Save Your Business and Drive Traffic the Smart Way

Written By John E. Barry

Entrepreneurs are currently struggling to survive the downturn in the economy. Many ‘Brick and Mortar’ businesses are closing their doors and companies are calling it quits in record numbers. Can they be saved and what can they do to quickly and efficiently drive business and keep their business alive?

Customers are the key to keeping your doors open. Sometimes finding them is even more difficult then getting them to buy something. Building a solid clientele and building relationships with your herd can save your shop and create long-term results.

I have worked with hundreds of businesses in every niche over the past 15 years and most are not around today. Many of the businesses I know of have no clue on how best to market their products and services to the general public. They have no idea on what the best practices are to position their business properly in this market to ensure success.

Like lemmings, most businesses are just following what other do – just to ultimately realize that it does not work. Sometimes it’s too late when they do realize the effects of bad advertising and marketing. Even if it wored, most businesses do not know how to evaluate the results. Not understanding the true cost of obtaining customer is a real business killer.

Businesses get a storefront, pick a name, a product or service, and print some collateral material. If they can afford it, they use television, radio, and print advertising and HOPE it will drive traffic. The ‘HOPE’ philosophy in marketing is oh so common and typically not effective.

The simple formula for a business to look at is pretty simple. Take the cost of an advertisement and divide it by the number of customers it has attracted to the offer. The answer would equal how much it costs to get a customer. Then, taking that number and subtract it from the profit created from selling the product or service. This is the Magic number, or at least a start to understanding the matrix.

Smart business owners try to take that magic number and decrease the cost of customer acquisition and/or increase the profit generated. Bussinesses also focus on how to find a better advertising vehicle and a quicker way to secure a profit while building a stronger relationship with the customer.

Once a business looks at what a customer is worth and the cost to obtain a customer, they can use those figures to work on the numbers and make them better. Until they get this under control as a business, they will not be able to evaluate marketing and advertising or optimize their income and results. A little time spent to understand this and a business can avoid the Mortar Bombshell that explodes their dreams and often times destroys their business.

Let’s look at a quick example: say that I can make $200 profit each year from a customer … and I know that it costs $100 to get a loyal customer. Simple math says I make $100 profit. If the average customer continues buying for 5 years … then I actually make $900 off of the initial $100 investment to obtain that customer. Worth it? You bet!

If you look at the above example, and I knew my numbers, I could spend $2400 to obtain a single customer … and I’d still make $100. Worth it? YES.

How do you get the biggest bang for your marketing dollars. What type of advertising works best and finds the most likely candidates that will buy your product or service? Looking at all different advertising vehicles is important, but there is only one advertising vehicle that is untapped, unused, and typically overlooked. In my opinion, the best and most effective way to build a relationship, and typically the least expensive, is FACE-TO-FACE marketing!

The outcome of simple marketing is to build awareness, gain a customer, sell stuff, and make friends. Sales and marketing executives would agree that face-to-face is the best way to achieve the desired outcomes. Being in front of a potential client can allow the customer to see, feel, touch, and experience your product. A relationship can be achieved when you greet someone, shake their hand, and share a conversation.

Now, what type of advertising can provide a face-to-face interaction? Television, radio, and print can not! They are very expensive and put your message out to a wide audience that is not targeted enough. A television ad for local businesses, brick and mortar stores, does not work well in this competitive marketplace because it reaches too far and wide and is too costly. If you are a dry cleaner, bank, bakery, or convenience store – why would someone drive many miles to do business with you?

What marketing vehicle focuses like a laser on your target customer? How can you reach that red-zone on the bullseye of your market? The one to three mile radius around your local business is typically the area where most (70% – 80%) customers come from. What vehicle can put you in front of, allow face to face selling, and provide an audience that lives, works, and shops within the hot-zone of your business….? Give up?

A community celebration. Most neighborhood festivals, block parties, and music festivals draw from a local range of 1 – 3 miles for the majority of the attendance. This is the same target you need to be reaching. If you are fortunate enough to have a festival that takes place near your business, you should look into participating. Typically you can buy a booth space and get situated in the heart of the event.

When I compare this vehicle of marketing to others, it wins everytime – hands down! It offers the ability to showcase your product and get it in people’s hands, tell them face-to-face about your service, and engage potential customers in a conversation. It throws your marketing message out to an audience that makes the most sense.

Questions that you need to ask are; does the vehicle I market with reach my target audience? Does my advertising provide a way to build a relationship? Does my advertising provide an interactive experience? Does the marketing dollars I’m spending provide a face-to-face experience with potential customers? Hopefully the answer is YES!

Ask yourself, does the vehicle I market with reach my target audience? Does your advertising provide a way to build a relationship? Does your advertising provide an interactive experience? Does the marketing dollars your spending provide a face-to-face experience with potential customers?

Don’t let the Brick and Mortar Bomb explode on your business. You can beat this downturn in the economy and actually build your business. Focus on a few metrics, and look into spending your advertising dollars on participating in the right advertising vehicle. If you are lucky enough to be situated in an area that hosts a festival, call them and become a sponsor, buy a booth, and support the local market. Get in front of potential clients – FACE-to-FACE!

About the Author

John E. Barry is the Festival Expert that creates positive economic impact with Summer Festivals.