Every dollar spent in marketing that creates a positive return is a worthwhile investment when you understand the lifetime value of a customer.
The lifetime value of a customer is what they’re likely to spend throughout their patronage to your business. It’s a metric that can wholly shape all aspects of your business and its marketing efforts.
The marketing spending accounts for part of the acquisition cost (a factor in calculating lifetime value).
Why does this matter?
It creates a justification in experimenting with unusual marketing methods.
Justifying the Marketing Spend
Marketing is built on the four “P’s”:
Its goal is to attract interested parties to the products and services.
Here’s the thing: Anything can be effective marketing.
We just happen to rely on tried-and-test strategies because they’re accessible – such as digital marketing – because we want a “sure thing”. Yet, who’s to dismiss unusual marketing methods if they are converting and justifying the spend due to factoring the lifetime value of the customer?
Would you spend $100 to acquire a customer – even if it’s abnormal – if it leads to a profit?
Embracing the Odd
It’s rather interesting seeing how we label certain marketing methods “odd” or “unusual” when, at a time, they were quite common or at least more-so than they are today.
Digital marketing has almost completely replaced the need for most traditional forms but this has created an interesting gap – one that catches individuals by surprise which happens to be a big element of effective advertising.
These (now) unusual methods could include:
Pop Up Tents & Canopies
One look at the product line from Ins’TenT will spark an “ah-ha” moment; it’s the tents & canopies we see at trade shows, local events, and conventions. These are items that we almost overlook because they’re so well integrated into the surrounding.
Yet, the branding is beaming deep into your mind even if you’re not actively engaging.
It often seems like small businesses have given up on loyalty programs because people have become so fickle and spoiled with unlimited options due in part of online shopping. Yet, they hold their value especially when local competitors drop this smart marketing strategy.
Loyalty programs incentivize transactions while also providing valuable feedback in understanding the buying cycle for the business.
It’s a cheap, effective way to encourage repeat business and increase the lifetime value of a customer.
Oddly enough, you’ve got some individuals that absolutely love the things – going all out with dozens littered across their bumpers. This is an opportunity.
One could pair bumper stickers with an automatic discount for returning customers – 10% is a good starting point – which acts as an incentive for repeat business and creates free advertising.
Bumper stickers could also use short, unique domain names to direct and redirect visitors to a landing page or main site. This is easily tracked. The stickers are cheap and could be distributed around town.
Some years ago, a company did a massive campaign using signs promoting local dating sites – you may remember them because they were everywhere.
Turns out the domains acted in the same fashion as our bumper sticker example in which it funneled users to a main, popular dating site.
Again, these are cheap and easy to create.
One could turn to Craigslist, post an ad for someone (or a team) to distribute them around town, and then watch as interested parties funnel through the domains and redirect to the main business page.
All-in-all, It’s Fun
The unusual marketing methods are fun because of their novelty. It lets you explore an interesting take on marketing – one that’s not quite the same when using digital, print, or TV.
Who knows? If the lead gen is right – along with justifying it to the lifetime value of the customer – then maybe these are marketing avenues worth exploring!