Whether you’re buying a burger at the local joint or that gleaming Ferrari you’ve always dreamed of; value is what it’s all about. Value is what gives you the warm fuzzy feeling inside. Value and good buying decisions normally go hand in hand.
And as the world focus on providing ever increasing value to its customers, the microscope tunes in to the various barriers that guide or repel customer utility. The largest ones in the marketing industry being price and commitment.
1/ Price as a barrier
Price and value in a marketing context aren’t always easy to marry. The customer never truly knows whether the price they’re getting will lead to value (commonly defined as return on investment – ROI) until the campaign has been completed and they’re reviewing their order sheet.
Any savvy buyer will tell you that paying a high price for anything doesn’t guarantee quality and results. Equally, when it comes to paying a low price, as the saying commonly goes “paying peanuts usually buys monkeys.”
So, how is a customer to know whether a price in a marketing proposal represents good value?
Well, the truth is, they don’t. Crystal balls are hard to come by these days. Which leads to the other barrier. The big one:
2/ Commitment as a barrier
The higher the consequence of losing in any buying situation, the greater the fear of failure.
It goes without saying that nobody likes living with fears and everyone worries the big decisions they make today may come back and bite them next month.
Particularly in this current business climate with the uncertainties of Brexit amongst several other major factors (including taxes, inflation, interest rates, crumbling health care, etc, etc, etc) the fear of making the wrong decisions is now greater than it has ever been.
As professional marketers, its our job to make it as easy as possible for customers to feel comfortable about buying our products and services.
The Birth of Pay-As-You-Go Marketing
Any serious marketing agency will know to base their biggest decisions on research and facts. Our team at Proven Concept are lucky to have years of experience in building effective marketing strategies and we decided to apply our knowledge to our own markets. We began with the foundations of any good marketing strategy:
– Customer & persona analysis
– Qualitative market research & analysis
– SWOT analysis and value curving
This process involved a number of sub-activities which in total took a few weeks around customer projects. And we identified a number of very interesting insights.
Firstly that our key target markets faced a number of unprecedented uncertainties in today’s markets and economies that were driving old fears in a new way. On top of that B2B customers are becoming increasingly familiar with PAYG and subscription based models in all markets including of course SaaS and online advertising scenarios.
The second insight was that despite these trends, marketing agencies as a whole continue to push for long commitment retainers from their customers. We understand why they do this, of course. But we also see how this attitude is not in the best interests of the customer. And in a world where business puts the customer last, the business loses. Every time.
The third valuable insights was around the buyer adoption of online marketplaces such as People Per Hour, Fiverr and Legiit, which support customer utility of marketing services through low-commitment projects. These marketplaces enable customers to quickly source freelancers from any corner of the world at a low cost and with no more commitment than the single job in question. Although very popular, these marketplaces also present common challenges to the customer:
2/ Full-service capabilities from the same freelancer
Considering appointing a UK Marketing Agency? Click the link to read about our team and how we help clients.
The Benefits of Pay-As-You-Go Marketing from an Industry leading agency
Following our strategic exercises, Proven Concept chose to fit into the Pay-As-You-Go market space, offering key values of differences above any other providers in the market.
The benefits of a Pay-As-You-Go agency over retainer agencies
– Zero barriers to entry
– Low commitment levels (project or monthly basis)
– Retain control in the hands of our customers
– Support customers in achieving agile and intelligent decision making
– Keeping the agency (us) on their toes
– Maintain customer agility to adapt to market conditions
– Enabling the customer to benefit from market trends and flows
– Supporting the customer to enable short term experiments and marketing activities
– Helping the customer measure the impact of marketing activities on a short term basis
– Showing customers exactly what they are paying for
– Starting with small investment with option to grow as results come
The benefits of Pay-As-You-Go agency over Pay-As-You-Go marketplace
– Quality of service
– Keenness to drive results and achieve service renewal where suitable
– Full service capabilities serving all the customers marketing needs
– Benefiting the customer with market and campaign specific knowledge growth
The Processes: How It Works?
All our customer relationships begin with a complimentary consultation via phone, Skype or F2F. We learn about the customers needs and explore if we may be able to serve their objectives.
If we believe the campaign targets are within our scope, we’ll perform some complementary research and analysis to prepare a proposal outlining our recommendations, forecasts, pricing and expected customer ROI.
Once the customer is happy to proceed, we perform work on a Pay-As-You-Go basis. This may be on a project basis for a monthly term, depending on the suitable of the campaign in hand.
Free Marketing Consultation
If you would like to learn the ways that our Pay-As-You Go marketing solutions can support your business, please reach out and we’ll be delighted to assist. A member of our team will walk you through the process and provide you with tangible for details for your comfortable and informed decision making.
I hope you have found this read interesting and welcome any feedback. I can be reached directly on email@example.com and will be happy to assist in every way possible
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Meet the author
Google Ads Consultant
Paul Clarke is Managing Director of Proven Concept and started his marketing career in 1998, developing successful roles in both business-to-business (B2B) and business-to-consumer (B2C) sectors, before launching Proven Concept in 2012.
“Nothing gives me more of a buzz than helping a customer accelerate their business growth. Especially when others have tried previously and failed.”
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