word of mouth marketing - YBR Marketing | SEO, Online Advertising, Web Design, Social Media Marketing, Lead Generation

What’s Your Unique Selling Position?

by Red/Marketer with a Soul | Sep 16, 2022 | Advertising Wollongong, Digital marketing wollongong, direct response marketing, Lead generation, local seo, Online Advertising Wollongong, Unique Selling Position, USP, word of mouth marketing

Get Out Of The Commodity Business By Developing A Unique Selling Proposition

You know you’re marketing your business as a commodity when prospects start the conversation by asking you about price.

Positioning yourself as a commodity and hence being shopped on price alone is a terrible position for a small business owner to be in. It’s soul crushing and this race to the bottom is bound to end in tears.

The answer is to develop a unique selling proposition (USP). Something that positions you differently, so that prospects are forced to make and apples-to-oranges comparison when comparing you with your competitor.

If they can do an apples-to-apples comparison of you and your competitors then it comes down to price and you’re toast, because there’s always someone willing to sell cheaper than you.

There’s Nothing New Under The Sun

Very few if any businesses or products are truly unique, so a common question is, “there’s nothing unique about my business, how do I develop a USP?”.

There’s no quick and simple answer to that question but here are a few ideas.

Firstly we want to get into the mind of our prospect. What do they really want? It’s rarely the thing you are selling, it’s usually the result of the thing you are selling. The difference may seem subtle but it’s huge.

For example someone buying a $50 watch is buying something very different from a person buying a $50,000 watch. In the latter case they are likely buying status, luxury and exclusivity. Sure they want it to tell the time just like the buyer of the $50 watch but that’s unlikely to be their core motivation.

So to get into the mind of the prospect, we need to discover what result they are actually buying. Once you understand this, you then need to craft your unique selling proposition based on the result your prospects want to achieve.

For example if you’re a printer, you’re a commodity business. You want to get out of the commodity business as quickly as possible. I don’t mean get out of the industry but you do need to change how you position yourself.

Stop selling business cards, letterheads and printing and start asking open ended questions such as, “Why are you coming to a printer? What is it that you want achieve?”. The prospect doesn’t want business cards and letterheads, they want what they think business cards and letterheads are going to do for their business.

So you could sit down with them and and say, “What are you trying to accomplish? Let’s do a printing audit and evaluate all of the things you’re trying to use printing for. By taking them through the process, you can charge them to do a printing audit. Then if they end up hiring you to do their printing, you can apply that consulting fee towards printing. This way you’re no longer viewed as a printer anymore. You’re now viewed as an advisor that’s serving their needs.

Use Outrageous Guarantees

Another great strategy for creating uniqueness in your offer is an outrageous guarantee. One which completely reverses the risk of the transaction.

To be truly unique when using this technique you must avoid the vague crap that everyone says e.g. satisfaction guaranteed, service quality, dependability.

You must have a very specific guarantee to address the fear or uncertainty that the prospect has about the transaction.

For example if you’re in the pest control business you’re customers want to know:

The pests won’t come back
The technician won’t leave their house dirty
That you won’t poison their family with chemicals

So you’re outrageous guarantee could be something like this:

“We guarantee to rid your home of ants forever, without the use of toxic chemicals, while leaving your home in the same clean and tidy condition we found it. If you aren’t absolutely delighted with the service provided, we insist that you tell us and we’ll refund double your money back.”

Compare that to a weak, vague guarantee like, “satisfaction guaranteed”.

Does an outrageous guarantee like the one above entail risk for the pest control service provider? Sure, if they do a crappy job. But in a case like that they’re likely to have to give the customer a refund anyway. It may even be a legal requirement.

Here’s the other thing about guarantees. If you’re an ethical operator, you are most likely already offering a guarantee but you just aren’t using it to your advantage in your marketing.

So why not make a point of talking about something that you’re already doing.

Most people are honest and won’t abuse guarantees if they’ve received the service they were promised.

Even after accounting for the few people who do abuse them, you’ll be far ahead because a strong guarantee will attract more customers than a weak and vague one.

