Now is not the time to settle when a client tells you they are thinking of cutting their marketing budget because of the recession. This is the time to really ask questions and get back to showing your clients what the Equation For Success shows as their return on Investment. In light of the latest Kelsey Group research, you have the opportunity to change a decision with some carefully targeted questions and a concise written presentation that shows the listeners you can deliver?.
"The current economic climate has not diminished the advertising plans of small and medium-sized businesses. According to the latest wave of the Local Commerce Monitor, an ongoing study of SMB advertising behaviors conducted by The Kelsey Group and ConStat, 81 percent of SMBs surveyed expect to maintain (47 percent) or increase (34 percent) their spending on advertising over the next 12 months, with only 9 percent planning to decrease ad spending.
SMBs surveyed stated the primary influences on their advertising spending decisions are:
- Performance/return on investment (31 percent)
- Business partner or competitor (25 percent)
- Information from media such as newspapers, TV and trade publications (14 percent)
- Friends or family members (12 percent) "
How do you show that Return on Investment? Go to the knowledge center on this site to find the EFS Generator. You will need to answer a couple of questions from your client. Get solid answers on What their gross profit margin is, what their average sale is, their closing ratio, incremental sales that come with an original sale, and the number of times a year they see those customers come back that creates the lifetime customer value of each new prospect you bring to the door. As a station you want to deliver at least a 20% return on the advertising dollar, you'll input your Cume number into the equation along with the cost of their recommended schedule over a year (we recommend consistent OES schedules that follow the Buyers Awareness Cycle)
It is important to be truthful about their competitors or their industry without breaching confidentiality, this is as simple as positioning the competition by the frequency and type of schedules they are running.
The final step is putting the printout of the EFS Generator together with a solid written presentation that tells the story of the Return on Investment that they can expect with a layout of the schedule, copy, spec spot, commitment certification, discovery outline, signature page, and executive summary to set the stage. Part of the presentation could be testimonials from existing clients or seeding articles like "Marketing Your Way Through a Recession Parts 1 & 2" that are found on the LPG Website or reminding your clients of what has been discovered by experts like the Association of National Advertisers:
"Bob Liodice, President and CEO of the ANA, observed that "Historically, marketing budgets are among the first to be cut in a budget crunch... (but)... spending more during tough times when competitors may be scaling back is a good way to strategically boost market share... "
Now is the time to make the case for what you can deliver and what that means to the bottom line for your clients!
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