Who else looking to implement some proven low cost, high powered adverting methods?
(To Help You Quickly Get The Word Out!)
Honestly, what specific criterion do you use, to try and quickly decide which advertising methods to use, to help grow your business?
Is it simply a matter of you throwing the proverbial dart at the board and wherever it lands, that’s where you start? Hopefully, your process is a little more scientific than that.
So How Do You Actually Decide Which Advertising Methods Work Best?
(For Your Resource Strapped Small Business)
Do you let your pocket book decide? Or do you simply flip a coin or what?
With so many viable options, how do you decide to invest your money, in the sea of advertising and marketing opportunities?
One particular strategy that usually works extremely well, is to work from the end result forward. Huh?
For ex: suppose your trying to attract more women between the ages of 20-50 to your place of business.
Because your long term “lifetime total customer value” calculation, tells you that these particular prospects, will stay with your particular business for at least seven years.
And on average, they’ll spend about $1,500 dollars per year (gross.) Which means, over their entire seven years, they’ll basically spend $11,900 dollars with you.
And you’ll net after deducting your various costs,about roughly 67% of that entire amount. (Or you’ll gross $7,973 dollars. $11,900 x .67% = $7,973.)
And that averages out to about $1,139 dollars per year. ($7,973 / 7 years = $1,139 gross profit per new customer per year.)
So under no circumstances, should you be spending more than $1,139 dollars per year to acquire that new first time customer.
Otherwise, you’ll probably be losing money on the all important front end of your long term (repeat customer) sales funnel.
(FYI: By the way, the specific numbers are totally irrelevant, it’s the overall basic concept, about “total lifetime customer value”, that you have to get, in order for this particular illustration to make sense.
Why Using The Best Advertising Methods Will Explode Your Long Term profits! (For Literally Pennies On The Dollar!)
Case in point: let’s do a simple side by side comparison of two types advertising methods. The first one will be the (all too typical) conventional type of outrageously expensive local newspaper or local radio advertising stuff.
you know where a cash strapped local small business owner and or service provider tries (desperately) in vain, to simply blast their message to any and every one, only quickly to discover.
They don’t nearly have enough money to effectively advertise to the masses, before they have to fold the tent. because their pockets simply aren’t deep enough to see it through.
On the other hand; here is the other (marketing) based advertising approach. Clearly, this approach takes a little more preliminary work up front, before you can fully implement it, but let’s see which approach, you think you the best chances for long term success.
Your Cash Strapped Small Business Can Either Take The Advertising Approach Or the Marketing Advertising Approach To Successfully Growing Your Business!
(Which Approach Makes More Sense to You?)
Let’s say company A spends about $4,000 dollars per month on a combination of outrageously expensive local newspaper and local radio ads.
And at the end of the month, when they total up what all this conventional advertising activity actually cost them vs the amount of business they really gained from it.
Well you already know how this movie ends,right?
On the other hand company B, (your company) actually did their “total lifetime customer value” calculation, and they realize (upfront), that their typical customer (which is women ages 20-50), will spend about $1,139 per year with you!
(Just remember to substitute your actual numbers in place of the ones used for this particular example.) (And don’t you dare get caught in the exact number rocket science of this extremely powerful marketing concept, for now just generalize in order to move forward!)
Anyway… Here’s what you might inexpensively test first. Just to see “how” much, this particular marketing tactic, gets the word out.
take your traditionally slowest day or test this concept during your traditionally slowest season, if your business or service tends to trend, depending on which particular season it is.
Say you’re a local small women’s clothing store retailer. You might give the first twenty women (or X) number of women through the door that day, a special coupon that they redeem at your local florist, that happens to be a valued joint venture partner.
And they get a dozen roses free (they just need to pick them up in person) or personally pay for delivery! you of course just pay your florist’s actual real cost, because you both realize that a certain percentage of those women that come in to redeem their certificate, will in fact become valued long term repeat customers!
Hopefully You Prefer The Think Outside The Box Advertising Methods!
So let’s say you buy the first twenty women through your doors on your traditionally slowest day a dozen roses, that actually cost you $27 dollars each.
You spent a grand total of $540 dollars to advertise your business to your local market! but the reality is, you just spent $27 of your $1,139 dollar annual total!
If you throw in free deliver (which) you now know you can easily afford.
Think about the long term (positive word of moth) affects of what happens when that beautiful dozen roses arrives at their job or place of business!
And of course, your deliver person (also) hands them twenty (special VIP) 25% off new customer only discount cards to pass around as well!
And of course let’s not forget that at least one day per week, you will also include a free five foot teddy bear to be delivered with one of the deliveries too!
Entrepreneur? Of the two advertising methods, which one do you think will have the best long term effect on your valued customer base? Yep!
You get more tweets and thumbs on FB as well!
Hopefully, this type of long term strategic thinking, is starting to spark some new marketing possibilities in your mind!
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