Marketing on a Shoestring: How To Achieve a Big Impact With a Small Business Marketing Budget on Aug 18, 2011 9:47:17
It’s an age-old predicament for small business entrepreneurs: Sure, you may have built a fabulous new product or developed the next killer app, but if you don’t also do a good job of marketing it to customers, your small business can still end up failing. So, how can small, local businesses, a majority of which spend less than $2,500 a year on marketing according to a recent Merchant Circle survey, overcome this problem? The first step, say many marketing experts, begins with a change of mindset.
Put Marketing First in Your Mind as a Small Business
“For most small business owners, marketing is viewed at best as a nice add-on or at worst as some kind of foreign science whose secrets are locked away in an ivory tower somewhere, writes John Jantsch in his popular book Duct Tape Marketing. “Small business marketers need a totally different definition of marketing—one that’s honest, relevant, and more like real life.”
To get a sense of how this new definition plays out, Jantsch has developed a handy graphic about the purchasing process, something he calls the Marketing Hourglass. In a recent blog post about his Marketing Hourglass’s seven steps, Jantsch notes that “the most fundamental shift of all in marketing is the need to logically and systematically move prospects along the path of know, like, trust, try, buy, repeat, and refer—this is the entire game these days.” He adds that “any business that fills each of these seven touchpoints will be well on its way to finding and keeping customers.”
Skipping this crucial step, Thomas adds, means a small business is likely to end up with a scatter-shot small business marketing plan—a Yellow Pages ad here, an email campaign there—that doesn’t tie together and nets little in the way of return on investment. “Small businesses really have to paint the picture of who their ideal customer is, where they can be found, and how they behave, and get really specific about it,” she explains. “If you try to market too broadly to, say, 1,000 people, you may only get 10 sales, whereas if you focus on 100 really well-matched potential customers, you may actually net 50 sales. It’s kind of counter-intuitive, but by going smaller, you can actually get more in the long run.”
Match Message to Market and Don’t Forget to “Sell the Hole”
Once you’ve identified your small business’s key customer constituencies, then it’s time to craft a small business marketing message that fits your market and also speaks to its needs. This doesn’t have to be a complicated or expensive process, says small business marketing consultant Bob Wiltse, but if you don’t address both the former and the latter in your pitch, you’ll likely get little bang for your buck.
Use Social Media to Keep ’Em Coming Back (and Bring Their Friends)
Once you’ve sold a customer, enticing them to repeat their business and refer your business to others becomes the final step in the marketing process. And when it comes to maintaining and strengthening your existing customer relationships, social media has proven to be a revolutionary platform. “Social media makes it so much easier to stay in contact with customers and keep your business top of mind,” Thomas notes, adding that its interconnected nature and “share” features makes asking for customer referrals much easier (and less uncomfortable). But, she cautions, building out your business’s social media presence should still be done with due diligence.
“I always recommend to small business owners that they start off small, with one or maybe two social media platforms, like starting a Facebook fan page and maybe a Twitter account for their business. And even before you formally set them up, I suggest they use the sites for a few months to get a sense of how they work and what people’s expectations are,” Thomas explains. During this trial period, she suggests that entrepreneurs create a list of several dozen sample Facebook posts or tweets that would be both appropriate and interesting. These will be the templates for future posts once their business social media is up and running.
“Often, I get small business owners who’ve already started with social media coming to me saying ‘I have no idea what to post,’” Thomas says. “That can lead to trouble because the whole idea of small businesses using social media is to engage with your customers, not just to tell them, ‘Buy my stuff!’” This kind of hard selling can be a turnoff, no matter what the media platform or message and it runs counter to the whole point of effective, shoestring marketing, Thomas notes. “When your target market and message are defined well, they meet the right person at the right time, and when that happens, marketing is no longer intrusive or annoying, it’s helpful, and that’s exactly what you want.”