Do you find yourself constantly confused by the marketing advice out there? It can be hard to figure out what you need to focus on when you’re being told to do 10 different things at once. One of my clients asked me, “If there were only 3 things I need to know to make my marketing work, what would they be?” So I made this video.
Prefer to read rather than watch and listen? No problem – here’s everything I said in the video as text:What I want to talk about today is basically what are the three things that you need to know about your marketing to make it work in your business. Actually, I’m covering this topic because in today’s coaching session, one of my clients asked me this question saying, “There is so much stuff going around this whole marketing thing. Everybody talks about 10 different things. Tell me Shweta if there are only three things I need to know to make my marketing work, what would they be?” So let’s go.
The 3 Things You Need to Know About Your Marketing
The first thing you need to know in your business to make your marketing work is the lifetime value of your customer.The second thing you need to know is what is the acquisition cost of your customer? What does it cost you to acquire one customer?The third thing that you need to know is whether this acquisition cost is less than your lifetime value of the customer or not.So these are the three things – lifetime value, acquisition cost, and how is this equation stacking up?
1. Lifetime Value
Now just very quickly lifetime value of the customer again is based on three simple things.On average what is the risk retention of your business, how long does one customer stay in your business on an average?The second thing is on average, how much would this customer spend over this period of lifetime?The third thing is what is the margin that you make on that spend and therefore what is the gross profit you make on this particular spend?Then you can identify what is the lifetime value of your customer in your business.
2. Acquisition Costs
As far as acquisition cost is concerned it again is based on certain variables.The first thing is what is the marketing spend on a particular channel for which your are getting leads?The second thing you need to know is how many leads are you getting when you are spending that money in that particular channel?The third thing is based on your sales team’s conversion percentage, how many clients are you getting from those leads?So again, what is the spend? How many leads are you getting and how many are you converting, which is, how many people are actually buying from you? That determines the acquisition cost per customer.
3. Compare Acquisition Cost to Lifetime Value
When you compare these two figures, which is the lifetime value and the acquisition cost, while the acquisition is cost is less than the lifetime value of the customer you have actually created yourself an unlimited marketing budget and your marketing is actually working.If you don’t know these figures then very simply put you are playing a game in a blindfold manner and I’m not a big fan of that. It just leads to a massive waste of time, money and efforts. You start questioning whether marketing is a cost or an investment and I promise marketing is an investment, if you know how to go about it in the right way.
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Santa Claus is undoubtedly one of the best in the world when it comes to encouraging us to buy. People fill the streets spending their money, all because of a rather grand marketing campaign that has endured for decades. So how does the man in the big red suit get everyone to buy so much? And get them to leave him cookies and milk in every house?Let’s take a look at some of the lessons that we can learn from one of the very best at marketing.
1) Santa Always Comes To Town
The promise of Santa Claus is that he will come to your house and deliver presents on Christmas Eve so you can wake to gifts in the morning. If you ran down the stairs to find your tree barren, you might start to think Santa Claus isn’t particularly trustworthy.Make sure you produce what you say you are going to deliver otherwise your marketing efforts aren’t helping you. In fact, your reputation will become damaged if your messages are incongruent with your delivery.
2) Carries Around a Bag Full of Toys
Everyone loves Santa Claus because he’s always carrying a sack of presents that he’s giving out to everyone. Sure, he gets milk and cookies, but what people remember are the presents that he gave them.Do your marketing messages sound like they’re trying to “get” something from your customer? Or are you indicating how you deliver value to them?Whatever you’re offering, highlight up front and centre the value that you’re giving them and then you’ll start to win your loyal customers.
3) He’s Making A List, Checking It Twice
Santa doesn’t deliver presents to all the kids. He makes a list, checks it twice and figures out who’s been naughty and nice. Only the nice ones get the gifts.This is a twofold lesson – Santa makes a list for his deliveries, so you definitely want to be building a list. But he also checks it – you want to make sure you qualify your list so that you’re delivering only to those who are most suitable for your business.
