In the world of business, Return on Investment (ROI) is a familiar concept. It measures the profitability of an investment relative to its cost, providing a crucial metric for evaluating the success of marketing activities. But what about Cost of Inaction (COI)?
Cost of Inaction (COI) is the often-overlooked counterpart to ROI. While Return on Investment (ROI) measures the benefits of taking action like revenue generation, COI measures the potential losses incurred by failing to act. Ignoring COI can be a costly mistake for businesses, as it can lead to missed opportunities, stagnation, or even failure. You may see your business performance going downhill and be concerned about what to do, that’s when you’ll need to make a strategic investment to improve your situation before it gets worse.
The Importance of COI
Fun fact: Around 3 billion fortune cookies are produced every year.
Not-so-fun fact: 88% of the Fortune 500 companies featured in 1955 are no longer on the list today. Some went bankrupt, others merged, and some have fallen off the list completely. These companies failed to adapt to changing market dynamics, technologies, or consumer preferences, resulting in their downfall.
Remember Blockbuster? A titan of its time, and yet the Cost of Inaction (COI) was so high that the entire company went bust in 2010 and thousands of people lost their jobs because the company didn’t take action to change. Now the only Blockbuster left resides in Bend, Oregon, where we are. Funny how that works.
The CEO failed to recognize the potential of digital streaming and turned down an offer from Netflix in 2000 because it was a “very small niche business” that was losing money. This decision based on cost-efficiency and driven by a lack of action, ultimately led to Blockbuster’s bankruptcy.
This is the same Netflix that made $11.69 billion in 2017 and has over 137 million streaming subscribers worldwide.
Ouch. Get some aloe vera for that.
The Cost of Inaction
While ROI is an essential metric for evaluating the success of marketing activities, it only tells part of the story. COI provides a more comprehensive view of the potential impact of business decisions, highlighting the risks of inaction and the benefits of taking action.
The Cost of Inaction (COI) can be steep. It can result in missed growth opportunities, loss of market share, or even business failure. In today’s fast-paced business environment, where change is constant and competition is fierce, failing to act can be a death sentence for businesses.
How We Can Help:
At zö agency, we specialize in helping small to midsize businesses make impactful changes that drive growth and success. Our team of experts can help you identify and mitigate the risks of inaction, ensuring that your business stays ahead of the curve. Whether that means getting some content marketing ROI underway to boost your business performance, remodeling your website with cost-efficiency, or merely just adding SEO to your site to get some substantial revenue generation.
Don’t wait for a competitor to steal your business from under your nose before you update your lead-gen strategy.
Don’t wait for Google to penalize your website before you “get around” to modernizing it.
Don’t wait until you have “more time” to think about marketing before you realize you’re never going to have “more time.” (And if you did have more time? You definitely wouldn’t want to use it to think about marketing.)
Failure to act comes at a cost.
Don’t wait for the Cost of Inaction (COI) to catch up with you. Make a strategic investment and book a free call with us today, and let’s start making soul-sizzling awesome changes happen in your business. Remember, the only way to avoid the cost of inaction is to take action. Let us help you make it happen.
Schedule a free consultation with us now on our website: https://zo.agency/contact-us/ or call us now at (541) 237 6084
