Letting loose with the $$$

If you're an optimist, the news is giving the appearance that we're at the end of the recession and will be turning back to growth by 3Q09 or 4Q09.

If you're a pessimist - well, lighten up! You're going to stroke out or something. Eat a cookie.

One thing that I've done over the last 6 months that my competitors have not is spend money on marketing. Print media, online media, website updates, etc. Some cash here and there to keep my business in the view of my target demographic.

It works - but you have to track it. Most people who don't believe in marketing are likely those who spent money without thought to target audience or tracking. Then complained that it was money washed down the drain.

Well, I'm starting a new method this month. Direct Mail.

I've printed up 6000 postcards, I have a demographic list pulled for my target audience and will mail two separate groups of 3000 (the same 3000 homes). One at the end of August promoting our back to school programs and a mailing 4 weeks later promoting Fall registration.

Notice that I'm sending two postcards to the same 3000 homes rather than 6000 homes in one shot? Well, I'm doing that because approixmately 3043 homes met my demographic criteria. By sending two mailings, for those that I don't lock in immediately, I'll have planted the seed for future calls (Christmas, Spring Registration, Summer Camps, etc).

This direct mail, in addition to my print and online ads, is a big hit on my income. Tracking will be critical. If my ROI is met and exceeded, I'll continue this method of mass saturation to the target demographic.

If it fails to deliver - I'll have to figure out how to tweak it. After all, if you don't advertise at all, how will anyone ever hear about you?

Times is tough, yes they are...

I really believe many businesses are in "hunker down" mode right now, and rightfully so.

Holding on to cash and maintaining what little credit lines you have is essential as this economy heads south.

However, I believe you can also fall off the map by being too cautious. If you cut out all advertising, how will new customers find you? If you do not have a flexible service offering with regard to price and availability, how will you capture your market that is cutting back on spending?

We do great word of mouth advertising, and that is a direct result from our love of teaching and what we have to offer that other studios do not. We have great internet presence with top google ranking for our city in all guitar/bass/drum/teacher/lessons categories.

From that, you would think we could pull ad money back, right? I don't know. Or, let's say, I don't know enough to trust doing it. I've got a few targeted ads scheduled to run DEC/JAN to capture what Christmas spending we can. From past experience with this medium, I think we'll recover cost and make a profit, which is what it is all about right?

So, unless you're squeezing every nickle just to make rent, let loose will a little coin to get some ads going, no matter how small.