How to market on a budget
Rieva Lesonsky has been one of the nation's foremost experts on entrepreneurship for over 20 years. The former editor of Entrepreneur magazine, Rieva is CEO of SMB Connects, based in Irvine, California, which helps connect corporations, organizations and government agencies with entrepreneurs. To ask her a question, sign up for her free email newsletter or have her speak to your group, go to www.askrieva.com.
By
Rieva Lesonsky
Q: Like many entrepreneurs today I have a dilemma. I really can't afford to continue my marketing efforts, but I know I can't afford not to. Any advice on how I can spread my message without spending a fortune?
A: As I mentioned in a previous column, businesses that continue to market themselves in tough times often have an advantage over those that go silent. So you're smart to realize you must continue your marketing efforts.
Perhaps the easiest-and cheapest way to do this-is through viral marketing techniques.
Most of us have heard of viral marketing, but aren't quite sure how to apply it to our businesses. Viral marketing is essentially word-of-mouth on steroids. Before you start your viral campaign, you must make sure you're delivering on the promises (explicit or implied) you make to customers. Human nature is such that people will spread bad news more readily than good news. Guerrilla marketing guru Jay Conrad Levinson says a customer who has a bad experience with your business will tell 22 people about it. And 13 % of those folks will further spread the word.
The key is to interfere with human nature and enable the distribution of your customers and clients' positive experiences.
So first make sure your customers are happy with your products or services. How can you do this? Ask them of course. Smart business owners don't make the sale and move on-they continue to touch base with customers throughout the year. To do this, survey your existing customer base. Find out why they bought from you and if they're happy with the purchase or service.
Then solicit testimonials from them and get their permission to use them in your marketing materials. The testimonials should be simple-real words from real people and to-the-point. While you're talking to your customers, ask them for referrals, too. Your old customers are the best sources of new ones. E-mail your satisfied clients and ask for the names and e-mail addresses of three to five people they think would benefit from your products or services.
As I said, savvy marketers reach out to customers all year. While checking in on them, first make sure you ask if there's anything else they need. Then ask for referrals. Send them a form to make it easier on them. Or you can do the whole process by e-mail, which not only makes it convenient, but virtually cost-free as well. Some business owners incent their customers to provide referrals by offering discounts or free gifts. Most important though, is to thank your customers promptly for their referral-let them know you are truly grateful.
Now I'm assuming you have a Web site for your business. If you don't, start building one immediately.
On your site, make it easy for customers to contact you. Provide a link so it's easy to send you testimonials and referrals. And make sure you provide a "Tell a Friend" or "Tell a Colleague" link so your customers can seamlessly help you spread the word. Make sure your Web address is on every piece of your marketing materials, as well as your invoices, and any other printed pieces you send out.
You need to up your presence both on and off line. Be visible in your community. Participate in events, get a booth at local festivals, sponsor a race, donate money or products to a school or local charity. Online, go where the people are. Many companies are establishing a presence on the big social media sites like Facebook, My Space, LinkedIn or Digg.
Don't overlook the more traditional methods of spreading the word. If you are a local business, distributing flyers can still pay off (make sure your URL is on them). Postcards can be more effective than regular mail and they cost you less too.
The 80/20 rule still applies (80 % of your business comes from 20 % of your customers). It's key is to increase your client base, so that 20 % grows ever larger.
Finally, check your marketing messaging. In times like these consumers are looking for products and services that have obvious benefit to them. Value can be more important more than price and perceived value means more than true value.