Cost-Effective Marketing in Lean Business Times
Category : Marketing strategies
For SMEs, marketing can be a daunting task. Compared to the considerable war chest of established businesses, a startup or a relatively smaller company has little in the way to spare in terms of marketing and advertising. And yet all businesses know that marketing is a necessary evil: in an industry with tight competition, it’s a requirement rather than an option.
That said, here are several cost-effective marketing strategies you can fit on a shoe-string budget:
“Cheap” Catches Attention
All businesses dream of being the company that offers quality, reliability and good taste. When you’re starting out, however, you can’t expect to build a tradition of “solid reliability” right from the get go, or price products on the upscale side with the big boys.
As such, having a low-cost version of your product or service can be an effective marketing tactic. Some customers are after a bargain rather than quality: having a cheaper version alongside your regular offering can meet this neglected niche. For services, you can structure the offer as a “light” and “premium” version.
Everyone loves enjoying perks above others. Entice new customers with offers of discounts and other exclusive benefits. Portray it in such a way that only the first 100 customers, for example, get that perk.
When you have a solid client base, you can then focus on customer retention. Encourage repeat business by offering lifetime discounts and valued client status once they reach a certain amount of accumulated purchases. Having a client stay onboard for the long-term always outweighs whatever discounts you might have to give. Besides, the cost of attracting a new client is about 5x greater than the cost of retaining an existing one.
Always “Do”, Never “Don’t”
Always back up your marketing plan, offer or discount with rock-steady logistics. This means that if you offer a freebie, make sure you never run out of stocks. When customers come flocking to your door only to be turned away for that reason, it will leave a bad taste and might brand you as a business to avoid.
Think of each marketing tactic as a battle. Your aim is to attract as much clients as possible given a certain budget. To make sure you meet your objective, remember to look back on your “supply train”, and don’t just focus on the marketing campaign itself.