Economical Marketing Strategies

Now that you are ready to tackle the first tool in the Thrival Kit let’s look at our second tool: 
Economical Marketing Strategies!

In order for your marketing tactics to be effective you must first have a strong strategy. Your strategy must include:

• Making Marketing a Priority
• Focusing on highly-targeted prospects
• Taking advantage of bargains and discounts
• Leveraging your relationships
• Marketing through new channels.

Many companies react to economical slowdowns by cutting budgets – and marketing always seems to be on the chopping block. In fact, how many of you have already cut your marketing budgets this year? If so, it is an understandable reaction but not necessarily the right one. Here is why:

Analysts tracking companies in previous recessions found that, during the recovery period:

• firms that cut marketing experienced a small decrease in profit
• firms that maintained marketing experienced a small gain, and
• those that increased marketing enjoyed a substantial increase in profits.

In short, it is in your best interest to invest in marketing now!

With all the great opportunities to improve your marketing it can be overwhelming and difficult to discern where to begin.

Why not try a small ball strategy? (a concept designed by Andy Liu of Inspired Startup.com)
The idea is simple. If you are constantly looking to hit a home-run, you are less likely to win the game. It takes a combination of plays and maneuvers to figure out what is working best.

• What works today may not work tomorrow.
• Look at your marketing in bite sizes
• Don’t put all your eggs into one basket
• String together a bunch of small initiatives
• Try different marketing tactics for different results
• Optimize, replicate and scale what works best
• Be adaptable to change as your market changes

Along with the small ball strategy, the next key to marketing in a down economy is focusing on highly-targeted prospects. The benefits are clear:

• Marketing to a smaller list has lower costs
• Targeted lists have higher response rates.
• Focusing on fewer targets results in shorter conversion cycles.

In order to focus on highly-targeted prospects:

• Know your target market
• Deliver them value
• Remember your value has to outweigh their own fears of the economy
• Emphasize urgency
• Create exclusivity

All of these combined mean higher ROI! You can tell your efforts are working through testing. Target, Track and Test Everything you do! Stop throwing things at the wall to see what sticks. That kind of spaghetti marketing is a waste of time and money. Test multiple strategies. Create a clear plan-of-action.

Bartering and trading is a great way to get a lot of bang for your buck. A few examples include:

• I will put your ad in my newsletter if you will do the same for me.
• I will put your banner on my website if you will do the same for me.
• Donate your products/services to a charity in exchange for exposure

Not all marketing has to be high-dollar ad spends or flat rate sponsorships. Are you familiar with the old marketing adage “I know that 50% of my marketing works – - I’m just not sure which 50%”? It doesn’t have to be that way. Today’s marketing is more flexible than ever. Today you have pay for result options. Examples include:

• Affiliate marketing
• Performance based advertising models (Example – TrialPay)
• Pay for the traffic you are driving (Example – Pay Per Click – Google Ad Words)
• Pay-per-results blog marketing
• Performance based marketing plans/programs developed by marketing agencies and consultants

A killer way to market in a down economy is to leverage your relationships – - beginning with your customers.

• “When customers are truly thrilled about their experience with your product or service, they can become outspoken “evangelists” for your company. This group of satisfied believers can be converted into a potent marketing force to grow your universe of customers.” Ben McConnell and Jackie Huba “Creating Customer Evangelists”

How do you get your customers to actively participate in your success?

• Offer Incentives
• Ask for support
• Give referral gifts
• Target new customers

The value of a great customer referral is clear. “Customers referred by existing customers spend an average of 50 to 75 percent of the referrer’s spending over the first three years of their relationship.”

You can also leverage partner relationships to market effectively in a down economy.

• Partner with “Up market” or “down market” companies in your industry to share leads
• Partner with complimentary companies. (Example: create product bundles that add additional value to customers at a lower price.)
• Partner with companies already reaching your target audience.
• Create partner programs that pay for referrals or sales.

