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9 Steps you can take right now to make your advertising budget work harder

By Liz Walker

Republish: EasyPublish™ Published: 22Jan2009 Word count: 1208 Viewed: 156 time(s) Get Free Content For Your Site

In our work as coaches, we see some of our clients struggling while others continue to do well. How are these companies different?

First, an observation or two. Some businesses are positioned to thrive in a challenging economy: if you sell wood stoves, car repair, maintenance or business coaching, rejoice. You will likely do well as people switch their buying habits from "buy new" to "make do".

And, there are some strategic tools well-placed businesses have put in place long ago, such as a robust lead-generating infrastructure and products and services that prospects can easily recognize as different from the run-of-the-mill.

If you are not in this happy position, there are steps you can take today that will work for you. Here they are:


1. Pull your customer records for the past three years. Sort sales by customer in order of total annual value. Identify your top 20% by volume - how many of them are there - three? 600? somewhere in between?

Now, find the ones with a) average or above average profit; b) receivables at 60 days or less; c) orders in the pipeline for the next 3 months. Now you have a list of Ideal Customers.

One of our clients had 899 customers. Ten of them provided 30% of his business. Now he can focus on keeping and growing those ten while an associate manages the other 889.

2. Look at your Ideal Customer list. What do you see they have in common? It could be a similar problem you help solve, a particular vertical market or geography, business size and ownership, or a particular attitude to how business should be run.

Most importantly, look for why they do business with you: what do each of your Ideal Customers celebrate in you? Ask them, "What is the one word that describes our company?" Now you have a focus for your actions that will give you better results and save you time and money.

A large training company found their clients loved the over-the-top service they got. A manufacturer discovered it was faster delivery. An advertising studio found it was cooler designs. A software consulting firm was lauded for its creative problem solving.

3. Check your web site, sales presentations and any other tool that you can change cheaply, including how you answer your phone. Does every single word reflect your focus? If not, you change these elements to deliver that one message: We are the (category of business) that delivers (your one word).

4. Pull a report on your advertising and lead generation expenses for the past three years. Include everything: directory listings, trade publications, signs, newspaper ads, ads in the local soccer program, radio ads, golf sponsorships, client lunches, Christmas gifts, and donations.

Add it up. Ask, "For every dollar I have spent, how much business can I honestly say I have gotten back?" Immediately, cancel any spending that has not led to more phone calls, more web traffic or more requests for information at the very least.

A home improvement company we worked with had been spending $10,000 a year on radio for the past five years. He realized that he had no idea whether the ads worked. He did know his phone didn't ring any more often when his ads ran. He cancelled the radio and saw no difference in his business.

A home heating company had run ads in several phone directories for years at a total of $500 a month. He cancelled with no impact on his business.

A group of local companies partnered on a door-to-door flier that cost each of them $500 a month. It didn't work, they cancelled, and saved $6,000 a year.

5. Total the funds you have been able to free up. Divide it up as follows: 30%, Ideal Customers; 30%, Referrals; 30% lead generation. Now you have a new business budget.

6. Write a personal note to every person you deal with at every one of your Ideal Customers, thanking them for their business and asking for a personal meeting. At that meeting, present a customized overview of how you are going to focus on your "One Thing" (remember, they identified it for you). You should offer very specific new ways you are going to do this.

The training company with the over-the-top service revamped their client service team, added to the most-wanted courses, and offered shorter (and cheaper) programs.

The manufacturer with the faster delivery offered a delivery guarantee no-one could match.

The software consulting firm let some marginal performers go and beefed up their senior group, produced a "how to" manual showing how their solutions could be implemented faster and easier and initiated a program to help clients get out of legacy commitments they didn't need any more.

7. At the same meetings, launch your Referral Program. Say,"We ask ourselves every day, what can we do today to get XYZ Company (the one you are meeting with) to recommend us? Would the improvements we have presented to you today convince you to recommend us to other companies who need this approach?"

When they say "Yes" (and they will), say, "In that case, we have are delighted to offer a Referral Price to you: at the end of our fiscal year, we will rebate 2% of the value of all revenue directly attributable to your referrals and introductions."

If you have a better idea, go ahead and offer it. This Referral plan will not run itself. You will need to assign someone to getting case studies and written recommendations, following up every month to remind people about the program (a combination of phone calls, e-newsletter, and personal meetings).

Ask for introductions to colleagues at trade events or fund-raisers. Ask to be invited to club meetings.

Ask to be invited to join organizations you need to be sponsored for. If you get a referral, make sure you let your referral source know you contacted the referral and what resulted.

Our favourite referral event for a home improvement company is the open house that the home-owners host to show friends and neighbours their new space.

A technology consulting firm assigned an account executive to manage their partnerships with big software vendors, like Microsoft, and tripled their leads.

8. Create a "How To" document prospects can download from your web site, get in the mail or find lying around in your referral partners' office lobby. It should be practical, easy to read and completely focused on solving a specific problem your Ideal Client has.

9. Take the 30% you have allocated to lead generation and buy the smallest ad you can get in the one publication that is most widely read by your Ideal Customers, whether newspaper, trade journal or magazine. Create the ad to say "Free report. How To (do whatever it is you have written in Step 8)." Add your company name, phone number, and web address.

Run the ad six times; if you have not received any document requests, change the title of the document and run the ad six more times. Do not change the content of the report. Keep doing this until you find a name people respond to; then sit back and count your leads as they pour in.

That's it - nine steps you can take right away to refocus your efforts where they will do the most good.

Good luck, and good business.

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