A recent Daily Stat published by Harvard Business Review suggests that frequency of online (and other) advertising correlates to low quality service. Specifically, HBR referenced a study produced by Duke University.
“… the [residential plumbing] firms that advertised on Google received, on average, more than 3 times as may Better Business Bureau complaints per employee as companies that didn’t advertise”
HBR concludes that these ‘substandard’ companies fail to create long-term relationships with a satisfied customer base. As a result, they use online advertising, SEO, and traditional advertising to attract people who aren’t willing to do their research to find “good companies.”
Wow. That brush stroke seems just a little too broad… and dangerous. Viable businesses advertise online as a matter of course in today’s digital world. Depending upon the industry, it may make sense for these companies to use traditional means to reach target markets offline as well.
Frequency of on- and offline advertising has as much to do with growing a business as it does with keeping a mediocre business with low customer retention going. This is a great reminder: It’s important to measure, but you have to take care with what—and how—you measure.