A strong, results oriented guarantee will also drive you to deliver a great customer experience. This alone ensures that it’s worthwhile to have a strong guarantee.

Your customers have their own fears. When you can name the fears and guarantee
against them in your marketing, you give yourself an overwhelming advantage
over your competitors.

Pricing Strategy

I’m sometimes asked, “can’t lowest price be my USP?”. Sure it can, but can you absolutely guarantee that everything you sell will be priced lower than all your competitors including the behemoths like Target and Kmart? Unlikely.

So a USP that says “lowest prices on some things, some of the time” is not quite so compelling.

The fact is if you’re a small or medium business, you’re unlikely to beat the big discounters at the lowest price game.

Truth be told, you probably don’t want to. By charging higher prices, you attract a better quality client. As counter intuitive as it may seem, you get far less grief from high end customers than you do from low end ones. I’ve seen and experienced this in multiple businesses across multiple industries.

A better option than discounting is to increase the value of your offering.

Bundling in bonuses, adding services, customising the solution can all be of genuine value to your customer but can cost you very little to do.

This also helps you create that apples-to-oranges comparison that gets you out of the commodity game.

Don’t hate the player, hate the game. So as hard as it may be to resist, don’t play the commodity/price game.

Dedicated To Your Marketing Success

John

“I would like to acknowledge the wonderful Alan Dib from Successwise“

The Value of Lead Generation

by Red/Marketer with a Soul | Apr 9, 2022 | Advertising Wollongong, customer retention strategy, Digital Marketing SOPs, Digital marketing wollongong, Google Ads, Lead generation, local seo, niche marketing, Online Advertising Wollongong, word of mouth marketing

Whether you’re a B2C or a B2B, if your business has sales, it should be generating leads. A lead is a potential customer, and lead generation is the process of creating and nurturing those potential customers.

The benefits of lead generation include:

Credibility: By offering valuable, reliable information to potential customers, you establish your business as an authority in your field. This means that when they’re ready to buy, they’ll be looking for you first.

More sales: You’re not only attracting new customers when you generate leads, you’re also working on keeping them around for the long haul. Leads are carefully cultivated through the sales process so that by the time they reach conversion, they are ready to do business with you.

Less effort: Lead generation allows you to have more control over the sales process while simultaneously reducing your own workload. By automating certain steps of the process and making sure every lead gets a personalized experience, your team will spend less time chasing down leads and more time closing deals.

What’s the real cost of lead generation?

Lead generation is a valuable marketing tool. It helps businesses build their pipelines and drive sales, and for those who are just getting started with it, it can be a game-changer—especially because there are so many free resources available.

But what’s the real cost of lead generation? And how can you make sure that you’re actually getting your money’s worth?

One of the more popular methods for generating leads is to “buy them” from lead generation companies like Hipages, Oneflare, Airtasker and Service Seeking.
It seems easy enough, pay your hardearned, get a lead, and go from there..

So what’s the catch? Lead generation companies are expensive. They charge a percentage of the total job value, in most cases is 15% plus a monthly fee plan which can be anywhere between $99 to $1200. In fact, on average, it ends up costing you more than $30 – $60 per lead in some cases. That’s per lead. Not per job or sale.

It’s for this reason that we don’t recommend using pay per lead platforms such as those mentioned above. We’ve had dissatisfied clients who’ve used these sites, and generally speaking, each lead they accepted was 30 to 40 dollars. Often once accepted the “client” wouldn’t answer calls or they were just curious as to the cost. After a few leads like this it becomes extremely costly. This only bumped up the price for the next client as we couldn’t afford to keep paying for such expensive leads.

If you own a franchise and are required to pay a set monthly fee regardless of your revenue, it can be costly, and most large franchises will sends leads your way for a price, which on the surface may seem low, anywhere between $4 – $10, but factor in the complusory monthly fees and those leads could be upwards of $60 plus each.

So what is the alternative?

Google or Facebook?

