Things to Do When Your Advertising Budget Is Low
There will be times when you will outstrip your budget in what you spend on advertising. When that happens, the right answer might not be to spend more. Sometimes the right answer is to use your resources more effectively to get clients and prospects to take action. In this article we will discuss a few of those ways to use your existing business resources.
One of the most important resources that you can work with would be those customers who are at your location or your website, and ready to make their purchase. The fact is that once they have already committed to buy from you, you are much more likely to make an additional sale with them, than if you waited until they decided to come back to your location.
Whether you call it upselling or cross selling, you want to make sure that every purchase is accompanied by a direct opportunity to make an additional purchase. The key to doing this well is to make sure that you have relevant products and services to offer with every item that you sell. If you have salespeople, they should be expected to execute this consistently. As a rule, upselling and cross selling is accomplished by 20% of all companies that attempt to do it routinely. If you leave this out of your sales routine, you will be leaving money on the table.
Some companies, depending on what they sell or what medium they are selling in, offer a downsell. A downsell is at it implies. When a prospective customer is going to leave your store, location or website, your sales process works to discount a relevant item to them. This will increase profits, but takes considerable skill, knowledge of your costs and business intuition to be done well. You do not want to devalue your other products, nor do you want to give the impression that you will always negotiate when a customer says that they are ready to leave your business. Downselling works but should be used with care.
One method that does not carry the risks of downselling is the forming of marketing alliances, or what some call a co-op. This basically means that you will find businesses that have a complimentary customer base and work with them on promotions together. You have probably experienced this kind of selling with restaurants and movie theatres, who do promotions together. For example, the restaurant may offer a discounted meal if you bring that night’s ticket stubs from a certain movie. The movie theatre may accept the receipt from a particular restaurant to discount movie tickets for a certain movie on a certain night.
This cooperation offers benefits to both the movie theatre and the restaurant. The restaurant gets access to customers of the movie theatre. The movie theatre gets access to customers of the restaurant. As a result, both the movie theatre and restaurant have expanded their customer base without spending considerable sums of additional money on advertising. There is a time commitment involved in finding the right partners and structuring the right deal, but the potential benefit is substantial.
The time commitment that is necessary to structure co-ops, upsells, cross-sells and downsells can take you away from your everyday activity. However, it is one of the things that we do for our clients with minimal time commitment from owners and managers. That way they get the benefit of increasing their revenues without a tremendous ad spend; while at the same time, they don’t have the burden of adding more tasks to their already crowded plate. Call us today so that we can talk to you about ways to increase your revenue without spending more money on advertising.