Monday, August 27, 2012
Yellow Pages Advertising Tips - Why 'expensive' ads are actually the "cheapest" Yellow Pages Listings
If you are serious about growing your small business, then you already know how absolutely crucial it is to base your advertising decisions of LCV - the lifetime value of a customer, including orders and referrals - and not only on the value of a single transaction like most small business owners mistakenly do.
For example, the average (in other words, not too advanced) local pizza shop owner to place a small ad and ineffective in his local Yellow Pages, because it makes the classic mistake of being shocked by the high cost of a page entire ad, saying something like: "Are you crazy $ 2,000 a month you know how many pizzas I had to sell to pay for this ad E 'impossible - this is just a small pizza shop?"
Unfortunately for him, not thinking at all selling pizzas to each loyal customer who gains - if you have only taken into account the fact that it will sell all those pizzas that each customer over time. Not to mention any references can also be obtained from that individual clients, friends, neighbors and business associates.
What happens if your $ 2000/month Yellow Pages ad attracts "only" a new customer per week? In the short term, which will bring in a few hundred dollars the first month. A not-so-sharp poster will complain and complain and expect to cancel or downsize his Yellow Pages ad. But in reality, only four loyal customers can be worth $ 24 000 or more in assets (6,000 dollars each over the next 5 years) - all for only $ 2000 investment. And if this is his full-page ad attracts only one customer per week! And if it gets 2 customers a week from it? Or 3? 4? 5? You are seeing big dollar signs yet?
Now you know why you'll find full-page ads in almost all the pizza local Yellow Pages. How many customers worth $ 6,000 each owns a pizza shop have to draw each month to pay for an ad that costs him or her only a couple thousand dollars a month? True: (a) $ 6,000 that will take years to come to the store, (b) not all pure profit, and (c) that is based on repeat business continues to provide excellent prices and services. But you're going to be in business for the long haul and providing excellent products and services at fair prices, is not it? And you run a good business that produces a profit from each sale, right?
Then all you have to do is make it through the first year or two to place your ad in the Yellow Pages aggressive to start building a steady stream of very healthy profit from it - a flow of profit that keeps getting bigger and bigger, especially when you add in all the other customers referred by you to our satisfied customers have found that before because of your Yellow Pages ad. Then you could also start to expand your business by opening more and more places.
Tom Monaghan (Domino's Pizza) has not become a billionaire by slaves in a hot oven all day and using the best ingredients to create the best pizza possible. He did this through marketing savvy. How do you run your business?
Customer Lifetime Value is why there are multi-million dollar television advertising campaigns for small-ticket items like soft drinks, candy and chewing gum. Use the same sense when creating and putting your Yellow Pages advertising and give you the chance to make huge profits just like the big multinational advertisers do.
The unfortunate reality is that for every one or two owners pizza place with local experts wildly effective (in other words, "cheap"), full-page ads yellow pages, there are many more with a small, ineffective (in other words, 'expensive' ads). Which would you rather be? ......
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