Search is no longer just a place to discover new products and services. It’s become the go-to destination for consumers who are ready to buy. Even if they aren’t sure exactly what they want, search engines are where most people start their research.

So why not get in front of those potential customers at the moment of highest purchase intent?

In a recent survey, 71% of respondents said that search engines were the first place they looked for information about products or services. And with paid search ads, you can show up at the top of those search results—and beat your competitors to the punch.

Paid search ads are highly effective because they put you in front of consumers when they want your product or service most.

Google and Bing Search Ads: Average Cost Per Click, Click-Through Rate, Cost Per Lead, and Conversion Rate by Industry

If you’re considering running Google or Bing search ads, you’ll want to first get an idea of what you can expect to pay for cost per click, click-through rate, lead cost, and conversion rate. These factors will play a large role in how much your ad campaign costs overall.

To help you get a sense of what’s possible in your industry, we’ve compiled the top 20 industries that run Google and Bing search ads (according to their own data). The data is broken down by industry so that you can get an idea of where you need to improve to stay competitive.

Also read: “The cost of Google Ads in 2022”

Pay only for interested leads

What is cost per lead?

Cost per lead, also known as cost per action, cost per conversion, or cost per acquisition, tells you how much you spent in order to get someone to complete a desired action—whether to fill out a form, call you, or make a purchase.

How much does it cost to get a lead?

According to Wordstream market research, the average across all industries is $41.40. This overall average is lower than what we’ve seen in the past, which is good news for advertisers. The automotive vertical has consistently been in the lowest bracket in our past findings.

Which industries have the highest cost per lead?

Industries with the highest cost per lead include attorneys and legal services ($73.70), furniture ($64.72), and finance and insurance ($62.80).

Which industries have the lowest cost per lead?

Industries with the lowest cost per lead are animals and pets ($14.88), automotive repair, service, and parts ($17.81), and restaurants ($20.49).

Which industries have the highest conversion rates?

The conversion rate of an ad is the number of people who clicked on your ad and then did what you want them to do (like contact you or buy something from your site). This is one of the most important numbers you’ll ever look at, because it tells you whether your marketing dollars are being spent in a way that creates value for your business.

We found the average conversion rate across all industries to be 8.82%, ranging from 3.25% to 19.19%.

Industries with the highest conversion rates include animals and pets (19.19%), physicians and surgeons (19.15%), and automotive repair, service, and parts (15.23%). Industries with the lowest conversion rates were furniture (3.25%), apparel/fashion and jewelry (3.6%), and real estate (3.93%). Our past data also finds the highest conversion rates in the legal and automotive verticals and the lowest in real estate and apparel.

On the other hand, the personals conversion rate has historically been higher than what we’re seeing here.

I am not a marketer, I run a business, so how can I do both successfully?

You’re not alone. You think you’re the only one who’s ever been through this, but we’ve heard from many business owners just like yourself.

You’ve built your business on passion and hard work, so it can be a rude awakening when you realize that you need to give all that same passion and attention to crafting an effective marketing strategy.

For a lot of people, it’s especially hard because they don’t have a background in marketing—they’re just business owners. But the good news is, we can not only help you with that, we can also help turn you into a marketer who happens to own a business.

Here’s how:

Three Words: “Standard Operating Procedures”
We have been developing and using our marketing SOPs to great success. Our SOPs provide you with step by step instructions that make setting up effective ads simple and straight forward. They are easy to follow even if you are a beginner or don’t have any experience in creating Facebook or Google ads.

Our SOPs come with detailed instructions on how to set up your ads, tricks of the trade that save you time, money, frustration and improve your results. We have been working with different audiences over the years and have tested what works best for your market.

