Small business marketing: Finding out how much it costs you

For every small business owner, marketing causes the most headaches. Finding out how much marketing costs, how much time it will take, and whether to use in-house, freelance, or agency help is a process in itself. Which is precisely the point: there is no one-size-fits-all marketing solution, no matter what anyone tells you.

Because of this, the best way to get value out of your marketing is to tailor it to your business. This includes setting up a basic marketing plan and adding a time frame for results, so you decide whether to invest in outside help or continue on your own. Let’s take a look.

Setting up important marketing channels

When setting up your basic marketing plan or strategy, there are three low-cost channels that don’t require much expertise: a Google Business Profile, a referral program, and an email list.

Google Business Profile: Your quick win

A Google Business Profile (GBP) should be the first thing you create (or claim), as it is the first impression you make for many customers. Just look for ” x business near me” in Google, and you’ll know what a GBP is.

The best part is that making a good GBP doesn’t require any marketing knowledge. You can set it up in an hour or so and be verified within 5-14 business days.

For best results:

1. Completeness: Fill out every field to complete your profile.
2. Photos: Add photos of your business. (Profiles with photos receive 42% more direction requests and 35% more website clicks).
3. Reviews: Request reviews and interact with new ones. This increases your chances of ranking in Google search results since you look like an active business.
4. Posts: Post on your GBP regularly (weekly or monthly). This helps drive traffic to your page.

Referral program: Creating trust in your brand

Word of mouth is the strongest marketing tool. People trust other people more than they do brands. By creating a referral program, you tap into this and have your customers do the talking for you.

But for referral programs to work, you need to nail the following:

1. Rewards: Incentivise referrals by offering rewards as a natural promotion of your service or product, whether it’s a discount, buy-one-get-one-free, or free servicing.
2. Visibility: Make referrals tangible for your customers to share via email, QR codes, in-store promos, etc.
3. Easy to share: Keep your referral system simple and the process as frictionless as possible. There needs to be a clear path between referrer and referee.
4. Track progress: It is crucial to know who has referred whom to give out the reward. Spreadsheets are fine to use in the early stages or when numbers are low, but make sure to upgrade to software when costs permit and tracking becomes more complicated.

Email marketing: Building your customer list

Email marketing is a low-cost channel built over time to communicate directly with customers. It’s also a channel you have complete control over, whereas with social media channels, you’re subject to the whims of an algorithm.

To get started:

1. Platform: Pick a platform and pay for what you need. Most email marketing platforms offer a free tiered plan that scales to paid subscriptions.
2. Subscribers: Give a good reason (incentive) for customers to opt in to subscribing. These could be discounts, coupons, free samples, and leveraging your referral program.
3. Cadence: Set up the frequency of your communication. Don’t leave long gaps between emails, but also don’t spam.

Trial and error: Discovering what marketing works for you

Marketing, like most business investments, is about value — not cost. The time and money you spend need to produce results you’re happy with, so track all three to compare the numbers. However, keep in mind that it takes time to see results, so be patient when you first start.

Typically, you need to invest 3-6 months in marketing to get reliable numbers worth comparing. This timeframe will give each channel a chance to deliver results, as they progress at different rates. Once you have your numbers, you’ll land on one of three outcomes.

It’s working, and the time sink is worth it

Your marketing channels are delivering positive results with new and returning customers. The time it takes to maintain is cost-effective, and you aren’t losing pay to work on your marketing channels.

It’s working, but the time sink isn’t worth it

While you are getting returns from your marketing strategy, the time it takes you to maintain it is working against you. The cost of your time outweighs the results you’re getting.

It’s not working despite the time sink

The effort to create and maintain the channels isn’t paying off. The reasons are hard to diagnose, and expertise is required.

Example: Marty’s Cafe

Let’s see how this plays out for Marty in the scenario below. (Click on each channel to find out Marty’s results)

In our example, Marty has found that he can continue with his Google Business Profile, as it requires little cost or effort to maintain, but his other channels are a different story. His referral program is working, but at too much time and cost, whereas his email channel is proving difficult to diagnose and fix. Each of these channels leaves Marty with a decision: whether to fix it himself or find another solution.

Marketing yourself or hiring someone else for your small business

Finding out how much marketing costs your business requires a few months of time and effort, not years of experience. When discovering how much marketing costs you in money and time, you need to:

1. Start off with low-cost marketing methods like a Google Business Profile, referral and email marketing.
2. Track hours spent on each channel.
3. Run your marketing trial for 3-6 months and evaluate results.

This will give you the answers you need to either continue on your own or bring in outside help.