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One of the worst things a business owner can do is to fall in love with their product, service or marketing strategy. Oftentimes, a person spends so much time developing the “ideal” program or strategy, and they get so close to it, that their objectivity goes right out the window.

It’s important not to get blinded by how well you think your marketing efforts will pay off. Even with all the necessary research in place, nothing is certain. The real key is how the market responds to your efforts and offers.

Before you invest any significant amounts of time, money or effort in any marketing or promotional effort, it would be wise to test the effectiveness of your campaign. That way, if it doesn’t work the way you thought it would or should, you haven’t wasted unnecessary resources.

Here are a couple of examples to illustrate this point:

Let’s say that you want to do a direct mail campaign to 20,000 homes in a certain radius around your business. So, you rent the list of homeowners, print up the pieces, have someone stuff the envelopes, affix the postage and haul them down to the post office. Then you sit back and wait for the calls or orders to come in.

But after a couple of weeks, you look at your results and find that you have only received 19 responses. You quickly take out your calculator and figure up that you just pulled a whopping .00095 percent!

Doesn’t sound like a very good return on your investment, does it? Well, it’s not. But, sadly, that’s the way most businesses operate.

But now, let’s suppose that instead of all 20,000 pieces being identical, and mailed at the same time, you decided to only mail to 5,000 the first time. And, let’s say you came up with five different approaches or ideas.

Now you go to the printer, have 1,000 of each idea printed, and get them in the mail. After a couple of weeks, by monitoring the results, you notice that idea number three had the best response… 12 orders, or, .012 percent.

Not a great response, but far better than all the other letters combined. And, you’ve not only not spent a ton of money on your marketing campaign, but you haven’t tipped your hand to all your prospects with an ad that doesn’t work.

Now, let’s go back to the drawing board and fine-tune the letter that pulled the best response. Make the headline more attention-getting, the benefits the reader will gain more appealing, and the offer more attractive. Then, send it out to another 1,000 names.

This time, your letter pulls 47 responses. That’s a 4.7 percent response! Not bad in anyone’s book. And, you’ve only used 6,000 of your original 20,000 names. You still have 14,000 left.

You now have a “control” letter. By tweaking the letter again, you may find that it pulls even better. If it does, then this letter becomes the “control.”

Just because you rented 20,000 names, doesn’t mean you have to mail the same piece to all of them at the same time. That’s what most businesses do, and it’s why so many of them have given up on direct mail.

Once you have a letter that is pulling well, keep mailing is short runs, always trying to beat your control letter.

Do you see what has just happened? By monitoring the results and by testing your mailing you were able to turn a complete flop of a promotion into a huge success.

Your testing is never complete. Just because you’ve run a couple of different tests, doesn’t mean you stop testing. You should always be testing something different to see if you can beat your control.

For instance, suppose you’re doing a direct mailing to residences and want to know whether you should use an envelope with teaser copy, or a plain white envelope. The answer can be found by testing. Here’s one way you might do it:

Split your addresses into two groups; Group A and Group B. These can be arranged by zip codes.

Group A will consist of addresses in certain zips and Group B will have addresses in different zips.

Group A will have teaser copy on the envelope, and Group B will be in plain white envelopes.

It’s important that the contents of all envelopes be exactly the same. If the test is going to be accurately measured, you can only have one variable, and that variable in this case, is the different envelopes.

Now, when your responses or orders come in, simply keep track of the zip codes they came from and you’ll know very quickly which envelope pulls the best. (This is assuming, of course, that the various zip codes consist of similar demographics.)

Once you’ve determined which delivery system is best, you can go on and test other components of your mailer.

Some things that are worthy of testing are…

• Headlines
• Subheads
• Super-heads (or pre-heads)
• Body copy
• Bullet points or statements
• The offer
• Price
• Guarantee
• Return policy
• Whether or not to use graphics
• Which graphics pull best
• Drawings
• Objects
• Pictures of products
• Pictures of people
• Charts and tables, etc.

If your marketing can’t be segregated by zip codes, you can use specially coded coupons or response cards. Use different codes for different variables that you’re testing.

Or, you might use different telephone numbers or send them to landing pages within your website. Some businesses have the respondent ask for a specific person or department.

For instance, if they ask for “Susan,” you know they’re responding to one particular offer, and if they ask for “Heather,” they’re inquiring about the same offer but with a different variable being tested.

Such persons don’t really have to exist; you just use the names as codes to measure the responses.

When the phone is answered and the caller asks for “Susan,” you simply say, “I’m sorry, Susan is not available right now. May I help you?”

You told the truth. Susan isn’t available. And, you’re able to help them. What’s more, you’ve identified which offer the caller is responding to.

Testing is such an important part of any successful marketing effort that nothing should be rolled out in large amounts without first testing.

Just using this simple strategy can help you maximize your returns, minimize your costs in time, money and effort, and add significantly to your bottom line.

Whatever you do, don’t fall in love with your project so much that you can’t be objective. And don’t spend too much time trying to analyze and figure out why a particular thing works and why another doesn’t.

It really doesn’t matter why. What matters is what. Put small test runs out into the marketplace and let your customers tell you what works and what doesn’t.

The link below is a chart that can help you keep track of the variables you’re testing. In the first column, you write the item that’s being tested. (Envelope, headline, offer, etc.)
Description of Ad and Item Tested worksheet
In the second column, the “Key Code,” you place the method you’re using to identify which offer the respondent is responding to. (A person’s name, department number, color of the flyer, picture on a postcard, etc.)

