What Is Incremental Revenue In Paid Marketing?

Many business owners are wary when it comes to spending money on marketing, especially if they already have a stable business with a steady stream of customers. For a new business, marketing is usually required, but, for the established business owner, the following thoughts may come to mind:

  • “Why fix something that’s not broken?”
  • “I have all the business I could want.”
  • “I don’t want to spend money if I don’t have to.”
  • “Marketing won’t increase my bottom line.”

Unfortunately, all of these thoughts are missing something. And that’s the concept of incremental revenue gained by marketing your business.

The rest of this article explains what incremental revenue is, how’s it measured & why it should drive your business decisions. 

What Is Incremental Revenue?

You have fixed costs such as rent, payroll, utilities & insurance. Regardless if a customer purchases something or not, these costs have to be paid by your company in order for you to stay in business. As such, the only variable cost for most businesses is the cost of goods sold. 

Therefore, any revenue generated by marketing campaigns is incremental because you wouldn’t have generated it without an enticing promotion to drive purchases. 

Of course, there’s the additional cost of marketing, whether it be an ad or text message marketing campaign. As a result, measuring the incremental revenue generated by your marketing efforts is even more important, especially if you want to track the performance of your campaigns & return on your investment (which you should). 

Measuring Incremental Revenue

Tracking the return on investment of marketing efforts is difficult unless you can track offer redemptions & the revenue generated by them. And as explained in our previous article, integrating your marketing & payment technology automates the whole process. 

Nevertheless, measuring incremental revenue is simple (in theory at least). All you need to do is track the revenue generated by your marketing campaign.   

How Incremental Revenue Affects Your Bottom Line

As explained in the introduction, a lot of business owners are averse to spending money on marketing if “they don’t have to”. But when it comes to increasing your bottom line, that’s something any savvy business person could get behind. 

Unfortunately, a lot of people have a negative perception of giving discounts because they feel like they’re giving up money, which takes away from their bottom line. But nothing could be further from the truth. In practice, a discount actually increases your bottom line by way of the incremental revenue generated by the initial offer. 

For example, 10% off is not losing 10% from your profits, but gaining revenue that would not have been generated without the promotion (incremental revenue). In addition, getting that customer to visit your business again increases the lifetime value of that customer, meaning marginal returns & more profits as one purchase turns into two, two to three & so on.

Integrate Your Payments & Marketing To Drive Measurable Incremental Revenue

TAPLocal offers two marketing products that integrate with your payment technology so you can track incremental revenue generated & the return on investment of your marketing efforts. 

For attracting new customers to your business, we offer hyper-local Facebook advertising technology that provides your customers with redeemable offers that can be used online or in-store. And once you have customers in the door, our integrated text message marketing products automate the process of engaging your customers post-visit so they’re with you for life.

The best part is that our technologies also do all the heavy lifting of driving the actual redemption of your offers too! All you have to do is service your customers when they come in. The rest is taken care of by TAPLocal.

To learn more about our integrated marketing technologies, visit our website. For more articles like this one, visit our blog

Share This Article!

Share on facebook
Share on linkedin
Share on twitter
Share on email

Our Partner Network

  • 123local
  • 2findlocal
  • 8coupons
  • ABLocal
  • AllergyEats
  • AllMenus
  • AmericanTowns
  • AroundMe
  • Baidu
  • Banks.com
  • Brownbook.net
  • Central Index
  • ChamberofCommerce.com
  • CitySquares
  • CK Maps
  • Cylex
  • DexKnows
  • DoorDash
  • Dun & Bradstreet
  • eLocal
  • EZlocal
  • Find Open
  • Fliggy
  • GoLocal247
  • HERE
  • HolidayCheck
  • HostMe
  • HotFrog
  • iBegin
  • iGlobal
  • Insider Pages
  • Instagram
  • Local.com
  • LocalDatabase
  • LocalPages
  • LocalStack
  • Mafengwo
  • Mapstr
  • Menupix
  • MerchantCircle
  • My Local Services
  • n49
  • Navmii
  • NDrive
  • Opendi
  • OpenTable
  • Parent Day Out
  • Pitney Bowes
  • Pointcom
  • Postmates
  • Property Capsule
  • RetirementPlanning.net
  • SafeGraph
  • ShowMeLocal
  • Soleo
  • Superpages
  • tellows
  • TomTom
  • Top Rated Local
  • Trip.com
  • TripAdvisor
  • TrustPilot
  • Tupalo
  • Uber
  • Uber Eats
  • USCity.net
  • VotefortheBest
  • Waze
  • Where To?
  • WiserAdvisor
  • Yalwa
  • Yandex
  • YaSabe
  • YellowMoxie
  • YellowPageCity
  • YellowPagesDirectory
small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

Read A Client Success Story

Learn How To Leverage The Power of Facebook for Growth!

Read A Client Success Story!

Learn How To Leverage The Power of Facebook Offer Ads for Growth!

Read A Client Success Story!

Learn How To Leverage The Power of Facebook Lead Ads for Growth!

Read A Client Success Story!

Learn How To Leverage The Power of Facebook Awareness Ads for Growth!

Read A Client Success Story!

Learn How To Leverage The Power of Facebook Click Ads To Grow Your Business

Read A Client Success Story!

Learn How We Increased Our Client's Online Visibility & Got Him More Leads!

Get Your Web Design eBook!

Learn What Separates A Winning Website From The Losing Ones

Get Your Free SMS Marketing eBook!