Like to know more? Click this link

Dedicated To Your Marketing Success

John

3 Easy Steps To Get More Customers, Than You Ever Thought Possible!

by Red/Marketer with a Soul | Mar 6, 2022 | Advertising Wollongong, Customer experience wollongong, Digital marketing wollongong, direct response marketing, local seo, niche marketing, word of mouth marketing

Step 1: Select A Narrow Target Market

A 100 watt light bulb, like the kind of lightbulb we normally have in our homes, lights up a room. By contrast a 100 watt laser can cut through steel.
Same energy, dramatically different result. The difference being how the energy is focused.
The same is true of your marketing. You have a limited amount of money. If you focus too broadly, your message will be too scattered to be relevant to anyone.
The goal of your ad is for prospects to say, “hey that’s for me”.
Take the example of a photographer. If you look at ads from most photographers you’ll often see a laundry list of services like:
Portraits
Weddings
Family photography
Commercial photography
Fashion photography etc..
The technical way photography is done may not change very much from situation to situation, but let me ask you a question. Do you think someone looking for wedding photography would respond to a different ad than someone who’s after commercial photography?
Do you think a bride-to-be looking for a photographer for her wedding might be looking for something radically different than a purchasing manager from a heavy machinery distributor looking to photograph a truck for a product brochure of course!
However if the ad just rolls out a broad laundry list of services, then it’s not speaking to either prospect, therefore it’s not relevant, therefore it will likely be ignored by both market segments.
That’s why you need to choose a narrow target market for your ad.
Being all things to all people will lead to marketing failure. This doesn’t mean you can’t offer a broad range of services, but understand that each category of service is a separate campaign. My advice is first dominate one target market, then move onto the next.

Step 2: Create A Lead Generating Ad

Even in a narrow target market, all prospects should not be treated equally.
All other things being equal, the more money you can spend marketing to high probability prospects, the better your chances are of converting them to a customer.
Just like our proverbial archer, who has a limited number of arrows, you have a limited supply of money for your marketing campaign, so it’s essential you invest it wisely.
For example if you have $1,000 to spend on an ad campaign which reaches 1000 people, you’re essentially spending $1 per prospect.
Now assume that out of the 1000 people the ad reaches, 100 are potential prospects for your product. By treating them equally, as you would have to do with mass marketing, you’re wasting $900 on uninterested and unmotivated prospects to reach the 100 who are interested.
What if instead of treating them all equally you could sift, sort and screen so that you were only dealing with high probability prospects and not wasting valuable time and marketing dollars on uninterested and unmotivated prospects?
You could then spend the whole $1,000 on the 100 high probability prospects. That would allow you to spend $10 on wooing each of them instead of the measly $1 per prospect you’d have if you treated them all equally.
With ten times the firepower aimed at the right targets, do you think we’d have a better conversion rate? of course!
But how do we separate the wheat from the chaff? The short answer is we bribe them into telling us!
Don’t worry there’s nothing underhanded here. We offer an “ethical bribe” to get them to identify themselves to us. For example, our friend the photographer could offer a free DVD telling prospective brides exactly what they should look for in a wedding photographer and showcasing some of his work.
A very simple lead generating ad could be headlined: “Free DVD Reveals The 7 Costly Mistakes To Avoid When Choosing A Photographer For Your Big Day”.
Anyone requesting this “ethical bribe” would be identifying themselves as a high probability prospect. You now have at least their name and address which would go onto your marketing database.
Remember the goal is simply to generate leads. Avoid the temptation of trying to sell from your ad. At this early stage you just want to sift out the uninterested and unmotivated so that you can build your database of high probability prospects.
Here’s the other big reason you want to avoid selling directly from your ad: at any given time (on average) about 3% of your target market are highly motivated and ready to buy immediately. These are the prospects most mass marketing hopes to convert. However there’s a further 7% who are very open to buying and another 30% who are interested but not right now. The next 30% are not interested and finally the last 30% wouldn’t even take your product if was free.
If you tried selling directly from your ad, you’d be targeting only the 3% who are ready to buy immediately and losing the other 97%. By creating a lead generating ad, you increase your addressable market to 40%. You do this by capturing the 3% who are immediate buyers but also by capturing the 7% who are open to talking as well as the 30% who are interested but not right now. By going from a 3% addressable market to 40%, you’re increasing the effectiveness of your advertising by 1,233%

