7 Steps To Set Up A Profitable Advertising Campaign For Your Local Business
As a small business owner, you will be intimately aware of two truths. Firstly, cash flow is the lifeblood of your business and every dollar you spend needs to be focused on making you money. Secondly, time is precious. You have so much to do including finding customers, meeting the needs of your customers, looking after staff, managing the books and probably also have a family to look after as well.
Ideally then, you are looking for an advertising strategy which will consistently bring in more money than it costs and is as hands off as possible.
Below are seven tips for setting up a advertising campaigns that not only bring in more money but also make running your business more enjoyable as well:
1. What is Your Best Type of Customer?
As a small business owner, especially when you are starting out, it is tempting to take on any customer you can find. This is fine at the start as it brings in money and also teaches you some important business lessons, but over time you are going to want to be more selective.
As you get to know your customers, it is likely you are going to prefer some over others. Preferred customers may have characteristics such as they love what you do and are willing to spend more, or it may be they appreciate your expertise and leave you to do what you are good at with little interference.
Make a list of 3 to 5 attributes your favourite types of customers display and note them down on a worksheet.
2. What Are Your Most Profitable Goods and Services?
It is easy for your local business to attempt to provide all things to all people. However, spend some time to identify your most popular and profitable goods and services, and also those that you enjoy providing the most.
Ideally, the products and services you categorise above are easy to scale up and provide to a larger number of customers. This is going to give you the best chance to grow your business.
Make a list of each of the goods and services that fit into the categories above, and then note down the 5 which best fit the description.
3. What is the Estimated Lifetime Spend of Your Customers
Now that you have an idea of the ideal types of customers you want to attract and the best goods and services to provide to them, you should be in a position to estimate of their lifetime spend with your business. Factors to take into account include:
- do customers tend to buy from you once or is there repeat business
- is there a complementary good or service you can provide to boost an average customer spend
4. How Many Additional Customers Can Your Business Take On?
It may seem you are too busy to take on additional customers, but once you perform the analysis in steps 1 to 3 above you find a number of your customers and the goods and services you are providing do not fit within your criteria. Over time, this gives you the opportunity to replace customers who take up your time for little profit with your ideal customer type.
Decide how many new customers your business can take on and make this the focus of your advertising campaign.
5. How Much Should You Spend On Your Advertising Campaign?
Once you have completed steps 1 to 4 above, how much you spend on your advertising campaign is an easy question to answer. For example, if you know you want to bring in five new customers, and the estimated lifetime customer spend is $1,000, the profit this will bring in is $5,000. If your required return on investment is $2 for every $1 spent, your advertising campaign should cost no more than $2,500.
6. How Do I Plan A Successful Advertising Campaign?
Whether your strategy is to advertise in the local paper, organise a letterbox campaign drop, run a social media campaign, spend money on google ads or facebook ads or publish articles on large news sites, the key is to identify where your target customers hang out and how you can get in front of them.
You can waste thousands of dollars by not being targeted in your approach, so if you do it yourself, or hire someone to do it for you, be very clear on the strategy. You know your customer attributes from step 1 so be very specific on how your chosen campaign will bring in leads, and make sure you are clear on the action they have to take to buy your product or sign up for your service.
7. Measure the Success of Your Campaign
The biggest mistake many small business owners make when running an advertising campaign is they have no way to accurately measure the results. You have to know whether new customers were brought in because of your marketing or for some other reason.
For example if your strategy was to get potential customers to call you, how many additional calls did you receive this month to last month. If your strategy was to make more sales from your webpage, how much more traffic came to your website this month to last month.
By following our advice above, marketing campaigns become a numbers game. Don't spend more than the return on investment you have set yourself and be aware that the more targeted potential customers you can bring in the more chance you have to convert leads into customers.
Of course, if you would like to remove all of the hassle and want to work with an expert who can plan your media campaigns with a proven strategy to bring in more customers, contact us now.
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