8 Common Ways Small Businesses Waste Money Marketing
Small businesses often complain about the limited budget they have to work with when it comes to marketing. They don't leverage huge marketing budgets as huge conglomerates do. But on closer inspection, it can be seen that many times small businesses waste money on marketing. Here are some of the mistakes they do –
In this digital world, the reach of small businesses has increased may folds. With the increasing penetration of technology, the power of a single mouse click has increased day by day. Hence, it creates the impression that marketing a business has become quite easy. It is indeed very exciting for a small business to run a successful marketing campaign. But spending money form a very limited budget on things without understanding returns on that investment can turn out to be a mistake. Here we will discuss some of those –
1. Not analyzing returns well
For any marketing or advertising campaign, many small businesses generally think about the number of views, several followers, or engagement as returns on their investment for it. But, you need to analyze how much money you made by that particular campaign. You have to measure how many rupees you made by investing one rupee on any particular campaign. If you are not breaking even in around 3 months, a change in strategy is needed.
2. Not targeting and understanding the customer enough
Targeting specific customers for specific products is a very critical aspect of any marketing campaign. Just showing the ad wherever you can without understanding where to show it, at what time, for how much duration, how to show is just wasting money. To get a clear view of all this, you need to understand your customer well. Using various tools to get a hint about customer type, customer behavior can help you save your budget going haywire.
3. Just looking for followers on social media
Getting more and more number of followers on social media has been a trend for quite a long period. But, now looking at increasing cost for running ads visible to a large number of followers on social media, direct communication with customers is getting its importance back. Getting the email IDs of more and more potential customers and sending out your content on mail using various direct mail tools such as Mailchimp is more beneficial these days.
4. Trying to be huge immediately
Everybody wants people to know their company. You want to portray your company as a huge brand to get people to feel positive about your product/service. A common misconception - "brands drive sales" - is the reason behind this. It is the other way round. Not properly setting achievable goals for the marketing campaign and just focusing on spending too much and then losing hope because of not getting your very high targets achieved turns out to be a mistake.
5. Making it shining rather than useful
Shining ad campaign is a plus surely. But, it is helpful when it is done keeping the content and the message to be conveyed intact. Spending your money and time on just making your marketing campaign very pretty rather than giving out a clear message to the audience may not give you intended results on terms of sale in long term.
6. Not knowing what went right
Just knowing what went wrong is not enough. You should also understand which of your steps are being effective. You should know which marketing strategies and content are attracting a large number of customers and increasing sales. You should analyze which particular campaign gave you good revenue and then modifying others according to that one.
7. Not updating the strategy
Keeping a track of evolving marketing stint of the business is as necessary as continuing the right one as said above. Marketing is evolving very fast due to quick technological advancements. Reviewing your strategy and modifying or updating it accordingly keeps you in the business and also saves a lot of money that you will spend in designing a new campaign from scratch to cater needs of now.
8. Trying to do it all at once
As a small business, you have got a stringent budget dedicated to marketing. Looking at the resources you have got, you need to optimize your campaigns. You can't spend on everything that's running in the market. You will have to understand your customer, target their needs, and design marketing strategy accordingly. Don't just run behind every shining thing out there, Focus on specific things your customers like and work on that one at a time.
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