As a marketer or founder, I’ve noticed a common pitfall that many of us fall into when developing our marketing strategies. It’s a mistake that can significantly impact the effectiveness of our campaigns and our ability to grow our businesses. The issue? Failing to grasp the concept of the purchase cycle, also known as the consideration period.
The purchase cycle refers to the time it takes for a potential customer to move from first seeing an ad to actually making a purchase or becoming a customer. While we might understand this concept on a logical level, our approach to managing marketing often doesn’t reflect this understanding.
The Mismatch Between Spending and Results
Too often, we find ourselves fixated on immediate results. We pore over spreadsheets that show us how much we’ve spent on marketing today and how much revenue we’ve generated today. We look at monthly figures, comparing our marketing expenditure to our income for the same period. This approach, while seemingly logical, overlooks a crucial factor: time.
The reality is that the average person doesn’t make a purchase decision instantly. In fact, the typical consideration period can range anywhere from three weeks to three months. This means that when we increase our marketing budgets or launch new campaigns, we shouldn’t expect to see immediate returns. Instead, it takes time for these efforts to bear fruit.
The Impact of Ignoring the Purchase Cycle
When we fail to account for the purchase cycle in our marketing strategies, several problems can arise:
- Premature judgments about campaign effectiveness
- Misallocation of marketing budgets
- Missed opportunities for growth
- Inconsistent marketing efforts
By expecting immediate results, we might prematurely cut campaigns that could have been successful if given more time. We might also underinvest in marketing efforts that require a longer runway to show results.
Aligning Strategy with the Purchase Cycle
To truly harness the power of marketing and drive business growth, it’s essential to align our strategies with the reality of the purchase cycle. Here are some steps we can take:
- Set realistic timelines: When launching new campaigns or increasing budgets, set expectations for when results should start to materialize based on your industry’s typical consideration period.
- Use appropriate metrics: Instead of focusing solely on same-day or same-month conversions, look at metrics that account for longer consideration periods, such as assisted conversions or time-lagged attribution models.
- Maintain consistency: Resist the urge to make drastic changes to your marketing strategy before giving it enough time to show results.
- Educate stakeholders: Ensure that everyone involved in marketing decisions understands the concept of the purchase cycle and its implications for measuring success.
By taking these steps, we can create more effective marketing strategies that account for the natural rhythm of customer decision-making. This approach allows us to make more informed decisions about our marketing investments and ultimately drive sustainable business growth.
Remember, marketing is not just about immediate returns. It’s about building awareness, nurturing leads, and creating a consistent presence that will pay off over time. When we embrace the reality of the purchase cycle, we open up new possibilities for growth and success in our marketing efforts.
As marketers and founders, our job is to plant seeds that will grow into customer relationships over time. By understanding and respecting the purchase cycle, we can cultivate these relationships more effectively, leading to stronger, more sustainable business growth in the long run.