Insulation Marketing 101
Owners Choice
It's your company (you own all of the marbles) and you get to choose exactly where and how many of them you will spend to grow your business.
If you don't want (or will not believe) anyone else's opinions and you do believe that all of your marketing dollars are best spent by having an airplane skywrite your company name and telephone number over the city of your choice, then have at it!
Let us know how that works out for you.
Owners Options
On the other hand, if your goal as an owner is to get the most sales for the very least dollars spent (maximize your return on investment), then there is a definite strategy that you should follow.
It's your company (you own all of the marbles) and you get to choose exactly where and how many of them you will spend to grow your business.
If you don't want (or will not believe) anyone else's opinions and you do believe that all of your marketing dollars are best spent by having an airplane skywrite your company name and telephone number over the city of your choice, then have at it!
Let us know how that works out for you.
Owners Options
On the other hand, if your goal as an owner is to get the most sales for the very least dollars spent (maximize your return on investment), then there is a definite strategy that you should follow.
First Principle
Tiers
View your marketing as a tiered structure with the top representing the very best ROI possible and the bottom tier representing the least.
Before spending anything (not one marble!) on tier two, you absolutely must exhaust all effort on tier one.
Before spending anything on tier three, you must exhaust all effort on tier two.
Define Your Market
Having identified our goal to maximize ROI and learning first principle, we must now determine which marketing strategy is top tier and those that follow.
We begin by identifying exactly who is our customer.
Our customer base will be determined by the market segments of our industry that we wish to service.
Do we want only retrofit (existing homes) customers? Perhaps we only want to do new construction.
What about a hybrid of both?
In today's market, with a significant reduction in new construction, we see a sharp trend toward more contractors increasing their efforts in existing homes and using the hybrid model. The strategy is the same but the top tier becomes more retail oriented.
For discussion, we will use the hybrid.
Hybrid Definition
As a hybrid, our company wants ALL of the retrofit market we can get and we want ALL of the new construction market that is available. This goal will now dictate our market strategy (where we will spend our marbles).
Market Strategy
Picture a mass of humans, 10,000 people, standing in ranks shoulder to shoulder, one hundred deep and one hundred across.
Somewhere in that group is our target.
We can't see him, but statistically we know he is there.
How do we find him?
Let's shoot him!
First, we fire a bunch of letters (mailings) at him, and since we don't know which one he is, then we have to send mails to all of them.
That didn't work. Next, let's shoot out some radio waves at him, perhaps he is tuned to the station we choose at exactly the right time. Radio didn’t work, so let's shoot out television waves that he might be watching. Nothing.
Then, let's take out an ad in the newspaper and hope he reads it, or better yet, let's put some in magazines too. More nothing. Let's try the yellow pages in hopes he might see our company ad. And don't forget the billboard, he might be on that road and it could be facing the correct way for him to see. Still Negative ROI.
View your marketing as a tiered structure with the top representing the very best ROI possible and the bottom tier representing the least.
Before spending anything (not one marble!) on tier two, you absolutely must exhaust all effort on tier one.
Before spending anything on tier three, you must exhaust all effort on tier two.
Define Your Market
Having identified our goal to maximize ROI and learning first principle, we must now determine which marketing strategy is top tier and those that follow.
We begin by identifying exactly who is our customer.
Our customer base will be determined by the market segments of our industry that we wish to service.
Do we want only retrofit (existing homes) customers? Perhaps we only want to do new construction.
What about a hybrid of both?
In today's market, with a significant reduction in new construction, we see a sharp trend toward more contractors increasing their efforts in existing homes and using the hybrid model. The strategy is the same but the top tier becomes more retail oriented.
For discussion, we will use the hybrid.
Hybrid Definition
As a hybrid, our company wants ALL of the retrofit market we can get and we want ALL of the new construction market that is available. This goal will now dictate our market strategy (where we will spend our marbles).
Market Strategy
- We have many marketing mediums wanting our money.
- We can do customer mailings, television, radio, billboards, magazines, newspapers or yellow pages ads.
- Each one of them wants ALL of our marbles.
- We must prioritize.
Picture a mass of humans, 10,000 people, standing in ranks shoulder to shoulder, one hundred deep and one hundred across.
Somewhere in that group is our target.
We can't see him, but statistically we know he is there.
How do we find him?
Let's shoot him!
First, we fire a bunch of letters (mailings) at him, and since we don't know which one he is, then we have to send mails to all of them.
That didn't work. Next, let's shoot out some radio waves at him, perhaps he is tuned to the station we choose at exactly the right time. Radio didn’t work, so let's shoot out television waves that he might be watching. Nothing.
Then, let's take out an ad in the newspaper and hope he reads it, or better yet, let's put some in magazines too. More nothing. Let's try the yellow pages in hopes he might see our company ad. And don't forget the billboard, he might be on that road and it could be facing the correct way for him to see. Still Negative ROI.
Conclusion
If you are an insulation company (whether spray foam or hybrid) servicing a single market, the shogun approach to hitting a retail target will cost you all of your marbles and gain you almost nothing.
Every one of these mediums must become bottom tier!
Every one of these mediums must become bottom tier!
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