1. An 18 page newspaper format magazine promoting property in the area. This publication has almost no useful editorial content and promotes approximately 110 properties from 24 advertisers.
2. The local business area newspaper with 52 pages, an average of 3 ads on every page and a classifieds section.
3. A Melbourne Weekly newspaper with 76 pages and hundreds of ads and real estate listings. Too much effort counting.
4. A DL size brochure for Telstra Bigpond internet plans.
5. An 8 page A4 catalogue from Optus Telecommunications with new phones.
6. A 24 page Coles Supermarket catalogue promoting over 100 specials.
7. A 28 page independent schools guide brochure with 1-2 ads on each page.
8. A 30 page Target catalogue with hundreds of deals on CD’s and DVD’s.
9. A 20 page Target catalogue promoting clothes, undies and toys.
10. A 20 page ‘the good guys’ catalogue promoting white goods.
11. An HBA Health Insurance flyer.
12. A Spy Cam security monitoring brochure.
13. A Plush furniture promotional brochure.
14. A 2 page chemist brochure.
15. 2 Subway foot-long brochures with 12 coupons.
16. A Video EZY brochure with 2 offers.

In summary, I have been hit by 292 pages of stuff / spam / junk mail in just one day. (please feel free to correct my calculations as they are really rough). The amazing thing is that this influx of ‘spam’ never stops and usually ends up in the recycle bin before making it into the house. The only reason I took notice today was because the thickness of the junk inspired me to write this article.

There is no question that much of this Spam advertising approach works because if it didn’t then none of the advertisers would promote. The issue is the waste and I wonder how many of the approximately 1500 products promoted to me today get any response at all. I have limited my example to just what I received in my ‘snail’ mailbox but think about the number if you add in all the radio and television promotions, daily newspapers, Internet banner ads, spam email, billboards and don’t forget the ads above the urinal, on buses, trams, taxis, hotel boards, and bus stops.

Perhaps there is something I like in the 1000’s of ads that will be sent to me today but finding that promotion is like finding a needle in a haystack and who could be bothered.

This may appear to be a bit of a rant but my point is there must be and is a better way for business. My personal view is that businesses need to rethink their promotion strategy and focus on advertising delivery models that enable them to (1) pay for promotion only when the promotions work or (2) pay for promotion that is highly targeted.

If this were the case I would only get information that I’m likely to be interested in and I would be much more likely to buy.

Less information + more relevance = more sales.

If you are an ad agency rep and you make your living off all the junk that was sent to me today please give me your thoughts as I may be getting this whole thing all wrong.

Technorati Tags: Local Business, Small Business Marketing

1. Treat the discount as another form of advertising. I have spoken with many small businesses who don’t give a discount because they have their own customer reward program, but they then spend on advertising to attract new customers. Local discount programs or reward programs should be viewed as advertising you pay for only when it works. It’s like a brick-and-mortar version of Google AdSense in that you are only giving a discount away when someone uses the discount coupon or member card.
2. Structure discounts around your personal circumstances. For example, if you are a restaurant and you are fully booked every lunch and dinner then you don’t need to offer a discount. If you are only fully booked on weekends then offer a discount that is applicable during the week. If your store or restaurant is quiet then you have nothing to lose!
3. Maintain Control. Make sure you understand where, when and to whom the discount is going to be offered. The discount should be appropriate to your area and your desired customer base. You should always have an understanding of the terms of the expiry of the deal. Ensure the local reward program is legitimate and test their claims. Ask about the members that they will be providing discounts to.
4. Consider your branding strategy. Many business brands prefer not to discount if it’s not consistent with their branding philosophy.
5. Can you afford it? Review your product margins and make sure you can afford to give away the discount you are offering.
6. Don’t be bullied. Some local discount programs will only promote your business if you provide a discount they nominate. Ensure you can afford to offer the discount under their terms, or don’t participate.
7. Test and test again. If you provide a discount and nobody is redeeming the offer it may be because (1) the discount is not attractive enough or (2) customers from the reward program are not the right target market for your product or service. In my next post I’ll run through some approaches to testing and assessing if your discount is appropriate.
8. Communicate the discount to your staff. The benefits of the discount can quickly turn into a negative experience for the customer if staff are not aware of the discount. Ensure you are able to communicate the discount to staff as part of your internal marketing process.

As a general rule, unless you are turning away customers I think it’s worth giving promotions in local discount programs a go. Members of discount programs will select or try merchants based on their participation. So long as there are no costs to participate and you can afford the discount it’s advertising you pay for only when it works.

Technorati Tags: Discount Marketing Plan, Local Discount Programs, Small Business Marketing