Successful Marketing Formula – Marketing Tip 7
Use this Successful Marketing Formula
Here’s a simple formula that I’ve used to get massive success!
Hi and welcome to this week’s Marketing Tip, lucky number 7 in this free email course.
And for this Tip I want to share something very special with you. Something you really need to know about making your marketing work.
Here are three reasons why you should read this Tip and follow the ideas in practice.
1. This principle will ensure you squeeze every last drop of value from your marketing efforts
2. When you apply this principle you’ll gain an automatic increase in sales results and profits
3. This core principle can be applied to any and every business; yes, that includes yours!
Can there really be a secret formula to marketing success?
The answer is most certainly yes. And I’ve been using this for years! Now it’s your turn.
It’s a simple and yet incredibly powerful concept that so many business owners and managers have never been exposed to. So by learning this you’re going to put yourself way ahead of the vast majority of other people out there.
This concept is known as the Key Turnover Drivers and looks at how simple maths and a bit of planning can produce significantly bigger sales results without spending any more money, or working harder.
So let’s get started and break this down.
There are actually Five Key Turnover Drivers but for the sake of simplicity and brevity today we’ll just be looking at the main three of these.
There are essentially only five ways a business can make more sales and profit, the three most important of these are:
- Get more customers
- Get more customers to buy more
- Get more customers to buy more often
When most people tackle marketing the first and only thing they look at is how to get more customers. This is blatantly obvious; when your marketing is working well you’re generating more enquiries and getting more sales as a result of how many of these enquiries you can turn into business. This is known as your Conversion Rate. If you have ten new leads a week and three of them result in sales then your conversion rate is obviously 30%.
However, this is where most people stop and as a result… they’re missing a massive untapped opportunity.
Yes, your first priority and the 1st Key Turnover Driver is to simply get more customers. This is the front end of marketing for all of us. It’s about using good marketing messages and promotions, which are carefully targeted and drive up enquiries that turn into sales.
There is a whole host of ways you can do this and you’ll be learning about some of these throughout this Marketing Tips email course.
Now what’s really important is to understand how this starting point allows you to trigger the other two Key Turnover Drivers that will explode your results.
For the most part business owners, managers and sales executives are only interested in one thing; getting that sale. They want to get the customer to the till and complete the transaction. Then it’s on to the next person.
This is utterly flawed thinking and a sure-fire way of making business life hard work and difficult. It’s also a massive waste of time, money and bigger opportunity.
The underlying concept that powers these Key Turnover Drivers is that of compounding results. Just like compound interest, we’re trying to multiply our results rather than just adding them up.
Let me explain:
So you run your advert, let’s say you use a facebook campaign, and you get an increase of people visiting your business. They’re interested in the offer you’ve made through your promotion and they’re ready to engage with you.
Some of these people, hopefully most or all of them, go on to buy from you. You’re happy, they’re happy and that’s where it ends.
Every time you create a new customer opportunity there is always (or at least there should always be) a reason for them to buy more from you at the point of that first transaction.
You may know that this is often referred to as up-selling and cross-selling.
Up-selling is where we encourage a customer to spend just that little bit more at the point of purchase. We see it a lot of the time in shops and retail businesses. Perhaps we offer a higher quality product or we add value through extra features.
Likewise, we can also look to increase the value of a sale by offering other but often linked products. This is known as cross-selling. So I buy a new TV and the shop offers me an extra insurance policy or extended warranty.
Or perhaps I go to a clothing store and buy a new suit; the smart salesperson then invites (and encourages) me to buy some new shirts and perhaps a couple of ties to go with it. This is cross selling.
Now you may just be thinking “well there’s nothing new about this, we try that too”.
And this is just the point. “Trying” to increase the average cost of a sale is not a strategy for success. I’ve seen lots of companies who simply encourage their staff to try an up-sell or cross-sell when they can.
Instead what they should be doing (and you as well) is clearly defining what are the best offers to use to up-sell and cross-sell. You could do this in a really simple way by writing a list of your current products or services and then adding a list of potential up-sell/cross-sell offers that would sensibly match the first/primary offer.
