Attention small business owner we are all in the same boat; down economy, new president, new promises, less consumer spending, uncertain future, and bills that just keep coming. So how do we manage to make it through these times without having to dip into that line of credit one more time? Better yet, how can we grow in an economy such as this?
The number one strategy for generating business in this economy is to create and deliver consistent communication to your current customers who in turn have a greater potential to increase the frequency of return and purchasing. Once your company has a customer base this becomes one of the most important areas of your business. The overall goal is to turn an existing customer into a repeat customer. According to Source, “Acquiring a customer costs five to ten times more than retaining one. Repeat customers spend, on average, 67% more. After 10 purchases a customer has referred as many as 7 other people.”
This statistic can be a wake up call to the small business owner. Small businesses, in general, connect more with their customers compared to large corporations. With this “customer connection” all we need is a system in place to reach out to them. It can be as easy as a phone call or more sophisticated such as an email newsletter. Either way we want to constantly connect with our customers so we will increase their likelihood of doing business with us again.
This is what is we refer to as Internal Marketing. Marketing that is focused solely on your current customer base. This type of marketing is key because it is inexpensive and you already have a captive audience who already knows you and has already done business with you. It’s a no-brainer! We know that money can be tough as a small business owner so using your current resources to produce revenue is a win-win; we spend less and gain more.
Sunday, February 15, 2009
Friday, February 6, 2009
Preparing for the fight ahead
The economy is getting tough and everyone is starting to really watch how they spend their money. This means small business owners need to get dirty now. I am going to focus on the income producing ideas in this Blog verses the expense cutting ideas...for now.
If you continue to do business the way you have always done business, then you will continue to get the same results you have always produced. Make sense?
But if you shift you sales and marketing approach and rethink how to deliver it more creatively and in a less expensive way, then you may find you are getting more business in the door. Let's look at the basics:
1. Do you keep a database of your customers and their information (such as DOB, address, phone, email, any demographics, etc.)? If yes, then the data needs to be looked at carefully to discover who your customers are and what they are purchasing. If you do not collect this type of information I suggest starting now. Research should always be the starting point to marketing to increase your probability of targeting the correct audience, thus increasing your probability of a sale.
2. Change the game. Set 3 new strategies for how to get more customers in the door. These 3 strategies should be actions you have not taken before. Challenge your strategies before moving on to ensure you feel they have the most potential based on the research. Once you have put together 3 strategies create 3 ways to implement each strategy and then create 3 ways to implement those 3 processes. Your plan of strategy and execution should look like this;
* Strategy 1
*Process A
* Sub Process a
* Sub Process b
* Sub Process c
* Process B
* Sub Process a
* Sub Process b
* Sub Process c
* Process C
* Sub Process a
* Sub Process b
* Sub Process c
* Strategy 2
etc.
This is how you can create a plan to execute a strategy based on our 3x3 Model. Each element should have 4 things:
1. A person responsible for the task
2. A time and date the process or task needs to be completed to ensure the strategy does not go out longer than 12 months. we are working with shot term initiatives.
3. Performance measures. You need to see how things are progressing daily or weekly to ensure things stay on course.
4. Incentives. If an employee hits the target or goal they need to be rewarded.
Get out and implement the strategy and do not delay. Remember, if you do what you have always done, you will get what you have always gotten.
To greater success and please feel free to write in with you success stories.
If you continue to do business the way you have always done business, then you will continue to get the same results you have always produced. Make sense?
But if you shift you sales and marketing approach and rethink how to deliver it more creatively and in a less expensive way, then you may find you are getting more business in the door. Let's look at the basics:
1. Do you keep a database of your customers and their information (such as DOB, address, phone, email, any demographics, etc.)? If yes, then the data needs to be looked at carefully to discover who your customers are and what they are purchasing. If you do not collect this type of information I suggest starting now. Research should always be the starting point to marketing to increase your probability of targeting the correct audience, thus increasing your probability of a sale.
2. Change the game. Set 3 new strategies for how to get more customers in the door. These 3 strategies should be actions you have not taken before. Challenge your strategies before moving on to ensure you feel they have the most potential based on the research. Once you have put together 3 strategies create 3 ways to implement each strategy and then create 3 ways to implement those 3 processes. Your plan of strategy and execution should look like this;
* Strategy 1
*Process A
* Sub Process a
* Sub Process b
* Sub Process c
* Process B
* Sub Process a
* Sub Process b
* Sub Process c
* Process C
* Sub Process a
* Sub Process b
* Sub Process c
* Strategy 2
etc.
This is how you can create a plan to execute a strategy based on our 3x3 Model. Each element should have 4 things:
1. A person responsible for the task
2. A time and date the process or task needs to be completed to ensure the strategy does not go out longer than 12 months. we are working with shot term initiatives.
3. Performance measures. You need to see how things are progressing daily or weekly to ensure things stay on course.
4. Incentives. If an employee hits the target or goal they need to be rewarded.
Get out and implement the strategy and do not delay. Remember, if you do what you have always done, you will get what you have always gotten.
To greater success and please feel free to write in with you success stories.
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