (including standard rate postage):

  • Develop the professional creative design.
  • Personalize the direct mail piece with your customer’s name.
  • Customize the message with your store logo, contact information, and promotional offer.
  • Print on oversized 5.5” X 8.5”, high-gloss, 4-color on both sides using the latest in variable data and digital printing technologies.
  • Apply postage and mail the direct mail pieces to as little or as many customer as you specify.

Using The Edge Marketing Program, there is:

  • NO MORE working with multiple agencies (ad, print, fulfillment, etc).
  • NO MORE applying address labels.
  • NO MORE affixing stamps.
  • NO MORE generating, uploading, and emailing customer lists.
  • NO MORE meeting minimum quantity volumes at the printer.
  • NO MORE wasting your time!

Please visit The Edge Postcard Program website at www.DriveRetail.com to view the postcard Design Gallery!

Updated on Mon, 03 Apr 2023 by Angela Chiaravalle

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