You’ve scraped together every cent that you have to get your business up and running but have you included marketing costs in your budget?
If not, know that there is a way for you to still promote your business and not have to try and find additional funds. There is always an opportunity available, regardless of the industry that you are in.
“You can have brilliant ideas, but if you can’t get them across, your ideas will not get you anywhere.” – Lee Iacocca
How to Evaluate Small Business Marketing Ideas
Before you start trying to tick every marketing box possible you need to take the time to understand which marketing ideas are going to give you the fastest and best return on investment.
Consider the following points before you decide which marketing opportunities will work best for your business:
- Objectives. Your marketing needs to match your objectives so refer back to your marketing plan to remind yourself what these are. Do you want to build strong relationships with clients, do you want to increase your sales by a large percentage in the next 6 months or do you want to establish your brand as an expert in your industry?
- Customers. It might seem obvious but many entrepreneurs tend to overlook their customers and don’t analyse exactly how they are spending their time. Another aspect that needs to be considered is when you want to reach your customers. This will also help you to decide on your marketing options.
- Product. The type of product or service that you will be marketing will also play a role in how and when you should market it to potential customers. When would your users be in the best frame of mind to receive information on your offering?
- Cost. Obviously cost is not going to be your biggest concern if you have a very small or no budget at all but there might be some small business marketing ideas that will require you to fork out a small amount of money to get the benefits that you’re looking for so keep this in mind and perhaps see where you could possible get the funds for this.
- Time. You need to ask yourself how much time you have available to spend on your marketing efforts as this too will contribute to the marketing ideas that you decide on. Some platforms such as social media require daily monitoring and activity while getting someone to hand out brochures is a whole other ball game.
- Competition. Where are your competitors currently advertising? If you’re looking at the same marketing platforms that they are currently present on then ask yourself how you can be better. Otherwise, take the time to consider options that they might not have considered yet.
Small Business Marketing Idea Options
By deciding on the right mix of marketing ideas you can really give your start-up a fighting chance so forget the idea of marketing being expensive and difficult and check out some of the many free small business marketing ideas that you can take advantage of.
1. Get Networking
You’ll be surprised at how many small business networking events are taking place all over the country every week so take advantage of this. These events will not only give you access to potential customers but they offer you an opportunity to market your business for the price of an admission fee if anything. Contact your local chamber of commerce or keep an eye on websites like the National Small Business Chamber.
- Don’t try too hard to impress people at a networking event. Being yourself will earn you more respect.
- Avoid interrupting others. Listening is important as it shows you are genuinely interested in what someone has to say. Don’t answer your cellphone or stop to greet someone else while they’re speaking either.
- Be prepared. Walk into an event with business cards and be able to answer basic questions about your business to avoid looking like an amateur.
2. Design a Free Website
Almost every business you come across today as some sort of a website because most consumers tend to turn to the web when they need information. Luckily, setting up a basic website is a lot easier than you think. Sites such as WordPress, Wix, Weebly and Yola are all perfect options for creating a simple online presence for your business. If you are looking for something more advanced, you can choose to purchase a specific WordPress template for a small cost that will give you the online features that you need.
- Choose a website address that explains or gives browsers an idea of what your website is about.
- Simpler is better. Don’t go overboard with colours or how much information you include on your site.
- Make it easy for browsers to contact you.
- Five Ways to Build Customer Trust Online
- How to Keep Visitors on Your Site for Longer
- (Video) Simple and Effective Web Design Tips
3. Create a Business Card
Many entrepreneurs tend to overlook the smaller, tried and tested marketing ideas that are still very effective. Business cards are very affordable to print and it could mean the difference between missing an opportunity at a networking event and building a relationship with a long term client.
- Colours and fonts are important so think twice before you choose a font that is hard to read.
- Provide the receiver with more than one way to contact you so think about including your landline, cell and email address.
- Present your card properly. Don’t push it towards someone over a table or leave it on their notebook. Hand it to them face-to-face wherever possible.
- Business cards don’t need to be boring. You can really get creative and design it in an unusual shape that represents your brand.
