Ever heard the saying: "Half the money I spend on advertising is wasted; the trouble is I don't know which half"?
Although this may have been a lament from a 19th-century retailer in Philadelphia called John Wanamaker, we're pretty sure all business owners can relate to it!
Every business hopes to see a high return from their marketing budget. After all, how can you grow your business without smart marketing?
But we're not here to dispute that marketing spend should form an integral part of any business budget. The real challenge lies in making sure that your money is being spent in the right direction.
This is especially crucial at times like this when businesses can't afford to make any mistakes. How do you test your marketing ideas and ensure you're not overspending in the wrong place?
Here are a few ways you can start testing your marketing tactics to focus your efforts on the right channels.
Find out which marketing channel is driving sales.
When you're using various marketing methods, it cannot be easy to pinpoint which one results in sales. This is why businesses need to keep a close eye on what's converting and what isn't. Find this out, and you can streamline your marketing activity using this data.
Online businesses can find out what converts by working out where visitors came to their site. Tools like Google Analytics are a massive help for checking where the traffic is coming from to your website.
You could also include a step post-checkout where you ask customers how they find out about your brand. Not all customers will take the time to fill this out, but you'll still have a better idea of what generated you more customers.
Physical stores would have to ask each customer at the moment of purchase, assuming it's their first time buying from you. If that's done infrequently, it will not produce relevant data. And if done all the time might create some awkward interactions - not something you want in your business.
This is where OMG platform is unique in its solution. We make it that much easier to draw data from initial marketing efforts and first time purchase. And once you start to get some data together, use it to work out which marketing channels are having an actual impact on sales. Focus on optimising these for the best return.
Measure how many customers that bought at a discount returned.
No idea whether your discount campaigns are working?
Find out by keeping track of whether new customers who purchased at a discount are turning into repeat customers. 'Tagging' customers can do this - more on that below.
Your discount strategy needs to make sense for your business, so be sure to read our earlier post about the discount impact on the lifetime value of customer and sales performance.
Meanwhile, track those returning customers that originated from discounting campaigns. Unless you can track them carefully, you can never be sure if you are overspending on promoting your discounts. Without this customer data, you are operating in the dark and are likely to harm your bottom line.
Roll out limited period campaigns to gather customer feedback at typically empty hours.
Want to know whether a marketing campaign has the potential to work? Try running it for a limited time, during a period where you don't usually see many customers. You'll instantly be able to assess whether the campaign has an impact if you see an uplift of sales within that period.
Limited time only campaigns are a great way to test whether a marketing idea will work before rolling it out and advertising it on multiple channels.
But you can only test the campaign, specially a limited time one, if your potential customers will know about it. So your goal here is to figure out a cost-effective way to promote those limited campaigns. Earlier, we wrote about how you can do just that with under £100 budget.
It might be inexpensive financially to run limited period campaigns. However, they could be a bit of a time-sink to run unless you have a convenient solution to plan, announce, and manage those campaigns.
It just so happens that OMG provides our partners with exactly such a tool. Instead of spending your budget or time running multiple social channels and physician activities to announce your limited campaigns, you can manage all of them all, for free and with just a few clicks on OMG Portal.
Want a little help figuring out whether your marketing campaigns are actually working?
We've developed a platform that can help you increase your customer base for free. And the best part? It's effortless to track whether it's working or not.
So, how does it work? Using our platform, you can 'tag' customers bought from your store using your discount campaign. If they repurchase in the future, you'll easily be able to see whether they're repeat customers or not. This will give you a good idea of whether your discount promotions are working for you.
The best part? We offer this platform to all business owners entirely for free, making it cost-effective and convenient for merchants looking to try out new promotional and loyalty campaigns. Test out a few different marketing ideas without spending a penny and get an instant sense of what's working and what isn't.
Keen to kick-off? Visit our partners' page, sign up, and a member of our team will be in touch to get you started.