In a previous post I talked about the importance of keeping your advertising up during a bad economy. Now here’s some ways to do it effectively and profitably…
First, keep the following principle in mind: The only true measure of success of your ads is how many sales they bring in. Ads are made for the sole purpose to sell, and if they don’t sell then they need to be changed or removed.
So with that in mind, let’s go over a few ways to make your marketing more successful during downturns. Each point works better when used with the other points.
1) Measure the cost per dollar per sale for all your ads
Cost per dollar per sale was coined by Claude Hopkins. It means that need know how much its costs you to get one sale from your ads. Suppose you spend $5000 on printing and distributing 1000 flier ads for your restaurant, and you get 20 sales from that, then your cost per dollar per sale is $5000/20 which is $250.
So that means you spend $250 for each new sale you bring in. In this case, if the revenue you get per sale is less than $250, then you need improve your results, or keep losing money.
2) Measure your response rates per ad.
You need to set up systems to know which ads get the best responses. I dedicated an entire section to measuring response rates but start at placing different coupon codes or contact info on each type of ad you place. Then try split run campaigns on random samples to see which ad pulls the most replies.
These methods are cheap and keep your ad costs at the same price and the response rate you get back is a goldmine of information. Try a test period and calculate the response rates you get from that period by dividing the number of sales by the number of ads distributed. Be sure you’re distributing at least a hundred of each type of ad (unless if online and not countable). You’ll see which ads are most responsive.
3) Gage your target’s changing preferences.
During a recession/ depression, more and more people have more time than money. Is your target market in this group, or do they still have more money than time? Are they still rich, or are they looking for more bang for their buck? Do they view your product/service as a luxury or a necessity? Which of your products would they buy more of during downturns?
Is there a way you can help them “kill two birds with one stone” with some product or service you sell? Would they think your product/service is inferior if you lowered your prices? You better find out the answers to these questions. Start by talking to your best customers. Ask them some of these questions casually
Observe which of your products generate the most sales, and ask some of your customers why they prefer that specific product right now? Observe their behavior. You’ll get some good ideas to gear your ads’ content and offers to their current appeals. Then invest in some test campaigns for these ads and see if they pull more responses.
More ideas will come later, for now do your homework and keep your profits up 🙂