Spend Most of Marketing Resources On Past Clients, NKBA Advises
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 past customers.
"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 said.