by Robert Vico
Well the truth is that for big fortune 500 type companies with big budgets and cash to burn on experts it could work very well.
But the fact is that big media marketing doesn’t work for small to mid sized businesses. Marketing is easy only when you know how to use it. If not you can spend yourself broke trying to figure out on your own how to market your business effectively.
You’ll go broke even faster if you listen to “Big Media” sales reps. Do what the BIG COMPANIES do is the mindset.
It probably goes something like this…
“They make millions… they know what they’re doing, if it works for them it’ll work for you”
Six months down the road, by the time you realize that you’ve spent BIG MONEY on BIG MEDIA marketing campaigns that produced small results if any, you’re deep in debt and desperate for a solution.
So… if BIG MEDIA is not the solution to your problems. What is?
The solution came to me when I took over an almost bankrupt business back in 2000. You won’t believe that the solution could be this simple… still… it is!
Since I know you might have some doubts about this simple solution that I’m about to reveal to you… so I’m prepared to prove it to you.
That why I’m offering a limited number of free copies of my new book “Outrageous Promotions that are Outrageously Effective” To get your free copy click here
In the book you’ll read directly from other business owners about how shockingly amazed they are at the BIG RESULTS they’re producing.
Your fellow business owners share with you how they solved your same marketing problems through…The power of promotional products combined with direct response marketing.
Let me show you what I mean by sharing with you the story of The Aspen Hills Tennis Club.
The tennis club was running television ads (at a cost of $5,000) as a way to recruit new members. When they ran the campaign, they would secure two new members. $5,000 divided by two new members = $2,500 to secure each new member.
The marketing director would justify this high acquisition cost because the annual membership fee was $3,000 and the average lifetime of a member was 6 years.
The average lifetime value (LTV) of each new member was $18,000 (6 years x $3,000 per year) when you add in the $500 net profit from the TV ads, the campaign would create a potential $37,000 in revenue.
However, I know that using the power of promotional products the tennis club could get a significantly higher return on investment.
The first thing is to understand the demographics of the tennis clubs target market…35 to 55 year old males and females with a high median income that played tennis and lived within a 50 mile radius.
With the help of list broker, the Aspen Hills Tennis Club acquired a list of 300 of qualified prospects.
They created a custom box for a direct marketing campaign. The printing on the outside of the box read…
“The Aspen Hill Tennis Club is serving up a great offer”
Once the box was opened, the message continued,
“Now the balls in your court”
The inside of the box was die-cut. Inside they inserted a tennis ball along with a personalized free week membership card. Additional copy printed inside the box described the clubs features.
The offer was an invitation to try the club for one week, a free “Test Drive” to play tennis, meet the members and experience the club first hand.
To their surprise, the marketing campaign generated an amazing 25% response rate. 75 people signed up for the free week. After the free week, 54 people signed up for memberships.
The marketing campaign used the same $5,000 budget that was used to run the TV spots but generated an astronomical increase in new memberships.
The ROI generated by this campaign in comparison to the TV ad was astronomical. 54 new members: $5,000 divided by 54 = $92.59 to secure each new member instead of $2,500
New member fee $3,000 X 54 = $162,000
$162,000 minus the $5,000 investment gives you a $157,000 net profit. That brings the ROI to just over 3,100%
That kind of return on investment puts a real ass whopping on the result generated by the TV spots.
But we are not done yet. In next weeks post I’m going to show you how they increased the ROI to over 22,000% by understanding and calculating the Lifetime Value (LTV) of the 54 new members.