Getting Local Phoenix Customers Is Hard Work ā Phoenix, AZ
āFor the past couple of months Iāve been testing a new targeted local online advertising product as part of my fellowship project at the Donald W. Reynolds Journalism Institute. The test has essentially been to sell the product to regional businesses within a given market.
The pilot market was Orlando, Fla., and we used an outside sales team to sell to businesses that we knew were already spending money on marketing (for example, running TV, radio, newspaper, online, or billboard campaigns). Because the average order size was going to be about $2,000 a month, we didnāt want to sell over the phone. We did the math to understand how many meetings a sales rep would need to set a week and what his or her close ratio would have to be to make the venture profitable, using formulas from other organizations weāve been a part of that have sold locally.
So we hit the streets, and it turned out that our close ratio was great: When we could get a meeting, we could close the deal. The problem was we just couldnāt get enough meetings. I had two different sales executives with backgrounds in selling local online campaigns for large media companies review our sales process and make changes. It helped, but not enough. And at the end of our two-month trial, after calling on more than 150 businesses multiple times, I came to a conclusion: Selling local sucks.
Now this doesnāt mean that you shouldnāt sell local or that this product wonāt work. But I do think that if you are going to try to sell local, you will need to have one or more of the following:
A Phoenix Locally Recognizable Brand Iāve always said the most valuable thing newspapers have are their brands. (Local TV stations already understand this.) This concept was reinforced when I was cold-calling SMBs without a recognizable brand behind me. It was easy to identify the decision maker, but getting past the gatekeepers or being able to arrange a meeting proved next to impossible. One small business owner told me I was the fourth person to call her that day and it wasnāt worth her time. Even if you are an independent hyperlocal news site, it only matters if the person you are calling has heard of your site before. Bottom line: No one cared what I was able to do for him ā only that he didnāt know who I was.
A Low Entry Point For Phoenix With an Inside Sales Team When I did get ahold of the decision makers, I had quite a few who flat out said (although some just alluded to it) that if what I was offering cost $250 a month, theyād try it. With an entry point that low, you canāt really justify an outside salesperson, but having an inside salesperson makes sense. This is what DataSphere does for local TV stations (oh, and by partnering with the TV station, it meets my first criteria as well).
A High Entry Point For Phoenix With a Long-Term Contract or a Physical Device If your product has a high entry point, having an inside sales team try to sell it probably wonāt work. We knew that $2,000 a month would be a lot of moneyā¦read moreā














