So one of your biggest accounts has just announced they intend to cut some of their traditional media in favor of digital. They currently use outdoor, radio, newspaper and TV in their traditional media portfolio. How much time and effort will you invest to present your stations to avoid becoming one of the victims of the pending cuts?
Allow me to share a hidden truth in pending cuts… long before that cut-back announcement was made, the client was already forming hard to change perceptions on which media they should cut.
“Preventive maintenance” is always more effective, and less costly, than “damage control”.
Do you have a preventive maintenance program or does all of your energy go into making the sale, looking for new business, and damage control?
A well-planned system of regularly thanking your customers, a continuous education system like our SoundADvice highlighting broadcasts’ relevance, and regular post-campaign analysis and wrap up reports can put you in the driver’s seat when advertisers hungry for change begin to wield their cut-back knives.
If you’re surprised by a cancellation or cutback, it’s probably because you didn’t have a preventive maintenance program.
The radio station marketing model is unique in that we serve three distinctly different target customers. Most other businesses only target those who can spend money with them.
But in radio, we have three target groups that affect that “spend” and we need a strategic marketing plan for each of those target customers.
One, of course, is our audience. Most stations do have promotional and marketing plans to attract and maintain audiences.
Our second target group is our paying customers…our advertisers. Most stations are fairly effective at reaching and influencing this group as well.
It is important to calculate the per capita value of each of your target customers. If a station has annual revenue of $2 million with a listening audience of 50,000 people, then each listener is worth $40. Using that same revenue base and a total of 250 advertisers, each advertiser is worth an average of $8,000.
But it is our third target that is by far the most valuable per capita and yet we often have no marketing plan to attract, motivate, and keep these customers.
The third target is our internal customers; our staffs. If that same $2 million station has a staff of 20 who sell, create, administer and invoice the $2 million in revenue, then each staff member is worth an average of $100,000.
When the lights go off, your biggest assets go home!
Do you have a marketing budget and plan to attract and create customer satisfaction for your most valuable customers…your internal customers?