4. Write Up a Storm
A great way to establish yourself and your brand as an industry expert is to find blogs that you might be able to contribute to. Create a list of some key blogs that have good amounts of traffic and create a few pieces that you can submit to the blog owner but make sure that whatever you write is of benefit to their readers and that you’re not just punting your own product. Another option is to start your own blog if you already have a website. Update it weekly with content that your users will enjoy reading and will pass onto their friends, family and colleagues.
- Always make your content relevant to your audience as well as to what your business does.
- Online content is usually scanned so take advantages of sub-headers and bullet points where possible
- If you’re submitting a blog post to another website try and get the email of the person who will be making the decision to publish it or not to find out if they have any criteria that you’ll need to meet
- There is always a way to draw a reader in regardless of what you are writing about. Find your uniqueness.
5. Become the Talk of the Town
Having a presence on social media is another free small business marketing idea to take advantage of. This doesn’t mean that you should register your business on every social network possible but instead select one or two where you know that potential customers like to spend their time. Social media pages need to be monitored and updated on a regular basis so make sure that you have the time to do this or at least have someone who can attend to any queries that you might receive.
- Make sure that your social media pages are complete. Don’t leave your avatar blank, fill in your profile and include a way for users to get in touch with you
- Always respond to comments, questions or complaints directed at you within 24 hours
- Thank users for good feedback and find out how you can assist them when the feedback isn’t so great
- Keep promotional tweets to a minimum or you won’t end up with much of an online following
- (Video) Social Media Dos and Don’ts
- How to Get Positive About Negative Online Comments
- 5 Ways That Social Media Can Be Disastrous for Your Business
6. Create Loyalty
Loyalty programmes are the perfect way to keep customers coming back and it doesn’t have to cost much either. Decide whether your loyalty card will be printed or online and how customers will earn points. You should also make sure that the reward you are offering is something that you can actually deliver on. Another benefit of loyalty programmes is that they usually have a knock-on word of mouth effect.
- Keep the tasks realistic. If customers are finding it difficult to complete a task to receive a reward then they will lose interest in your programme
- Rewards don’t need to cost you a fortune but spend what you can to make the incentive worthwhile for your customers.
- Partner with another brand or business. This way you can save costs and you both benefit from it.
- Make sure that the rewards suite your business. Cash rewards and discounts are perfect for a retail business while the same approach won’t necessarily work for a gardening business.
7. Pop Them An Email
Your website can have so many other benefits besides your customers finding you online. Why not setup a newsletter sign up box to start building an email database. You can then use this to send out a weekly or bi-weekly mailer to your list informing them about your latest specials, interesting content or a new competition that you are currently running. Everyone hates spam so put some time into making your mailers stand out and be worth the open.
- Put some thought into the design and layout of your newsletter. Does it properly represent your business?
- Don’t overwhelm your readers with a busy mailer that is purely promotional. They will more than likely delete it.
- Make it easy to subscribe and unsubscribe from your marketing mailers.
- Use powerful wording to get more people to open your emails.
8. Don’t Forget the End Bit
Every bit of exposure for your brand is going to count so don’t forget to add a good looking email signature to everything you send out. Having links in your email signature is a completely free marketing tool and will generate website and social media traffic.
- Add your logo to your signature to give it a visual element.
- Add social media logos to your signature so that people can follow and like your pages.
- Go easy on the disclaimers. Make it short, simple and professional.
9. Make them Winners
Customers and potential customers are always keen to win something so why not take advantage of the excitement of a competition and run one on your site or even your social media pages. You can even take it a step further and get users to fill in a survey in exchange for an entry into a draw. This way your business benefits in more ways than one.
- Don’t make your competition entry instructions overly complicated, it puts users off.
- Make the prize worth their while.
- Try to run your competition on your website instead of directly on your social media pages. Advertise the competition on your social media platforms so that they can be shared and execute the competition on your website to increase visitors and product/services exposure.
10. Ramp Up Your Customer Service
Customers remember where they have received outstanding service and tend to recommend these brands to people they know more often than a brand that gave them average service. Word of mouth is a powerful marketing tool and a marketing idea that will never cost you anything. It doesn’t take much to provide your customers with a memorable experience so capitalise on this whether you run an online store or a B2B company.