Step 3: Follow Up Until They Buy Or Die

So now that you have your database of high probability prospects, what do you do next? Quite simply you market to them until they buy or die.
It may seem like I’m advocating being obnoxious and pestering people to buy until they cave in. Nothing could be further from the truth.
Traditional selling is focused on pressure tactics like “always be closing” and other silly little close techniques which are based on pressure.
It makes the seller a pest who the prospect wants to avoid.
Instead of being a pest, I advocate becoming a welcome guest. Send your high probability prospects a continuous stream of value until they’re ready to buy.
This could be in the form of tutorials, articles, case studies or even something as simple as a monthly newsletter that’s related to their area of interest.
This builds trust, good will and positions you as an expert and educator rather than just a sales person going for the jugular.
Various technology tools make it easy to automate this continuous follow up mechanism, making this a cost effective and scalable way of building up a huge pipeline of interested and motivated prospects.
Some of these prospects will convert into customers immediately, while others will do so weeks, months or even years later.
The point is that by the time they’re ready to buy, you’ve already built a solid relationship with them based on value and trust. This makes you the logical choice when it comes time for them to make a buying decision.
This is one of the most ethical and painless ways of selling, because it’s based completely on trust and an exchange of value.
While your competitors are blindly shooting arrows every which way in the hope of hitting one of the 3% of immediate buyers, with “The Visible Target Technique” you’re focusing all of your firepower on a clear and visible target.

Tune in to the minds of customers. Find out all you can about their wants and needs. And, above all, do what you do best – market your services! If you are in a niche business and want to increase the possibility that people with that need will find you Stop waiting for things to happen and make them happen yourself. Your destiny is just a click away!

To Your Success

John

Big Business vs Small Business Marketing

by Red/Marketer with a Soul | Aug 11, 2021 | Advertising Wollongong, Customer experience wollongong, Digital marketing wollongong, direct response marketing, local seo, niche marketing, Online Advertising Wollongong, website design, website hosting, word of mouth marketing

Does Size Really Matter?

Well in marketing your small business, it most certainly does. In this article I’m going to show you one of the biggest marketing miscalculations made by small business when it comes to getting their message to their target market.

I can’t tell you how widespread this problem is, and it’s at the very core of why most small business marketing fails.

If you’re a small business owner, you’ve almost certainly given some thought to marketing and advertising, things like; What approach are you going to take? Where are you going to advertise? What are you going to say in your advertising?

The most common way most small business owners decide on doing this is by looking at large, successful competitors in their industry and copying what they’re doing.

This seems a pretty smart thing to do right? Copy what other successful businesses are doing and you will also become successful?

But honestly, this is one of the quickest ways to fail and I’m very certain it’s responsible for the bulk of small business failures. Here are the two major reasons why I think that is..

Large Companies Have A Different Agenda

Large companies have a very different agenda when it comes to marketing than small businesses do. Their strategies and priorities differ from yours significantly.

The marketing priorities of a large company looks something like this:

Pleasing The Board Of Directors
Appeasing Shareholders
Satisfying Superiors’ Biases
Satisfying Existing Clients’ Preconceptions
Winning Advertising And Creative Awards
Getting “Buy In” From Various Committees And Stakeholders
Making A Profit

The marketing priorities of a small business look something like this:

Making A Profit

As you can see there is a world of difference in the marketing priorities of small and large companies. So naturally there is a big difference in strategy and implementation.

Big Companies Have A VERY Different Budget

Strategy changes with scale. This is very important to understand.

Do you think, for example, a large property investment company has a different property investment strategy to the average small property investor? Of course they do..

The large company’s strategy simply won’t work on a small scale. You can’t just build one floor of of a skyscraper and leave it at that. You need them all.

If you have an advertising budget of millions and years to get a profitable result, then that’s going to be a very different strategy to needing to make a profit immediately with a $5000 to $10,000 budget.

