Marketing when you don't have a big budget can be a challenge, but there's plenty a small business owner can do to attract and maintain a customer base. The rise in digital marketing has made it all the easier for the small business owner to find a way to create a presence and attract an informed buyer.
Before your business starts marketing a product, it helps to create a buyer persona for who you want to reach with your promotional materials. Once you have your ideal customer, you'll have a plethora of techniques to pick from. Most of these are low cost/no-cost methods (sometimes called guerrilla marketing) and you may use different ones at different stages of your business cycle, or you may utilize them all at once from your business's inception.
When you build a business, the first thing you want to secure is a customer base. With a decent printer, a phone, and an internet-connected device, you can put together a fairly extensive advertising campaign without having to pay for space.
We'll look at seven of these small business marketing techniques in more detail.
- Small businesses don't have the same advertising budget as larger rivals, but there are plenty of inexpensive ways to build a customer base.
- Hitting the pavement with flyers distributed door-to-door (where allowed) and posters placed strategically can help get the word out.
- Follow-up with customers after the first round of ads so as to reinforce the initial message. Don't fear cold calls — they can be effective.
- Value additions like discounts or freebies for repeat customers are a big boon once the business is up and running.
- Referrals — both customer-to-customer and business-to-business are important as well.
- Finally, take advantage of digital marketing, including traditional web sites and social media.
This is the carpet-bombing method of cheap advertising. You find an area that you would like to do business in and you distribute flyers to all the mailboxes within reach. Your flyer should be brief and to the point, highlighting the services you offer or products you sell and providing contact information. Offering a free appraisal, coupon or discount never hurts.
Most supermarkets, public spaces, and malls offer free bulletin board space for announcements and advertisements. This is a hit or miss method, but you should try to make your poster reasonably visible and have removable tabs that the customers can present for a discount. Make each location a different color so that you can get an idea from the tabs where the most leads are being generated. If there is one area that is producing the majority of your leads, you can better target your campaign (flyers, ads in local media catering to those areas, cold calling, etc.)
3. Value Additions
This is one of the most powerful selling points for any product or service. On the surface, value additions are very similar to coupons and free appraisals, but they are aimed at increasing customer satisfaction and widening the gap between you and the competition.
Common value additions include guarantees, discounts for repeat customers, point cards and referral rewards. Often the deciding factor for a person picking between one of two similar shops is whether he or she has a point card or preferred customer card. You don't have to promise the moon to add value – often you just have to state something that the customer may not realize about your product or service. When you are making your advertising materials, the value additions should be highlighted.
4. Referral Networks
Referral networks are invaluable to a business. This does not only mean customer referrals, which are encouraged through discounts or other rewards per referral. This includes business-to-business referrals. If you have ever found yourself saying, "we don't do/sell that here, but X down the street does," you should make certain that you are getting a referral in return.
When dealing with white-collar professions, this network is even stronger. A lawyer refers people to an accountant, an accountant refers people to a broker, a financial planner refers people to a real estate agent. In each of these situations, the person stakes his or her professional reputation on the referral. Regardless of your business, make sure you create a referral network that has the same outlook and commitment to quality that you do.
As a final note on referral networks, remember that your competition is not always your enemy. If you are too busy to take a job, throw it their way. Most times, you will find the favor returned. Besides, it can be bad for your reputation if a customer has to wait too long.
Advertising can help you get a job, but what you do after a job can often be a much stronger marketing tool. Follow-up questionnaires are one of the best sources of feedback on how your ad campaign is going.
- Why did the customer choose your business?
- Where did he or she hear about it?
- Which other companies had he or she considered?
- What was the customer most satisfied with?
- What was the least satisfying?
Also, if your job involves going to the customer, make sure to slip a flyer into nearby mailboxes, as people of similar needs and interests tend to live in the same area.
6. Cold Calls
Unpleasant? Yes. Important? Yes.
Cold calling, whether it is over the phone or door-to-door, is a baptism of fire for many small businesses. Cold calling forces you to sell yourself as well as your business. If people can't buy you (the person talking to them), then they won't buy anything from you. Over the phone, you don't have the benefit of a smile or face-to-face conversation – a phone is a license for people to be as caustic and abrupt as possible (we are all guilty of this at one time or another). However, cold calling does make you think on your feet and encourages creativity and adaptability when facing potential customers.
A combination of old-fashioned pounding the pavement and modern-day pounding the keyboard will provide the best results for a small business looking to market itself.
7. The Internet
The Internet is not a cohesive whole for marketing. However, it is difficult to overstate the importance the Internet has on marketing. The previous methods of marketing have not changed in the last 50 years. The Internet has been born and evolved rapidly during that same time frame.
It is nearly unthinkable that a company (even a local café) would not have at least a web site with vital details such as location and hours. Not having a site means not having a point of access for the growing number of people who Google first when they want to make a buying decision. Add to this a social media presence (Facebook page, Instagram or Twitter account) combined with the need for good SEO, and it can appear overwhelming. However, publishing technology has evolved to the point where Wordpress – just one example of a free content management system – can meet all these needs.
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The Bottom Line
More than likely, you will find that the conversion rate on marketing is very low. Even the most successful campaigns measure leads (and converted sales from those leads) in the 10-20% range. This helps to shatter any illusions about instant success, but it is also an opportunity for improvement.
Do you want a company to buy your product? Give them a presentation showing how it will benefit them. Do you want someone to use your service? Give them an estimate or a sample of what you will do for them. Be confident, creative and unapologetic and people will eventually respond.