Small businesses generally don’t have a lot of time or money to invest in their marketing so it’s critical to that you make the right decisions. There are so many marketing tactics available to you such as advertising, newsletters, social media, websites, direct mail... the list goes on. And each of these marketing activities is good but in order to choose the one that will give you the best return on your investment you first need to ask yourself a couple of critical questions.
What is my current situation?
To make smart choices you first need to fully understand the business you have. Answer the following questions:
1. How many clients do I have?
2. On average how often do my clients buy from me?
3. What is the average $ sale of each transaction.
4. Who are my current “A class” clients, my ideal clients?
This information is the foundation of your business model and will assist you in deciding how you should grow.
What is my desired outcome?
What is it that you want to achieve? Your goal is to increase your business but how specifically will you do that? There are only three choices available to you:
1. Increase the number of clients you have (of the type you want!)
2. Increase the transaction value
3. Increase the average $ sale
Your business model and the type of business you have will help you to decide which of these options is best for you. For example it is much easier for a hairdresser to increase transaction frequency than a car dealership because clients have an ongoing need to get their hair cut regularly whereas the purchase of a car happens a lot less frequently.
Based on your business model and current situation, which of the three ways to grow your business would be easiest for you to pursue? What marketing activities will work best?
Armed with the information about your current situation and what you want to achieve you can begin to select the marketing activities best suited. For example, advertising, direct mail and websites are good ways to attract new clients. Client loyalty programs, post-sales follow-up and newsletters are great for increasing transaction frequency. To increase your average $ sale you need point-of-sale promotions, add-on sales systems and upgrade offers. The choices are endless however first knowing your outcomes will enable you to make the right choice and maximise the return for your marketing efforts.
Click here for more information on how to master the art of effective Marketing, or click here for more information on developing your Strategic Marketing Plan.
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This article was provided by Anthea Moffat MBA (adv), MIMC, founder and Managing Director of Business Fusion and The Business Masters Club.
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