Posted by AndyM on October 21, 2009 under Business Growth | 
I get some “pushback” on this point — the idea that setting your marketing strategy should come a whole lot earlier than “step 3.” Some of it is symantics — of course establishing a Vision for your business 1 year and 5 years down the road is a fundamental step in refining your existing business strategy. As for sliding step 2 “Maximizing the Current” into the mix instead of continuing from Vision on to flesh out an overall marketing strategy, think of it this way.
If you decided that you wanted to become a world-class, competitive athlete within 5 years, wouldn’t it be wise to start eating better and exercising right away, even if you hadn’t picked a sport yet?
The point of step 2 “Maximizing the Current” is to get in shape. No matter what you decide about your target market going forward, what media mix you will be using, and how you will compel your prospects to want to contact you, there is a sale that is about to happen in your business. Techniques I use in step 2 will help you get more profit from it. You have customers surrounded by potential referrals, but they don’t ever think of you. Techniques I use in step 2 will draw out those referrals. Use the increase in profits that merely “getting in shape” will provide to fuel real lead generation…
But you don’t want to be random about generating new business. Step 3 = Set the Strategy. With your customer-maximizing house in order, it’s time to improve the effectiveness of how you go out and get new ones.
Components of your marketing strategy:
- A well-defined target: geographics (where they are), demographics (who they are), and psychographics (why the buy — the emotional appeals that relate to the benefit you can provide). Analysis of your customer database will help you — who are the most profitable customers you already have?
- Your Unique Comparative Advantage: a good description of the problem you solve or benefit you provide and how/why your product or service is uniquely capable of delivering on the solution your target audience needs (we have a formula for developing a powerful UCA)
- Contact methods: the “portfolio” of media you use to contact those in your target audience at the right time, given the benefit you deliver
- The message: an attention-getting and compelling message that exposes the pain — the deficit your prospect is experiencing because they lack your solution
- The offer: the natural, “no-brainer” step toward a solution for your client that you make easily available to them by simply contacting you.
- The follow-through: your multi-step plan to capture their contact information and nurture the initial interest into a burning desire to meet with you, test your product, order it, agree to your pilot program, etc.
Next week — Generate and Convert. Putting that strategy into practice and monitoring, measuring, and improving it!
Posted by AndyM on October 16, 2009 under Business Growth |
Often times a conversation with a business owner will start with this question – “can you help me get more leads?” The answer (of course!) is “YES,” but in following my own medicine, I never respond with an answer to that question. Why? Because I know that is not the real question that they want answered. It is not the need-behind-the-need — the true benefit they are seeking.
They, in fact, don’t really want more leads. Just like when your gas tank is empty, you may first think that you “want” more gas. But who “wants” gas? It sure doesn’t taste good, and I’ve never met anyone who liked to bathe in it. You don’t “want” gas, you “want” to get from location A to location B. There are many ways to get there – you could ride your bike, walk, get a ride from a friend, or think twice about your plan to go from A to B in the first place. Could you accomplish what you “want” with a phone call?
So back to our business owner. Trust me, they don’t “want” more leads. They want what they believe the leads will bring them — more revenue to pay/retain top staff, profit to bring home to their families, less stress, etc.
When I get the “can you help me get more leads” question, I usually respond with a few questions of my own:
- What are you doing to keep your current customers happy and returning to buy from you again and again?
- Do you have your current and past customers, as well as prospects, organized and segmented in a database so you know how to contact them, what they purchased, how often the purchase from you, when they last purchased and how much they spent?
- Do you have a system in place for keeping in touch with your customers to let them know about new products, improvements, changes or additions that might benefit them? How often do you contact them? When was the last time and why?
- What about referrals…do you have a proactive referral-generating system in place that produces measurable and predictable results time after time?
- When the next sale of your product or service is taking place, what steps do you have in your close process to make it attractive – downright compelling – for them to buy more or add different products and services to the order or contract?
- After that transaction, what are you doing to make it attractive for that customer to “come back” sooner than later? Is it possible to subscribe them to an ongoing service?
I think you get the point. Step 2 of the 4 Steps to a More Successful Business is “Maximize the Current.” Get the most from your existing customer relationships and the business that is happening as you speak. Five of the Seven Levers to Profit Growth are available to you in this step! Make use of them!
- Increase the number of transactions: present your customers with an offer to do business with you again, create a loyalty program, entice them to get a subscription.
- Increase the average transaction value: up-sell and cross-sell. It helps you customers and you.
- Increase your 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.
- Generate more referrals from customers: develop systematic ways to encourage customers to refer business to you – happily.
- Extend customer buying lifetime: for one, keep in touch. Surveys show that 85% of people who switch their purchasing allegiance due so simply because they felt their previous provider didn’t value their business!
Next week – step back, take a breath, and Set Your Marketing Strategy!
Posted by AndyM on October 6, 2009 under Business Growth |
Creating a vision statement will focus your thinking and guide your decisions. Sharing it, printing it, and posting it will help you keep it at the forefront of your mind, and therefore your actions. It is important to keep in mind that a vision that leaves out your customers/clients, staff, and your own personal ambitions will quickly become just another empty statement.
Creating a Vision is Simple. The tough part is setting aside the time to do it. Save yourself some anxiety — don’t overthink it. It is o.k. to alter your vision over time. The important thing is to have one, and to keep it around and visible in your daily activities. Be sure to write the statement in the present tense. If you write that your business “…will be…” then that will forever be the case. You will always be reaching toward that vision, instead of actually arriving. Here is a hypothetical example:
“XYZ Plumbing is the recognized leader in residential plumbing services in the Tri-State area through an unparalleled on-time record, quality practices that ensure problems are ALWAYS fixed on the first visit, and a commitment to employee development that makes XYZ the most desirable place to work in the industry.”
Try writing several statements for a couple different points in time — 1 year, 3 years, 5 years from now, etc. If you are struggling, that’s good! That means you haven’t thought about this yet, and the exercise will provide you with dramatic benefits!
Here are some questions to ask yourself that may get you un-blocked:
Imagine you are one of your customers X years from now. Describe your experience in doing business with you (in your customer’s words).
Imagine you are one of your employees X years from now. Describe your experience in working for you (in your employee’s words).
Now imagine a spouse, significant other, or anyone else who is close to you. Describe his or her perspective on you and your business X years from now.
Next week I’ll describe how to “Maximize the Current” — get the most out of your existing customer base.
