Where is the best place to put your marketing dollars? Part 1

golf ball on green one inch from giant wholeWhere is the best place to put your marketing dollars?

New media, traditional media, inbound marketing, out bound marketing, e-mail marketing, affiliate marketing, fusion marketing, white hat and black hat marketing… there are so many new terms in the marketing world it can make your head spin.  What is a small business person to do?   Things are changing so quickly in the marketing world it is almost impossible for a small business person to keep up, much less know where to best place their money to grow their business.  In this blog I am going to explain a few of these terms and then offer what I believe you will find is a common sense approach to investing in you business’s future growth.

 

Terms:

New media – messages delivered electronically via e-mail, social media (Facebook, Twitter, LinkedIn) and the internet.

Traditional media – media delivered via print, television, radio, billboards, and mail.

Inbound marketing – a strategy of enticing prospects to come to you.  The first of these was directories and the yellow pages. Today website optimization (SEO) and pay-per click (PPC), blogging, social media (Twitter, Facebook, LinkedIn, You Tube) and permission based e-mails are all good inbound marketing tools.

Outbound marketing – Out bound marketing is often confused with traditional marketing because most traditional marketing, except directories, is outbound.  The strategy here is to catch the prospect’s attention long enough to deliver the message of how the product can help him.  Placing ads on the internet is also outbound marketing, as is telemarketing.

E-mail marketing – most people generally understand what e-mail marketing is – delivering a message via e-mail.  However, a very small percentage of small businesses understand how vital gaining the audience’s permission is and how not obtaining it will hurt you today and tomorrow.

 

A few weeks ago I was at a meeting and someone held up some traditional advertising and announced – “old media” is dead.  We strictly promote ourselves with “new media.”  Continuing, they said we are only going to use the internet and social media.  If utilized properly, these should get results — but I was not convinced they had the skills or were going to dedicate the time and effort to make that work.  Without the proper know-how and constant vigilance, these media will not produce the level of results that they can.

I often hear people say they have a website and have tried social media but they don’t work.  Unfortunately, the reality often is that the small business person does not know how to make these perform optimally and they do not have the time to dedicate each day to maximize their effectiveness.  As a marketing coach and marketing consultant, I am asked to help firms transition from strictly traditional marketing and advertising to a blend of traditional and new marketing that is most profitable for them.  The key is to understand the media in both worlds and then develop a plan that tracks the profit generated from the activities.  I follow a radical philosophy in marketing – Most in my business will tell you to brand at all costs.   I will tell small business to focus on profits, profits and profits.  When it comes to transitioning to new media and developing a blended strategy, I let the profits be my compass.  Whatever media delivers the most affordable leads from my client’s most profitable niches is going to stay in my client’s plans.  If they do not produce, they are gone….

Part two of this series will come tomorrow.  However, if you would like to learn more about new media, traditional media and how to develop profitable on and off-line marketing,  check out our website:

www.acceleratedadvertising.com

Click here if you would like to receive free marketing tips that can help you
Out Think, Out Market and Out Sell your competition

I wish you success in utilizing new media – but don’t throw out profitable advertising vehicles just because they are traditional….

Warning – We Hold A Radical Marketing Philosophy

I must warn you –
As a Guerrilla Marketing Master Trainer I hold a radical philosophy on marketing and marketing strategies
                                  – Al Garlick , Pres.  Accelerated Advertising 

We believe that small and mid-sized business must focus on profits, profits and profits!!!  We don’t care about the status of a particular marketing activity.  If it reaches and gets your target market to act cost-effectively, it should be part of your guerrilla marketing mix.

Accelerated Advertising is a big proponent of utilizing unconventional techniques to produce the same results that expensive “carpet bombing” techniques do… and investing the savings in additional cost-effective marketing to accelerate growth and profits!  Many advertising agencies will tell you that you must brand at all costs.  Yes, branding is extremely important.

However, if you are a smaller business that cannot afford hundreds of thousands of dollars to brand, we propose the following.  Let Accelerated Advertising help you discover your “Sweet Spot” and then help you develop a guerrilla marketing plan to Out-Think, Out-Market and Out-Sell your competition in this, your most profitable market.  Our clients commit to being the best value to their “sweet-spot” and by doing so they brand themselves as the value leader in their most profitable, easiest to sell market.

