Marketing mastery: Your biggest marketing questions answered

Home Columns Marketing mastery: Your biggest marketing questions answered

October 13/20, 2014; Volume 28/Number 9

By Jim Augustus Armstrong

“We need a systematic plan for attacking our marketing,” Matt M., a floor covering dealer from Arizona, recently told me.

Steve N., a dealer from California, added, “Foot traffic is bad. We just want at least seven customers a day. We get two to three customers and it becomes difficult to stay motivated.”

Both of these challenges were posed during a recent Marketing Mastery webinar—hosted by myself and FCNews associate publisher Dustin Aaronson—called “Your biggest marketing questions answered.” I was able to personally coach these gentlemen through their challenges on our live webinar. As it turns out, the solution for both was not only the same, but very simple: Implement the three tiers of marketing, which are as follows:

Tier 1: Warm market

  • Referral marketing system
  • Sales closer system
  • Market to past customers (monthly direct-response newsletter)

Tier 2: Targeted marketing to cold prospects

  • Website (including pay-per-click advertising and search engine optimization)
  • Social media
  • Newspaper
  • Display ads
  • Direct mail to targeted list
  • Home and garden shows

Tier 3: Broadcast advertising

  • Billboards
  • Radio
  • Television

You should implement all the Tier 1 strategies first. Once these strategies are up and running, begin implementing the Tier 2 strategies and then Tier 3 using luxury marketing dollars. Your biggest profits are in Tier 1 and then, in descending order, Tier 2 followed by Tier 3. The strategies in Tier 1 are dirt cheap to execute and it is relatively easy to measure their results, but Tiers 2 and 3 get progressively more expensive and challenging.

Tier 1 strategies also dramatically increase the profitability of Tiers 2 and 3. Let’s say you invest $5,000 in a direct mail campaign, which drives 10 prospects to your store. If you have a sales closer system in place, instead of converting four of the prospects, you convert six. If you have a referral marketing system in place, you can turn those six sales into eight. Finally, if you have a past customer marketing system in place, you can stay in front of those eight customers and farm them for repeat and referral business.

You should never move on to Tiers 2 or 3 until your Tier 1 is fully executed. Tier 1 is so effective that many of the dealers I coach build their businesses without ever needing Tiers 2 and 3.

Prior to the webinar, Matt and Steve were implementing both Tiers 2 and 3 but not Tier 1. I polled the rest of the attendees, and nearly 100% were doing the same. This is common throughout the flooring industry. Ninety-eight percent of dealers spend the lion’s share of their time, energy and money on Tiers 2 and 3 but totally ignore Tier 1. It’s time to stop the madness.

On a happy note, since the webinar both Matt and Steve have implemented the Tier 1 strategies. I know they will do well; dealers all across the U.S. and Canada have made this same switch, and I’ve seen many dramatic turnarounds.

Must Read

Happy Feet welcomes three new hires

Chattanooga, Tenn.—Happy Feet International, a producer of luxury vinyl plank and tile headquartered here, welcomed three team members to its management team. Scott Jones,...

NAFCD Annual Convention welcomes new exhibitors

Chicago—The 2022 NAFCD + NBMDA Annual Convention is taking place here November 1–3. During this event, distribution executives will have the opportunity to grow...

Shaw recognized as a ‘Best Employer’ in 2022

Dalton—Shaw Industries has been voted the 2022 "Best of the Best Employer for Industrial Manufacturing" in the Chattanooga Times Free Press’ people’s choice awards....

FCEF partners with Taylor Adhesives

Dalton—The Floor Covering Education Foundation (FCEF) has partnered with Taylor Adhesives, a leader in high-quality flooring adhesives and substrate coatings, to help grow technical...

Mapei’s Brittany Storm named LEED Fellow 2022

Deerfield, Fla.—Mapei Corporation’s sustainability manager, Brittany Storm, has been selected to the 2022 class of LEED Fellows by the U.S. Green Building Council (USGBC)...

Daltile launches Ravel porcelain collection

Dallas—Daltile’s new Ravel glazed porcelain collection of marble and stone looks brings contemporary luxury to a space, creating intimate and comforting elegance, according to...
Some text some message..