Not that long ago, I received a 15-page sales letter from a self-proclaimed small business marketing expert trying to convince me to attend his latest seminar. I was actually blown away at how bad the letter was… and how mind numbing.
Part of what struck me as both humorous and shocking was that he claimed to be an expert in neuromarketing (and small business marketing). Ironically, there is a vast amount of neuroscientific research that proves the average human attention span is incredibly short and that all decisions are dominated by the oldest and most primitive part of the brain – the old or reptilian brain.
So if the decision-making part of your brain is incredibly hasty and primarily driven by survival instincts, what are the chances that either you or I would wade through 15 pages of self-indulgent copy to decide whether or not we want to attend a seminar? Odds are slim, aren’t they?
What Do Successful Small Business Marketing Professionals Do to Compel Prospects to Say “Yes”?
If you are interested in more articles to help you boost the effectiveness of your small business marketing today, then you will definitely want to read the following blog posts:
Is There a Better Way to Find More Customers?
Snagging more customers with a good small business marketing message doesn’t have to be tedious, expensive and stressful. Amen, right? So, let’s break it down. When you’re hungry, which would you prefer: (1) to run to the fridge and grab a tasty snack; or (2) grab your fishing pole, and head out back to catch your next meal?
How to Know Which Half of Your Advertising Budget is Wasted
John Wannamaker may not be a household name but he opened the first department store in Philadelphia in the late 1800’s and is believed to be the inventor of the price tag and the seasonal sale. He was the first retailer to place a half-page newspaper ad, and also the first full-page ad five years later. He is widely considered to be one of the fore-fathers of advertising and credited with the famous phrase: “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”
Why with all we’ve accomplished in the last one hundred and twenty years, is this quote still relevant and significant to you (and to all small business marketing professinals) today?
13 Jun 2013
Almost every business is under pressure right now to attract more leads and close more sales in this tough economic environment where global competition is increasing every day for your potential audience. It is hard enough to keep up with the changes in your industry and the barrage of ads that target your potential customers – not to mention the innovation in technology, increasing complexity of running your business and complying with the tax legislation, HR issues, operational challenges and business planning. Having a Business Coach isn’t a luxury in this day and age, it is a necessity that you need in order to survive and thrive.
By far, one of the biggest assets that you will gain as a result of working with a business coach is accountability. Remember, it’s difficult to get a truly objective perspective or opinion from yourself, your spouse or your team members, but your business coach is there to be your “unreasonable friend” – to tell you the truth, challenge your assumptions, push your boundaries and motivate you to take action (especially when you are procrastinating).
A Business Coach or mentor will teach you “how to fish” rather than simply putting a fish in your hands when you need it. With years of successful experience (running their own business and helping hundreds of other entrepreneurs just like you), your business coach will help you develop and achieve your goals, put a solid business plan in place, execute effective strategies that will grow your bottom line, track and measure your progress and highlight blind spots or opportunities that you have overlooked.
You may be able to scrape by without the help of a business coach, but it’s almost impossible to consistently grow your business profitably without the training, guidance and focus you will achieve by working with a good business coach.
Find out more today by contacting us to speak to a business coach that can help you breakthrough your perceived limitations, make better decisions, step up as a leader and achieve your goals.
And remember, most importantly a business coach will:
- help you focus and eliminate all tasks that are taking up resources but adding value
- challenge assumptions and perceived limitations about your business and industry
- motivate you to ask better questions and make better decisions
- highlight opportunities or pitfalls that may not be obvious to you
- give you tips and proven strategies based on years of experience across many different industries
- be a valuable sounding board and provide a balanced, objective perspective
- help you develop and execute plans that grow the bottom line and cash flow safely & predictably
- track and measure your financial progress in a way that is meaningful to you
- assist with an exit strategy
- be your unreasonable friend with a wealth of experience across multiple disciplines – marketing, sales, training, systems, leadership, finance, legal issues and technology.
All of the leading experts recommend that you spend 75% of your budget to retaining existing customers (and re-engage them). Yet surprisingly, most companies do the exact opposite. Even large corporations like Coles, Woolworths, Max Factor and Target (not just the little SMEs) make the mistake of spending too much chasing new customers (or ones that have left) and often ignore their existing ones.
Several years ago I held a senior commercial role at one of the largest retail businesses in the country and I can confirm that they spent <20% to retain existing customers. They, like 95% of businesses out there, spend the bulk of their budget on chasing new customers or attempting to re-engage those that have left and gone to the competition.
And therein lies the biggest mistake you can make as a business owner…
Every dollar spent on direct marketing to retain existing customers is actually worth 50x the equivalent amount spent chasing new customers. With above the line advertising, it is very hard to capture the attention of new customers, embed your message in their mind and compel them to act. It is much easier (and cheaper) to reinforce your message with an existing customer and encourage repeat visits.
So, if everyone knows it is easier and cheaper, why are most businesses NOT focusing the majority of their attention and budget on their existing customer base? The answer to that question is unclear. But what is clear is that there are 4 Simple Strategies that you can use today to boost sales and retain existing customers.
1. Spend 75% of Your Budget on Existing Customers – The bulk of sales and marketing efforts should be focused on direct communications and NOT on social media, newspapers, PR, magazines or pay-per-click advertising. For those of you who are established and have been in business for a few years, this is going to free up a lot of time that has been wasted on chasing new customers.
2. Do Your Homework to Maximize Return on Investment (ROI) – I recommend that you take the time today to analyse your existing customer data:
– What are they buying?