If you cannot afford to brand to the entire market, focus on your most profitable one.  In the end they are the ones that count most and the ones that will produce the majority of your profits!  We’ll help you to develop a guerrilla marketing plan to accomplish this cost effectively.

Accelerated Advertising understands the financial limitations of small and mid-sized firms to “throw money at the market” so we help you develop a guerrilla marketing campaign to out-sell your competition in your critical markets rather than implemnting “carpet bombing” programs with huge budgets.  We have found that firms that commit to our process accelerate the profitability of their advertising and marketing.  In the end that is the name of the game – accelerated growth and profit in a controllable manner!

“Al Garlick, who is the mastermind behind Accelerated Advertising, has joined the Guerrilla Marketing International family — which makes every member of the family very happy because Al is a pure guerrilla marketer when it comes to copy, design, and strategy.  He is a winner in every way which makes us delighted because it means he’ll make a lot of other people out there into a winner as well.”
–    Jay Conrad Levinson
The Father of Guerrilla Marketing
Author, “Guerrilla Marketing” series of books

Click here if you would like to receive free marketing tips that can help you
Out Think, Out Market and Out Sell your competition

The 5 Keys To Choosing A Marketing Coach or Sales Coach That Is Best For You

markeitng coaching is about successThe 5 Keys To Choosing A Marketing Coach or Sales Coach That Is Best For You

What are the 5 most important things to know and understand prior to starting a marketing coaching program or hiring a marketing consultant?  Today you can start a coaching business  by taking a course or two.  I’m not sure that most people are aware of this .  I also  believe that most people want someone who has “walked the walk” by implementing marketing plans for their business as well as others.    Here are the keys to choosing a coaching program or a marketing consultant that is best for you:

1.     This first item to consider before starting coaching is how much experience the person has in marketing and/or sales.  What is their track record?

2.     If the person doing the coaching has a quality track record the next question is can they teach it as well?  If you are doing the coaching in a group setting as well as one-on-one can the individual run and facilitate groups so that each participant achieves the goals of the course?  The marketing coach and/or sales coach also need to be able to work on-on-one.  Make sure that your marketing/sales coach has this skill set too.

3.     The third item to consider when choosing coaching services is whether or not you have a good working relationship with your marketing coach or sales coach.  There needs to be a high level of trust and a certain level of compatibility however I submit the following – it is more important that your marketing coach can help you achieve your goals than be your friend.  You need to have coaching that makes sure that you are held accountable and that you are getting a quality return on your coaching investment.  This should be done in a respectful, friendly manner but the goal of coaching should be to grow your business in a cost-effective manner.

4.     Does the individual providing the coaching “walk the walk”?  make sure that your marketing coach has a positive attitude, and implements the same plans that they provide in the coaching program

5.     Here is a real bonus… Can the coaching service deliver guerrilla marketing coaching?  Guerilla marketing coaching is ideal for small and mid-sized firms that do not have massive marketing budget that allow them to “carpet bomb” the market.  Guerrilla marketing coaches utilize energy, creativity, innovation, information and technology to achieve the same results for less money.  A guerrilla marketing coach will help you focus on what is profitable and then keep you focusing most profitable activities.  This will help you accelerate your growth cost-effectively.

Click here if you would like to receive free marketing tips that can help you
Out Think, Out Market and Out Sell your competition

If you would like to see our background, qualifications and experience in this area click on the coaching link on our website above.  Scroll past these 5 tips, which are on the page, and you will be able to judge for yourself if we might be able to help you

A Guerilla Marketers Ideas on Business Investments – Part 2

In my last blog I took a look at the dismal situation with regards to short term investments.  Unfortunately I have to give you some hard cruel facts before I give you some good news….

Now for the cruel hard facts:

The market has shrunk for almost every business.  For most niches in the marketplace, sales and revenue generated today cannot support the same number of businesses that could be supported a few short years ago.  The cruel reality is that not every business is going to make it through this recession.  So the question becomes who is going to fail – you or your competition?  The companies that make the right moves will survive and, as the economy turns back upward, will thrive.  Many of the companies that make the wrong moves will fold.  I wish it were different but these are the hard cruel facts.

So what are the right moves?  Again these are common sense ideas.  And I am going to ask that you suggest what is working for you too.

