As with most decisions in business, updating your marketing strategy is a significant change that you may have to make swiftly. There’s no use in having a great product if you can’t market it effectively and get the sales needed to make a profit.
Therefore, you should change your marketing strategy when your current one is not getting you your desired results.
Assess the Lifetime Value of a Customer
One way to assess whether your marketing strategy is working is to calculate the average lifetime value of a customer (LTV).
For example, let’s say a customer is worth, on average, $300 to your business and you spend $50 a day for Facebook Ads. If you can get a customer within two days, then you would have managed to make a profit:
$300 – $100 ($50 x two days) = $200.
Once you pass the 6th day (that would be $300), then you’re facing a loss with this strategy. It’s time to re-evaluate your strategy.
You may not need to take drastic action on the 7th day, but you should be extra cautious if you begin spending $500 and still have no customers:
$300 – $500 = -$200
Spending above the lifetime value of a customer is an important indication that you should change your strategy. Remember, you’re in business to make money, not lose it.
Scrutinize Your Ads
Before you decide to change your strategy, make sure that you have a great ad in the first place.
The biggest mistake you can make in your marketing strategy is not giving each ad, text, copy, email, etc. your best effort.
If you don’t seek perfection in your marketing material then you’ll end up changing every campaign because of the illusion that the strategy isn’t working, when the actual problem lies with the ads themselves.
Things to look out for in a bad ad include:
No Clarity in the Offer
No Clear Call-To-Action
Evaluate the Offer
It’s important that your offer is appropriate for the market you are presenting it to. An offer can be wildly successful with one market and bomb in another.
If your offer is not converting, then the problem may lie with the audience that you’re targeting rather than the actual ad itself.
Conduct thorough research to ensure that you’re speaking to the right market. You could save lots of time and money once you focus on a specific market rather than speaking to “everyone.”
Before you start assessing the LTV of your customers or evaluating market trends, it’s important to first assess and evaluate your own performance and areas of improvement.
An Info Entrepreneurs report suggests that business owners “begin your marketing strategy document with an honest and rigorous SWOT analysis, looking at your strengths, weaknesses, opportunities and threats.”
These could include the following:
Strengths: Your product’s Unique Selling Proposition (USP).
Weaknesses: Lack of pedigree (not producing top quality, effective material).
Opportunities: Is there an increased demand from other markets?
Threats: How is your competition’s marketing strategy getting more results than you? Analyze their copy, product branding, video ads, etc. and see how you can replicate their success.
When considering whether to change your marketing strategy, be sure that you’ve carried out thorough research, produce effective marketing material, and focus on the right market.
If your analysis shows that you are lacking in these areas, make the necessary improvements as soon as possible.
However, if you have done all of that and you’re still not seeing the desired results and you’re spending far more than planned, then it’s time for a change!!!
Article curated from MOBE