Service business marketing priorities?

[GFC]

Like many of you, I'm spinning up a small business and am severely constrained for cash, time, energy and expertise. In a nutshell, my business provides IT services to small/medium business in a local market (SMB). From a "bang for the buck" perspective, what types of marketing has the best return (i.e. getting customer appointments?):

- Newspaper ads
- Print, i.e. brochures
- Networking (if so, how and where?)
- Web and SEO
- Etc....

Thanks!

[KeithJ]

I wish you much luck in your endevour. It has been 9 yrs since I started an IT/business consulting practice and by far the best method is networking (nothing beats face to face communication). Since you are focusing on local small/mid-market businesses, I found it beneficial to involve yourself in community activities. Most businesses are active in local community efforts and it offers you the possibility to network with business owners (they are the decision makers).

My suggestions for networking in no particular order:
- Become a Chamber of Commerce member
- Local community groups (Rotary, Lions, Eagles, etc.)
- Church
- Local non-profit groups / charities
- Volunteer (local school events, games, etc.)
- Various user groups / professional organizations (APICS, ASQ, PMI, etc.)
- etc. etc. etc.

Hope this helps....

[GFC]

Originally Posted by KeithJ

Hope this helps....

This helps a LOT! Thanks Keith.

I must admit to having tried the "rubber chicken" circuit (networking) but I seemed to find mostly talkers or people who were trying to sell ME something. I do agree that it's a crucial component of any marketing plan, but I also think it falls into the category of "indirect" and "long term", for me anyway.

In addition to networking, I've been thinking about printing a trifold brochure (with several "free offers" to elicit action) and walking around office parks and businesses handing them out. I think people might respond better face-to-face and you get to learn more about your target clientele that way. Having said that, I know most people view a brochure as a convenient way to say "we'll call you if we need you" and then file it in the circular file (garbage can).

Any ideas/comments on this plan or other ideas? Thanks!!!

[tcconcepts]

Hi GFC -

To help you through the pros and cons of various media and activity, I would first want to know more about:

Service Area (mileage radius and pop.)
Market Position

If you want to know more about positioning, let me know and I'll elaborate.

Anyway, depending on your information there, you would likely be able to rule out broadcast and display. Yellow Pages would probably be the second step, backed up by the first step of a well-designed website with a nice professional look (you're in a tech industry, it's expected). Next you would want to get that site well optimized (a la SEO). Other print media might include a local daily (if pop. large enough to support one) or weekly shopper papers. Word of advice. For the daily, look for a page/section that is specifically for Services and stay there. In fact, all print advertising -- perhaps the most misunderstood of all media -- is about consistency and "being there" when the customer goes looking. In addition, consistency breed familiarity and familiarity breeds trust. Anyway, the point is, it is always better to scale down the ad itself and go for duration, then to go for the big bang one-time-shot of a larger ad. Also, to test any print-media market, you need to give it a fair shake. For dailys that would be once a week for 8 weeks; for weeklys, it would be . . . hey, 8 weeks. If you don't start getting a positive ROI by the eighth week, you can pretty much rule out that outlet. If you do, you can then get into "growing your ad budget"; which is simply a nice gushy, limp-wristed, sensitive, 90's kinda' way of saying that you can reduce one ad and expand new ad ventures to test the waters and build an empire. I can elaborate on that later, too, if you wish.

So, instead of blowing the budget on a full-page ad for one or two weeks, make it a quarter page ad (or whatever the rates allow) for 8-10 weeks instead. You get the idea. Also, take advantage of your website. One of the beauties of the web is that you can start the story with print media (i.e., get the reader's attention and provoke an interest), then finish the story online by pointing to the website. Of course, in your case, there may be a difficulty there because some of the customers who will need you just had a computer crash. :-) The balancing factor here is that it's probably fair to assume that 99.5% of your prospective clientele indeed have Internet access. Take advantage of that.

Networking: I concur that you should probably put off (or forget entirely) Chamber of Commerce style networking. In fact, I don't mean to bash on Keith, but you said you were not only strapped for money but also time; and all of those suggestions, while positive to a lesser or greater degree, take time. In my experience, COC mixers are time not-well-spent, and you pegged the reasons yourself. A better networking approach would be to get with people who are also in the B2B service industry (but not directly competitive) and build a referral network (ad agencies, printers, etc.). You may also pick up some barter contacts and that's always helpful with start-ups.

The idea of actually pounding the pavement is very good for all the reasons you've mentioned and the much more natural networking opportunities that will arise from it.

Print-media literature (brochures, business cards, etc.): Absolutely. Just don't fall into the trap of relying on them. You are in an industry (like many industries) where the biggest sales obstacle is going to be selling yourself. You need to get in front of and get comfortable with the people in your community within the context of what you do. It is completely natural to walk in a business, introduce yourself, say what you do, and tell the proprietor that you want his business. On the opposite side of the coin, purely contrived activities (like joining a club or church under a false pretense and then using it as a means of networking) is not only immoral, it will usually tend to backfire.

Try and get some good PR. Host a free seminar. Give some free lessons. Donate a computer. Etc.

