Are you a small to medium sized business marketer? Listen up!
In 2020, if you are looking to maintain your current market share or to expand your customer base you need to get onto a small business marketing campaign.
Easy to say but no so easy to do. The challenge with being a small to mid sized business in need of marketing is that a lot of marketing tools are simply to expensive and often to broad based.
Too broad based marketing. Avoid this at all costs. Read the whole shebang!
Most small and mid sized business rely heavily on a local customer base. This is great because you can easily identify the target group and their locale. The down side when targeting a smaller group is that when you use broad based marketing such as TV, Radio, Newspaper and Google ads is that you spend a lot of marketing money on reaching people that will never be interested in who you are or what you have to offer.
When you consider buying broad based local marketing such as TV, Radio etc, the salesperson will promise you so much reach and so much penetration. These terms are their way to give you the lowest price per set of eyeballs or ears. This is a very misleading way to buy marketing, don’t do it. You’ll likely go broke before you gain new business to offset your ROI.
What is Marketing ROI mean?
ROI, what does it mean?
I love people, we all hear these terms like ROI and nod our heads in agreement as if we totally understand what this means. Let’s face it, most of us when we hear ROI are a little clueless as to its true meaning. Here is what it means for you.
“if sales grew by $1,000 and the marketing campaign cost $100, then the simple ROI is 900%”
There is actually a formula to show what your ROI (Return On Investment) is for your marketing campaign. A simple example is the quote above.
The easier way to look at Marketing ROI is to think like this. ” How much do I need to spend to get the increase in business or increase in awareness of my product or services to feel that I have achieved positive fiscal growth, positive product awareness or both!”
The trouble of course, with all of this, is how do you fully understand if you got a return on your marketing investment?
When spending money on marketing and to get a rock solid guaranteed understanding on marketing ROI the only type of marketing campaign where you can do this is a limited time sale.
If you’re a furniture store and you have a 3 day sale and you spend 5k on radio and print for that sale at the end of those 3 days you can know exactly what your ROI was.
However, there are many many types of businesses, products, services and marketing campaigns that do not have nearly the limited scope that the above example shows.
Getting New Long Term Customers and Retaining Existing Customer.
If your goal is to get new customers and retain existing ones you need to think about how you market and most importantly how you view your Marketing ROI.
ROI on longer horizon goals such as customer gains and retention needs to be thought of over a longer period, say 6 months or a year.
If you plan on marketing to new potential clients and existing clients there are a few thing to consider. They are, in no particular order of importance.
- Do not give an incentive to new customers that will piss off the existing customers. Example. Don’t do a marketing campaign that gives new customers 25% while the regular customers get nothing special. Telephone companies are notorious for doing this.
- Be realistic with expectations. If you spend $250 marketing your small business to a local area don’t expect to double business in a month or even a year. Consider the value of growing your business or client base by 15 % over a year as a win. If your business does 200k in sales a year and it grew to 230k the next year and you spent $2500 to achieve the 30k increase you are doing great!
- Don’t spend too much and don’t spend too little. I know this sounds self-evident but we deal with clients all of the time who spend $400 and expect miracle returns. At the same time, although less often, a client may spend too much. Spending either too little or too much is a bad idea.
How Much Should You Spend?
You have 3 options. Spend too much, too little or just the right amount.
It’s easy to spend too much. That’s simple to understand.
Spending too little is a common problem. The reason its a problem is simple. You will spend not enough money and have expectations that exceed reality.
Spend the right amount. Spending the correct amount of money on a marketing initiative to achieve your desired ROI is not as easy as it sounds.
The best way to figure out what you need and what you need to spend to achieve your desired ROI is to speak to our experts (call 1-888-908-6932). We have worked with some of the top companies in North America and Europe on their marketing campaigns and we are very open about sharing our expertise with you.
Why you should use Promotional Products for small and mid sized business marketing.
Promotional products are an ideal way to get a good ROI on a marketing investment for small to mid sized business, as well as big business.
Firstly, let me clue you in. Promo swag is for all size of businesses. Over the years we have worked with some of the world’s best known brands, Adidas, Nike, Tiffany, LA Lakers, Sony and hundreds of other marquis clients. Do not think that promotional product marketing is just for the local yokel, all sizes of businesses use it.
Why Swag Works.
Promotional products (aka swag) is a unique way to market. Here are the top points to consider.
- Giving away swag is usually a personal experience. When you hand something with your logo and message on it there is a personal connection that does not exist in any other marketing methodology.
- You get to give it to the exact person or prospect you want. When you hand out swag at a trade show or do a mailing campaign with it you are almost always able to know who you gave it to and who to follow up with. You can’t say that about radio or newspaper.
- You can take control of your budget and monitor your ROI better than any other marketing medium.