Using a large company marketing strategy, your $10,000 is going to be a drop in the ocean. It will be totally wasted and ineffective because you’re using the wrong strategy for the scale that you’re operating at.

Branding and ego-based mass marketing is the domain of large companies. To achieve any kind of cut through requires an enormous budget and the use of expensive MASS media.

So What’s left For The Little Guy?

Direct response marketing gives small businesses a way to compete on a small budget. It’s designed to be accountable and ensure you get a return on investment that is measurable.

Following the path of other successful businesses is smart, but it’s vital that you understand the full strategy you’re following and that you’re able to implement it.

Strategy from an outside observer’s perspective can be very different to the reality. If you’re following a strategy that has different priorities to you or has a vastly different budget then it’s highly unlikely it will generate the kind of result you’re hoping for.

Yours In Market Success

John

Thanks go to Allan Dib from Successwise for his insights

Word Of Mouth Marketing for Your Small Business?

by Red/Marketer with a Soul | Apr 1, 2021 | referral marketing, word of mouth marketing

What’s The Plan?

When talking to business owners, the topic on top of their list is almost always marketing. And when ask what is the main type of marketing they are using to get their message out to potential customers, they almost always say “word of mouth“.

Word of mouth can be a powerful way to market any small business, but it can be slow. It can take an awful lot of time, to build success from this way alone, and that is assuming you do everything right, but for start-ups with a small budget, it can sometimes be the only way to build momentum and gather much need resources, AKA money..

My favourite analogy for word of mouth or referral marketing is, it’s a free lunch, but having said that, is there really such a thing?

By being solely reliant on word of mouth, you’re putting the fate of your business in the hands of others – hoping they both like you and remember you often enough to regularly send new business your way. Dangerous ground my friend.. If this is how you currently do business, then now’s the time to start thinking about making your marketing system a little stronger..

So, how do we go about doing just that?

Build a Strong Marketing System?

As eluded to in the previous paragraph, having a single source of generating new business, is a dangerous path to tread for any business. Being unable to control that source makes it doubly so.

Having at the very least 2 different sources for obtaining new leads and customers. AND that almost all of these sources be with paid media i.e. it will cost you to market yourself. There are 2 reasons why paid media is so important.

Firstly, reliability. If I pay a newspaper to run my ad, there’s an extremely high probability the ad will actually be run. It’s much harder to get such reliable and consistent lead flow from free marketing methods such as word of mouth

And secondly, using paid media will make you, to put it simply, focus on the money you spend against, the money you get back or ROI (Return On Investment). If a paid marketing method is not working, you cut it. You don’t waste further time or money on it. So, when the marketing method is organic (free) such as word of mouth, we are least inclined to “cut and run” if something isn’t working and wasting huge amounts of time, because we didn’t pay upfront.

Word of Mouth Reliability Boost

Word of Mouth can be a valuable tool in your marketing arsenal, and while you don’t want to rely on this solely, it is to your advantage to increase its power and reliability.

One the most often neglected ways of doing this is by asking for a referral from those customers that you have received a good experience or result. It’s amazing how many business owners hope for referrals yet rarely ask for them.

Something as simple as:

Valued customer, it’s been an absolute pleasure working with you. If you know anyone who’s in a similar situation as yourself we’d love you to give them one of these gift cards which entitles them to $100 off their first consultation with us. One of the reasons we’re able to keep the cost of our service low is because we get a lot of our business through referrals from people like you.”

Are you seeing what is happening?

We’re acknowledging them and appealing to their ego.
We’re not asking them for a favour but instead offering something valuable they can give to someone in their network.
We’re giving them a reason why they should give us referrals – a reason that directly benefits them.
By putting a system around generating referrals, we’ve dramatically increased the reliability of word of mouth marketing. And while not everyone will give you referrals, many will and it sure beats just silently hoping.

By creating multiple sources of new leads and increasing the reliability of word of mouth marketing, you take back control of your lead flow and build a solid foundation for rapid business growth.

Yours In Marketing

John

( I wish to acknowledge the wonderful insights of My Allan Dibb from Successwise)