Growth is one of the most important indicators for small business owners. Your business will stagnate if you don’t grow, and your competition will surpass you.
Reaching out to additional clients and putting your goods into their hands is how you grow. The majority of the time, this can be accomplished through marketing.
The term “marketing” is a bit of a misnomer. Most people associate marketing with Coca-Cola billboards and pricey TV commercials for life insurance featuring happy, smiling people. Marketing looks significantly different for small business owners. You’re on a budget, therefore those kinds of marketing strategies aren’t going to help you.
5 Ways to Improve Your Small Business Marketing
This is a small business owner’s handbook to help you get started on the correct marketing path for your company. There are 5 small business marketing tips here that you should consider while selecting how to expand your company.
Let’s jump right in!
Step 1: Understand Your Customer
Knowing who your consumer is the first and most critical stage in any small business marketing strategy. This entails creating a customer profile. Consider it a profile of your ideal consumer.
Imagine your ideal consumer as a Facebook Profile Page. That’s the best way to go about it. When you visit their website, what do you notice in the About section? Here are some questions to think about:
How old are they?
Are they male or female?
Are they a business owner?
What do they like to do in their spare time?
Do they have a family?
These kinds of inquiries will help you create a profile of the individual you’re attempting to approach. Make an effort to be as descriptive as possible and include both:
Statistical data (statistical data about where they live, characteristics etc.)
Psychographic information (emotional information about how they think, aspirations etc.).
The more detailed you are, the more likely you are to connect with them, which brings us to our following point.
Step 2: Understand Where to Reach Them
Once you’ve figured out who your consumer is, you’ll need to figure out how to get in touch with them (also read: Market to them).
Small company owners are fortunate in that there are numerous tools available to assist them in reaching out to potential consumers. This is due to the data era, with social media businesses such as Facebook and LinkedIn, as well as search engines such as Google, developing powerful algorithms to profile potential clients.
Top tip: Take a look at Facebook’s Ads feature. You can see what demographics and interest data points you can use to target potential clients. You can utilise the information from Step 1 to help you with this.
Here is a brief list of places where you can find potential customers online:
- Facebook Ads
- Google Ads
- LinkedIn Ads
- Online Forums
Remember that your consumer base may be offline, in which case reaching out to them through local newspapers or other hyper-local location-based techniques may be more effective!
Step 3: Know Your Metrics
Your unit economics must be correct for any marketing approach to be successful. That simply means you must acquire clients for less money than they are worth to your company in terms of income earned over the course of their relationship.
- Two important metrics to consider here are:
- Customer Acquisition Cost (CAC)
- Lifetime Value (LTV).
- Here’s how to work out your LTV:
Calculate the average value of each client transaction ($10 USD) based on your previous business performance.
Then figure out how many encounters a customer has with you on average. Is it a one-time transaction, or do you keep a customer for life once they’ve given you their business? (3 encounters)
Your LTV ($30 USD) is calculated by multiplying the two..
Your client acquisition cost should always be lower than your lifetime value. Keep in mind that your CAC does not include any operational expenses. If you spend too much money on gaining new clients, your profit margins will suffer.
So set a target CAC based on your business metrics, and then stick to it.
Step 4: Use Data
You may now narrow your target to a precise level thanks to the new age of consumer data. This is quite effective. It means you can target exactly who you want to reach, rather than utilising a shotgun marketing technique that results in a lot of misses for a small number of hits.
Collecting and utilising client data should be a part of your plan. Using what’s known as a Pixel is one technique to do this.
A pixel is a little bit of code that can be simply added to your company’s website. It works by anonymously tracking who visits your website and allowing you to generate audiences based on that information. So, if your website is drawing potential clients, you may use Facebook and Instagram to reach out to them.
Google has the same piece of code available to use!
PS: It’s your Pixels at work if you’ve ever been on a website and then started seeing adverts from that page while browsing the internet elsewhere. This is referred to as remarketing.
Step 5: Be Agile and Iterate
The most important step of modern-day marketing is: Constant evolution!
Marketing is no longer a one-time event. To be effective, it must be constantly monitored, tweaked, and improved. You must keep track of your metrics. When channels are functioning or not working for you, be ready to immediately shut them down and ramp up new channels.
Here’s an overview of how you can make sure you’re staying on top of things:
- Set some guideline KPI’s. These are numbers that will describe your successful marketing campaign:
- New clients, etc.
Set reviews on each of your acquisition channels weekly. Compare them to your KPI’s.
Check to see if the customers you’re getting from each of those sources are converting. Are they becoming paying customers? Always be on the lookout for ‘false achievements,’ such as building your database but not generating income.
Ramp up the budget or shut down channels as needed.
It’s important to remember that going from a $1000 monthly spend to a $10,000 monthly spend isn’t as simple as raising your campaign limitations. Your metrics will not remain the same if you increase your spending!
Stay flexible so you can respond to a market that is continuously changing.
That concludes the discussion. These five small company marketing techniques should help you increase your efforts so you can gain new consumers who will help you develop your firm.