Spend Most of Marketing Resources On Past Clients, NKBA
Hackettstown, NJ When considering how to spend a business’ annual
marketing dollars, kitchen and bath dealers should map out a
strategic plan that focuses squarely on spending the largest chunk
of money on previous customers by far, the best source of leads.
That’s the advice of the National Kitchen & Bath
Association, which advised dealer-members recently, as a general
rule of thumb, to spend 50% of their annual marketing investment on
“These people are the source of the best leads you have
available referrals and repeat business,” said the NKBA, suggesting
such strategies as newsletters and providing service outside of a
warranty period. “Overall, your best source of advertising is a
referral from a happy customer,” the NKBA said.
The Hackettstown, NJ-based trade association added that a list
of past customers should be expanded to include your accountant,
lawyer, real estate agents and other business or personal
associates, as well as subcontractors who could refer your company
to potential new clients.
As far the rest of a dealer’s marketing budget is concerned, the
NKBA advises that:
- 40% of an annual marketing investment should be spent on
prospects including direct mail to neighbors surrounding job sites,
homeowners in a particular neighborhood, or
people with homes of a certain age.
“When looking for prospects, think about the type of people who are
your present clients,” the NKBA suggests. “Where would you find
more people just like them?”
- The balance of a dealer’s marketing investment 10% should be
spent on the “universe” that is, everyone in your marketing area.
This could be done with newspaper or radio advertising, the NKBA