Big or small budget - it's what you do with it

Marketing budgets come in many sizes. Having a "small" budget, doesn't preclude you from being successful.

The Globe and Mail recently ran an article about a new company called Cenabal Gourmet Organics. In this piece, the article commented: "Standing in the way of her spreading the word is a modest marketing budget of $25,000 a year. Says Ms. MacDonald: 'I need advice on effective ways to create buzz around a product, without a lot of money.' "

For some small companies, that isn't a modest budget at all. It really comes down to making the most of the money you do have. And that doesn't mean cheaping out on your marketing endeavours either.

For Cenabal, an "expert" recommended that she modify the label - and if she can't afford to do that then she should create a small booklet that ties around the neck of the bottle. A much less expensive way to go would be to create a shelf-talker. This piece of cardstock can draw the consumer's eye to your product and inform them at the same time. And yes, you'd need a designer for it to be professional, but as an alternative to a booklet around the neck of the bottle, infinitely less expensive and potentially more effective as the booklet still relies on the consumer picking up the bottle to be informed.

The most expensive part of a small company's marketing budget should be the time put into knowing you have the right answer to reach your audience and make every penny count. And that doesn't mean finding the cheapest printer or designer. It means developing tactics that give you great returns, even if they cost a little bit more.

For example: It will cost you $50 to be a minor sponsor at a charity event. You get your logo on their website and a mention in the program. Value? You also have the opportunity to spend $100 partnering with a related business on a one-colour insert in your local Chamber of Commerce newsletter. If your budget is tight, which would you choose?

The insert costs twice as much, potentially four times as much once you get the writer and designer involved. What you would discover however is minor sponsors of charitable events rarely get any business from only a logo on the website and a mention in the program. So $50 out the window. (But keep in mind that it is important to be a good corporate citizen and do your part, either with the $50 knowing it isn't going to get you any business or volunteer your time)

With the insert, you are reaching hundreds of potential customers and could easily wind up with 10 or 12 new customers. So it cost you four times as much and you get 10 times the customers.

Get where I'm going with this? Don't pick the cheapest thing just because it's the cheapest. Always have your return-on-investment (ROI) in the front of your mind when you build your plans and pick the tactics that will get results, even if they cost more than the alternative.

Value statements - Your business in one sentence or less

Looking at my blog site statistics, I discovered the most popular piece was about taglines and their value. That being the case, I thought it a good idea to revisit the concept and expand a little.

It's surprising how many companies have trouble describing themselves in a succinct manner. It is such a challenge that TechAlliance in London, Ontario held a 60-second Pitch competition. Folks had to stand up and "sell" their business to the crowd in 60-seconds or less. So if 60-seconds is a challenge, 30-seconds would be even more difficult. And one sentence? Well, can it really be done?

I like to encourage clients to develop a "value statement" for their business. This could be part of the mission/vision statement process, or can be developed a bit later in the game.

One important thing to note: Your mission and vision statements are there for your internal audience, not for your external customers. Your mission and vision should inspire your staff to reach those goals. Mission and vision statements are not value statements, nor are they taglines.

Your value statement speaks to what you bring to the customer that is different than anyone else in your field. If you are selling based on best price, then that should be in your value statement. (I never recommend selling based on best price. People who purchased because you have the best price will move on pretty quick when they find another best price. You need loyal customers, not ones who only buy because you are the cheapest.)

Tepperman's has an excellent value statement - "Family to family, that's the difference!" Their tagline is another thing altogether - "We fit the lifestyle of your home". The Tepperman family has been selling to other families for decades. And families appreciate that they know what buying for a family feels like.

Unless you have just invented a brand new widget and have no competition, figuring out your value statement can set you above your competition. Is your value that you have loads of experience? Is it your location? Is it your training program? Or is it that you go the extra mile for customer satisfaction? These are just a few examples of things that can represent a value statement.

To develop a value statement, you need to listen to your customers. What is it they value about your business? If you ask enough customers, you'll start to see at least one attribute repeated over and over. This is probably where your value statement is hidden. Once you know that value, it is imperative you always live up to it. Nobody gets to have a bad day when delivering on your value statement.

Can your value statement also be your tagline? Maybe. There's certainly merit in the concept. And at the very least, it is the perfect place to start when developing your tagline.

Your website statistics tell all

Are you regularly reviewing your website statistics? You should. Buried in those statistics is the indicator of your website's success (or lack thereof) along with customer information that can help you grow your business.

All credible internet service providers offer statistics of varying degrees. You should be able to discover easily how many people are visiting your website, the pages they look at and what site directed them to you.

What's the value of all this information? At their most basic, website statistics offer you a view of what your customer values in your website. Are they visiting the pages you thought were the most interesting? Are they staying to actually read anything? Is your home page engaging enough for them to spend more than three seconds with you?

One of my clients had me do a press release to announce her new product. The press release got over 2,000 hits. But the client doesn't know if anyone came to her website because she doesn't access her statistics. However, she does know she hasn't sold a single unit even with all the press release exposure.

That many hits to the press release normally would translate into at least 700 visitors to the website. Why hasn't she sold anything? It could be because no one finds value in her product, but more likely it is because her website isn't doing its job. Looking at her statistics would show her how many people are coming to the site, how many potential sales she missed. She'd learn how the readers found her site, which could indicate their other interests. And she'd know which pages had information that interested the reader.

I encourage all of my clients to review their website statistics at least once a month. If the traffic is low, develop a tactic to drive traffic your way. If no one is visiting a page, then consider removing it and using that space for information that is more engaging. If the majority of visits to certain pages are less than three seconds long, consider whether you are presenting the information in an easy to absorb fashion or whether you are navel-gazing.

If you have an e-commerce site and you aren't making sales, you need to ask yourself why that may be. And then adjust your website or product to be what your customer wants.