- Aim to please your customer but not to an extent where you are jumping through hoops and jeopardising relationships with other clients or your employees
- Get your team onboard with excellent customer service so that customers have a great experience regardless of who they’re dealing with.
- Always be polite and professional, even when you’re having a bad day. This is your business afterall.
The Facebook Ads Strategy That Can’t Lose
It’s a numbers game.
Running a profitable Facebook Ads campaign is simple. Not always easy, but simple.
There is a formula that can guarantee a profitable Facebook Ad campaign. Once you know the formula and the values to plug in, you’ll never sink money into a losing digital ad campaign again. I know it sounds too good to be true, but stick with me…
The Guaranteed Growth Formula
Here’s the entire formula: CPA < AP
Were you expecting coefficients, remainders and dividing by polynomials? Nope, there are only two values that matter when assessing your digital marketing funnel.
1. CPA – Cost Per Acquisition
2. AP – Average Profit Per Client
If your Cost Per Acquisition, the amount you pay to generate a paying customer using Facebook Ads, is less than the Average Profit you make from each new customer you’re guaranteed a profitable campaign.
Calculating Average Profit
To get average profit per client, sum your total revenue from new clients and subtract what you spent to serve them. Divide the result by the total new clients. For example, if you made $75,000 from 10 new clients over the past year and it cost you $40,000 to serve them, your average profit is:
($75,000 – $40,000) / 10 = $3500 Average Profit Per Client
If your average acquisition cost for similar future clients is less than $3500, your campaign will technically be profitable.
Of course most businesses won’t want to spend all of their profit on acquisition. An average business can expect to invest at least 7 percent but no more than 15 percent of revenue in sales and marketing. If Cost of Goods accounts for 60 percent or more of total revenue, your low profit margin may make it difficult to afford successful advertising. Decrease operating costs by increasing efficiency or adjust your margin by raising prices.
Don’t make the mistake of calculating Average Profit based on revenue only from the first sale. Use at least six months of revenue or your lifetime client value as the basis for your calculation, or you risk underfunding your marketing and sales budget.
Calculating Cost Per Acquisition
Let’s assume you’ve considered all of your marketing and sales costs and determined you can spend $350 per new client on Facebook Ads. Let’s reverse engineer your ad campaign to see if a $350 cost of acquisition is reasonable.
The simplest Facebook ads funnel includes four metrics that build upon each other to determine your acquisition cost. I’ve included standard benchmarks for use as a starting point, but your results may differ:
1. Click-Through Rate (CTR) – Percentage of people clicking on your ad. Your CTR should be near or above 1 percent.
2. Cost Per Click (CPC) – The cost of one website visit. CPC should generally be below $3.
3. Lead Conversion Rate – The percentage of site traffic that becomes qualified leads. This value should be 20 percent or above.
4. Sales Conversion Rate – The percentage of leads that convert to a sale. Aim for sales conversion at or above 5 percent. (E-commerce companies often skip the Lead Conversion stage and have a Sales Conversion Rate of 1 percent or greater.)
If 10,000 people view your ad at a 1 percent CTR, you’ll get about 100 website visits. At a $3 CPC, you’ve spent $300. Since 20 percent of your traffic will become leads and 5 percent of those leads become closed sales, we can calculate that you’ll generate approximately 60 leads and three new customers.
Your estimated acquisition cost using Facebook Ads is $100 per client, which is well within your budget of $350. This cost may rise as you scale and target less optimal prospects, but as long as your acquisition cost is less than $350 you’ll make an acceptable profit.
Complex funnels can include several ads and conversion points, but the Guaranteed Growth Formula of CPA < AP still applies. There’s no immediate reason for concern if your metrics differ from the benchmarks. You can and should split test ideas for improvement if your numbers are far from what you expect, but don’t mess up a good thing until you’ve got a better one.
Optimising Your Guaranteed Growth Funnel
If unhealthy metrics cause your acquisition to cost more than what you’ve budgeted, start with these adjustments:
Click-Through Rate Too Low or Cost Per Click Too High
If your CTR falls far under 1 percent Facebook may stop showing your ads or show them to second-rate audiences causing your traffic to tank and CPC to increase. To improve your click metrics, adjust your ad copy (headline and body text), ad creative (image or video) and highlight the benefits in your offer.