 

  1. Cut the fat.  But do not let the “bean counter” cut the quality of your products and services to the point where you do not deliver more value than your competition.
  2. Invest in technology that will make your company more competitive.  Are there ways to automate?  Can you outsource some things?  Are there suppliers you can use that utilize high tech processes that deliver products more cost effectively or have a benefit that gives you a unique advantage?
  3.  Invest in increasing cost effective marketing and advertising to expand your market share.  Often in a recession it costs more to acquire new clients.  The pie has shrunk.  Don’t “save” yourself into bankruptcy.  Make sure that if a business has to close it’s your competition and not you.   Expand your market share and you will reap large dividends when the market expands.
  4. Invest in your relationship with your current customers.  Did you know it is 3-4 times easier to sell an existing customer over developing a new one?  Communicate with your customers, understand them and give them helpful information.  Do you have a newsletter?  Do you send them personalized cards?  Do you have an e-mail system to communicate with them?  Did you know that there are ways to automate your e-mail communications?  Do you offer special workshop or events for clients?  Do you offer a special unadvertised sale just for existing customers?  Oh by the way, when your focus is developing and enhancing, your relationships do not subscribe to the ABC’s of selling (Always Be Closing).  If you sell hard, here people will stop reading (never forget that a prospect’s attention is the most valuable thing in marketing today. You’ve got your customer base – now be smart enough to keep it).  A good rule of thumb is making sure the information you deliver is helpful and wanted. Make sure the information enhances your relationship and does not detract or hurt it.  Then when you do sell them, treat them like gold – because they are!  When you have exceeded their expectation and “wowed” them ask them for referrals – over time you will get them.
  5. Analyze your product to see which ones are most salable in a recession.  Which ones are people happy to give you their hard earned money for?  IE:  In this market selling recreational vehicles is much tougher that it was 5 years ago.  The market crashed and gas prices are up….  some people are still buying RV’s, just not nearly as many…. On the other hand smart phones sales are up.  People can conduct business from anywhere and access the internet.  Psychologically, they really may want to have the latest toys but they can rationalize that it makes them more productive (which it can) and sales are skyrocketing….   The moral of the story – focus on the products people will buy in this market.
  6. Do you have a product or service with little or no competition?  If you do, and it is salable, this is a great place to focus some resources.  Years ago I had a DJ business on the side.  Mobile DJ’s were new (yes we did use dinosaur teeth as a stylusJ)…  The yellow pages had just created the heading of Disc Jockeys – you previously had to look under Entertainers.  I chose the new heading – I wanted people who knew that they wanted a DJ and not a band.  Only one other person did this.  I almost doubled my business with a very small ad….
  7. Is there a competitor or another business that you can partner with and have them send you leads for products or services that they do not provide but that can help their clients?  Offer them and finder’s fee or commission (if it is legal in your profession) – it is often much less expensive than the cost of finding these prospects on your own.
  8. Understand and be able to communicate your unique value proposition.  Many marketers talk about your unique sale proposition or USP.  I have always believed it is all about value.  When the customer understands how and why you deliver more value to them (and they want or need what you offer) the sale becomes very easy.  Who doesn’t want more value?
  9. Learn how to employ effective marketing and advertising techniques in the new economy and with new media.  Optimize your website, utilize cost effective “pay per click” campaigns, cost-effectively employ social media and create videos for your website and social media.  However – let the market tell you which traditional media and which new media gives you the best return on your investment (ROI).  A few weeks ago, I was in a meeting of local business people.  A person held up a magazine type of media and said that traditional media are dead and that everyone uses the internet and social media.  New media may be growing but the person was holding a publication with hundreds of advertisers in it….  Would all of them go in it time and time again without getting a return on their investment?  My rule of thumb for all small businesses is follow the profits.  I don’t care if you are on Facebook, the Internet, the Yellow Pages, the Pennysaver, a magazine, a Super Bowl ad or on the back of a used napkin.  If the media cost-effectively delivers prospects from your Sweet Spot (most profitable customers), then use it!  Don’t be married to any one media.  Don’t jump on a media because it is sexy and has a lot of status.  Don’t avoid media that people say are “old fashioned” and boring.  Be married to results measured by ROI.  Track and analyze which media deliver your best niches most cost-effectively with the highest ROI and follow the profits!
  10. When reviewing media, check out how many of your competitors use it and for how long they have.  Then, if you can, check out if they are buying more or less of it.  If the media had a lot of advertisers and their spend keeps trending up – it is a media that most likely works for your type of business.
  11. Get interns.  College students know that having job experience will put them in a better light upon graduation than applicants with no experience.  If you offer an internship, even if it is unpaid, they will get much need job experience and you can get more done without a large investment.

