5 Marketing Mistakes Small Business Must Avoid
By: Riggie Freyer
Small Business owners often believe their business failed because of a
lack of capital or lack of experience etc. The truth is, most small
businesses fail because of the marketing mistakes they make. It's
vital to avoid the common marketing mistakes in order for your
business to thrive instead of fail.
Here are the 5 most common marketing mistakes small businesses make:
1. They Fail to Build a List of Customers
The large majority of small business owners are not aware how
important it is to build a database of customers. Especially those
which rely on local customers for their business. If you're not
actively building your list of customers on a daily business, you're
vulnerable when the economy takes a nosedive, or any other unforeseen
problems arise in your business.
Remember, your customer database is your most valuable asset in you
possess.
2. Providing No Value to Their Customers
Very often small businesses only have their products and their own
sales in mind. They forget to give value to the customers they sell
to. Even though they still might make good money, they fail to develop
a strong relationship with their customers.
Make sure your give your customers tips and reports to help them
solve their problems too. Even consider sending them a valuable free
gift once a year. Do whatever you have to, to build a strong
relationship with them.
3. Failing to Track the Cost of Gaining a Customer
Without knowing what it costs to recruit a customer, a business can't
be built on a solid foundation. It also won't know what the lifetime
value of its customers are.
The first step is always to determine the lifetime value of a
customer, and knowing what it costs to recruit every new customer.
This enables every business owner to know if it can afford a certain
marketing campaign or not.
4. Not Contacting Customers Often Enough
Many small business owners I talk to think if they contact their
customers often, they're bugging their customers.
For you to service your customers and increase your profits at the
same time, it's essential that you contact your customers at least
once a month. Keep in contact with them and let them know which
special offers you have, what the latest developments are, tips about
how you can solve their problems etc.
5. Not Testing It's Advertising
Every single ad, follow-up emails, letters, postcards, etc. must be
tested to see if they're effective or not. Testing to see what
works and what doesn't (in your market) is the key.
If you change a headline or payment options in your sales letter for
example, you could increase your response rates by 50% or more. Set up
a system by which you test different aspects of the marketing you send
out to your customers. You'll increase your response rates
dramatically and save advertising costs.