Hub and Spoke – An Online Marketing Strategy for the Rest of Us
My approach to digital marketing for small businesses is that customers—especially best customers—are more important than prospects.
Delight your customers, and they will stay with you longer, buy more from you, buy from you without being bribed, cost you less to service, and bring in more customers just like them.
Fail them, and you have no choice but to focus on prospects to keep refilling the leaky bucket.
Prospects are definitely important, but customers rule.
Where are these ideal customers and prospects? More and more, they are online. At least 3.5 billion Google searches made every day – Internet Live Stats
Online Marketing is Hard
But digital marketing is hard, and it’s foreign to many small businesses. On the other hand, you have to try. You may know how your traditional channels work, but they are getting more expensive and less effective.
Don’t throw up your hands and say, “I don’t understand how digital marketing can work for my small business.”
We hear this frequently from small businesses. You understand that you should be doing online marketing, but you aren’t sure where to start.
The first thing is, don’t get caught up in the technology. Instead, look at the big picture. Small business online marketing has three simple parts: The website. this is the hub, the various online media channels, the spokes, and the rim is messaging or content.
The Hub is Your Website
In the hub and spoke marketing strategy, all your marketing activities are spokes that rotate around your website, which is in the center of your plan.
If you own a retail store, you might think that your store is the hub. This was true previously when people considered the store as a source of knowledge and information. However, now consumers are doing their research online, so from a consumer’s point of view, the store is no longer the center.
Obviously, sales are very important. Your store delivers a functional benefit to your customers, which creates mutual value. But your store doesn’t add value. What your store is selling and your customers are buying is functional. It’s a transaction, and probably not that different from what they can find elsewhere.
If you consider the store as a spoke and use it to build online connections with your customers, you have the opportunity to use online marketing to create value that goes beyond functional benefits.
The website is the center of this activity. It’s where even the smallest business can create incremental value that goes beyond the transaction and the functional benefits delivered by your store or product. This is especially important for your best customers, the customers who care the most about your brand are also the customers who matter the most to your business.
When you interact with your customers, encourage them to visit your website, sign up for your e-newsletter, and like your store on social media. When you do, you’ll be strengthening your marketing “wheel.”
Why is creating value important?
Your best customers are only a small percentage of all your customers, but they are a large percentage of your sales, and they’re especially important to your profits. Creating value is how even the smallest business can generate loyalty and competitive insulation among its best customers.
And where are your best customers?
They are online. This is even more true for local markets. 86% of consumers rely on the internet to find a local business – BrightLocal
Online marketing and your website can capture and retain your best clients.
This makes digital marketing crucial for small businesses.
The Spokes are Your Marketing Tactics
With an apology to George, when it comes to the hub and spoke strategy, “All spokes are created equal, but some spokes are more equal than others.”
Spokes are the activities, channels, and tactics you use to connect with your customers and prospects online. Spokes are also how they connect with your business.
Advertising is a spoke. So are social media and email marketing.
Each spoke connects your business with customers and prospects and generates sales. Sales pay the bills, and the best way to build your brand is to have customers try your product. But you can go even further with the hub and spoke online marketing strategy for small businesses.
Use online marketing spokes to draw your best customers into your website. Use the website as a fulcrum to create even more value for your business that goes beyond functional benefits. The spokes provide a conduit to generate sales and attract your best customers to the hub, where you can deliver additional value.
Content Is the Rim, it Holds your Digital Marketing together
Content, your messaging, is what holds it all together. It’s not a wheel without all three, the hub, the spokes, and the rim. You want the content you create to be relevant to what your customers are looking for. A basic principle of Search Engine Optimization (SEO) is to create content that’s a match for searcher intent. You need to solve their problems.
For example, a simple Facebook funnel would be to craft content that adds value for your best customer, promote the content using a Facebook Traffic ad, use a retargeting pixel on the content page to identify people who visit the page, who respond to the traffic ad, and the target these people with an offer. The content lives on the website, the hub, it’s presented to interested customers via Facebook, a spoke, and it attracts customers because of the message, which resonates with their needs, the rim.
You could add an exit-intent popup to the page that asks for their email address in exchange for a relevant ebook. Then you can use email marketing, another spoke, to attract customers back to your website, the hub, with relevant content, the rim.
Now your digital marketing is starting to roll.
How to Market a Small Business Online
Small business digital marketing spokes fall into three main categories: online advertising like Google Adwords, social media marketing like Facebook ads, and email marketing.
Online advertising is the most expensive and it’s difficult to master. Social media marketing isn’t as expensive, but it’s a bit arcane, and it has its own unique way of doing things. It can be efficient, but it can also be a waste of money. Email marketing is the least expensive and when used properly the most effective of the online channels.
Email marketing is excellent for marketing a small business online. It’s especially effective for customer marketing. And marketing to your best customers will always give you your best return. Your best customers are more likely to buy from you again, spend more, and recommend you to other customers just like them.
The best email newsletters are not sales flyers in electronic form. Marketing a small business online using the hub and spoke strategy means using email marketing and relevant, valuable content to drive customers back to the website where you can create incremental value.
An e-newsletter can describe, inform, entertain, reveal, and uncover new information and insights about your products and services. It’s a spoke that provides value that interests your best customers and attracts them back to your website, where you can create even more value. For example, product information and insights into usage that makes their experience better, or access to exclusive content, or advance notice on changes or promotion. There are many ways to create value beyond transaction benefits when you are engaged with your customers. Email marketing is a low-cost way for small business to do this, to engage with customers. This further insulates these high-value customers from the competition.
The essence of strategy is sacrifice — David Ogilvy
Start Online Marketing by Doing One Thing Well
Don’t try to boil the ocean. Start your online strategy with email marketing because it’s efficient, it’s focussed on customers, and it can lead to the other channels, but get email marketing right first, then move on to other things.
I’m not the only one who thinks using email marketing as the foundation is a good plan. MailChimp, our preferred partner for small business email marketing, added social media, and online advertising to their platform.
Once you have email marketing down, social media marketing can be an efficient way to get a simple message out to a large audience. For example, the Facebook funnel described above. It can target consumers in specific locations, which makes it an efficient prospecting spoke.
Why use Social Media marketing for prospecting?
Because advertising is an effective and efficient medium for delivering a single message to many people. This is why it’s better suited to prospect marketing. Use social media advertising to draw prospects into your website. Use retargeting and email marketing to nurture and convert prospects into customers.
- Design your content to attract your best customers to your website
- Use digital media to attract prospects to your website
- Make the website easy to use, make it easy for your best customers to connect with your business
- Use email marketing and retargeting to nurture and reward your best customers
Marketing a small business using the Hub and Spoke strategy takes the mystery out of online marketing. It’s no longer difficult and overwhelming. Each piece has a role. Working together they create a powerful tool that you can use to prosper.
CEO, Managing Director
James brings over 30 years of professional sales, marketing, and marketing consultation services to the table. Serving global brands along with small businesses, Hipkin leads a highly-skilled team of full-time developers, producers, and project managers who are committed to your success.
An excellent communicator and inventive problem-solver, his creative vision and bottom-line sensibility have proven successful at building productive, long-term partnerships with both employees and clients.