What are your ideas on the best investments a business can make in these tough times?  I could add more but I want to open it up and hear what is working for you.

If you have an investment that is helping your business grow – please share it.  I bet we can get this list to be a growing and living document that helps all to grow and thrive in these difficult times.

You might want to check out my website for some information on Guerrilla Marketing and other cost effective advertising and marketing ideas…

www.acceleratedadvertising.com

 

Here’s to a profitable future!

A Guerilla Marketers Ideas on Business Investments Part 1

The million dollar question of the day is where to invest your money to maximize your return this year?  Let’s look at a few places that may or may not make sense.  Traditionally, people invest in a few tried and true places such as: the stock market, treasury notes, real estate, the money market, savings accounts, Certificates of Deposit and gold (precious metals).  I am not an economist, nor am I a financial planner, but common sense says that each one of these offers has an inherent problem.  If you are a business owner, I am going to offer you some ideas that I believe can help you survive the current recession and then thrive as the economy rebounds.  Let’s take a look at each of the traditional places people invest their money and then my ideas for business.

Before I start, I’m sure there are a few stock brokers asking what gives a marketing and advertising guy the right to talk about investments?   I promise you that any talented investment counselor can talk circles around me when it comes to sophisticated investment tools.  I will also say that I am going to put forth a few ideas with the intention of opening up a conversation, with others adding great ideas that they have found to be working…   However, I believe the common sense approach I am taking may just stimulate some business people to action and to grow their business.  The bottom line – there are no small businesses too large to let fail.  Large banks and large businesses got bail outs – we entrepreneurs and small business people are on our own….  Small business can be an engine for the recovery.  However, I will state some hard to hear facts and then some ideas I have that can help some businesses thrive while their competition starves. I hope I can inspire small business people to act on their own behalf and invest in growth….   But let’s look at the traditional place people put their money first.

The stock market is going through one of the most volatile time in its history.  I don’t need to tell anyone that it is not a place for the faint of heart right now…  I have monies in retirement accounts and I am sure that the markets will come through this challenge just like we have in the past… stronger, more and more competitive.   In the long term, I believe we will see growth that will provide a nice return.  However, most will agree that the short term is no bed of roses.

Treasury notes offer very little up-side in the short run.  The Fed just announced that interest rates are going to stay low until 2113.  Ten year treasury notes are paying 2.5%….  so T-notes most likely are not even going to keep up with inflation.  How about real estate?  Yes you can buy cheap.  Does the real estate market still have a bit more to drop?  I don’t know.  Should it do just fine in the long term?  I believe it will.  However, is it the place to invest short tern money?  I don’t think so.  How about the bank or a certificate of deposit?  Both of these are offing interest rates that are less than 1% so they are losing ground against inflation too.

This leaves gold and precious metals.  I bought a few ounces of gold and some investment silver coins about 20 years ago when gold was around $250 an ounce.  In hindsight I wish I bought ten times as much….  As I write this gold is over $1800 per ounce!  It is at an all-time high.  If you asked me if you should have bought at $1000 per ounce I would have said no (I sold some – shows what I know)….  Will it go higher – most likely it may still go higher.  If you buy at these rates you risk getting caught when the bubble bursts….  The old adage is buy low and sell high…. not buy high and hope that is goes even higher…  Gold has certainly out-performed most investment counselor’s expectations but there is a huge downside in buying high. If you want to play this game, I hope you win but don’t cry if you lose big time.

Stay Tuned for Part 2 in my next blog, where I will layout 10-12 ideas that can help now and will open the discussion so that everyone can have input.  The goal will be to let people share what is working and we can all help one another….

The Importance of Permission in New Media Marketing

master trainer and coach for Guerrilla Marekting International

The most valuable thing in marketing is a prospects attention.  Today we are bombarded by thousands of marketing messages a day.  So I ask you, is it better to barge in, capture someone’s attention and annoy them and have them have a negative feeling about us.  Or, is it wiser to get them to give us permission to communicate with them and give them something of value with each communication?  I am a Master Trainer with Jay Conrad Levinson’s Guerrilla Marketing International.  Here is what Jay and Seth Godin, a Guru on new media, have to say about the subject….

