Recently I conducted a 90 minute workshop for some of the members of a local chamber of commerce.  The topic was how to create (and “live”) an effective Marketing Plan.  Before I even got rolling with the material though one of the attendees reacted with “Wow! an engineer who does Marketing?”

I had only gotten through my introduction, describing a bit of my background.  Now some of you know that I have a degree in Mechanical Engineering from Cornell and that my FIRST job was as a manufacturing engineer in a plastics company.  I soon moved into sales and management, but that initial role, and my academic engineering “discipline,” influence my Marketing perspective, and help me in my business to this day.  So how does this unique “lens” that I use on the function of Marketing help my clients?  Let’s look at the definition of “engineer” from the American Heritage® Dictionary:

verb: To plan, manage, and put through by skillful acts or contrivance; maneuver

I have always identified with the process aspect of engineering:  make a plan, execute to the plan, refine, repeat.  Marketing is a GREAT medium for an engineer to express his or her creativity.  And the rewards are AWESOME.  So how does an engineer think about improving the profits of a business?  As “levers,” of course (mechanical engineering humor — did you get it?).

The Seven Levers of Profit Growth

1. Generate more leads:  this is a critical one, but it often gets TOO much attention.  10% improvement here with NO other changes to your business = 10% growth in profits.  Are you with me?
2. Convert a higher percentage of leads:  do you follow up with each lead IMMEDIATELY and continue with positive communications through multiple rounds follow up, even when there is no response? 10% improvement here with NO other changes (no increase in leads, for example) = 10% growth in profits.
3. Number of transactions:  what are you doing to entice your customers to come back more often?  Just a 10% improvement leads to…you guessed it = 10% growth in profits.
4. Average transaction value:  are you and your partners, sales people, order takers systematically (one of an engineer’s favorite words) recommending complementary products, indicating the price break available when more is purchased, and pointing out the bundle of products or services that the customer should review before making a decision?  Could you improve a bit?
5. Profit margin:  as your business grows, you likely have more leverage with suppliers, may be buying in higher quantities, and may otherwise be able to realize the benefits of scale.  Increase your profit margin by 10% — grow your overall profits by 10% too!
6. Generate referrals from customers:  so now you have more customers (from the above activities); what can you do to derive more benefit for your business from each customer than your competitors can?  Nurture those relationships to generate referrals.  Guess what — it’s a win-win.  Provide over-the-top service, keep in touch with your customers regularly, and provide them the means and the incentive to refer you, and they will do it gladly.
7. Extend customer buying lifetime:  the number one reason why your customers will try one of your competitors?  It’s not because they’re dissatisfied (not usually), price isn’t even the number one reason — the number one reason people try buying from someone else is that they don’t feel their primary provider cares all that much.  Keep in touch, continually offer incentives for them stick with you, thank them for their business in creative ways, and you will keep them around MUCH longer.

So what do you get when you improve in each of the above aspects — flexing each “lever” just a bit?  Massive profit growth.  Your business may not be conducive to modifications of each variable, but make improvements of just 10 to 20% in a handful of areas and you’ll add 50%, 100% or more to your bottom line!

Want to learn how to make those levers move and put more profits in your pocket?  Register for immediate FREE access to Lesson #1 of our online workshop series.

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