How small businesses should engage in cost effective marketing

With the right strategies, small businesses can create a strong brand presence, build trust, and generate leads, all while keeping costs low.

For small businesses, effective marketing doesn’t always mean spending a large sum of money. A report from SBA.gov reveals that nearly 50% of small businesses waste up to 30-40% of their marketing budget on ineffective or poorly executed strategies.

Growing the business is the top agenda for our clients who take our Growth Gymnasium services to grow their business 2-3X in 3 to 6 months time.

Here are the key areas to focus on when implementing cost-effective marketing strategies for your small business

1. Build an Effective Website with the Right Contact and Chat Options

A business’s website is its digital storefront. In today's time, the first thing that customers watch for is your online presence.

• Make a decent website - does not have to be expensive

• Should be clear

• Visitors should be able to easily find how to get in touch with you, whether it’s through a contact form, email, or live chat.

Chumbak, a popular Indian retail brand for home decor and accessories, uses its website effectively with contact options such as live chat and a customer service helpline. This makes it easy for customers to ask questions or resolve issues quickly, increasing customer satisfaction and conversions.

This might look like an investment but is one of the easiest ways to get clients

2. Build Trust, be seen as an authority in your subject

Building trust with potential clients is crucial for any business.

You may know your trade very well but how would the customers know? Show them your expertise

Use platforms like LinkedIn, Facebook and Instagram to share blog posts, videos, and infographics. These platforms are free, and your content can reach a broad audience.

MamaEarth, an Indian skincare brand, builds trust by regularly posting educational content about natural ingredients and skincare routines on its social media channels. This helps the brand build credibility and engage with their target market without spending excessively on advertising.

Many Facebook lead businesses are run by female homemakers who are just experts in what they do and that is what matters

3. Deploy Referrals and Reach Out to Old Contacts Effectively Through Automation

Referral programs can be an incredibly effective way to generate new business, especially for small businesses with limited budgets.

Your old clients are a Gold mine. Use it. And use automation to do it at scale and effectively.

Freshworks, a CRM software company, leverages automation to send personalized emails to their old leads, encouraging them to check out their updated product offerings. The company also uses referral programs, where existing users can refer others for discounts on future purchases.

Some home tips for doing this is creating Whatsapp groups - which works but not on large scale. Get tools such as MailChimp which can engage your clients effectively and at scale

4. (Most importantly) Save Costs by Doing Performance Marketing with the Right Strategy and Targeting

Rather than using broad and expensive marketing methods, performance marketing (e.g., pay-per-click ads, paid social media) allows small businesses to focus their budget on high-return activities.

The key is to target the right audience using well-defined strategies that optimize your advertising spend. Know your customer profile and then target, else you burn money.

SUGAR Cosmetics, an Indian cosmetics brand, uses Facebook and Instagram ads to target specific customer segments based on demographics and behaviors. Their performance marketing strategy is optimized for cost-efficiency and high conversion rates.

V-Guard, an Indian manufacturer of electrical appliances, uses Google Ads and LinkedIn ads to specifically target retail and distribution businesses. By narrowing down their audience, they save money by showing ads only to potential partners and resellers, improving the cost-effectiveness of their campaigns.

To be honest, this one is not that straight forward. Small businesses do get confused on this and hence end up agreeing with what marketing agencies ask for. This is one of the most discussed pain area for companies who interact with us for a Growth Health check (a 45 min free discussion with our growth expert)

Conclusion

For small businesses in India, cost-effective marketing is not just about slashing budgets but using smart, strategic techniques that drive results.

Most businesses, end up getting scared of this monster and stop spending at all and that means, killing the business.

These strategies have been successfully adopted by a range of Indian companies in different industries, from retail to B2B services. With the right tools and mindset, even small businesses can compete and thrive in today’s digital world.

GreyShoots Advisory helps small businesses grow with effective and proven processes, creating deep impact and relationships. Our case studies speak loudly for us !