 

The Importance of Permission 

by Jay Conrad Levinson

Sometimes the student becomes the teacher. That’s exactly what happened to me when Seth Godin, co-author of three books with me, authored his own “Permission Marketing: Turning Strangers into Friends and Friends into Customers.” It changed my entire outlook about marketing and can dramatically change the beauty of your bottom line.

Seth, once a student of mine, has now enlightened me to the presence of two kinds of marketing in the world today. The first, most common, most expensive, most ineffective and most old-fashioned, is interruption marketing. That’s when marketing such as a TV commercial, radio spot, magazine or  newspaper ad, telemarketing call, or direct mail letter interrupts whatever you’re doing to state its message. Most people pay very little attention to it,  now more than ever because there is so much of it and because many minds now unconsciously filter it out.

The opposite of interruption marketing is the newest, least expensive, and most effective kind. It’s called permission marketing — because prospects give their permission for you to market to them.

It works like this. You offer your prospects an enticement to volunteer to pay attention to your marketing. The enticement may be a prize for playing a  game. It could be information prospects consider to be valuable. It might be a discount coupon. Perhaps it’s membership to a privileged group such as a frequent buyer club, a birthday club. Maybe it’s entry into a sweepstakes. And it might even take the form of an actual free gift. All you ask in return  is permission to market to these people. Nothing else.

Alas, you’ll have to use interruption marketing in order to secure that important permission. And you’ll have to track your costs like crazy, figuring how much it costs you to gain each permission — easily figured by analyzing your media costs divided by number of permissions granted.

Once you’ve embarked upon a permission marketing campaign, you can spend less time marketing to strangers and more time marketing to friends. You

can move your marketing from beyond mere reach and frequency and into the realm of trust.

Once you’ve obtained permission from your prospects, your marketing will take on three exciting characteristics. It will be anticipated, meaning people will actually look forward to hearing from you. It will be personal, meaning the messages are directly related to the prospect. And it will be relevant, meaning you know for sure that the marketing is about something in which the prospect is interested.

Permission marketing is not about share of market, not even about share of mind. Instead, it’s about share of wallet. You find as many new actual customers as you can, then extract the maximum value from each customer. You convert the largest number of prospects into customers, using your invaluable permission to accomplish this. You focus your marketing only on prospects and not on the world at large.

Let’s use an existing coed summer camp as an example of permission marketing in action. The camp uses interruption marketing to run ads at camp fairs and in magazines that feature other ads from summer camps. But the ads do not attempt to sell the summer camp. Instead, they focus solely upon motivating prospects to send for a video and a brochure, thereby securing their permission to accept your marketing with an open mind.

Once the prospects receive the video, they soon see that it, too, does not try to sell the camp. It is geared only to get permission to set up a meeting. But having seen a video of the camp facilities, activities, happy campers and attentive staff, the prospect is all set to say yes to a personal meeting. At the in-person meeting, the sale is closed. And once a camper attends the camp for one summer, chances are pretty darned good he or she will not only stay for several more summers, but also will bring along a brother, a sister, a cousin, a schoolmate or a friend — or all of these.

Notice that the only goal of each step is to expand permission for you to take another step rather than making the ultimate sale. Who uses permission marketing these days? Record clubs. Book clubs. Marketers who offer a free brochure. Even my own website at gmarketing.com offers a daily marketing message for only $3 per year — in affect, gaining permission to market to all those who sign up.

The biggest boon to permission marketing is the internet — but only by those who treat it as an interactive medium and not like TV. As clutter becomes worse, permission becomes more valuable. The moral: since only a limited number of companies within a market niche can secure permission, get moving on your own permission marketing program pronto.

 

COPYRIGHT 2011 GUERRILLA MARKETING INTERNATIONAL – ALL RIGHTS REVERVED

Thoughts on Success, Perseverance , Marketing and Advertising

Thought that I might keep things a bit light as we come into the Labor Day Weekend… I had a thought to make a blog out of some quotes on success, Perseverance and advertising and marketing … did you really think I could resist?

I found many of these on Inspirationalotes.info

Some of the rest are some of my favorites and are from some of the greatest marketing and advertising minds like Wanamaker, Ogilvy, Abraham and Conrad Levinson.  It is no accident that all four of these greats made their mark in the twentieth century – one that very well may go down as the “GOLDEN AGE OF ADVERTISING”.  By the way the others I have quotes are by no means “light weights”.

I hope you like it – let me know what you think of these…. and of course post your favorites too.

