The legendary Peter Drucker said that
“BUSINESS HAS ONLY TWO FUNCTIONS – MARKETING AND INNOVATION. ALL THE REST ARE COSTS.”
I agree – I’ve seen it in action for over a decade now. The business owners who invest in the right type of marketing and who improve their products, make a far bigger impact.
But remember, if you are not careful about marketing – you can waste a lot of money very quickly.
Look, if you have been in business for a while, then you know that there are different types of marketing available for your business.
In fact, we identified over 100 different ways of marketing your business.
Out of these, only a few types of marketing work better than others.
So, the big question is…
WHICH TYPE OF MARKETING IS BEST FOR YOUR BUSINESS?
From my experience, the best way to grow your business online is through Targeted Marketing.
Targeted Marketing allows your business to reach people who are already looking for your stuff or who might be in the market soon.
In other words, you show your products and services only to people who showed interest in what you are selling.
The idea is simple – but it requires both marketing creativity and technical knowledge to get done the right way.
So keep reading or, book a phone call to see if targeted marketing can grow your business.
WHY IS TARGETED MARKETING THE BEST WAY TO PROMOTE YOUR BUSINESS?
QUICK TO MEASURE
Your prospects are located in different places and look for you in different ways. Some are using their mobile phones to search on Google. Others are browsing websites while in the office. Many of them use different words to describe what they are looking for.
How will you reach prospects most effectively?
The answer is to have many “hyper focused” ads about your company visible to people in different places.
This means that regardless of where people are, or how they are looking for your products or services, you will always be visible in the most relevant way.
If you are a business owner WITHOUT a $1,000,000 marketing budget, then your best bet is to invest in marketing that can be measured quickly.
Why? Because when your marketing results can be measured quickly, then you can see if this marketing is bringing you money or losing you money. This helps you decide quickly about what to do next.
- Let’s say that your business sells a product (or service) for $100.
- Each time you sell your product, you make a profit of $50
- You decided to invest $300 to advertise your company on Google.
A positive marketing result looks like this:
- From your Google advertising you made 10 sales.
- This means that your marketing cost was $30 per 1 sale.
- In other words, you invested $30 in marketing to make $50 in profit.
- Our decision: continue marketing because we are profitable and improve.
A negative marketing result looks like this:
- From your Google advertising you made 5 sales.
- This means that your marketing cost was $60 per 1 sale.
- In other words, we invested $60 in marketing to make $50 in profit.
- Our decision: stop this ad and create a better version.
Do you see the power of these quick measurements?
When you are able to measure your marketing quickly, you automatically make it cost effective.
Why? Because you limit wasting money on marketing that doesn’t work.
Imagine if newspapers placed your ads for free and asked you to pay only when readers visited your website or called your phone?
Well, that’s what we do on the web. Places like Google, Bing and Facebook allow business owners to show ads and pay for them only when people click to visit your website.
This is called “pay for performance” marketing. You only pay when a person visits your website or calls you. It also means that – if no one clicks, then you don’t pay.
Can this help your business? Book a call to find out
Please bear with me for a moment here. I know we are talking about marketing – but it’s also important to remember what is “leverage”.
Leverage is one of the most powerful concepts you need to remember as a business owner. The more leverage you have, the bigger your results will be.
Look, inside your business right now there are 2 types of activities, – “low leverage” activities and “high leverage” activities.
Low Leverage activities are tasks that have a low long-term value and can be done by someone else. Cleaning your office and checking your email are low leverage activities.
High Leverage activities are tasks that can produce results over and over in the future. Hiring people and creating marketing are high leverage activities.
Targeted marketing is a high leverage activity, because when you figure out what works, you can continue leveraging it over and over to keep growing your business.
Want to leverage this for your business? Book a quick call
Our Targeted Marketing process uses a combination of focused paid ads, email marketing and remarketing. This allows your company to leverage customers at different stages of their buying process.
We begin by finding out who your typical customers are – their location, gender, interests and above all – what problem are they trying to solve. Then, we find out where your customers “hang out” on the web and we launch our marketing there.
The majority of people visiting your website will be “Researchers”, – they are “just looking”. They are interested in knowing the features and benefits of your product and service, and how it will help them solve their problems.
A tiny fraction of people visiting your website will be “Shoppers”, – they are in “buying-mode”. They want to see reviews, pricing, warranty and delivery details of your product and service, and how it will help them make a good buying decision.
Since the “Shoppers” and the “Researchers” want different type of information on your website, we need to cater to both groups. Our ultimate goal is to get as many people as possible involved with your company.
Find out if this marketing process can help your company grow this year. Book your free Website Marketing Strategy session.
This used to be a difficult question in the past. But nowadays, you don’t need to break your head.
It boils down to knowing one important number, – the Lifetime Value of your Customer. Which in simple language means – the amount of money that your typical customer will spend in your business the entire time that you deal with that customer.
You see, if you don’t know the lifetime value of your customer, then you won’t know how much to invest into marketing.
Here is an example:
Let’s assume that you sell a product (or a service) for a profit of $100. And you know that your typical customer buys 3 times over two years. This means that the Lifetime Value of your Customer is $300.
Now, let’s say you invest $500 for one month to advertise your company using Targeted Marketing.
During this month, 5 customers purchase from you for a total of $500. So, it cost you $100 to attract one new customer (some people call this “Customer Acquisition Cost”).
On surface it looks like you didn’t make any money because you spent $500 and you earned $500.
But when you consider the Lifetime Value of your Customer, you will see that your customers will buy from you an additional $1000 over the next two years. And, you won’t need to spend any more on marketing to get these additional orders.
So – what should be your marketing budget?
In the example above – your marketing budget could be dictated by how many new customers you want to attract. So, if for $500 you get 5 customers, then for $1000 you get 10 customers and for $5000 you get 50 customers.
This is a perfect example of quick to measure, cost effective marketing that can be leveraged by your business over and over in the future.
Do you see the power of Targeted Marketing?
If you want to see how Targeted Marketing can help your company, please book your free Website Marketing Strategy Meeting ($200 Value).