3 Critical Elements To Growing Your Business
For many business owners and marketers, marketing only means getting new
customers. True, getting new customers is important for every business but it is only
one part of the OPTIMIZATION equation.
To Exponentially Grow, A Business Must Do Three Things:
1. Increase its customer base.
2. Increase each customer's frequency of purchase.
3. Increase each customer's average amount of purchase.
Marketing must address all three of these areas to optimize a business. For some
reason though, 95% of marketing dollars are spent on gaining new customers. But by
failing to increase your current customers' frequency and amount of purchase, there's a
good chance that you're wasting valuable resources.
3 Steps To Avoiding Perpetual One-Shot Selling
Restaurants are a good example of perpetual one-shot selling. It's not that people don't
come back necessarily, just that the restaurant makes no pro-active effort to get them
back. That's why using a restaurant to illustrate a simple 3-step formula that will keep
customers coming back over and over again is a great example.
This Formula Can And Should Be Applied To Every Business:
Step 1: Capture the names and addresses of all of your customers.
Step 2: Systematically contact all of your customers and ask them
for more business.
Step 3: Offer a reward when you ask for more business.
Sounds simple enough, and it is. But we can assure you that any business that is
struggling isn't doing it and 90% of businesses that aren't struggling could double their
profitability - if they would execute this formula.
By execute, we mean contacting their customers either individually or by a letter that is
computer addressed and laser printed and sent to them. And we don't mean sending a
coupon in the mail on the back of a lost child postcard (although those are good for
finding customers in some cases).
Joint Ventures: How to Gain $3.4 Million of Good Will in 30 Days
One of the best ways we know to leverage your time and marketing dollars is to enter
into joint ventures with other businesses. There are thousands of ways to construct joint
venture deals from consignment of goods, to endorsements to more integrated
approaches.
The underlying principle of why this works is simple. A business will spend some finite
amount of time, money, resources, and sweat developing a relationship with its
customers. The customers will have some level of confidence in that company which
translates into their willingness to respond to offers made by the company.
For instance, a company might spend $50,000 a year in advertising, $80,000 a year on
commissioned salespeople, and $5,000 a month for prime retail space. These three
expenditures alone not to mention dozens of others account for almost $200,000 spent
a year to develop customer relationships. Now, if you work a joint venture with the
owner of that business, you can access all of that money spent for the cost of a letter,
e-mail, or phone call.
Monopolize Your Marketplace FAQ -->
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