 

ON SUCCESS:

There is always room at the top.

Daniel Webster

Try not to become a man of success but a man of value.
Albert Einstein

Success is the sum of small efforts, repeated day in and day out.
Robert Collier

The thing always happens that you really believe in; and the belief in a thing makes it happen.
Frank Loyd Wright

They can because they think they can.
Virgil

Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude.
Thomas Jefferson

ON PERCERVERANCE:

Genius is one percent inspiration, ninety-nine percent perspiration

Thomas Edison

Our greatest glory consists not in never falling, but in rising every time we fall.
Oliver Goldsmith

Obstacles are necessary for success because in selling, as in all careers of importance, victory comes only after many struggles and countless defeats.
Og Mandino

The block of granite which was an obstacle in the pathway of the weak, became a stepping-stone in the pathway of the strong.
Thomas Carlyle

Press on! A better fate awaits thee.
Victor Hugo

Perseverance is king.
Josh Billings

The waters wear the stones.
The Book of Job 14:19

Energy and persistence conquer all things.
Benjamin Franklin

Our greatest glory is not in never falling but in rising every time we fall.
Confucius

The man who removes a mountain begins by carrying away small stones.
Chinese Proverb

Nothing great is created suddenly, any more than a bunch of grapes or a fig.
Epictetus

The important thing in life is to have great aim and to possess the aptitude and the perseverance to attain it.
Johann Wolfgang Von Goethe

The prizes of life are at the end of each journey, not near the beginning; and it is not given to me to know how many steps are necessary in order to reach my goal. Failure I may still encounter at the thousandth step, yet success hides behind the next bend in the road. Never will I know how close it lies unless I turn the corner.
 Og Mandino

ON ADVERTISING & MARKETING:

Doing business without advertising is like winking at a girl in the dark.  You know what you are doing, but nobody else does.

Steuart Henderson Britt

Never write an advertisement which you wouldn’t want your family to read.  You wouldn’t tell lies to your own wife.  Don’t tell them to mine.

David Ogilvy

Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

John Wanamaker

Love creates love.  Love your customers and they will love you back

Vadim Kotenlnikov

If you can be interested in other people you can own the world

Jay Abraham

Marketing is not an event, but a process . . . It has a beginning, a middle, but never an end, for it is a process.
You improve it, perfect it, change it, even pause it. But you never stop it completely.

Jay Conrad Levinson


How and Why Tracking Your Advertising Is One Of the Best Investments You Can Make – Part 2

Learn to Compare One Media to Another and
You Will Make More Money In Less Time!

In the first part of this blog I spoke about how tracking your advertising and marketing programs is one of the best investments you can make.  I gave the example of how tracking can make your advertising and marketing a measurable scientific process rather than a shot in the dark or, as I said, throwing a dart with your eyes closed and hoping that you hit the bulls-eye.  The example was a simple straight forward one (click here if you would like to read it).  By tracking, the business person discovered that they were making $4.90 – $5.60 for every dollar they invested.  It was a straight forward advertising tracking situation and one that is easy to diagnose.   Here I am going to show you how to determine the best move when things are not so obvious….

What would you do if you had the following situation?

You are the same business as in Part 1 but have two advertising and marketing projects and want to figure out how to best spend your money….

PROJECT ONE (same as in Part 1):

Your direct advertising mail project costs $30,000 to mail every other month for a year (or $5,000 per mailing).  Once again the project produces a 0.5% return with a close rate of 30% and the average sale is $10,000 with a profit margin of 35%.  If we were mailing 5,000 pieces every other month, we would be generating 25 leads every other month.  The cost per lead is $200 ($5000/25 leads = $200 per lead) and we would be generating 7-8 new customers who would spend $70-$80,000 and produce $24,500 – $28,000 of profit every other month.  Without tracking, we would never know that the investment of $5,000 every other month is producing a return of $4.90-$5.60 for every dollar invested.

PROJET TWO:

You invest in a high-end publication that charges $2,500 per month for a full page in color.  It reaches the 50,000 most affluent people in their geographic area.  The publication is generating 10 leads per month or 0.02% return.  The average sale is $13,500 with the same close rate of 30% but with a 40% profit margin….  this vehicle is producing 3 new clients per month.  The cost per lead is $250 ($2,500/10 leads = $250 per lead).  On the surface, Project One is the winner because it delivers the most cost-effective leads…. until you drill to the bottom of the data.  Project Two does costs more per lead, however each job produces $13,500 in sales.  So let’s do the math.  This vehicle produces 3 leads every month and produces $40,500 in sales with a 40% profit margin or $16,200 in profit.  Project 2 produces $6.48 of profit for every dollar invested.

