Small Business Financing: Avoid Waste in your Marketing Budget
One of the most common areas where businesses lose money is through mismanaged marketing spending. There are a few pitfalls that can quickly siphon away a business’s budget while looking for customers, and should they not be able to find the business that can bring them ROI, the money they spent on marketing will have essentially bought them nothing. There is generally speaking no way to recoup the costs of non-productive marketing expenses, while with the purchase of a piece of equipment that you wind up not needing, for example, you can still resell it and even though you will most likely take a loss it won’t be nearly as bad as coming up with nothing for nothing.
Avoid empty marketing spend through targeting efficiently. Targeting your marketing in order to actually reach interested clients is an important thing for you to do. To use a visual metaphor, you can think of a conversion as the bull’s eye that you are aiming for, and the rings around the target the varying degrees of interest exhibited by people who fall progressively less and less into your target demographic. Ideally, you only want to pay for marketing that falls in the center of your target. That’s why you need effective market research.
If a conversion is the center of the target, then your market research is the eye that you aim with. You wouldn’t shoot an arrow blindfolded (we hope), so why fire your marketing spend without first doing an appropriate level of market research? For example, if your product appeals to millenials, then you should figure out where those who are interested in your service spend most of their time. Social media marketing tools, for example, will generally offer you the ability to refine your targeting to within a specific range of location and interests. One can rationally deduce that since the tools are there for use, the data that makes them usable should either already be in the possession of the business in question, or they should be obtained before getting started using this flavor of digital marketing.
Know when to cut off a channel that is not performing. Even if your targeting and messaging is right, there is still a chance that a channel will not create leads because it is not the right forum for your specific commercial message. Carefully monitor the traffic and any leads that you get from your paid marketing channels. If there is something off with the types of leads you are getting, then you should consider cutting off that lead source.
Photo Credit to Dan DeChiaro on Flickr