As a growing business, advertisements will take your platform to the next level. In a study by CBInsights, running out of money was listed as the second biggest reason why businesses fail. Since this is the case, it’s important that you stretch your dollar as much as possible when it comes to advertising.
The methods you choose to advertise will determine the success of your spending. Here’s somethings to consider when creating ads:
- Your audience and what appeals to them
- The cost of acquiring a customer
- The market your business belongs to
In the developmental stages of your business, you can take advantage of social media and online forums to spread the word, but eventually, you’ll need to upgrade to see your business expand.
Connecting With Customers
While free resources can’t sustain your business, they’re a huge help, especially when you’re just starting and have limited resources.
Facebook, for instance, is an invaluable resource for free advertisement. Another option would be building a website and advertising through Google, which can be done at low expense.
Thinking about the customers themselves, ask yourself: Are your customers more traditional? If so, physical ads, such as door hangers, are another cost-efficient way of reaching your audience.
Aim for low-cost solutions in the early phases of your business. It’s important to be mindful of your budget. Once your business begins to grow, then comes room to experiment with different kinds of advertising. At first, make your priority reaching and attracting new customers.
What matters the most is if the advertisement actually works.
Key Performance Indicators and Customer Acquisition Cost
Every new business needs a Key Performance Indicator (KPI) to measure success. One
popular KPI is Customer Acquisition Cost (CAC).
CAC calculates the expense of acquiring new customers. Having this number will help guide
you to spend an appropriate amount of money on advertising for your business size. A variety of CAC services exist, giving you options.
The math behind CAC is to divide the total cost you spend to get a customer by how many
customers you get within a time frame.
Figuring out your CAC will help you avoid any overly-elaborate advertising techniques when you’re starting your business. Remember, your focus is to build clientele by offering a quality product or service.
Testing Your Market
At this point, you should have a much clearer idea of how to market your business, especially after calculating your CAC. However, it’s just as necessary to test the market and see how your strategies work in reality.
Before investing too much into something that’s too complex for your business, choose a
sample area to test. Closely monitor how effective your ads work in specific areas of your business. If the results are positive, move on to a different area of the market.
After testing one part of the market, move on to the next. This way, you’ll gain an even better understanding of what your company specifically needs in terms of advertisements. No two companies will be exactly alike.
When advertising a new business, it’s important to ensure you have a product or service of value first and foremost. After this, it’s about getting the benefits in front of your customers through free and low-cost advertising solutions. Whatever you choose should work with your KPI and budget. Always look forward to your next steps!
Looking for a professional partnership in your advertising endeavors? RiZen Metrics offers a wide range of products and services to help small businesses grow. We’re here to help at every stage of your business. Call or visit us today for what you need to get your business going.