This is not to say that you are going to offer this in every single case. Clearly there are times when looking to up-sell/cross-sell is not appropriate in that first situation. You need to use some tact and sensitivity to decide if it is appropriate. But the golden rule is ‘ask for the sale’.
If you don’t ask the answer will always be no.
And this is where it gets really interesting. You DON’T need to do this in every single case with every single customer.
As we’ll discuss in a moment, just a 10% increase will give you fantastic results.
So your aim with this concept is to get more customers to buy more. You’ve done the hard work, got them to your door and started to build some sort of relationship with the customer, no matter how cursory that might be.
This is the 2nd Key Turnover Driver
Now you need to get customers to buy more often.
This is the 3rd Key Turnover Driver. And again we’re looking to increase the potential value of each customer to our business.
In this instance we are looking for them to come back and buy from us again. If your business only ever sees a customer once and then never again, perhaps you need to do some serious rethinking about your business model.
Getting customers to come back and buy more from you is a very powerful and massively under realised growth principle. And once again the best bit is that you only need to do this some of the time. Although you should be driving for it all of the time.
You should always be looking for ways to encourage your customers to come back and buy from you again. You could do this with special customer offers, loyalty cards, etc.
We often hear that it is six times easier to get an existing customer to become a repeat customer, than it is to find another brand new customer. So what are you doing, or going to do, to encourage, incentivise and reward customers from buying from you again?
The last point on this is one worth really paying close attention to.
A lot business people I work with tell me that they expect customers to come back and buy again. They base this on the idea that if they offer good service and value at the first transaction then that customer will want to rush back again soon.
This isn’t the case and a totally flawed way of thinking.
If you want a customer to come back and buy again you can’t just sit back and hope that they’ll do this. You need to be really PROACTIVE about making this happen.
You need to express how much you value them as a customer, make them feel special and then give them some awesome reasons why they will certainly want to visit you again.
Once more, this is all about asking for the business!
In Summary –
Now let’s summarise and bring these elements together so you can start using this concept.
There are three primary Key Turnover Driver:
1st – Get more customers – using good marketing methods and tools you should be able to increase the number of customers you get by at least 10%. Even a small tweak in a few adverts can increase results by at least 10%.
2nd – Get customers to buy more – so now you’re using active up-selling and cross-selling. You and your staff are positioning these offers in a way that is relevant and beneficial to the customer. Your focus is in adding value to the relationship.
3rd – Get customers to buy more often – and lastly you’re also being highly tactical and effective in giving customers a really good reason to come back again soon. This is especially important if you want them to become ‘loyal’ customers and support you over your competitors.
So with these three Key Turnover Drivers in mind we can see where the magic really happens. Now you will really see what makes this marketing strategy so powerful.
Remember we talked about compounding your results?
Well, if you –
- Increased your marketing results through better adverts, promotions and offers you could get an extra 10% of customers to your business
- Increased the average sale/transaction value by 10% by better up-selling and cross-selling, and…
- Increased the number of times your customers come back and buy from you again by an average of just 10%
…You will see a compound effect of 33.1% in business growth on your bottom line!
Yes, that’s right (check the maths if you want); by increasing these three Key Turnover Driver by only 10% you get almost a full 1/3rd increase in your sales revenue. This is down the compounding effect.
I’m firmly of the opinion, with some great results to prove the point, that making these small 10% increases are really simple and certainly within the reach of almost every business.
And are you seriously going to tell me that you wouldn’t like 33.1% more revenue coming into your business?
This is a simple but massively important concept. And if you want to learn more about it, as well as what the other two Key Turnover Drivers are, then I encourage you to get on the Programme and start with the Free Sample Chapter of Make Marketing Work.
If you want to know more, would like to get more understanding, or simply want a little help to get you started with this, please contact me personally, or post your comment below. I promise to reply.
To your success,
PS. If you found this Marketing Tip useful and interesting make sure you sign up for the full email course, it’s free!