Putting countless hours of effort and sweat in your business is still not a surety that it will be successful. Business growth is vaguely understood by entrepreneurs whose principal focus is more on how to make the best product instead of marketing it. This is why marketing is usually taken for granted if a product starts selling owing to its attributes. In the interest of sales growth, strategizing and formulating a brilliant marketing campaign is your only key to success. The answer to effortlessly engage and drive a purchase decision by thousands and millions of customers for your product lies only in the magic of marketing.
Today, I will talk about important considerations you should take into account when devising your marketing campaign.
- CAC and LTV: Customer Acquisition Cost (CAC) is the metric that signifies the cost of acquiring one customer for each marginal unit of your business product. Marketers and advisers solely focus on this metric to determine the levels of perpetuating the campaign to a point of critical mass. Critical mass is the stage when the business indicates rapid sales growth driven by marketing strategies. Here comes the catch – if CAC is the gun then LTV is the gunpowder. The Life Time Value (LTV) is the expenditure that each customer churns out over the period of repeat purchases of a single product. Combined analysis of CAC and LTV embark you on the most effective marketing mechanisms to reach critical mass. Looping these metrics is necessary and neglecting any one of them can be your recipe for business disaster. To dodge such mishaps, you can develop a prototype of your product and conduct a demonstration to initiate customer responses and feedback. Exhibit specialists like ExpoMarketing allow you to carry out an effective launch of your prototype and yield first-hand information for your business.
- USP: Unique Selling Proposition gets you right to the heart of your business. It clears two major customer-centric queries.What value does the product offer? And what problem does it solve? By virtue of its name, it should be undoubtedly unique – articulating one particular benefit that the competition doesn’t bring forth. Establishing a USP is a mounting task and it involves communicating your brand’s advantage in a differentiating manner compared tothe rest of your rivals. It acts as a centripetal force aligning and executing your marketing and advertising activities. Many brands mistake in deviating their promotional action from their USP ending up in the worst of marketing blunders.
- Digital Media Landscape: Marketing is an expense many entrepreneurs fail to materialize in the start. Treating it as an expense may be rational but not anticipating the return on investment of this expenditure is a popular folly. The standard ROI of marketing and advertising is around 15% for a new product in a new segment. That’s relatively safe. What steers double-digit growth is not what you’re spending but how you’re spending on marketing. It is essential to grasp the stark reality and competitive advantage of digital marketing. It focuses on the ‘How’ instead of the ‘What’. With a considerable cost advantage as compared to other marketing communication media and strategies, social media lays down a great potential in terms of ROI. And with the emerging trend of online retail, digitizing your marketing campaign and your product distribution mechanism can land you with higher chances of customer success and profits.
Often a product is triumphed by its design and utility, but on the market, it all boils down to how you communicate your competitive and differentiating advantage to your customer.