How do you make a business efficient and make the most profit? You need a clear plan, based on business goals, objectives and, of course, budget.
"The whole is always simpler than the sum of its parts" said Aristotle. The world is made up of very complex processes. They are based on simple and obvious actions. When building a company's marketing, it's important to constantly work on a product promotion strategy.
Unite Economy
How much does it cost to win one customer? Unit-economy is a business management methodology based on the calculation of production costs and cost allocation per unit of product. How effective is a marketing promotion strategy? What affects the overall profitability of the business? If the costs exceed the allocated budget, you should reconsider the goals or look for ways to reduce them.
Desired sales per month
Average bill of sale, unit cost and desired sales volume. These figures become the basis for the first approximations of the budget to be systematically allocated for marketing and advertising activities. With their help current sales are analysed and the potential for increased sales in the future is recognised. We want to earn more - increase the average bill.
Competitors
When assessing the marketing strategy of your competitors you should pay special attention to how and by which search queries users can find their website. Analyse their advertising campaigns and the tone and style of their content. Finding a supplier who not only offers a quality product but also charges the lowest price is the main task of the dropshipper. He needs to meticulously analyse the time/cost of delivery metric.
Decompose the target into smaller components
Decomposition is the detailing, breaking down the whole into its component parts. By dividing your desired total revenue by your average check, you can determine monthly, weekly or even daily sales targets. Understand how many customers need to buy and how much they need to buy to make the business profitable. Then determine the tools with which to promote specific segments. This can be a Google ad campaign, social media promotion, promotional offers and discounts.
Target audience, its needs and interests
After identifying the needs of the target audience, understanding their interests and queries, specify and refine the previously set goals. To do this, you need to do an in-depth analysis. Do a profile of your target audience. Model it: general character, habits, demographics. What are they looking for on the Internet? What problems do they solve when they buy your products or services? What are they interested in?
Choose advertising channels to test
Where and how will you promote your product? Which advertising channel and tool will you use? Google, Facebook and Instagram, Snap or TikTok? Google is the long-term solution for organic traffic. It's primarily context and site content. Google Ads work well, but require a lot of investment and the ability to set up ad campaigns within the system. Facebook and Instagram have long been good choices for B2C products. By testing the chosen channels, estimate the real cost of attracting customers and compare the results with the expected unit economics.
Analysis of results and adjustment of strategy
When evaluating the customer lifecycle, you need to estimate how much time and money it will take to recoup the cost of your customer acquisition. For retention, connect email newsletters, personalized offers, loyalty programs. Study customer feedback and be sure to respond to it. Registering with the Step Link platform allows you to conduct market research and segment your target audiences, clearly understanding the problems and "pains" of potential customers
Remember that a marketing strategy is not a prescribed algorithm, it can change regularly and needs to be reviewed and adjusted, adapting the product to new conditions and market changes.