The reality is that most small, local businesses simply don’t have big advertising budgets. However, when done correctly, local promotions can be quite effective.
Fair enough, the results will vary depending on your industry and a few other variables, but it is still possible to run successful promotions without breaking the bank. And without over-complicating everything.
What does “local promotion” actually mean?
It means that you target a specific area, or even a specific community. For instance, you may be targeting your local farming community or baseball community.
Always keep in mind that relevance means more than reach. It is more valuable to reach the right people than it is to reach a large number of people indiscriminately.
Also keep in mind that your local business has one major advantage over big brands: It’s personal. Wal-Mart is just… Wal-Mart. But the local hair salon is run by Jenny. The local mechanic is Pete. Something special happens when you as the owner deal with the public directly, even if not constantly.
How to run low-cost local promotions that actually work
Step 1: Choose one clear promotion goal.
Do you want more walk-in traffic? Do you want inquiries? Do you want to generate more first-time buyers, or do you want to foster repeat business?
Pick ONE clear goal, and stick with it.
If your goal is unclear, how will you communicate a specific message to your potential buyers? How will you get them as far as taking one specific action if they don’t really know what you want them to do?
The more additional possible actions you add, the more your message seems generic, and the higher the likelihood that many people will just do nothing.
Step 2: Define your exact target customer:
Even if you serve a relatively diverse market, it pays to aim specific promotions at specific market segments. People just tend to respond better when they feel something is “just for them”.
Look at the demographics, habits and interests of the local population or community. Which cross-section of them do you want to attract?
Also, do you want to go after new customers or clients, or do you want to re-engage existing or former customers?
If possible, tie your promotion to a real, specific local event or need. Just think of “back to school” promotions, Mother’s day, etc. Or elderly people struggling with aches and pains in winter. An upcoming festival. The first game of the season. Summer holidays, for instance, if you are a mechanic, targeting people who need their cars checked out for road trips.
Tying the promotion to a specific need or event creates “common ground”, and lets you cash in on Mass behavioral patterns.
Step 3: Pick the right promotion type:
Yes, you can pick more than one. But it is better to go all out for one type than a mediocre execution for each of six types.
Here are a few options to consider:
Partner promotions with complementing, but non-competing businesses. For instance, if you are a florist, you can partner with a hairdresser or even an undertaker.
Referral offers – people get a discount if the bring a friend who also buys.
Advertisements on community noticeboards, local social groups, and local newsletters.
Location-based specials, or specific community-based specials. For instance, special discounts for farmers or new mothers.
WhatsApp lists and groups – whether it is your own or just ones you have access to.
Step 4: Create a simple, clear offer:
Craft one single offer, with one specific message, aimed at one specific market segment.
Avoid complications. Complex rules or requirements are likely to discourage people from taking you up on the offer.
Instead of just pushing the discount percentage or amount, emphasize the value that buyers will receive.
Strep 5: Run your promotion on the right local channels:
Regardless of the type of promotion you chose, you have options when it comes to choosing channels. Choose wisely, and rather focus on two or three than spreading yourself too thin, and not making enough impact anywhere.
Here are a few options to consider:
Local groups on Facebook and/or WhatsApp.
Local mailing lists.
Posters and/ or flyers, but used strategically.
Point-of-sale reminders.
Step 6: Make it as easy as possible to take action:
Provide crystal clear instructions on what you want people to do. Make it simple. For instance, do you want them to bring a friend? Do you want them to make a specific purchase, or a minimum order size?
Limit the number of steps required to redeem your offer.
Make it as easy as possible to contact you.
Step 7: Track what actually works:
Measure everything you can – your promotion activities, inquiries, visits and redemptions.
Also ascertain which promotional channels brought buyers to you.
You can track by using codes, checklists upon redemption, or even just by asking.
The bottom line is this: When you know what works and what doesn’t, you can double down on the effective methods and channels for your next promotion, and avoid the useless ones.
Common mistakes when running low-cost local promotions:
a. Trying to reach “everyone”. The wider you cast the proverbial net, the more generic your promotion becomes. Generic is easy to ignore.
b. Running promotions too frequently. If you run a new promotion every few weeks, more and more people will start ignoring it.
c. Not tracking which channels worked best. Remember to keep the effort vs reward ratio in mind. Some channels might not bring many buyers to your door, but if very little effort or money was required, it was still worthwhile.
d. Not following up on your distribution channels – see if your Facebook and WhatsApp posts received any engagement. Ensure your posters on community boards remain visible. Follow up to ensure that point-of-sale flyers at partner businesses are actually being handed out.
e. Don’t ignore repeat customers. While some of your promotions may be aimed specifically at acquiring new customers, do not neglect the value of your existing customers who already trust you.
Your simple promotion checklist:
Do you have the following in place?
Goal is clearly defined.
Target audience is clear.
Offer is simple and relevant.
Promotion channels have been chosen.
Action steps are clear and simple.
Results tracked, and how.
In conclusion:
At the end of the day, effective local promotions don’t need huge budgets. You can reach the right people, and enough of them to make it worth your while, by just being smart about it.
However, remember to test just ONE idea at a time. Don’t confuse people. Confused people don’t act.