Small to medium-sized businesses (SMBs) with advertising budgets that don’t allow for both digital and traditional broadcast advertising, like radio/TV, have to make a choice. Should top-of-funnel (ToFu) marketing be a top priority or not? ToFu marketing focuses on broad audiences and introduces them to your brand. The goal is to make a company known before they are needed. For example, if a homeowner has a leaky roof, who do they contact? Do they have a roofer they trust by memory, or must they enter ‘roofers near me’ into Google? A good roofer memory is likely because a ToFu strategy puts that roofer in the customers’ minds. Those customers respond to lower-funnel marketing tactics if they search in Google, yelp’s Top 10 roofers, or Angies List for a roofer. A ToFu strategy may still make a roofer jump off the Google page because the customer is familiar with that company. If they don’t know any company, those battles are won by whoever ranks first, has the lowest price, or has the quickest response time. The best roofers do not always win them. ToFu strategies lay the groundwork for future customer conversions. They also take time and money, but the results can be more sustainable. Here’s a closer look at the factors to consider:
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1. Cost Considerations: Traditional ToFu marketing channels, such as consistent monthly radio/television campaigns, print media, and prominent community events, can be outside an SMBs cash flow range. However, digital channels like content marketing, paid social media, email, and paid search can often be effective alternatives for SMBs. HubSpot’s State of Inbound report found that businesses prioritizing blogging are 13 times more likely to achieve a positive ROI than those not. And, if an SMB is a Business-to-Business (B2B) marketer, the Content Marketing Institute reports that 86% of B2B marketers use content marketing to get buzz and new customers.
2. ROI: SMBs should evaluate the potential ROI of TOFU marketing versus other marketing strategies. Some ToFu activities may not directly result in immediate sales, but they contribute to brand recognition and bring customer conversions in the long term.
Target Audience and Competition
1. Understanding the Audience: SMBs should assess whether their target audience is actively searching for their products or services or if there is a need to create awareness from scratch. If the target market is unaware of the brand or solution, investing in ToFu marketing becomes critical. For example, if you are a breakfast/lunch restaurant with a great breakfast business but need a larger lunch crowd. The customers know you for pancakes, not paninis-ToFu could be for you!
2. Competitors: SMBs should know if competitors invest heavily in ToFu activities. If competitors are doing ToFu marketing, it may be necessary for SMBs to put money there not to fall behind or be seen as a lesser brand.
Think Long-Term
1. Brand Building: Early on establishing a strong brand presence can pay dividends in the long run. Even with limited resources, SMBs can leverage blogs, make social media posts, and participate in community events to build brand awareness and credibility. This is a great place to get started with learning how to push content out to get business and how to be involved in your community. The Content Marketing Institute reports that 86% of Business-to-Business (B2B) marketers use content marketing to generate brand awareness and attract new customers.
2. Customer Conversion: ToFu marketing helps fill the sales funnel with leads and pulls them through the bottom of the funnel. While immediate customer conversions may be limited, laying the groundwork for future conversions is vital for sustainable growth. According to a report by Nielsen, 59% of consumers prefer to buy products from brands they recognize. It can pay well to be known before needed.
Be Flexible
1. A/B Testing: Experiment with different ToFu strategies and measure their impact. Ensure the ‘test’ is at least 6-12 months to see if you can change customer behavior.
2. Adapt: While ToFu marketing may not always be a top priority, it’s important to stay on top of shifts in customer preferences and adjust strategies accordingly. Sales Reps who call on SMBs who know the market’s pulse or share local market intelligence have value in creating more customer conversions. Most SMBs don’t get to talk to 10-15 different business owners in their community weekly like they do.
While ToFu marketing is essential for building brand awareness and attracting new customers, SMBs must balance investing in ToFu opportunities and staying on top of other pressing priorities. By evaluating how to allocate budget, knowing the target audience, and using long-term marketing strategies, SMBs can become known before they are needed and influence why customers come to them.
Jeff Caves is a sales columnist for BSM working in radio and digital sales for Cumulus Media in Dallas, Texas and Boise, Idaho. He is credited with helping launch, build, and develop Sports Radio The Ticket in Boise, into the market’s top sports radio station. During his 26 year stay at KTIK, Caves hosted drive time, programmed the station, and excelled as a top seller. You can reach him by email at jeffcaves54@gmail.com or find him on LinkedIn.
