Mr. Bob had a visit from a small business owner. She wanted to build her business and had budgeted another $2,000 for advertising. She wanted guidance on how best to promote her business.
Mr. Bob asked the business owner what she had done in the past, and she replied that she had spent $2,000 on advertising. Mr. Bob asked if the advertising had worked.
“What do you mean, did it work? When you buy advertising there are no guarantees. You place an ad and hope that it works. It is just part of doing business,” was her reply.
“Well, let’s try and work out what results you got from the advertising. Let’s measure your advertising success. How many clients do you have and how much revenue do they generate?” The owner responded that she had 39 clients, each of whom paid her $45.00 a month or approximately $600.00 a year. To Mr. Bob’s next question, “Out of those 39 clients, how many became clients as a result of your $2,000 of advertising?” the owner replied that the advertising had brought one new client to her.
“So why do you think advertising is the way build your business”? Asked Mr. Bob. “ You have 39 customers, of whom only one came directly as a result of advertising. Where did the other 38 clients come from?” She replied that they had come from friends, family, word of mouth and referrals.
“Well, then,” said Mr. Bob said, “Let’s look at how best to build your business. Your greatest success in gaining new customers comes by word of mouth referrals. What do you think would happen if you developed an incentive program for giving you referrals? For example, if one of your customers gave you a referral, you could acknowledge that referral and show your appreciation by giving your customer a gift -- flowers, a dinner out, a free cleaning up to the value of $45, or if the referral generated a larger contract, you could give a larger gift. What do you think would be the result of that type of advertising?”
“I would get lots of new customers,” she said.
For more information go to www.mrbob/bob or call (705) 721-0727
Homework - Who drives your business; your customers or your marketing?
In summary:
Does your advertising work?
Is advertising the method to build your business?
Ask yourself, what approach gets your best clients
Identify and act on the strategies that make sense, not nonsense
To subscribe to this newsletter e-mail Mr. Bob at mrbob@mrbob.ca and check out our past newsletters at http://mrbob.ca/newsarchives/index.htm
Mr. Bob asked the business owner what she had done in the past, and she replied that she had spent $2,000 on advertising. Mr. Bob asked if the advertising had worked.
“What do you mean, did it work? When you buy advertising there are no guarantees. You place an ad and hope that it works. It is just part of doing business,” was her reply.
“Well, let’s try and work out what results you got from the advertising. Let’s measure your advertising success. How many clients do you have and how much revenue do they generate?” The owner responded that she had 39 clients, each of whom paid her $45.00 a month or approximately $600.00 a year. To Mr. Bob’s next question, “Out of those 39 clients, how many became clients as a result of your $2,000 of advertising?” the owner replied that the advertising had brought one new client to her.
“So why do you think advertising is the way build your business”? Asked Mr. Bob. “ You have 39 customers, of whom only one came directly as a result of advertising. Where did the other 38 clients come from?” She replied that they had come from friends, family, word of mouth and referrals.
“Well, then,” said Mr. Bob said, “Let’s look at how best to build your business. Your greatest success in gaining new customers comes by word of mouth referrals. What do you think would happen if you developed an incentive program for giving you referrals? For example, if one of your customers gave you a referral, you could acknowledge that referral and show your appreciation by giving your customer a gift -- flowers, a dinner out, a free cleaning up to the value of $45, or if the referral generated a larger contract, you could give a larger gift. What do you think would be the result of that type of advertising?”
“I would get lots of new customers,” she said.
For more information go to www.mrbob/bob or call (705) 721-0727
Homework - Who drives your business; your customers or your marketing?
In summary:
Does your advertising work?
Is advertising the method to build your business?
Ask yourself, what approach gets your best clients
Identify and act on the strategies that make sense, not nonsense
To subscribe to this newsletter e-mail Mr. Bob at mrbob@mrbob.ca and check out our past newsletters at http://mrbob.ca/newsarchives/index.htm
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