Creating a formal referral program is a great way to reward customers and partners for what they do to help you grow your business. A good referral program must be well designed and supported with processes and technology:

• You need a database for capturing data in a structured format.
• You need to track leads and follow-ups with an effective sales team for growing your business.
• You need to acknowledge and reward your referring customers promptly.

There are a lot of ways you can market but some strategies are more economical than others. In times like this, your best bets are:

• Email
• The Web
• Social Networking
• Traditional Media
• Events, Webinars, Seminars
• Incentives
• Networking

Email marketing is cheaper. Consider this: Average costs of 3 to 10 cents per email, versus $2 for direct mail and up to $3 for telemarketing. (Source: McKinsey & Company)

Customer acquisition costs average only $24 for email versus $82 for PR, $958 for print ads, and $1,457 for radio ads. (Source: Fiore & Collins)

In order to benefit from email marketing, you need to have an effective email system in place to manage contacts, deliver targeted messages, and ensure high deliverability (there are a lot of factors that affect email deliverability).

• Email can be used as a relationship builder to build relationships with customers and prospects over time.
• When email provides true value it is often shared (goes viral).
• Email is easy to track. Valuable information for other business decisions can be gathered quickly.
• Email can be automated with the right tools.

Email marketing is not the only way to market using the Internet:

• Use landing pages to produce the best YPV (yield-per-visitor)
• Don’t just sell. Create simple tips. Blogs. Forums. Etc.
• Nothing in life is free. Offer value in exchange for data, but don’t always go directly in for the sale online.
• Make sure your website is a first impression that builds trust
• Add with new daily content: event listings, product/service announcements, blog posts, your latest testimonials, press/news, etc.

Social media is another great marketing tool but you need to be careful how you use it:

• Actively participate, just creating an account is not going to get you anywhere. Join niche groups within the different networks.
• Address any customer complaints that arise in social networks, quickly and carefully. Comment on other third party blog posts and forums.
• Make sure your posts are conversational not sales pitches.
• Unleash your customers and staff by encouraging them to communicate via forum posts and blog comments.
• Track results so you know which activities are driving your leads.

While social media is being utilized more and more, traditional media still has its place:

• Get friendly with your local business reporters and not just the major newspaper: local business journals, smaller/independent newspapers, community papers, university papers, etc.
• The press is looking for good news stories, especially from small businesses and entrepreneurs. Contact them about awards/recognition, industry tips, client successes, charitable activities, and speaking engagements/events.
• Most publications will only accept email submissions so make sure you have a catchy subject line and are following all email best practices (don’t spam the media).
• Write or co-write articles that are pertinent to your industry. Submit completed articles or article ideas to editors, local and national – especially vertical, that might have an interest.

Free seminars and webinars are great ways to engage new audiences and provide clear value that helps you to gain trust and recognition in your market. Find a possible partner to co-host an event. Offering valuable content from two sources is even better than one. Partner with non-competing third-parties that would be interested in sponsoring your event to help you market and gain exposure for your event. Ask your local churches, universities, banks, chamber of commerces, etc if they will host your event. Webinars are a low cost way to execute your event. Invite your prospect and customer base and ask them to share the invitation with friends.

Incentives can be a great way to get your prospects to take action. Here are some incentive ideas:

Low Cost Gift Ideas:

• Company logo items (hats, water bottles, mouse pads, etc.)
• Non-related materials (stuffed animals, candy, paperweights, etc)
• One of your products or services at no cost to them
• Calendars
• Food

No Cost Gift Ideas:

• Free Whitepapers
• Free Reports
• Newsletters
• Admittance to webinars
• Industry specific bonuses
• Trial offers

When done properly, networking can be the single most effective way to grow your business.

• Socialize, don’t sell
• Create personal connections
• Focus on quality vs. quantity
• Find a fit
• Make an investment and commitment
• Get involved
• Look for ideas not just people

In Part 3 of Making Your Business Thrive in a Down Economy, we will discuss the third pillar – Effective Processes.

Have an extraordinary day!

Ken

Related posts:

1. Get Positive!
2. Effective Processes
3. Make Your Business Thrive!
4. Database or Rolodex?