1. Fix your existing marketing
In order to ‘fix’ your existing marketing you need to measure the results from each of your current marketing strategies and determine if they are giving you a return on investment. For example, if you run an email marketing campaign that costs you £100 and gets you 2 customers then you know that it costs you £50 to buy a customer. If these customers give you £25 profit per transaction and usually only buy from you once then you can see that this strategy is not giving you a return on your financial investment with the first sale. When you know these numbers in your business it becomes possible to make changes so that you can improve your ability to get a return on investment. For example, with an email strategy you could look at improving the subject headline, improving the content, looking at the layout and most importantly ensuring the email is being sent the right target market for your product or service.
2. Target repeat business from your existing customers
Given that its easier to get an existing customer to buy from you again than it is to get a brand new customer, do you have strategies in place to drive repeat business from your customers? With the email marketing example above, if it costs you £50 to ‘buy’ a new customer and you make £25 profit each time they buy then developing a repeat business strategy to get your average customer to buy from you 3 or more times will boost the profits of your business because you will make £75 profit and this will cover your £50 customer acquisition cost by increasing the average lifetime value of your customer.
3. Ensure you have a marketing database system
There are some incredible web-based marketing systems now available to small and medium-sized businesses for a relatively low monthly cost. These systems enable you to stay in touch with your existing customers and increase repeat business and nurture your potential customers so that you don’t let opportunities fall through the cracks.
4. Ask for referrals
How easy do you make it for your existing customers to refer you? Consider making it easier to get referrals by giving your existing customers a card or voucher that they can pass on to their contacts. And remember to thank and reward those that refer you so that they feel special and are more inclined to give you more referrals. Personally, if I don’t get thanked for a referral I usually will not go out of my way to find any more referrals for that business.
5. Look at who you can work with in partnership
A strategic alliance is when you and another business go into a loose partnership, and help each other make extra profits. For example, an accountant may refer work to a financial adviser, and vice versa. They may even give each other 10% of the price tag of any referred work. Suddenly, each has a ‘scout’ working for them. Have you identified strategic alliance partnerships for your business?
6. Develop your web presence
You may have noticed that the majority of the population now uses the Internet to find what they need. This includes YOUR target market! If your web presence is far from what it could be then its time to bring someone into your company to work on the online side of your business, including your social media. If you’ve got a great web site already, then having a plan to evolve your web-based marketing is crucial.
7. Social media is not going away
What used to be one of the strongest business strategies “Word of Mouth” is becoming overtaken by “Word of Mouse”. Social media is not a fad, so if your business is stuck in the 20th century its now time to embrace the 21st century and learn about the ‘big four’: Facebook, Twitter, LinkedIn and Google Plus.
With any form of marketing that you do for your business its important to test out the new strategies and then measure the results, so that you can ensure your marketing is generating a return on investment. Contact us if you would like our free e-book on ‘Testing and Measuring’.