How do you run a cost effective promotion on a tight budget?
We're currently in a marketing phase, trying to sell out our Loyalty/Discount cards to the public. We have a budget of $10,000 to reach 5000 people.
I would suggest to be careful and avoid the common mistake of overestimating the returns on the money spent on advertising, the marketing untruth.
Your primary source of development for new business is your exiting client base. Make sure they are satisfied and find out if they feel they got proper value for the money they dished out for your product and service. Ask them outright, don't guess it. Then make sure that they increase their transactions with you when possible and then that they give you qualified referrals. Ask your clients if you can name them when contacting their referrals. That is a powerful introduction.
If you spend your early advertising budget in developing your relationship with your client base, this should pay off handsomely in the long term and will keep you in business. That would be better than most advertising campaign that will only run your bank account dry without generating the necessary long term revenues or visibility.
You can not afford the long term expense of effective advertisement. Even a small newspaper classified add will end up costing you more than 100 times what it will generate in sales. It would be a waste of your time and resources. Concentrate yourself on your client base, as small as it is, and grow from that.
This way you also avoid the other trap of growing too fast for your resources (human, material and financial) if ever you had a successful campaign (rare, but it happens). Many growing companies end up on the guillotine if they can not finance their growth. It's better to be able to plan for growth rather than be overwhelmed by it.
May the wind be in your sails…
Lots of ways this can be done, I worked in a loyalty focused digital agency (we had our own technology we used to use for our clients.
Do you have a URL you can share, further insight of target audience, how the program works etc?
PM if you prefer.
Study your target audience to know which channel(s) they connect with most and focus on that channel(s) to get the best ROI.
One mistake I've seen lots of small businesses make is spreading their marketing budget so thin doing different things that at the end of the day they don't make any significant impact.
Also studying what your competitors are doing/not doing is another way to go. Hope that helps.
Alarm bells sound when I read that you are market "to the public".
Time and effort spent narrowing and focusing on your best prospects saves wasted $'s.
Be clear on who your perfect client is, establish what it is that gains their attention, identify where the most taregt rich environment i to be found, invest a small amount to start, analyse the results, learn and improve, invest some more...
It sounds very simple but, the first question would be - How much value-experience-engagement can you deliver for $2 a prospect.?
Another question would be - Can you reward your current loyalty members for referrals. (word of mouth is the most cost effective of all!!)
Is that 5000 new card members or 5000 prospects? At your current conversion rates, how many people/customers will you have reach to produce 5000 new members?
Hope that makes sense.
When you connect those points you will have your answer :)
I'm a big fan of podcast advertising. It takes some time investment on your part to find the right ones, but sponsorships and ad rates tend to be very cheap and the conversion rate is up to 10 times any traditional media because the leads are more qualified and the audience is more receptive to the host for a variety of reasons.
As mentioned previously, make sure partner business websites run a link for you on their front page. Also, get some posters and business cards on the counters and front windows of their physical stores. Make sure they're pushing you in their social media connections. Let them do the bulk of the work since it's a program to help them. Your best efforts are going to be in supporting their efforts and in signing up more businesses to your program so they can be your agents as well.
Maybe it's just a cultural thing, but I don't get what you're about from looking at your website. Especially for a new company like yours, making things as painfully obvious as possible on your site is very important. Design is fun and pretty, but the best design won't get people to try you if they don't know what you are. Think about Coke...if you didn't already know what Coke is, is their anything in their sizzle-based advertising that would make you try it? Maybe. More likely you'd wait to hear a testimonial from someone you trust or try to seek out more info on your own, and if you couldn't figure that out in the first 10 seconds, you'd give up, settle for a glass of water, and go on with your life without Coke.
Remember that with most promotions you get a return of 2-5% of the people reached. A little more with targeted programs. So reaching 5,000 people tells me that you only need to sell 100-250 cards. If that is not the case, then you need to relook your numbers of people reached. If this is a local company direct mail, radio, cable TV and banners on local sites would work. Regional or national would be a different story.
We can help you to reach a lot more than 5,000 people with a $10,000 budget. With a budget of less than $10,000 we were able to help a local restaurant generate over 5,000 sales leads worth in excess of $200,000 per month in food delivery orders. Would love to submit a proposal to win your account. You can learn more about our company at http://www.pampermenetwork.com
I suggest Facebook Promotions! Here is a great article (it's geared towards nonprofits but businesses can do these same promotions too): http://getpocket.com/a/read/312020119
You can reach that goal by creating a page in Facebook, and advertised with with a bid of .15 cents to .20 cents per hit. Or just inbox Me and I can direct you to other low budget sites.
My company can help. https://kuedin.com/kuedin-advertising-04256.html
Gifts and prizes that only make you positive cash flow