These are some of the questions every entrepreneur asks himself before starting a business: will it be profitable? How long will it take for the company to get out of the red? How much will it be sold and where? What will be the most successful products? These questions are most often asked, as are some of the decisions that are taken to run the business. But what are the most common mistakes in a marketing strategy?
In Visual Led, we have been supporting entrepreneurs from all over the world since 2003 to improve their sales through communication and outdoor advertising and indoor advertising, either through the use of LED displays, luminous signs or mupis, among other formats. That is why we are familiar with some of the most recurrent failures when it comes to facing a business adventure.
If you already have a business or you are thinking of launching a start-up, here you have a summary of the most common errors in a marketing strategy (and how to avoid them).
1. Not choosing the right communication channel
The digital era has brought with it a wide variety of tools that give visibility to small and medium sized companies whose budgets are often reduced. Social networks, for example, are a good communication opportunity for those with a limited budget.
However, having a presence in social networks should not be an end in itself, and even less so if it means losing sight of the ultimate goal of any business: to market a product or service. Therefore, when designing a communication plan, it is essential to know about the diffent buyer personas -or ideal customer(s)- and identify the social media in which they operate. It may be tempting to think that the greater the number of social profiles, the greater the visibility of the company. However, each profile will require resources for content creation and possibly advertising.
To choose the ideal communication channel, you have to answer these questions: what do I offer? Who is it for? What budget do I have? What are my sales goals? Answering them honestly will help you identify the most relevant media for your project.
2. Not defining a buyer person
Behind this mistake, there is often the fear of losing potential customers. In any case, wanting to reach everyone can mean not effectively impacting anyone, since no product meets the expectations and needs of everyone. We all have specific needs that determine our choice. Therefore, for the same category of product, some will look for practicality, while others will look at price, payment facilities, quality or speed of delivery. This is why we have to respond as closely as possible to the demands of each customer. In this sense, the tools of active listening in social networks, focus groups or market research can be a great ally.
Naturally, there is nothing to prevent you from offering several services for different purposes, but you must bear in mind that, in order to promote each of these services, you must use a specific communication campaign. Our advice is to focus first on the buyer personas who are most interested in the company, before opening up to new audiences. This will give you a know-how that will be very useful for new actions.
3. No customer loyalty programs
Some people think that getting customers is a more stimulating challenge than ensuring the satisfaction of existing ones. Even so, it is much easier and less costly to increase the turnover generated by existing customers.
According to a recent study, retaining 5% of our customers can increase the average profit per customer by between 25% and 100%. All this without losing sight of the fact that getting a new customer costs six to seven times more than keeping an old one. Therefore, becoming obsessed with expanding the portfolio of buyers can make a business lose opportunities to expand its turnover.
4. Launching competitor-based messages
Here’s another common mistake in a marketing strategy: talking about the competition in your ads. Attacking someone or pointing out those areas where the company thinks it is better is not only useless, but can turn against them, both from the point of view of corporate reputation and in the courts. That is precisely what happened a few years ago to a well-known Spanish juice brand.
Avoiding it is simple: just highlight the differential value, what makes the company unique, without mentioning its competitors. A favorable study can be a good argument to reinforce the message being launched (to do so, it is important to cite the source).
5. Not monitoring the performance of marketing actions
Many entrepreneurs do not stop to analyze what results their marketing campaigns are giving them or the return on investment (ROI), which increases the risk of making bad decisions. There are also those who, overwhelmed by Big Data, do not know how to monitor the figures or how to make the most of the available data. Thus, according to a recent study by MarketingProfs, only 21% of marketers claimed to be able to measure the return on investment of their content campaigns.
If this is your case, we recommend you outsource this function to an agency or an expert in web analytics, since measuring and analyzing how a marketing campaign is working is indispensable. This analysis exercise will not only help you to make progress, but also, and above all, to ensure that you are going in the right direction. That’s why it’s a good argument on which to base your decision making.
6. Not taking any risks
Although we are all conditioned by a budget, we must not lose sight of the fact that marketing is not an exact science. In fact, the chances of offering the right product to the right customer through the right message at first sight are practically zero. And this is another of the most common mistakes in a marketing strategy: closing in on the possibilities of being wrong. In any company, especially at the beginning, the trial and error method must always be on the table. Even boulders can be a trigger to the road to success.
Now that you know what the most common mistakes are, we invite you to integrate outdoor advertising into your marketing plan. If you want to know how, call us without obligation at (+34) 977 271 074, send us an e-mail to email@example.com or send your questions through our contact form. We will solve all your doubts and guide you in what you need. We are waiting for you!