Rant: SMB Marketing Mistakes

I spoke with a trade business owner recently, and it led to an eye-opening conversation about customer acquisition and marketing strategy. Like many small businesses, they were spending money on ads without fully understanding who their ideal customer was or how to reach them effectively.

When I asked, “What are you doing to get customers?” their answer was a bit scattered: talking to people they know, advertising at the local golf course, and placing ads in a magazine. They weren’t sure who was reading the magazine or if it was even reaching their target audience. It felt like a classic case of, “We’ll throw money at marketing and hope something sticks.”

Knowing Your Audience

That got me thinking—how often do small businesses invest in advertising without knowing who they’re actually trying to attract? A glossy magazine ad might sound like a good idea, but if you don’t know who reads it, you’re essentially advertising to... no one.

I pressed further: “So, tell me why you think your customers care about what you're doing?” The response? “We provide good services, and we're not too expensive.” Great, but what happens when you're not the cheapest option? Who are you attracting then?

It all led to a deeper discussion about the business's value proposition and target audience. Too often, new businesses think spending money with a local advertising group is the best way to generate leads. But if the people attending those events aren’t your customers, what’s the point?

Avoiding Vanity Metrics

There's a local magazine that comes to mind. They’ve got a model that feels a bit like a racket: they sell ads to new businesses, throw “award” events for those same businesses (that they pay to attend), and pat everyone on the back. But here's the real question: Does winning one of these awards help you generate revenue? In most cases, no. It's a pat on the back, a photo op—but it doesn’t drive sales.

I've experienced this firsthand. I won a startup award once; there were about 300 people in the room, and I got a nice glass plaque. But did it help my business grow? Not a bit. So, whenever a business tells me they advertise in these sorts of publications or events, I know they might not have a clear grasp of their customer base.

Key Takeaways:

If you’re considering an ad in a local business magazine, take a moment to ask yourself: Who is reading this? Does this align with how my potential customers make decisions? It might make sense if you're in B2B sales, but if you're selling consumer products like greeting cards, then it's probably not your best bet.

At the end of the day, don’t get caught up in the hype of flashy events or magazine spreads that aren’t reaching your target market. Focus on understanding who your customers are, how they make their decisions, and what truly drives their purchasing behavior.