After Deputy Prime Minister Heng Swee Keat announced the COVID-19 resilience package on the 26th of March, most businesses would be glad to know that the government will be placing wage subsidies between 25 to 75 percent for all local workers.
That said, how is a business supposed to generate more sales and revenue during this difficult period?
Best SEO Marketing Pte Ltd shares 3 ways on how businesses could better market themselves amidst the COVID-19 pandemic.
Tip 1: Understanding the important numbers of your business
The first tip is that every business owner needs to be aware of two important metrics. Most businesses should take this time of slow growth during the COVID-19 outbreak to really sit down and understand these numbers in their business.
The cost of acquiring a customer, and how much is a customer worth to them. Once they understand these two metrics, it would be easier for them to scale.
You often see in the popular TV Show Shark Tank where Kevin O’Leary will ask business owners on these two numbers. Most business owners squirm and they don’t have the answer to this question.
That’s why they struggle to scale their business. The cost of acquiring a customer is usually determined by the number of customers that convert given your marketing spend.
For instance, if your business were to spend $1,000 in advertising, and that brings you a customer that pays you $5,000 (less cost of goods sold) , your cost of acquiring a customer is $1,000 and that customer is worth $5,000 to you.
Once you have these two numbers, it’s easy for you to set aside a budget for you to market your products and services. Most businesses must understand these two numbers as they are the key to allocating how much is required for every marketing dollar to make sense.
Tip 2: Tweaking your marketing message to reach a larger group of people
The second tip would be for businesses to start using what is known as the Larger Market Formula. The idea is to tweak your marketing message so that you don’t just target potential customers to buy your goods and services immediately.
If you look at most businesses, they are mostly screaming offers, discounts and sales for customers to buy now. Such a strategy does not have much longevity to it as you’re mostly competing on price.
Also, it’s not very sustainable as the business offering the lowest price will win the hearts of the customers. If you live by price, you will die by price.
Furthermore, when you directly make an offer to your customer, you are only reaching out to 3% of the market who wants to take up the offer immediately.
However, you are not reaching out to the other 97% of the market who might be problem aware but are not actively looking for a solution. That is where tweaking your marketing message will help improve sales by leads and bounds.
Imagine a scenario where a guy meets a girl at a bar. He doesn’t just straight out go to the girl and ask her to marry him. He must get her phone number first, date her a few times, before eventually asking for her hand in marriage.
The same goes for marketing your products and services. So, to put that into perspective, if you were selling an accounting software, you should not directly make an offer of a 10% discount in your marketing message.
That would only attract customers who are looking for a solution and want to purchase an accounting software immediately.
On the other hand, if you were to tweak your marketing message to say something like “You Never Have to Hire an Accountant Again After Reading This”, it would dramatically attract more people enquiring about your accounting software.
That way, it widens the potential market reach with a simple tweak in your marketing message.
Tip 3: Focus on existing customers, and let referrals do the work
Due to the COVID-19 outbreak, most businesses will face a drop in new customers as investors’ sentiments are at an all-time low. In order to ensure the longevity of your business, it’s important to work on existing customers to create a phenomenal experience for them.
That way, you could start generating more word-of-mouth business. The best kind of lead or sale that every business will receive is a referral. Referrals are also highly likely to convert to a customer.
By providing the best possible solution and service for your own existing customers, it will create a lot of goodwill and trust between your existing customers. Ideally, existing customers will continuously refer your products and services to the people around them.
Providing an amazing experience for customers is the best way for a business to survive. So, there you have it, 3 business tips to keep your business going amidst the COVID-19 Pandemic.