Can Small Business Owners Increase Sales Without Boosting Ad Spending?

The rapidly changing business environment these days can make it a little confusing for small business owners when they're trying to increase interest in and awareness of their companies. There are now many considerations to take into account when it comes to how to best connect with potential clients or customers, and owners will need to take the best paths for their situations.

In the past, there were relatively few methods of connecting with consumers for companies, and so the ways that companies chose necessarily came with a fairly narrow focus, according to a report from Business 2 Community. Now, however, there are a large number of avenues down which companies can go when it comes to reaching potential new customers or clients, and as such owners will have to carefully weigh their options going forward. Fortunately, many of the options they may now have could allow them to advertise almost for free, and in some cases they may be able to slash their budgets for this kind of thing by a large amount.

One of the things that companies can do to streamline their advertising costs is to simply start listening to what their customers or clients are telling them, albeit not always with actual words, the report said. When it comes to what these people do when dealing with a company, it might be wise for owners and employees to do more to build profiles on their average customers so that they know what to target. Asking questions such as, "Why do people seek out our goods or services?" and "What can we do to make their experiences better?" is often a great way to create more engaged customers and in turn help to guarantee repeat business in many cases. Moreover, having this information on hand may also help to craft the ways in which companies can reach new eyes going forward.

Get to know customers, and rely on that information
For instance, knowing some basic demographic information about the kinds of people who take advantage of a company's goods or services can be a major help going forward. Are they young or old? Are they tech savvy? What kind of industries do they work in? Are they well-off, financially? All of that can be used to figure out the best ways to reach them; young people tend to keep up with social media more than their older counterparts, and thus it could be wise for companies to put more of a focus on emerging advertising areas including Facebook and Twitter, which come with low-cost options for reaching a large number of people in a specific area. However, older demographics are less likely to use these sites, and for this reason it might be more judicious to invest in traditional ads like those on the radio or in newspapers.

The reason this will be important is that if a company is spending money on both of those advertising types, they might not be using it as wisely as possible, the report said. Narrowing the focus of these efforts can create more precision in reaching potential customers and ensure advertising money and effort isn't being wasted on attempts that might prove more or less fruitless.

Of course, companies attempting to improve their bottom lines overall may need owners to also look at ways to reduce costs, which could include finding more affordable small business insurance. Cutting expenses for workers' compensation and general liability insurance policies could give owners a little more flexibility even when revenues aren't necessarily on the rise.