Marketing. Admittedly the part of my business that I would rather spend as little time as possible. The reason being that it seems like I spend money marketing my studios and then I never really know if it’s working. I know marketing is important to attract new clients, but I never really felt confident about where to spend my marketing budget. Was my message reaching my ideal client? Did that person feel compelled to come into the studios to take class? Who knows?! I was approaching marketing in the wrong way.
The American Marketing Association has come up with the following definition of marketing.
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large.
Sweet. I just reread that definition three times and I’m still not sure what it’s supposed to mean. For small businesses, marketing is the cost of acquiring customers. And it wasn’t until I embraced this definition of marketing that I actually got good at it.
Maybe you’re a marketing wiz, but for me, thinking of marketing as the cost of acquiring a customer or simply, what makes sense for me to spend to acquire a customer, was mind blowing. Marketing was always kind of a nuisance and I was never sure how much to spend. But this actually made sense.
So basically, you need to figure out the lifetime value of your ideal customer—how much revenue will you get from this customer from an initial purchase, over a year, over several years? Once you have that value as a dollar amount, you’ll be able to determine what makes sense to acquire that customer. If your customer only makes one purchase, then you’ll likely want to spend a lesser percentage of the revenue they generate to get them to buy. If your customer is making predictable or reoccurring purchases and there is a high likelihood that you can up-sell them on other products and services that you offer, then maybe you spend more.
If you’ve been struggling with marketing and attracting new clients to your business, then changing your perspective on what marketing is can have a profound impact on your business growth.
But what if you are having trouble changing your perspective? What if you feel so overwhelmed by running your business that you don’t know where to start to make changes? In my next post, I’ll tell you what I’m reading and why it’s important for every business owner to start the day by reading (or listening to) uplifting business books.
Until then, stay on your toes!