Refine your audience. Tailor your copy, images and call-to-action to the audience you’ve selected and ensure that your audience has the desire and means to act.
Lead Conversion Too Low
If leads aren’t converting at 20 percent or more, either the promise made by your ad isn’t congruent with your landing page, or the process of moving forward is too difficult. Try using the same image and headline in your ad and reduce the form fields in sign-up forms to the bare minimum. Also try retargeting visitors who don’t sign up with ads stating the benefits of acting now, or with a different offer.
Sales Conversion Too Low
If you’re an Ecommerce brand with sales conversion below 1 percent your shopping cart or sales process may have too much friction. Simplify the sales process to decrease clutter, or increase trust by adding testimonials and trust signals near important calls to action.
Your sales process may need improvement, but that is beyond this article. In the meantime, you can still increase revenue by cross-selling and upselling those who convert. You may also improve client retention with recurring contracts. Yes, that’s why many software companies are switching to cloud-based subscription models.
When used properly, The Guaranteed Growth Formula of CPA < AP makes Facebook Ad marketing an investment, not an expense. Using the formula, the most you should ever risk is a small initial budget to test whether your estimated calculations hold true in practice.
If your net profit is 3X your acquisition cost, your funnel returns $3 for every $1 you invest. Instead of asking “How much should I spend on marketing?” The question becomes, “How much do I want to make?” I’ve built a Facebook Ad Growth Calculator that incorporates the Guaranteed Growth Formula to help execute your growth strategy. Input your revenue goal and it will estimate the Facebook Ad impressions and traffic required to reach it.
This article was originally posted here on Entrepreneur.com.
How Is Influencer Marketing Going To Change In The Future?
How is influencer marketing going to be in the upcoming time? Read on.
Influencer marketing is definitely not a new story. It’s been more than a decade now that it is immensely dominating the world of digital marketing. While being extremely cost-effective, influencer marketing strategies have very soon ended up with a great exposure. The businesses are building an immense level of reputation and earning various links with the help of this innovative marketing concept. In fact, the influencer marketing agencies are coming up with new approaches of implementation with each passing day.
Moreover, like any other type of marketing, the trends of influencer marketing are ever changing. Like how the story was five years back is not the same now and it is going to further evolve in the future.
The anticipated influencer marketing challenges
With the continuous growth of social media, influencer marketing is definitely going to face a myriad of obstacles. A few of the most expected ones are as follows:
The demand for influencer marketing is continuously on the rise and eventually, the cost is going up. If you want to enter into the market of influencer marketing and establish yourself as an influencer then you need to give a lot of efforts while building a personal brand and earning the reputation for yourself.
You want to become one among such influencers who’ve already amassed a great following means that you’ll need to make it worth it- sometimes paid promotion could be the right tactic. In the future, this scenario is going to be even more prominent as people will have to spend huge bucks to be a worthy influencer.
In recent times, consumers have gradually started distrusting the huge brands when they realised that the corporations are working for only profit without having the user’s interests in the mind. So, for them, influencers are now no more than some mere conduits for big commercial names. So, it is going to be really tough for the influencers to get the trust of consumers back.
High level of competition
Social media is no doubt such a place now which is teeming with massive competition and threats. Many influencers who are already thriving and the people who have an urge to become influencers turn it into a complicated scenario for you to enter in this space as an influencer in your own right.
How can influencer marketing unfold in the future?
Of course, there are multiple ways in which the entire story of influencer marketing can change in the coming years. Let’s check out some of the most expected developments:
Exchanges will be ahead of favours
The chapter of influencer marketing is probably going to be a pretty much an impartial marketplace in the coming time. The brands are more likely to enter into a mutual collaboration with the influencer marketing agencies in terms of interchanging shares, posts, audience visibility while being more organic rather than asking for the favour of mentioning the brand’s name to the influencers
Networking will be preferred over individuals
Gone are the days when influencer marketing used to be the story of respective individuals. Now, markets are assumed to start focussing on the entire networks or industries. The future influencer marketers can get rid of the problem of being based on individual interactions by getting the insights of blog comments, forums etc.
Change in the concept of disclosure
Why has not native advertising sustained over the long term?
