You can't always track the effectiveness of your advertising
dollars. No matter how powerful and persuasive your ad, most of the
people you're paying to reach won't currently need what
you're selling. But if your ad makes a deep enough impression
on them, they'll remember you when they need you later.
With that said, keep in mind that I didn't say ad results
can never be tracked. When you want to hold your ad dollars
accountable, there are basically three ad-tracking strategies to
choose from:
Strategy #1: Under-price a well-known
product
This is the classic "loss leader" strategy. The general
idea is that enough customers will buy additional items to offset
the losses created by the under-pricing of the lead item. Would you
make a trip to the grocery store if they were advertising milk at
75 cents a gallon and eggs at 25 cents a dozen? You can easily
track the effectiveness of the advertising through the number of
units sold, or by the increase in customers. The losses created
through the under-pricing of the item will be relative to the
amount of traffic generated. Think of it as pro-rated advertising:
The better it works, the more it costs. The downside to this
strategy is that customers who switch to you for reasons of price
alone will switch from you just as quickly, and for the same
reason.
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Don't confuse the loss-leader strategy with couponing.
Generally, coupons appeal only to the lowest quality of customer.
If you're going to offer a bargain, do it openly. Your best
customers--the relational ones--will be offended by the idea that
some customers pay a higher price than others.
Strategy #2: Feature an item with a
powerful story
The quantity of customers generated through this strategy will be
less than when using the loss-leader strategy, but they'll be a
better quality of customer. The keys to this strategy are:
- You must find an item with a powerful story, then
- You must find a writer capable of telling that story well.
Again, the effectiveness of the ad can easily be tracked through
sales of the item and/or a general increase in customer count.
Both strategies 1 and 2 must be limited-time offers--"While
supplies last" is always a bad idea. You must name a specific
calendar date when the offer will expire and then be sure you have
enough of the promotional item in stock to satisfy every inquiry.
"Limit 1 per customer" is usually okay as long as
it's plainly disclosed in the ad.
Strategy #3: Plant a word-flag in the
ad
A word-flag is an unexpected, memorable name, word or phrase that
customers will voluntarily mention in their efforts to be friendly
or to "connect" with you. For example: I once ended a
radio ad by having an unintelligent-sounding caller call the store
and ask, "How much should a hamster weigh?" The flustered
clerk responded by saying he wasn't sure. To which the caller
replied, "I got one that's up to 72 pounds! You think
maybe it's a wolverine?" Customers were smiling and
asking, "Where do you keep those 72-pound hamsters?" for
several months after that radio schedule had expired.
Another ad campaign explained the unusual childhood of
"Little Freddie," the owner-operator of an obscure
Mexican restaurant. Fred had never actually been called
"Little Freddie" in his life, but a few hours after the
ad campaign was launched, new customers were asking, "Are you
Little Freddie?"
"Fat-bottom diamonds" was the word-flag planted for a
jewelry store. Within a few weeks, dozens of customers were asking
every jeweler in town, "This isn't one of those fat-bottom
diamonds is it? I wouldn't want one of those." The
downside of the word-flag strategy is that is produces less
immediate traffic than strategies 1 or 2, but usually of a higher
quality. The customers responding to word-flag ads will be coming
to you because they've decided they like you. Note: It's
not a word-flag to say, "Mention this ad and receive a
20-percent discount." Those ads will only make you seem
unfocused and desperate.
Is it possible to combine one, two, or even all three strategies
in a single ad? Yes. But you've got to have a brilliant ad
writer.
Do you?