In a sea of competition, small businesses must find competitive edges and employ strategies to survive. However, they may not be equipped with the vast resources that a large company has. Thus comes the need for cost-effective marketing strategies. In a digital age, utilizing marketing strategies such as these has never been easier.
In this article, we will go over 7 cost-effective marketing strategies for small businesses, as well as explain the importance of these strategies.
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Cost-effective marketing strategies for small businesses
When choosing a marketing strategy, make sure that you create goals that align with your business’s objectives and values. Typically, these goals will consist of generating further revenue and maximizing revenue. However, every business will have different reasons for choosing a marketing strategy. Find what works for you.
It’s important in marketing to find a balance between cost and results. Make sure that the strategy you employ fits within your budget and financial situation.
Related: The 9 Best Marketing Strategies for Small Businesses
Why is marketing important for small businesses?
Marketing plays a vital role in a small business’s success. The main benefit of a marketing strategy is that it can increase the visibility of a business and help it gain the traction it needs to get going. As a small business, this is one of the early things you must focus on to achieve success.
Effective marketing can:
- Foster customer relationships
- Boost sales
- Build trustworthiness
- Build your brand image
- Engage potential customers
1. Blogging
One of the best, and most cost-effective, marketing strategies is blogging. Blogging has been a staple among businesses, and has been a common marketing strategy. The main reason for this is both its effectiveness and ability to be budget-friendly. Website traffic can be used to increase awareness to the business, as well as drive sales for its products.
Simply put, a blog is a website or web page that is regularly updated with information, which can consist of almost any topic, and can be used for either personal or business use. There are over 600 million active blogs on the internet. To compete with this competition, you must utilize effective SEO practices to get your blog seen.
If you don’t wish to start a blog, but still want to build an online presence and drive traffic, then it is best to create a website. If you are not on the internet in today’s world, then it is virtually impossible to compete. A website allows your business to promote its products and services while also building credibility.
2. Content marketing
Similar to blogging, content marketing is a type of marketing focused on creating and sharing content. It is meant to attract, engage, and maintain an audience while also promoting a company and its products. Content marketing can take place on various platforms, including social media, podcasts, apps, and more.
YouTube is a popular platform for content marketing. On this platform, businesses can create visual content in the form of videos. With more than 2.7 billion active users in 2024, YouTube has become an attractive choice for small businesses looking to market their products and services. The best part? It’s completely free!
Content marketing can be vital to your business’s marketing plan, as it establishes an online presence as well as educates viewers about your business’s offerings. Additionally, it can cultivate a sense of community with your brand.
3. Email marketing
31% of marketers use email marketing as part of their marketing strategy, with 64% of small businesses utilizing the same strategy. With 4 billion email users, email marketing is a cost-effective marketing strategy that can deliver increased ROI and increase brand awareness without breaking the bank.
Email marketing specializes in direct customer contact, as it typically consists of sending personalized messages to its subscribers. It is convenient for both the business and the customer, and is a great way of reaching customers in real time.
Additionally, if you are trying to gather user data or feedback, whether it be for product iteration or feedback for your business, then email marketing can be a great option. Within your promotional email, you can include a survey or poll to gather data on your customers’ opinions and preferences. In turn, you can use the data to improve your business and its products and services.
4. Loyalty programs
Loyalty programs offer incentives to attract and retain customers. They are employed to encourage additional business from an existing customer base. Small businesses can benefit from loyalty programs by enjoying increased customer loyalty as well as learning consumer behavior. Additionally, these programs can help small businesses build a customer base that they do not currently have.
Loyalty programs appear in many forms. Many fast-food companies, such as McDonald’s and Taco Bell, have released mobile apps that reward customer loyalty by offering points and deals that can be used on future purchases. Common examples of loyalty programs include:
- Referral programs
- Points programs
- Tiered loyalty programs
5. Social media marketing
Social media marketing is a form of digital marketing that utilizes social media platforms to connect with an extensive audience and achieve a business’s marketing goals. The primary benefit of this type of marketing is that it creates a brand identity that is active online and increases brand awareness.
Social media marketing is the most common type of marketing strategy that businesses employ, with an astounding 91% of businesses using social media marketing. However, this also means saturation, which means that you will have to create a strategy for your business to stand out. It is important to make intriguing content that engages the viewer, as well as interact with your audience to build trust.
6. Create a Google Business Profile
For small businesses, especially those with a physical location, creating a Google Business Profile, previously Google My Business, is one of the most important first steps to take. It acts as a free tool that businesses can use to manage their online presence and control how it appears in search results.
By having a Google Business Profile, your business can experience increased visibility and exposure to customers. Additionally, with the help of reviews, businesses can build their credibility. It is a great way to share your business’s information, such as hours or contact information, with customers.
7. Turn employees into brand ambassadors
Many small businesses utilize word-of-mouth strategies to effectively market their products. One way to do this is to turn existing employees into brand ambassadors. Brand ambassadors are individuals who promote an organization and its offerings, essentially representing the company. They can humanize your brand, driving sales while also providing comfort to customers.
Typically, businesses will elect celebrities to be their brand ambassadors. However, this is not brand-friendly. By using current employees, businesses can cut costs while choosing an individual who has extended experience with the business and its products.
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