What do the numbers tell us?  In the above example Project Two produces 6 customers and $32,400 of profits.  Project One produces 7-8 customers and $24,500 – $28,000 in profits.  Most business people would want to choose Project Two as the winner and invest their money there.  However, if I was their marketing consultant or advertising coach,  I would tell them to continue with both if they could maintain their service and quality levels as they are generating between  490%- 648% returns on investment (ROI), and where can anyone get this type of return legally?

Tracking can even get more complex than this.   However, if you track your advertising and marketing spending quantitatively (the number of lead by the cost) and then you look at the numbers qualitatively (how much profit was generated divided by the cost) you are ahead of 99.9% of small businesses.  I hope these two blogs have helped peel away some of the mystery of how and why you should track your advertising and marketing investments.

Accelerated Advertising is located in Nanuet, NY and we primarily service Rockland County, Westchester Orange Counties, NYC and the Hudson Valley in NY, Paramus, Bergen County and Northern NJ as well as Stamford, Fairfield County and Southern Connecticut.  We also work with firms from around the country via on-line meetings, the internet and of course the telephone.  If we can help you, let us know.  We’d also love to hear your comments and feedback on the two parts of:  How and Why Tracking Your Advertising Is One Of the Best Investments You Can Make Parts 1 and 2…. Thanks & Happy Marketing!

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Check out our website for some great marketing tips

How & Why Tracking Your Advertising Is One Of The Best Investments You Can Make Part 1

Track Your Advertising and Marketing And
Get Your Business Where You Want It
Faster And For Less Ad Dollars!

 

The first reason you track your advertising and marketing is to determine your ROI (return on investment).  However, this is the beginning of tracking.  Once you have established the advertising and marketing vehicles that are producing your best returns both in numbers and in quality you have established benchmarks.  Benchmarks give us targets at which to aim similar efforts and against which to measure results.  Let’s say you have established that a certain direct mail project costs 30,000 to mail every other month for a year (or $5,000 per mailing).  Let’s say this projects targets your profitable niche markets (“sweet spot”) and produces a 0.5% return with a close rate of 30% and the average sale is $10,000 with a profit margin of 35%.  If we were mailing 5000 pieces every other month we would be generating 25 leads every other month and we would be generating 7-8 new customers who would spend $70-$80,000 and produce $24,500 – $28,000 of profit every other month.  Without tracking we would never know that the investment of $5000 every other month is producing a return of $4.90-$5.60 for every dollar invested. Without tracking $30,000 can become a big number to “save” because the accountant is always telling you to cut costs…  However if your accountant saw the data generated from tracking, he’d tell you that you need to continue and that you would be nuts not to.  Tracking gives you the tool to make advertising a measurable investment rather than “closing your eyes throwing the dart and hoping”.

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Stay tuned for Part 2 in this series

What Exactly Is Guerrilla Marketing?

Guerrilla Marketing Master TrainerWhat exactly is Guerrilla Marketing you ask?

Guerrilla marketing is achieving traditional marketing goals in untraditional manners that utilize energy, creativity, innovation, information and technology instead of “carpet bombing” techniques that are costly and have lots of waste.  Accelerated Advertising located in Nanuet, New York, has always been dedicated to finding the quickest and most cost-effective way to achieve our client’s goals (guerrilla marketing tactics).  Guerrilla marketers focus on one primary thing – PROFITS.  Small businesses need to discover their most profitable markets, as well as, understand and communicate why they are the best value to these people in order to maximize their marketing returns.  Guerrillas will work hard and track their marketing activities and then adding to the profitable activities while cutting back or dropping less profitable activities.  Guerrilla marketers persist until they develop the most cost-effective way to turn the people from their “Sweet spot” into happy repeat customers who refer additional business to them.  Once they find the most cost-effective way to attract and sell to their “Sweet-Spot” they keep at it and mine the gold….  By the way, Guerrillas also know that it is much easier and less expensive to sell to existing customers than to finding new ones so they keep their relationships warm and take great care of them.  They treat their clients as if their business depends upon it… because they know it does! Continue reading