Archive for October, 2015

Relationship marketing secrets

Wednesday, October 21st, 2015

The relationship between customers and businesses has changed over the past years. While traditional marketing has mainly focused on products and prices, relationship marketing has now become an integral part in marketing strategies. The focus lies now on building up long-term relationships with customers. Businesses interact and communicate directly with buyers and build in this way trust in their brand, product and services.

 

A key element to get in direct contact with your customers and to build up a long lasting relationship is of course through social media. However, relationship marketing is not all about collecting likes and followers, but communication. Start relevant conversations and involve your customers in this way. Post useful and informative articles, instead of advertising posts. Communication instead of promotion is the key!

 

Furthermore, relationship marketing does not focus on what do you sell, but on how you can help your customers. Do not focus on your business but on the benefits for your customers, on what you can do for them. Additionally, to build up trust, to build up a relationship you have to know who they are and how to address them. However, do not assume that your strategy is suitable for everyone. Gender, age, cultural background – your customers are individuals, so adapt your communication.

 

Relationship marketing, however, should benefit both sides – customers and businesses. While customers benefit from better customer care, customized products and services, businesses gain an edge from the ideas and suggestions of customers. Find out what you can improve, what your customers need and get inspiration from their creativity. This is the key for successful relationship marketing and the foundation for a lifelong customer relationship.

 

How to set your marketing budget

Monday, October 5th, 2015

How much should be spent on marketing? While large enterprises have a larger budget available, small businesses are faced with the challenge of how much they should invest in their marketing. But, how to determine this? Well, there is no benchmark as this depends on various factors. How fast do you want to grow? In which industry are you in? What about your competitors? How much do they invest in their marketing?

 

One way to set your marketing budget is by calculating as a percentage of your revenue. But here again – there is no general rule. You want to hold your market share? You will probably spend about 10-15% of your revenue in your marketing. You want to expand or increase your visibility? Start to invest 20% in your marketing measures. Obviously this variant is a bit arbitrary. Your competitors, your industry, the market pressure – there are many factors you have to take into consideration.

 

Another way to set your budget is by determining your marketing goals. You want to acquire new customers? Develop your strategy and adapt your budget to your plan. You are launching a new product or capturing a new market? Adapt your budget and increase your marketing accordingly! However, be realistic about your possibilities.

 

Today’s marketing world offers plenty of possibilities – from website, social media to print ads, direct mail campaigns, etc. And while some of them are more cost effective than others, many measures require a fixed budget to implement them effectively. A long term marketing plan, should not be perceived as an expense, but more as an investment.