When it comes to cutting the costs of marketing, most businesses begin by reducing their marketing activity and downgrading their product or service. However this is a bad move, you should use your marketing itself to identify areas where you can cut costs without losing what your customer really wants.
As a small business owner, you will have thought carefully about how best to get the most from your marketing budget. You could have thought about targeting the customers that are most likely to help you meet your sales objectives.
Know your customers
The questions you need to ask yourself are:
- Why does someone buy one brand over another?
- What elements of the product matters?
It’s critical to understand your customer’s buying decisions well enough that you can ensure that the money you spend on creating your offer is spent in areas that will actually drive sales. Try making a list of idea’s that could reduce your costs and your assumptions about why they might work.
Getting it right
Of course, you can never know how good your theory is until you test it. The next step is to ask your customers to fill out a simple questionnaire about your offer and try out changes based on the results. This can be done as a part of your [Insert hyperlink] email marketing.
If your customers don’t mention a part of your business like the packaging as a reason to buy your product, then trial 30 boxes in a cheaper material and test your assumption. By trying out different changes and measuring the results, you’ll find out what your customers really care about when buying your product or service. So, after a few weeks, ask the same customers to fill out the same survey and see if any of the satisfaction scores have altered. If they haven’t dropped, make the changes permanent.
Saving costs means an increase in your margins. You can invest more in the elements of your business that you know makes your customers buy from you. Making little changes to your business could have a big impact on other parts of your business like sales.