Goals, and wishes, and plans...oh my! How S.M.A.R.T. are you?
We’re past the mid-point of the year, and it’s time for a health check on your resolutions – or in business speak, your goals. As a small business owner, you know your business better than anyone. You have top line goals, bottom line goals, and you may even have specific marketing goals such as increased frequency, basket size, or qualified leads. The question is, did you put an action plan in place, and follow through? After all, a goal without a plan is just a wish.
A goal should have specific success metrics in place in order to measure progress. If you aren’t already familiar with SMART goals, here’s a quick recap:
Specific – goals are clear and specific (what will you accomplish)
Measurable – quantify the outcome
Achievable – is the goal realistic with effort; who will do it; do you have the resources to achieve this goal (if not, how will you get them); take into account factors that may prevent you from accomplishing your goal
Relevant – why is this goal significant
Time-based – specify when the result(s) will be achieved
The key to SMART goals are to break the larger ones into smaller goals, be realistic, and address each point with clear details. For example, let’s say you are a small business owner with a brick and mortar location and you want to increase your top line revenue. Your SMART goal may look like this:
I will increase revenue by 10% in the 3rd quarter (YOY) by creating marketing campaigns to increase foot traffic, encourage higher frequency of visits, and increase average order value. I will review data on a daily basis to optimize the campaigns as needed. I will spend 10-20% of the projected incremental revenue on ad spend, marketing materials and fees (marketing strategy expert). This will work because of the high conversion rate once customers are in the store. With an average ticket of $12, we will need to increase our penetration rate by 1% of the local market to yield 10% incremental revenue. I will also encourage word of mouth from the new customers (to attract additional new customers) by supporting shares with a marketing promotion. I will have a defined strategy within 6 weeks, implement the marketing campaign within 9 weeks, and achieve increased foot traffic and revenue within 12 weeks. I will assess goals at the 12-week mark and optimize marketing campaigns as needed.
For example, where I reside in Naperville, there are roughly 50k households. This means an incremental 1% household penetration, with an average ticket of $12 and 6 visits a year could result in $180k incremental revenue. The marketing strategy would need to address customer acquisition and loyalty tactics.
How are your goals measuring up? Are you seeing the results you want in your business? Do you have SMART goals in place? Do you have resources in place to address your marketing strategy and plan? Fill out the form below for help in SMART goal setting, marketing strategy and planning. Marketing Mana will help you move your business forward and achieve your goals.
