Thursday, April 13, 2006
It's Not the Cost of the Advertisement, It's The Amount Of Business You Get
I recently answered some questions on a local Hypnosis forum where hypnotists exchange marketing ideas. I got some good feedback on what I posted so I'm posting them here for you.
A: While the low cost is a temptation, you really want to consider is this your target market?
The cost is really not an issue, ROI (Return On Investment) is what
matters.
Example: If I told you that one $5000 ad each month would result in
$30,000 in new business over the next 3 months, you'd have to be brain dead not to jump on it.
The ROI for this ad would be 6 to 1, or put another way, for every
dollar you spend, you get 6 back.
By the way, this is a real world example from a Hypnotist friend of mine in Ohio. He perfected a full page ad that was like turning on a
firehouse of new clients every time it ran in the local paper.
That's when advertising is no longer an expense, but an investment.
Honestly all marketing decisions should be based on this type of
analysis.
So back to your opportunity, you obviously don't have any data yet, so
as a clever marketer you set up a TEST.
In order to test you must set up a way you can MEASURE RESPONSE to that ad.
Borrowing an age old trick from Direct Mail and classified ads, you can put a unique offer, and they must tell you a code to get it.
traffic.
Run the test for at least a month, maybe up to 3. If it hasn't paid for
itself, either change the ad (I would do this first), or stop it when you are sure it just isn't going to work.
If you change the ad 2 or 3 times and don't get any response, then you are not reaching the right market.
If it does work, then test the same idea at other similar stores.
Make sure you Advertise a BENEFIT. No one cares if it's Hypnosis or EFT or NLP or if you're a witch doctor.
If you can solve their problem, they'll do business with you.
Now go find some clients.
Cheers,
Craig
Q: I have been approached by a local Kmart to put a poster size sign at the front door advertising my business. They claim 40K people per week walk through the door. Cost is about $20 per week. Does anyone have any experience with this form of promotion? Would you advertise your practice or a speciality?
A: While the low cost is a temptation, you really want to consider is this your target market?
The cost is really not an issue, ROI (Return On Investment) is what
matters.
Example: If I told you that one $5000 ad each month would result in
$30,000 in new business over the next 3 months, you'd have to be brain dead not to jump on it.
The ROI for this ad would be 6 to 1, or put another way, for every
dollar you spend, you get 6 back.
By the way, this is a real world example from a Hypnotist friend of mine in Ohio. He perfected a full page ad that was like turning on a
firehouse of new clients every time it ran in the local paper.
That's when advertising is no longer an expense, but an investment.
Honestly all marketing decisions should be based on this type of
analysis.
So back to your opportunity, you obviously don't have any data yet, so
as a clever marketer you set up a TEST.
In order to test you must set up a way you can MEASURE RESPONSE to that ad.
Borrowing an age old trick from Direct Mail and classified ads, you can put a unique offer, and they must tell you a code to get it.
"For your Stop Smoking Guide ask for Dept B."
Then be sure you tell them what to do (simple clear instructions)"Call today to set up your free consultation 333-4444"
If you use a website, again use a unique link so you can measure thetraffic.
Run the test for at least a month, maybe up to 3. If it hasn't paid for
itself, either change the ad (I would do this first), or stop it when you are sure it just isn't going to work.
If you change the ad 2 or 3 times and don't get any response, then you are not reaching the right market.
If it does work, then test the same idea at other similar stores.
Make sure you Advertise a BENEFIT. No one cares if it's Hypnosis or EFT or NLP or if you're a witch doctor.
If you can solve their problem, they'll do business with you.
Now go find some clients.
Cheers,
Craig
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