What you do in small business marketing has a short term and long term effect.
You may not realise it at the time, but taking the wrong actions for a short term gain can harm your brand over time.
Here are some examples that show short term gain that can lead to long term pain.
Comprising on Pricing
You compromise on your pricing policy with a new customer that you have wanted to do business with for quite a while and you reduce your normal price.
At the time you may think this will be the only time and you even say this to the customer.
The problem is customers can have selective hearing and they only remember the reduced price they paid and naturally expect this each time.
It is then tough to change this attitude and you have got yourself into a situation that reduces your revenue if this customer continues to buy. Really consider the long term implications if you do this often.
Inconsistent Activities
You decide to go on a bit of a blitz, commenting on many blogs, submitting to social networking sites and joining in the conversations. This can often occur when you realise there is not much in the pipeline and your current customers are not buying often enough.
It can be fine if you have really worked out what you want to achieve and how it fits into your long term plans for brand.
What often happens though is when business picks up again you disappear from view and this can lead to the perception form potential customers and partners that you were only in it for the short term gain.
The welcoming reception you got the first time round may not be there if you go on a blitz again as people do remember. Instead of the blitz, reduce your presence to those sites that right for your brand, customers and partners.
Too Many Special Offers
Special offers have been used for decades as part of a promotional plan. They can give you the short increase in sales that you want.
The problem that can occur with this is if you don’t think though how often and when the offers are introduced. Conducting the offers too often can lead to customers just waiting until the next special offer to buy. Just look at retail stores and their specials.
It is important to know to know your customers repurchase cycle as well as the best approach to take. You can have long term pain if you just get your regular customers buying more of your products or services at a reduced price and then not buying anything for the next few weeks or months.
These are just three examples, what others can you add?
BTW If you would like help pinpointing what can be done to get the results you desire then have a look at Marketing Solutions.
Many business owners don’t stop to think about the long term results and they only focus on the short term earnings.
An other, good practice would be to always have in mind how your currect actions impact your long term business plan. For example making your customers buy a product that don’t really delivers what it says may make you some money on the short run but it will make them avoid you in the future.
Alex that is a good example about getting your customers to buy a product that may not be suitable. It may seem a small factor to you at the time but customers do remember and that all important trust element can be jeopardised.
Well said and so very true. I too am guilty of “compromising” my prices and up until today, I have some clients that simply won’t accept any other offer rather the one we agreed upon a long time ago. My mistake was not telling them that it was a “special” offer and that it was a one time deal, all in the name of future relationships. Anyway, remedied that now fortunately, but so to show you that it is real and something to think about. Compromising long term gains, in favor of short term gains can be done (sometimes required, specially in the beginning), but due care is recommended.
Hi DiTesco,
Glad to see you don’t face that problem now. Like most things when marketing your brand decisions are not black and white. As you said due care is recommended and taking a moment before hand to consider the longer term implications for your brand and customer relationship helps.
Great information, Susan. I’m still trying to refine my marketing plan, and this helps me a great deal.
Hi Donina,
Glad that this article has been helpful and all the best for when you with put your marketing plan into action.
Yes Susan, I totally agree with you in all aspects. Therefore i move like turtle so that I can go longer. Thanks for advice.
Hi Rakesh,
That may be okay as long as you still take action and keep moving. Thanks for your comment.
Definitely something to consider. Do you have any good examples of these principles in practice? In our business, we do specials a few times each year because customers have started to expect them. On one hand, we don’t want to abandon customers who are looking for something they can afford, but on the other hand, we don’t want to cannibalize business for full price services.
Hi TJ,
I would say for the pricing example from what I have seen is the guy who cuts your lawns. There is usually a set price and there appears little negotiation. Also a physiotherapist has a set fee for an hour or half hour session. One thing I have done in the past is leave the price but given them a small sample of something else as a thank you.
In your business do your current customers take advantage of the specials or is it new customers? One suggestion for your business is perhaps cut back on the number of specials and mix them up with other promotions with other services you sell or even with partner businesses. This may help you extra sales but slowly get the customers off expecting and waiting for the specials.
We get a mix of people coming in for specials. A lot of times it’s people who have never visited the studio before, but we also have our regulars. Could you give an example of what you’re suggesting? I’m interested, but I’m having a hard time coming up with concrete ideas based on your thoughts.
It is difficult when I don’t know specifically what type of photography services and perhaps products you sell or your type of customers and what they buy. Here is a general example. Say in the area where you provide your services you do baby photos, you could partner with a local business who has baby wear or toys and you package up a special. This could work if you know that there have been a large number of births so timing is more specific when there is a need for a photo.
So instead of just advertising a discount of 10% for the photo, you could advertise or promote they get the photo plus something from the other business that is popular and offer a smaller discount of say 3% of 5% off each. The focus is on the total package and both business can share the promotion.
Hope this helps TJ, let me know and you can always contact me if you have other questions.
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