Learn about some of the tips that small businesses should implement to see an escalation in their revenue growth.
Oct 19, 2019
If you have a small business with high-quality services, advertising may be a scale factor that takes it to the next level. Especially when advertising is so competitive these days, how can you break through the noise and scale your company?
It can be frustrating not to get the attention you deserve, particularly when you can offer the best product in the market. Review these advertising tips to multiply your number of visitors and accelerate the growth of your small business.
Using Advertising to Increase Traffic
Advertising is a big factor that differentiates between small and big companies. If your conversion rates are optimal, you can literally 10X the profitability of your services by getting to more people, especially if your business is online.
That doesn’t make advertising an easy game. When not having the proper information, any small mistake can lead to huge budget losses. Even if you do everything right, there is always the chance that a bigger company outbids you and gets the customer.
Luckily, there are two strategies that will help you to make ads great again: traffic targeting and LTV bidding.
Increasing Conversions With Targeted Traffic
Before we look to scale the business, it is important to optimize our campaign efficiency as much as possible. In other words, how good are your conversions?
Qualified Traffic: Who do you want to see your ads? An essential advertising principle is to target our ideal customer. It is not enough to have more traffic in general if that reduces your conversion rate.
Look at your call-to-action and show your ad to the people who are more likely to respond.
If you are advertising as a local business, you can include your location in your keyword lists to increase campaign effectiveness. “Best restaurants in Florida” is not nearly as competitive as “Best restaurants in America”.
LTV Bidding Strategy
Just because you are a small plumbing business, it doesn't mean that you cannot use advanced marketing strategies for plumbers. One of them is the Life-Time Value strategy, also known as LTV.
You won’t see many competitors using the LTV because it requires a minimum number of customers and business experience to use. The question is, how do you know how much you should bid on advertising.
What do most people do? They look at the current bids placed and place a higher one. If your advertising campaigns cost more than the sales that you get from them, you reduce your bids. The problem is that people look only at the sales numbers in the short term, not in the long term.
Imagine that you get 100 new customers for your business who buy different services. The same customers may keep coming back to buy more over time. Let’s assume that most of our customers spend around $50 six months after the first sale.
When looking at the average numbers, your LTV would be $50 for six months based on 100 customers. That means that you can spend up to $50 to acquire a customer because you get back that amount in the next six months. The LTV strategy allows us to think long-term and outbid the most competitive marketers of your niche.
How Do You Know That You Can Trust This Number?
In this case, we measured our LTV using 100 customers. If we had ten times more clients, our prediction would be ten times more accurate.
You can get started by working with 20 to 50 clients for the next months, discover your LTV, and create highly profitable PPC campaigns.
Another option to solve the competition issue is to use secondary advertising platforms, such as social media. You would be surprised at the thousands of people that you can reach with less than $10 in Facebook Ads. Instagram and Youtube are other up-and-coming advertising platforms.
Lastly, social media users don’t always have a purchase-intent. Your social media campaigns should be more specific than your Google Ads to get the best conversion rates possible.