The small business marketing plan
I had an exchange yesterday with a small business owner who had been marketing his business — a retail business in a busy downtown area — through newspaper advertising and was frustrated by the lack of results.
Here’s the bottom line: the folks that sell you your ads will never admit this, but the truth is that any kind of mass media advertising isn’t designed to “work” the way a small business owner wants it to. Those are awareness-building tools and not the kinds of initiatives that, on their own, are likely to bring you the kind of ROI you’re looking for… Namely phone calls, foot traffic, etc.
I recommend that small business owners invest their time and marketing budget into efforts that are likely to reach fewer people, but more likely to net actual customers. These would include networking, referral marketing, retention programs, email marketing, etc. And build an audience that you can reach over and over again.
I wrote about this in November and again in December but considering the topic, it’s work saying again. Marketing is a science of reach times frequency. Reach is sexier because we all like to think that because we’re in a magazine that’s read by 200,000 that we’re going to drum up a lot of interest. But frequency is actually more important. You’ll win a lot more business by reaching 50 people 10 times each than you will reaching 500 people once.
Another thing that works is incentives… Incentivize new customers, incentivize current customers to refer friends and family, incentivize partners, local business owners and others who can send you new business. When you network and meet people that have the potential to send you a lot of business, bring them in and offer them a free or discounted service so they can see how great it is. And make sure that when you do win new business that you have a retention process in place to keep those customers and stay in front of them.
The business that I mentioned that sparked this post was actually a massage business. Here’s what I suggested to the owner as examples of high-ROI but low-cost marketing efforts that would likely make more sense for him than traditional advertising:
- Create a referral program
- Create a retention program
- Solicit businesses to allow you to use their offices/retail locations for advertising; if you offer a discount it could be considered an employee benefit
- Also solicit business owners to buy your service in the form of gift cards for employee bonuses or x-mas gifts
- Office massage days are a great idea too as is offering massage in a company’s trade-show booth. These types of services have a great value to the business you market them to and gives you the opportunity to be paid to market yourself to a large group of individuals that could ultimately become your customers as well.
Traditional advertising is a great tool… just not for what most small businesses use it for. I usually tell small business owners to invest in developing low-reach/high-frequency/high-ROI initiatives BEFORE spending on advertising. Mass media is usually the thing I recommend that businesses do last after they have developed all of these other engines to acquire and retain customers. That ensures that we have the right processes in place to keep any customers that DO come into the system through traditional advertising.
Have questions about developing an effective small business marketing plan? Shoot me an email, I’m happy to help.
Posted by E. Wolf






