A fundamental truth of business – avoid advertising mistakes
The secret to business improvement comes down to one fundamental truth.
Chris Hodda, partner and performance coach at Nexus Innovation, says it is really very simple.
“Your customers have your money. If you want to make more of it, find out what your customers really want and then give it to them,” he said.
Yet to transcend the status of being a ‘good business’ to become a ‘truly extraordinary business’ that’s totally unique you need to go a step further. You must find out what your customer’s emotional needs, wants and desires are and where they are currently not being met.
“With this information you can create more emotional and meaningful connections with your customers that’s hard to break. You’ll create true customer loyalty”
Yet many business owners profess to know best or presume to know what their customers really want.
And perhaps at one point in time this may have been true, but if business is getting tougher or your business is performing below your expectations the reality is, things have changed. Customer expectations are constantly changing and evolving.
What is cutting edge or ground breaking today will be the industry norm, standard or even passé tomorrow. And while you rest on your laurels doing what you always done, your competitors are plotting and scheming how they are going to change the game and revolutionise the business you’re in to lure your customers away from you without you even realising it.
The harsh reality we face in today’s uncertain economy
Doing business in today’s economy isn’t as easy as it used to be. Customers are spending less. They’re holding on to their wallets and being more selective about who and what they spend their hard earned money on. Just to make the same money you used to make means you’ve got to work twice as hard or, you need to get smarter and do something different.
In fact the biggest threat that most business fact today is falling in to the ‘me too’ category. Having no point of difference or Unique Selling Proposition (USP) means your business will fade into the background and be one of the many, forced to compete solely on price.
With 80 per cent of businesses going out of business with five years and 96 per cent of all businesses failing within 10 years, just being one of the herd means it’s only a matter of time before your out of business too. So what are your options to begin on your business improvement journey? Well, you can use trial and error and waste further time, effort and money in a hope you get lucky.
Or you can delve into your customers’ subconscious mind and identify real emotional drivers to truly innovate new products and services that they won’t even know they want yet. And provide a blueprint to create entirely new market niches for you to completely dominate. It’s what’s commonly referred to as the wow factor.
It’s something that many business owners talk about but only a select few ever truly achieve. The starting point to achieving the wow factor faster is to be more deliberate about stimulating positive emotional responses from your customers.
It all starts with many businesses believing the only or best way to connect emotionally with customers and prospective customers is to advertise. Let’s discuss the mistakes you can easily make.
Avoid the seven biggest mistakes most businesses make when advertising their business:
1. They don’t know the numbers
By knowing how much the lifetime value of a customer is worth to you, you know what you can afford to spend or give away to generate a new customer. Most business owners never work this figure out, and therefore, never know what they should or could be spending on generating new business. When you know the numbers, it radically changes the ball game for you.
2. They advertise for the wrong reason
Most businesses try to generate an immediate sale through their advertising. It’s been estimated, at any point in time, less than three per cent of your market is looking to purchase. The numbers for success are really stacked against you in this equation. Instead (in most cases), your advertising should be done to generate a list of potential customers who you can educate, over time, to the benefits of using you to solve their problems, or improve their situation. Consider a ‘give away’ item or ‘lead magnet’ to gain their contact details, so you can continually and cheaply market to them until they buy, die or tell you to go away.
3. Most business owners simply copy other businesses’ ads when promoting their business
The trouble with this is, if 95 per cent of people do it poorly, as most ads are normally poorly structured and poorly written, the chances are you’ll generate the same poor results and waste your money. And then say advertising doesn’t work.
4. They don’t use emotionally-driven “benefits” or “problems solved” in their adverts to stir a response
Just like in our business, our ads need to emotionally connect and stimulate our target audience. Using emotional benefits, highlighting the problems you solve in headlines and strong sales copy will dramatically increase your response.
5. They don’t use proven tactics
Tactics such as offers, creating urgency or ‘prove it’ principles in ads, help prompt an immediate response.
6. They don’t place the ads in the best media
In order to target their ideal customer they need to understand where they are and what they read. In many cases they have not defined who their ideal customer is so how do they know the best media? Through our customer connections program you should gain deep insight into your customer, and where they hangout, so you can better target them through more effective media placement.
7. They don’t effectively use the internet to maximise leads
Internet technology and related processes are changing rapidly. If you’re doing what you did six months ago, chances are you’re out-of-date, and not generating the level of inquiries you should be achieving from the internet. This includes lead generation, websites, squeeze pages, sales funnels, product launches, webinars, SEO, ad words and social media strategies.
Why more people don’t do business with you
Advertising is one way of emotionally connecting with you customers. Avoid the common mistakes and you are a long way ahead.
Attend our webinar on Friday 19th February and we will discuss in more depth why more people don’t do business with you and how customers subconsciously judge and decide whether you’re right for them.
You will learn about the 10 Key Emotional Perception Judgment Criteria. Register here