In the words of marketing pioneer John Wanamaker,
"Half the money I spend on advertising is wasted; the trouble is, I don't know which half."
However, in the 21st century, we have new insights to go beyond mass marketing to targeted marketing, as discovered by Peter Fader, a marketing professor at Wharton. Fader's research on Customer Lifetime Value (CLV) has shown that a small proportion of customers can account for a large proportion of profitability. So, to stand out from your competitors, it's important to relentlessly focus your marketing resources on those valuable individuals, but with a different approach.
We understand that as business owners, you're always looking for ways to maximise returns on your marketing efforts. However, we know that it can be challenging to find the right balance, especially for small businesses where every investment must pay off.
To help you get your marketing spend right, we'd like to share some insights that we believe can inspire you to approach your marketing in a fresh and effective way.
Firstly, it's crucial to
1. Define your marketing objectives and align them with your business outcomes. This will help you focus your efforts on the strategies that will deliver the best return on investment. Ask for help.
2. Know your target market - and understand their needs, so you can tailor your marketing messages to resonate with them in a language and style they understand. Understand what is your Customer Lifetime Value? (CLV). Are your products and services single transactions or are they long term relationship repeat business based? Understanding this will help frame your marketing plans.
3. Choose your marketing channels wisely What works may differ depending on whether you're a B2B (Business to Business) or B2C(Business to Consumer) . It's essential to choose the right channels that align with your goals and target audience.
Whether it's social media, email marketing, or other tactics, it's important to test a range of methods over time to find what works best for your business.
4. Craft a powerful message that resonates with your audience. It’s at the heart of any successful marketing. By understanding customer’s needs, you can create marketing materials that showcase the value you bring, and the problems you solve for them in a way that speaks to them.
5. Success Measurement. Don't forget to measure your results each time and adjust your strategy as required to achieve the best outcomes.
6. Exceptional customer experience – this will always be your most powerful tool. Deliver excellent customer service that goes above and beyond what your competitors are offering. This will help you build a loyal customer base and generate positive word-of-mouth advertising and great reviews and referrals.
7. Be innovative: Don't be afraid to try new things and be creative in your approach to business. Innovate with new products or services, new marketing techniques, or new ways of reaching customers.
8. Build a strong online presence: In today's digital age, having a strong online presence is essential. Make sure your
website is user-friendly and easy to navigate. Your website is your online shop front – do not underestimate the power of a
great or efficient website. If it’s hard to use, people will just look elsewhere. Use social media if relevant to your business in
way that engages with your customers to help build your brand. Increase engagement by having something to say.
Don’t just post for the sake of it.
If you want to take your marketing to the next level, we're ready to help you create a marketing plan that drives results for your business.