Learn How To Turn New Purchases Into Your Most Loyal Customers

Get Your Reputation Management eBook!

Learn How To Build Your Online Reputation & Get More Paying Customers

Get Your Free Ebook Today

Learn How To Audit Your Merchant Statement And Cut Your Costs

Get Your Google Ads eBook!

Learn How To Convert Web Traffic Into Revenue

Get Your Facebook Ads eBook Today!

Learn How To Advertise On The World’s Biggest Stage

Can Google's Crawlers Understand Your Site?

Find Out If Your Website Has Schema Markup

Schema Markup - Contact Info
small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Payments Consultation Awaits

Read A Client Success Story!

Learn How We Helped Our Client Build Their Online Reputation & Get More Customers As A Result!

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Payments Consultation Awaits

Let's Create Your Free Account

Claim Your Free Clover Today!

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

small_c_popup.png

Let's have a chat

Your Free Local Marketing Consultation Awaits

Read A Client Success Story!

Learn How To Leverage Google Ads For Business Growth

Read A Client Success Story!

Learn How To Leverage The Power of Text Message Marketing For Your Business!

Want To See How You Show Up?

Tell Us Where To Send Your Report!

Run Your Free Business Report - Contact Info
Pop-up form preceding Yext Scan CTA, basic contact info

Ready To Boost Your Business?

Create Your Free Account To Claim Your Package!

All In One Packages - Professional

Pick A Time To Speak With A Local Business Expert

Place Your Vision Online With Award-Winning Web Design!

Web Design - Scheduling

Set Up Your Free Account In Minutes

Make It Easier For Your Customers To Pay You!

Payments - Get Started

Set Up Your Free Account In A Matter Of Minutes

Customize Your Clover To Work The Way You Do!

Clover POS - Get Started

Pick A Time To Speak With A Local Business Expert

Get More Positive Reviews With TAPLocal Review Management!

Review Generation - Scheduling

Pick A Time To Speak With A Local Business Expert

Get A Full Tour Of Our Business Manager Dashboard!

Dashboard Demo - Scheduling

Our Packages Are Built With All Your Needs In Mind

Find Out Which Package Your Business Qualifies For!

Free Clover - Pricing

Clover POS Is The Perfect Business Companion

Find Out Which Device Is Best For Your Unique Needs!

Free Clover - Meet Clover

Pick A Time To Speak With Local Business Specialist

Claim Your Free Clover Today!

Free Clover Package - Scheduling

Create Your Free Account & Pick Your Package

Claim Your Free Clover Today!

Free Clover Package - Get Started

Want To See How You Show Up?

Tell Us About Your Business

Let's Get Started

Start Rewarding Your Customers Today!

Clover App Market - Restaurant Rewards
Pop-up form on Restaurant Rewards page

Pick A Time To Speak With A Local Business Expert

Boost Your Business With An All In One Package!

All In One Packages - Scheduling
Pop-up form preceding All In One Packages scheduling

You Could Be Saving Thousands Of Dollars A Year

See How TAPLocal Stacks Up To The Competition

Payments - Competitor Pricing
Pop-up form preceding Yext Scan CTA, basic contact info

Ready To Boost Your Business?

Create Your Free Account To Claim Your Package!

All In One Packages - Ultimate

Ready To Boost Your Business?

Create Your Free Account To Claim Your Package!

All In One Packages - Standard

Read A Client Success Story!

Learn How We Grew Our Client's Business With Stellar Web Design

Ready To Boost Your Business?

Create Your Free Account To Claim Your Package!

All In One Packages - Builder

Ready To Boost Your Business?

Create Your Free Account To Claim Your Package!

All In One Packages - Starter

Pick A Time To Speak With A Local Business Expert

Start Gaining Repeat Business From Your Customers Today!

Text Message Marketing - Scheduling

Pick A Time To Speak With A Local Business Expert

Take Control Of How You Show Up Online Today!

Listings - Scheduling

Pick A Time To Speak With A Local Business Expert

Starting Driving Hyper-Local Traffic To Your Website!

Listings - Scheduling

Pick A Time To Speak With A Local Business Expert

Boost Your Facebook Ads With Hyper-Local Technology!

Facebook & Instagram - Scheduling

Pick A Time To Speak With A Local Business Expert

Get Prime Exposure With Our Reach & Frequency Guarantee!

Facebook Awareness Ads - Scheduling

Pick A Time To Speak With A Local Business Expert

Advertise On The World's Leading Search Engine!

Facebook Awareness Ads - Scheduling

Pick A Time To Speak With A Local Business Expert

Find Out How TAPLocal Can Grow Your Business!

TAPLocal Appointment - Scheduling

Pick A Time To Speak With A Local Business Expert

Get HOT Local Leads Delivered Directly To Your Phone!

Facebook Lead Ads - Scheduling

Pick A Time To Speak With A Local Business Expert

Help Hungry Customers Find You When They Need To!

Listings For Food - Scheduling

Pick A Time To Speak With A Local Business Expert

Drive Sales With Redeemable Offers On Facebook!

Facebook Offer Ads - Scheduling

Pick A Time To Speak With A Local Business Expert

Simplify How Your Customers Pay You & Cut Processing Costs!

Payments - Scheduling

Pick A Time To Speak With A Local Business Expert

Simplify Your Day-To-Day With The Perfect Point Of Sale!

Clover POS - Scheduling

Get Your Business Listings eBook!

Learn How To Get Found By Consumers Who Are Searching For A Product Or Service That You Offer