Finally, you might actually do well with some Advertising Specialties (notepads, calendars, etc.). You can use them while you're pounding the pavement. They make an excellent foot-in-the-door approach ("Hi my name is GFC, I just wanted to drop by and give you one of our calendars and introduce you to our company..."). I own an ad agency and can't always give a client what he thinks he wants (there's no guarantees in advertising). BUT . . . no one will argue the fact that TC Concepts has the most popular notepad in Conroe, Texas. :-)

Just my ramblings on the subject. Hope it helps.

Fred
http://tcconcepts.com/

[GFC]

Originally Posted by tcconcepts

Just my ramblings on the subject. Hope it helps.
http://tcconcepts.com/

Dang Fred, I feel like you just provided more good information in those few paragraphs than any book I've read or consultant I've hired. THANK YOU.

I have to agree on the part about Advertising Specialties, especially around the holidays since it's a natural to be out and about glad-handing right about now. I had considered mouse pads, magnets, post it's (whatever) since most everyone will use that kind of stuff. I guess I'm still trying to convince myself that I'm not just giving away office supplies as a community service... Maybe a combination so people feel "obligated" to at least have a short conversation and maybe read the brochure? I guess I'm also looking for "wow" on a budget which is of course a contradiction.

Thinking out loud since my brain is still processing all the information you provided...

[nsusa]

Do you have a car? Get some magnetic signs for the doors and a large vinyl sticker for the rear window. Ask friends and neighboors if they are willing to have a bumper sticker or another vinyl sticker on their car. Provide free services to friends and or neighboors and ask them to spread the word in return. Even if they are not your target group, they might know somebody who belongs to your target group. Get listed in the local online business directories and also get a listing in the Yellow pages for your area. A nice ad in the yellow pages gets your business in front of people who are looking. Nothing is more targeted than a listing in the yellow pages. Nobody reads them just for fun - people who open the book are looking for something.

Christoph

[Scottco]

GFC:

My suggestion would be to teach some sort of class in your city that allows you to demonstrate your knowledge on the topic....maybe the "10 keys to XYZ".

Not sure where you live, but many medium sized or larger cities have "free universities" or other venues where you can sign up to teach a course. These venues usually do charge the student a $25+ fee to attend (and usually the teacher gets some of that).

Even if there isn't' a "free university" in your area, you could even announce in the local paper (or run an add) and hold a free seminar ..teaching the 5, 7, 10 or 25 (?) principles on what you know.

In doing so, you demonstrate your expertise to an audience that is your target.

As a side note, this is how I've gone about to find my own small biz attorney, accountant, etc....

Just an idea.

Scott

[SirYellow1]

Have you considered direct mail or Yellow Pages Advertising?

They both offer targeted prospects as opposed to say a
newspaper ad which unfortunately, you're paying for a lot
of eyes that have no need for what you provide.

Depending on your location Yellow Pages may not be too
expensive considering the profit on each new client obtained.
Especially if you set up a solid referall system that increases
the value of each client you attract.

If it proves more of an investment that you're looking to make
you might want to buy a list of business addresses in zip code
X, Y, and Z that have, say, between 10 and 99 employees,
and create a very compelling call to action and a well drafted
sales letter.

Good luck! You're getting some great suggestions from the
previous posters to work with.

[jdegerstrom]

Hi, Mike,

Severely strapped is the key word.

I suggest getting a "wow" card design and printing at home on an inkjet printer using precut forms (50-100 at a time). As you develop sales and the budget allows better print advertising, here are some rough costs to budget for full color printing:

5000 business cards, 2 sides with an ad on back, UV coated...$200
5000 post cards (flyers) same quality as above...$500
5000 tri-fold brochures, glossy 100# text (catalog) stock...$1000

You offer a service which requires a personal sell, so I agree with the door-to-door campaign. Make a wow first impression with a nice card or flyer and prospects will remember you when the time is right.

Aim high and you'll do well, and then you can afford one of the full color yellow page ads for $10,000 a year! Good luck.

Cheers,

Jim

[IndieRetailer]

GFC,

If you're considering brochures, you may also consider a postcard instead if you can say what you need in a smaller space. Some businesses also don't mind if you leave several of them behind on a counter or community board (brochures also if you hadn't thought of it).

I also live in San Diego so I can recommend a printer somewhere in North County (I don't remember exactly, Encinitas I think). Anyway, Modern Postcard does a really good job for a fair price. That was the start of our print advertising and has proven to be the most effective. We included a call to action by saying something to the effect of, "Bring this postcard for a discount on...."

Networking is good, but I understand how you feel about some people trying to work you over. However, if you can politely get past those, there are other potentially good contacts. Again, in San Diego, there's a pretty good Meetup for entrepreneurs that meets once a month at On the Border restaurant in Mission Valley.

You can PM me or check the Meetup site for furthers.

On other methods? Website is always a must. If nothing else, because people will expect you to have one. Newspaper ads are expensive and your industry is very competitive here. I don't think you'll get the return on you investment. Stay away from the Reader (very expensive and horrible ROI).