Think back to 1990’s and the experts said the web will make it possible to sell to customers all over the globe. For most small businesses that was unrealistic. Today Mobile, Social Media and Digital Advertising have turned the World Wide Web into Hyper Local and create tremendous opportunities for small businesses to connect with their core customers and neighbors and increase traffic and sales.
I’ve consulted with small businesses for more than 16 years. The #1 mistake I see businesses make is spending $1,000 here, and $2,000 there in Low Reach, Low Frequency ideas. Low Reach, Low Frequency varies for every business depending on the traffic and sales needed. In general LR, LF means your ad is reaching 100’s of people, or only a few 1,000. Examples include flyers on cars, neighborhood directories, yearbooks, sponsorships, tradeshows and in some cases even radio and print. It also includes ads that at first appear to reach alot of people, but really don’t. Like the ad on the end of grocery cart that others shoppers read as they pass by. Or, free coupon books and directories that are left in hard to find racks.
Now, let me be clear. There is nothing wrong with Low Reach, Low Frequency. The problem is the business’s expectations. They expect a Low Reach, Low Frequency campaign to lead their marketing efforts, and are surprised when it fails to generate leads and sales. The reality is that it fails because it can’t sustain enough reach and frequency to be make an impact, so the message is missed and forgotten.
Hyper Local, on the other hand, is building a relationship with core fans. These are customers who use your product/service or are very likely to. An additional critical element is that the advertising is permission-based. Meaning, the consumer as opted-in (or given permission) to receive the message. Examples include SMS Text Messaging (Mobile Coupons), Facebook and Email Marketing.
A study by Syncapse said the value of a fan is $136.38, based on their brand affinity, product spending, loyalty and likelihood to recommend. So, 1,000 fans equals $136,380 in sales? Yes, in theory, but that number is debateable of course. But, the concept is to spend the time and effort to develop fans. Fans want to know about your business (they opted-in!). Fans will tell their friends. Fans want to support you.
Hyper Local is building a fan base. Low Reach, Low Frequency is burning money.
Take a few minutes to evaluate your ad campaign using this 3 Tiered Approach.
Tier 1: Mass Media Advertising. You should have at least one High Reach, High Frequency partner – TV, Print, Radio, Movie Theatre. It doesn’t have to be the biggest TV or radio station, but it has to reach 10’s of 1,000’s of people (not 100’s). In theory you should cancel all Low Reach, Low Frequency spending to accomplish this.
Tier 2a: Hyper Local & Customer Conversion. You’re Mass Media needs to create fans. That way you can continue building the relationship with SMS Text, Facebook and email; and your Mass Media advertising can focus on sales and more fans.
What’s the best fan solution? Call me to discuss, but if you have repeat customers (QRS, Restaurant, Retail) and you want to reach them wherever they are, then SMS Text Messaging. But, you don’t have to pick one. Use them all! Hyper Local Solutions (SMS Text, Facebook, Email) are all very inexpensive and affordable for any size business. The idea is you want the person who hears the ad to (a) respond and/or (b) sign up for more info be that SMS Text Messaging, Facebook or email marketing.
Tier 2b: Build your relationship with your Fans. Make them feel special and reward them for being fans with exclusive offers, and behind the scenes information. Remember these are your customers, friends and neighbors.
Tier 3: Evaluate Low Reach, Low Frequency. Re-evaluate your Low Reach, Low Frequency advertising. You are going to have to eliminate some and re-energize others. Kill the flyers on the cars. Use tradeshows to get fans, not as advertising. And, keep the ad in the high school football program that you get as a sponsor (I’m going to). But remember, it doesn’t lead your advertising campaign.
For more info: http://mccormickmobilemedia.com.