It’s because the publishers always negate to disclose which posts are the paid promotions. In such a scenario, influencer marketing strategies can move a bit ahead of this transparent problem in the future. All that they are expected to do is formally announce the sort of partnership or arrangement that is existing behind each and every content. The experts believe that this process might end up being quite a tedious one. Howbeit, the consumer trust will not be hampered at all.
Limited and sensible partnerships
Influencers might lean more towards self-preservation in the coming days. Rather than establishing a relationship with hundreds of marketers or products, influencers are expected to focus more on developing authentic professional relationships which really make some sense. For examples, the influencers are intended to concentrate more on such relationships which can be profitable for themselves as individuals and also seem to be appealing to their followers. Say, a move towards quality over quantity!
No doubt, the evolution of influencer marketing is not only dependent on the aforementioned factors. There’s much more that can happen. The time can only reveal that. Influencer marketing is certainly going to change on its own in either of the two ways, a more sophisticated one or become a mere peripheral strategy which won’t be completely accessible.
Let’s just wait and watch how it comes up to us in the future!
Aren’t you taking an advantage of the current extraordinary status of influencer marketing in the meantime?
Top Marketing Trends For 2019
When you reflect on marketing trends that have taken centre stage in 2018, what stands out?
Maybe it’s the proliferation of Instagram stories or influencer marketing? Or the fact that video content has become even shorter and simpler with the rise of GIFs.
The real question is how have you incorporated these trends in to your marketing strategy, and what should you focus on in 2019? Here are six up and coming trends that you don’t want to miss:
1. Say hello to the social CEO
Customers want ‘real’ brand stories and to know what drives them. Leaders who are successful on social media show their companies’ human side and give their brands’ credibility and personality. This builds loyalty and, in some cases, an emotional connection that goes beyond the product or service.
Customers who feel this connection may even go on to become brand ambassadors.
Tip: Share stories that demonstrate your leadership style as well as company culture.
2. Initiate conversations
While 2018 brought the chatbots, the trend for 2019 is really using these bots to gather information about consumers by engaging with them on a personal level and steering them towards a sale. Bots are being trained to be authentic and sound more like people than the robots they are.
For example Facebook Messenger becomes more and more useful for brands as the platform allows customisation of automated messages and the ability to initiate a conversation at the right time.
Tip: You can also integrate this with Facebook shopping and increase conversion rates by enabling the bot to sell products to a consumer through the Facebook platform.
3. Keep it local
Influencer marketing can be short lived or a little superficial. So try to identify and partner with local influencers that are happy to work on long-term campaigns. Also use multiple touch points including podcasts, YouTube and Snapchat as well as Instagram and Facebook.
Tip: Before you reach out to an influencer, follow them and learn a bit about the way they represent brands and engage with their fans to see if they’ll be a good fit.
4. Try Instagram ads
As Facebook ads continue to dominate our feeds, advertisers are looking for a new place to stand out and get noticed. Instagram ads are on the rise, according to the Merkle report that showed that while Facebook ad spend grew 40% year-on-year in the second quarter of 2018, Instagram ad spend jumped 177% in the same time period.
Tip: Do some A/B split testing with different styles of images and calls-to-action.
5. Personalise email communication
Make sure to use automation and personalisation to really make your customers feel that you are listening.
Using hyper-segmentation, you can target very specific parts of your market. This will ensure that they receive personalised emails based on what they have expressed interest in or actions they have taken with regards to your brand.
Tip: Use automated campaigns after a first purchase; to request a review on social platforms; or just thank customers for shopping and remind them to share their purchase online.
Related: Free Sample Marketing Plan Template
6. Post in real time
In an effort to bring offline marketing into the online world, Instagram TV or IGTV allows brands to create a place for consumers to watch live events or brand content in their own time.
In addition, IGTV replaces the need for YouTube in some cases as brands are able to upload 10 or more minutes of footage directly to Instagram for consumers to watch as ‘episodes’.
This will become more prevalent in the years to come as businesses include this in their strategy. IGTV videos are less formal and will typically cost less than a traditional TV advert to create.
Whatever trends come our way, the key is to remain agile and adapt to how customers engage with your brand. And more than ever before, it’s important for all marketing touch points to align and communicate the same message.
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