THERE IS ONLY ONE GUARANTEE
It’s a question I get frequently. This time it was asked by a new business owner at the end of a meeting in which we reviewed all of his advertising options, from direct mail to radio commercials, targeted digital display, SEO and newsprint. “But there’s no guarantee that any of these will get me any business, is there?” he asked. My reply is the same one I give everyone, because it’s true. “The only guarantee in advertising comes if you DON’T do it. If you don’t advertise, I can guarantee that you won’t be successful.”
Understandably, business owners are steeped in ROI thinking. Every investment must come with a reasonable certainty that the spending will ultimately increase the bottom line. Hiring a new employee will get your orders out quicker. Buying a new truck helps you service a bigger region. Redesigning your store will enhance your customer experience. Each of these expenditures helps in its own way. But advertising is the only spending that has the sole purpose of drawing in more customers. For some reason that I’ve never fully understood, there is often a reluctance to fully fund that budget item ... if it’s even IN the budget.
One extremely disappointing experience comes to mind which illustrates this very point. I was working with a new local barbecue joint. The owner was a tremendous cook, well-known in local culinary circles, and his recipes were unique and delicious. He had the challenge of being located in the downtown area where traffic was sparse compared to the higher rent locations along the interstate. When I asked him what he was doing to advertise, he said that he uses “word of mouth” and social media. “What else?” I asked. “That’s it,” he said. I put together a proposal for him that combined on-air and digital elements, which he immediately dismissed as “too expensive.” We walked through the math, going over the amount of the average sale and what it would be worth to him to increase his business by 5%, 10,%, 25%, etc. But he didn’t see the value in any of the options I presented. I stayed in touch with him over many months and saw that he continued to struggle to bring in customers. One day, he said to me in frustration, “I don’t understand it. People who come here love the food! I always ask them to tell their friends, but I’m still not getting any more business.” In less than a year, this poor guy who did no advertising was forced to close his restaurant. Needless to say, if he had spent what was necessary to get the word out about his place, I have no doubt that he would be operating a thriving barbecue joint.
The lesson: While you don’t have unlimited funds to spend on your business, the one area you can least afford to ignore is advertising. That is, if you want to keep your business.