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Reassess Your Ad Strategy
With the holidays approaching, it's a good time to get your advertising's
reach and effectiveness in order.
Q: My wife and I started a nursery, garden center and brick-paving company
more than 10 years ago. I have a few questions related to advertising
our business, and I'm hoping you can help. First of all, during the last
two seasons, I shrunk our ad budget from $40K to less than $5K. Sales
have remained flat despite two rainy springs. So although we've saved
thousands of dollars in ad revenues during this time, the lack of sales
growth has led me to wonder if cutting back was the right thing to do.
Second, can you recommend a systematic way of planning my advertising,
and how can I measure its effectiveness? Lastly, we're approaching the
Christmas season, and I'd like some ideas on how to best reach my customers.
A: Drastically cutting back on your advertising efforts will set up a
cycle that can put you out of business. If advertisers suddenly get quiet,
it spooks consumers. It's wiser to make other kinds of money-saving adjustments-like
changing your inventory to better suit the current weather or economic
conditions-than it is to cut back your ad budget.
Unfortunately, you've already lost momentum and the mind share of the
public by dropping back so drastically. It may cost more money than you
saved to get it back. Advertising is like pushing a ball uphill. You
have to keep going. If you stop, the ball rolls back down the hill and
you have to start all over.
Next Step
Do you own a retail business? In The 33 Ruthless Rules of Local Advertising,
author Michael Corbett shares common advertising mistakes and offers
useful tips designed to help you get-and keep-local customers.
Content Continues Below
Planning your future advertising efforts using a systematic approach
is a great way to go. The best way to start is by identifying peak business
weeks and months on a calendar. Some entrepreneurs argue that they don't
need to advertise when business is good, but that's wrong! When it's
your peak season, you must advertise to get the most business out of
your market. You can lose a lot of money trying to generate business
during times when it simply does not exist (such as pushing for home
improvements in November and December). So make your money while you
can. Every business-even those that operate year-round-has specific times
of the year when business is just better.
Actually tracking the effectiveness of your advertising is a tricky matter.
In fact, few business owners track their advertising results because
they don't know how. Here are a few hints sure to get you on the right
track:
* Mark print ads and coupons with codes so you know where they came from when
they're redeemed.
* Advertise different products on different radio stations or TV programs. You'll
know which is working for you by the amount of traffic generated.
* Keep records so you don't have to rely on memory the next time you want to
place an ad, remember the rate you last paid, or show a media sales rep why you
can do better advertising with his or her competitor.
* Stop asking your customers where they heard about you. People don't realize
how important the answer to this question is, and they'll often give you the
first answer that comes into their heads. Instead, ask them what radio station
they listen to, what TV programs they watch and what sections of the paper they
read. Make a list and use that. You should also get their ZIP codes to guide
your direct mail. Tracking advertising means tracking your customers, too.
When the holidays roll around, it's a great time of year to really reach out
to your customers. You don't have to spend a lot of money as long as you're creative.
For instance, to lure customers to your store, get out there early with perishables
like Poinsettias, wreaths and garlands, and cut back on expensive tree ornaments
and others items that may be too expensive for customers who may be cutting back
on unnecessary purchases this year. You can also hold special events at the shop-call
a radio station that you've used successfully before and have them either come
up with a promotion or perhaps broadcast from your location. Conduct a holiday
drawing early for a free Christmas tree. Another idea: Hand out a free pound
or two of birdseed with the purchase of every birdfeeder, and give each customer
a holiday coupon for a certain percentage off their next purchase. The key to
continued success is to keep thinking and keep going like it's your first year.
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