Question: In a rapidly changing media landscape - let alone a brutal economy - how does a business owner know if their marketing program is effective? Answer: if you can’t afford to pay for measurement, it’s hard to know; but there are indicators.
Standard thinking is that a minimum of 4% of your gross revenue should be allotted for marketing. Let’s hope that you are monitoring that program on a quarterly basis. Now, more than ever, is the time to: 1) market yourself, 2) experiment. It has been said that a successful program combines advertising (radio, TV, print) and public relations. But now, in the 21st century, with technology leading the way, an online presence is vital – if not necessary – for any program. That online presence can take the form of banner ads on websites, having a social media program (Facebook, Twitter – even YouTube) or email blasts. Smart operators are utilizing all these tools as traditional media outlets shrink in size and effectiveness. Crain’s New York Business recently noted that the New York Post’s circulation has declined by 20% since last year, the Daily News is down 14% and The New York Times and Newsday both down around 3%. We think they’ll survive – because they, too, will adapt. They’re all scrambling, but who isn’t?
Get Ears.
Measuring return on investment (ROI) is an exact science. Most small companies can’t afford measurement programs done by professional measurement firms that charge a minimum of $20,000 or more per year for that service. Therefore it’s imperative to have your frontline people – those who interact with your customers/clients – ask the all-important question, “How did you hear of us?” in order to track your marketing investment. And you may want to ask that question too if the call or customer comes to you directly. Coupons or “mention this ad” are always reliable but not necessarily in line with your concept. Sometimes a large piece of press – a feature article or review of a product or business – will have the phones ringing the moment it runs. When that happens, recognize it for what it is: powerful. Now the onus is on you as an operator to deliver. Online marketing also has its advantages: metrics are somewhat easily available to monitor a spike in engagement – whether it be increased fans to a Facebook page, or number of unique visitors to a website. As well, an increasingly recognized merit of Twitter is its search capability, enabling one to monitor one’s brand.
Take a Chance.
Now would be the time to stick a toe in the water of online marketing; it’s where marketing is headed because it’s relatively less expensive and it appears that customers are spending a lot of time online – whether it be at home, office or elsewhere. The other night, I was watching a ballgame that was broadcast from a small-market Midwestern city. As the cameras scanned the crowd, I noticed how many people were fiddling with their Blackberry’s or iPhones. Maybe they were checking their email, their Facebook page or checking out their favorite local website. I wonder what marketing messages were imparted to them in-between pitches?
Are you monitoring your marketing program? Have you embraced Internet technologies? Are you speaking regularly to your communication specialists? Do you feel the media . . . shift? What do you think? Comments welcome.