– What could you introduce them to which would increase gross profit margin?
– How can you drive frequency (visits)?
3. Frequency Lifts Sales by 75% More Than Upselling – It is much more effective and profitable, to focus on getting customers to return to your website or business, as opposed to trying to sell them one more thing while they are there.
4. Focus on Customers Within a 10km radius – Customers who have moved outside a 10km radius of your business can be particularly tricky to re-engage. In research conducted at one of the largest retailers in the country, we discovered that 82% of the revenues were attributable to customers that lived within a 10km radius. And in my experience working with hundreds of small-midsized businesses, this statistic still holds true. If your customer has moved outside of this radius, it does not make sense to waste any of your budget trying to reactivate them.
Even though it’s important to appeal to and attract new customers, it’s absolutely crucial to your business’s survival that you retain and nurture the customers that have supported and shopped with you to date. Everyone knows that is cheaper and easier to garner incremental business from existing customers but what separates the truly successful entrepreneur from the pack is the ability to put this knowledge into practice by allocating a large portion of your budget and focus to existing customers.
16 Aug 2012
Lily Allen may not be an authority on business, but she hit the nail on the head with her honest, irreverent spin on a timeless mystery – “how to know what to do when you have no idea and you’re not prepared”. In her platinum selling song, she sings:
I don’t know what’s right and what’s real anymore,
And I don’t know how I’m meant to feel anymore,
When do you think it will all become clear?
Everyone knows that we have been conditioned NOT to admit that we don’t know all of the right answers. Even though we know it’s not true, our teachers, bosses, politicians and even the media have modeled this “fake it until you make it” mentality. Since the mind doesn’t know the difference between a real or imagined event, acting ‘as if’ seems like the logical solution to temporary uncertainty, or does it?
“I don’t know” is a simple phrase. Simple and powerful at the same time. While there can be no doubt that to use it denotes uncertainty and the risk of embarrassment, with it comes an attribute that is far more rare and influential…authenticity!
Over the course of my life, I have been asked some difficult questions both personally and professionally – I’ve been put on the spot, caught unprepared and left exposed and vulnerable. Many times, I racked my brain to come up with the answer – a plausible response that hit the nail on the head or got me out of jail [metaphorically speaking] for free! Other times, I just got lucky.
But occasionally I must admit, “I just don’t know!” I simply cannot say for sure. I just don’t have the answer right now.
Sometimes admitting you don’t know can be the most empowering, intelligent, authentic and liberating response that you can offer. Compared to stumbling through a half baked idea, outright lying or trying to pull a cohesive response out of thin air, admitting you don’t know is a sane solution to this diabolical dilemma.
To be honest, none of us has “The Answer” to everything. If you think you do, chances are you know even less than you thought! If someone has taken the time to ask a question, seek your business advice, and placed their trust in your expertise, they deserve pearls of wisdom not propaganda.
In fact, in order to be a true leader and to earn authority, which is the foundation of your ability to influence others, it is simply not enough to be knowledgeable. You also need to be truthful. Therefore, in order to master the power of influence, you must establish yourself as both honest and powerful in your communications.
When in doubt, “I don’t know but I will find out” is the best answer.
Many different factors have the potential to cause stress in a person’s life. If you take a look around you will see that some people have learned to manage and control their levels of stress much better than others. Even though there is no 1 specific key or “secret” to manage stress, the answer lies in learning to balance of a combination of little things and your physiology.
High levels of stress can lead to various medical conditions, negatively impact your daily routine and impair your ability learn and recall. The hormones which the brain releases in stressful situations are meant for fight or flight situations only – over use of these can actually be detrimental to the health of your brain and body.
Work (whether you own your own business or not) is filled with challenges, obstacles and opportunities that have the potential to cause stress. Knowing how this impacts you physically is the first step leading you to new insights and understandings on how to manage and control your reactions in an empowering way.
Your body language is a powerful indication of your ability to handle stress and problems. When your body encounters a stressful situation, hormones are automatically released into your adrenal glands to counterbalance the cortisol in your brain. Equilibrium is established when these stimulating and tranquilizing forces become equal. When one is greater than the other, you will experience a sense of imbalance, commonly referred to as stress.
In fact, your body goes to great lengths to prevent you from experiencing imbalance or stress. Your sympathetic nervous system and parasympathetic nervous system essentially battle each other to bring your body back to equilibrium. This fight or flight response to stress also necessitates the shutting down of many of the other key systems in the body – which makes it much more difficult to reason, react and communicate while in this agitated state.
It is next to impossible to eliminate stress completely from your life. Some stress is actually good for us. However, learning how to quickly and reliably relieve stress and become focused will enable you to tackle challenges with a clear head, communicate clearly and navigate tense situations. In fact, the best way to reduce stress quickly and reliably is through managing the sensory input received by the body: through sight, sound, smell, taste, and touch. Each person responds differently to various levels and types of sensory input – the trick is to find out what works best for you to manage stress.
We all have different preferences, tolerances and needs. For example, certain kinds of music or distinctive smells may relax one person but irritate another. Take the time to discover what works best for you at home, in your car, at the office, or wherever you may encounter stress. Simple deep breathing and relaxation techniques also work wonders and they are free, easy to implement and produce quick results.
Harnessing the power of sensory stress-busting techniques will provide you with a powerful technique for staying calm, collected and in control. You’ll have the assurance to face adversity and challenge in every aspect of your life, knowing that you have the ability to bring your body back into a state of equilibrium and ease.