Running a small business can feel like you’re constantly balancing competing priorities. Where should the budget go this month – hiring that extra team member? Launching a new product line? Investing in extra office space?
With so many plates to spin, marketing for SMEs can be a minefield, and it’s easy to underestimate the impact it could have on your brand’s success. However, just like an insurance policy, investing in great marketing will help business will thrive, even if the economy around you doesn’t.
In this blog post, we’ll be taking a look at:
- How much a small or medium business should spend on marketing depending on their growth stage.
- Which digital marketing strategies brands should consider prioritising.
- Some simple tips to get started.
How much should my small business be spending on marketing?
This figure range can vary widely depending on factors like your industry, growth goals, and current stage of business. Here are a few scenarios to consider:
Startup or new business: For businesses in their early stages, the marketing budget might be higher (10-20% or more) as you try to establish your presence and attract customers.
Established business: As your business grows, your marketing budget might settle into the range of 5-10% of total revenue. This is a common benchmark for many small businesses.
High-growth or competitive industries: If you’re operating in a highly competitive industry or aiming for rapid growth, you might need to allocate a higher percentage (15% or more) to stand out and capture market share.
Mature and stable business: If your business has reached a stable phase and isn’t aiming for rapid growth, the marketing budget might be around 5% or even lower. Of course, this will likely fluctuate throughout the year as you respond to seasonal trends and specific promotional activities.
Which marketing activities should SMEs prioritise?
When it comes to marketing for SMEs, the best strategies will vary depending on your sector, goals and target audience. Nevertheless, if like most businesses, your brand is dependent on a strong online presence, there are certainly some marketing strategies you should consider investing in – here’s our top three!
If we’ve seen it once, we’ve seen it a million times. So many brands have a flashy, well-designed website, but their content isn’t optimised to drive traffic and doesn’t rank for any of the keywords their customers or clients are actually searching for. This is especially important for businesses who depend on custom from their local community, with a whopping 46% of all Google searches having local intent.
It’s also worth knowing that on-page SEO techniques are only half the story. Google likes websites that establish authority and credibility, so it places great value on which other websites online link to your website – also known as referral traffic, or backlinks. By creating high-quality website content, you’ll naturally accumulate backlinks as other websites within your industry or niche link back to yours as a reference point.
You can also be more proactive with your link building, for example, by writing guest blog posts, or offering an expert opinion on relevant websites.
SEO tips for SMEs
- Ensure your website is mobile-friendly and responsive (just over 50% of all web traffic comes from mobiles)
- Make sure your website with a clean and intuitive layout for easy navigation.
- Develop a content calendar to consistently produce fresh and relevant content.
- Use a mix of formats, such as blog posts, videos, infographics, and more.
- Keep active on social media platforms to increase brand visibility and potential shares.
- Encourage customer reviews on Google and other relevant platforms.
Too often, social media marketing is considered a nice-to-have rather than a must-have in the world of marketing for SMEs. However, with the average UK user spending 110 minutes per day on social media and 15 million of us regularly using social platforms to make purchases, it’s a strategy you can’t afford to ignore.
Just like great website content, social media marketing can help you reach users at all ends of the marketing spectrum, from those who have yet to encounter your brand, to those who are familiar with your services or product and ready to convert.
If time and money are both stretched, you don’t have to join and post on every platform. Instead, focusing on producing quality content for a select few. Think about your target audience: Where are they spending the most time? What type of content do they enjoy? How can you make the biggest impact?
Social media marketing tips for SMEs
Facebook: Use a mix of photos, videos, and graphics to grab attention in the busy Facebook feed. Visual content tends to perform well and can convey your message effectively.
Instagram: Research and use relevant hashtags to expand your reach to a broader audience, and consider creating a branded hashtag for your business to encourage user-generated content. Use high-quality images and short videos to showcase your products, services, and behind-the-scenes moments.
LinkedIn: LinkedIn is a platform for professional networking, so focus on content that appeals to a business audience. Post about company milestones, new hires, and achievements, as well as thought leadership content, industry insights, and success stories.
Twitter/Threads: Jump on relevant hashtags and trending topics to join conversations and increase your visibility – just ensure your content is genuinely related and adds value. These platforms are designed for building conversation, so engage with your audience to build rapport.
Okay we know what you’re thinking – yes, done badly, email marketing can turn your customers off faster than a light switch in a haunted house. However, done well, it can be an incredibly powerful conversion tool. In fact, stats show that almost half of us have made a purchase because of an email we’ve received.
Think about it; email marketing is the only digital marketing tool that allows you to build a personalised relationship with customers and continue to nurture them well after their first interaction with your brand. And your emails don’t have to all be ‘sell, sell, sell’, you can build relationships with your customers by sending regular newsletters, or providing perks like freebies or discounts.
Email marketing tips for SMEs
- Build a quality email list. Start with your existing customers, contacts, and leads, and use opt-in forms on your website and social media to collect email addresses. Clearly communicate the value subscribers will receive from joining your list.
- Use a reliable email marketing platform. Platforms like Mailchimp offer templates, automation, and analytics to simplify your campaigns.
- Segment your audience. Divide your email list into categories based on demographics, behaviours, or preferences – this allows you to send targeted and relevant content to each group.
- Create valuable content. Offer content that your subscribers find useful or entertaining, like how-to guides, industry insights, and exclusive offers.
- Test and optimise. Experiment with different subject lines, content formats, and sending times, and use A/B testing to refine your emails based on what works best for your audience.
Ultimately, remember that you know your target market better than anyone. As a business owner, you’re in a unique position to understand the nuances of your audience’s preferences, behaviours, and pain points, so use that knowledge to your advantage. Although resources may be limited, you can still make an impact by focusing on a few key strategies and executing them well.
Need some help getting started? Our expert team is on hand to help. At Triple Creative, we specialise in a wide range of marketing strategies tailored to businesses of all sizes, from branding and identity to copywriting and video production. Drop us a note and we’ll get back to you in no time.