The third column, “Cost of Ad,” is where you write how much the ad costs to run. Or, if you’re using direct mail, you’ll insert the total cost of the mailing, including printing, envelopes, stuffing, postage, etc.

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Marketing Strategy #3

Build a database of current, past and prospective customers and keep in touch on a regular basis.

Who are your current customers? Do you know? How do you know? Do you have a record that shows who they are, what products or services they regularly purchase, what their last purchase was, when it was, and how often they make purchases from you?

How do you know that the person you consider to be a “current” customer isn’t, in fact, a “past” customer? When was the last time he or she bought from you? Have they sent any referrals to you lately? If so, who? If not, why not? Have they taken their business down the street to a competitor? If so, to whom? And why?

What about your prospective customers? Do you know who they are? Have you developed an “Ideal Customer Profile” that accurately describes who your best customers are so you’ll know whom to target with your marketing efforts? Do you have a list of them? Do you know how to reach them? Are you reaching them on a regular basis?

The answers to these questions can give you valuable information that can blast your business to never before dreamed of heights.

By knowing exactly whom you have dealt with in the past, who you currently deal with, and who you would like to deal with in the future can dramatically change your business, your profits and your bottom line.

If you’re not currently using a computer to keep track of these and other categories of customers, you should be. This database can be the starting point of unbelievable profits!

Targeting your marketing efforts to the right people can make or break your entire advertising or marketing campaign. And if you’re a small business, you can’t afford to have that happen too many times. It’ll drive you right out of business!

Keeping in touch with your customers…past, current and prospective, is one of the best marketing tools you can employ. It doesn’t have to be “hard-sell.” It can be as simple as any of the following examples:

• Send birthday cards to your clients.
• Send postcards on the anniversary date of their first purchase with you.
• Send a questionnaire asking for their evaluation of the product or service they purchased, or feedback on how it could be made better.
• Send an informational newsletter on a regular basis.
• Involve your customers in a contest or promotion… perhaps a referral generating promotion.
• Sponsor client luncheons with guest speakers that address subjects of interest to your clients. Have them bring a friend.
• Send announcements of “preferred customer” sales or events by special invitation. Include an invitation for someone who is not one of your current customers.

Make your current customers feel special.

Make your past customers feel missed

And make your prospective customers feel wanted.

Use your internal database to keep in touch with these groups of customers. Let them all know how much you care, and how much you appreciate their business, and this will take your business to new levels faster than nearly any other method you can think of.

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Marketing Strategy #2

Use the testimonials of other satisfied customers to help pre-sell your prospects.

Testimonials are one of the most powerful tools any business owner can use, but also one of the most under-utilized.
Testimonials are not limited to any one type of advertising or promotional media. Websites, Television ads, radio announcements, newspaper layouts and infomercials all make use of testimonials.

Your own clients are some of the best sources of endorsement you could possibly want. Especially if they are known to those you are marketing to, or if they have something else in common… perhaps they live in the same town, have similar businesses, belong to the same organization or association, etc.

There are really only three reasons people don’t buy from you.

1. They have no use for your product or service.
2. They can’t afford your product or service.
3. You haven’t developed the level of trust, credibility, and believability they need in you to do business with you.

There’s not much you can do if a prospect can’t use or pay for your services. But there is a lot you can do to help wipe away the underlying layers of skepticism they bring to the relationship and establish the trust level they need to say “Okay” to your offer.

People don’t like to be the first to do anything… especially if it involves parting with their hard-earned money. And, they don’t like to be manipulated. The sales world is full of hype and promotion, and oftentimes, false and misleading promotion.

If your customer or prospect can see that others have done what they are being asked to do, or that others are currently doing it, they tend to feel more safe, and will be more likely to participate. But you first have to relieve any nervousness they may have of being “taken.”

Testimonials are not difficult to get. One of the most effective ways is to send users of your products or services a questionnaire or evaluation form that asks for their feedback on how they’ve benefited from using the product or service.

The questions should be in “open-ended” form, and ask for them to write their feelings about their experience with your product or the service they received from you, and not just for “yes” or “no” answers.

Another effective method is to call your clients on the telephone and record the conversation (with their permission, of course).

Then you can transcribe the parts you want to use, and send a copy to them for their approval and authorization.

Often, after a brief warm up conversation, people will forget the tape is running, open up and give you all kinds of good, useable information that can be edited for use as a testimonial.

Using testimonials is one of the most effective ways you can eliminate fear, increase the believability and credibility of your offer, and add to the number of sales or inquiries to your advertisements or promotions. Whatever you do, don’t overlook this important and valuable tool!

Four Hot Marketing Strategies, No Matter What Condition The Economy Is In

The bottom line of all businesses is to make a profit. That’s why a business exists in the first place. It sounds nice for someone to say that the reason they’re in business is to help other people, or to provide some needed service, but in the end the real bottom line is that the business owner wants and needs to realize a profit on his or her investment.

Profits are what drive businesses and allow them to provide more goods and services, create more jobs and expand the economy. Profits are what allow the philanthropist to continue giving and providing relief and humanitarian service to others.

There are many factors that affect profits, not the least of which is customers purchasing goods and services provided by the business. Without customers making purchases, there simply would not be a business.

If a business expects to remain in business for any length of time, or to grow, the business owner must master the skill of getting customers to do business with them.

That includes new customers… those with whom they have never done business before; current or existing customers… those who patronize the business regularly; and past customers…those who have done business before, but may have taken their business elsewhere.

Constant Contact