4) He Has A Belly Like Bowl Full of Jelly
Everyone knows what Santa Claus looks like – he’s got a red uniform with white trimmings and a round belly that shakes when he laughs like a bowl full of jelly!What is it about your brand that makes you instantly recognisable? You need to have something that can spread to the world so that you have presence without actually being there. Like Santa – he’s in almost every shopping centre in the world but he’s not actually there is he?
5) He has Elves, Reindeer, Shopping Centres and Parents
Santa has minions that do most of the work for him. He leverages off systems so that he only really has to work about four days of the year. How? He has representatives in shopping centres drumming up the crowds. He has Mums and Dads getting their kids excited. He has Elves making and packing and he has magical reindeer to deliver his goods.Make it your resolution to systemise as least some of your business. Get a hardworking team (your elves), develop your delivery (reindeer), run promotional events that are easily repeatable (shopping centre representatives) and create autonomous groups of raving fans that can handle things locally (parents).
6) He Lives in the North Pole Without The Internet
You can’t email Santa, or call 1800-SANTA. That kind of access isn’t feasible when you’re as important as Santa Claus. You have to write a letter, then elves screen the letters to see if they can handle it without bothering Santa and only if it’s really important does it get through to Santa.Are you too accessible to your clients or customers? Your time should be precious and respected as a business owner. So if you’re readily accessible, it can imply that you aren’t really that busy – and not really that successful.
That doesn’t mean you ignore customer service – it means you need to have a system in place where you don’t have to deal with it unless it’s actually important. Important people deal with important problems – are you an important person?Santa has a bit of a head start when it comes to marketing, but growth really doesn’t have to take that long. Learn from the best, implement tools that have been tried and tested by figures like Santa Claus, and you could be relaxing in your own version of the North Pole before long.
If you’re keen to kick start your own growth in 2015, you will want to attend the Strategic Planning Session we are hosting in January.
At this workshop we’ll be teaching you strategies that have worked for thousands of businesses all over the world to stimulate fast, sustainable growth in your business.
Have you been wondering how to get your online marketing channels to perform better? Want your social media advertising and other forms of inbound marketing to bring you more leads and cost you less? This video explains why your “subscribe to our...
There are no shortcuts when growing your business. Almost every business owner I know is willing to run the extra laps in order to achieve that next level of growth.When the big dreams of business leaders aren’t being achieved, despite all this hard work, there’s got to be something missing.
Why aren’t business owners able to have enough of the breakthroughs in their business that they desire and deserve?In my business coaching experience, there is one main reason, and if you learn it, you can get more of those for your business too.
Prefer to read rather than watch and listen? No problem – here’s everything I said in the video as text: There are two reasons why most business owners are not able to have sufficient breakthroughs in their business. Number One – Lack of deal flow or lack of predictable enquiries in their business. Number Two – Business owners get burned out. Today, I just want to talk about number one reason, which is lack of deal flow.
Your Business Strategy Must Include More Than Word of Mouth
If in your business you get most of the enquiries through word of mouth, it’s great because it tells me that you’re technically very strong. However, the fact is it’s not sufficient because word of mouth is not controllable. You can’t up it, you can’t decrease it, depending on what’s requirement of the business. It should be one of your strategies but it cannot afford to be the only main strategy in your business.
Marketing Activation Strategies
What we really need to create in your business is a whole set of Marketing Activation Strategies that can get you predictable enquiries, predictable leads – a deal flow in your business. Rather than a trickle of enquiries which puts you in a state of panic.
How Good Is Your Marketing Plan?
Now, the question that you have to really ask yourself is today, if you were to look at your marketing plan, what is the rigour that you have in your marketing plan? Actually, the first question is, do you have a written documented marketing plan? It could be a word document, it could be a spreadsheet. Do you have one in place? Where you have listed down your five to eight strategies to get more qualified enquiries through the door and you have actually put budgets and actual activities against them. That’s the first question. If you have a marketing plan, then again, what is the level of rigour that you have in that plan?
How Does Business Coaching Help With Marketing Strategy?
If in your business most of the marketing that is happening is adhoc, reactionary, knee-jerk, and then if you’re asking or wondering, “Why I don’t have predictable deal flow?” Then I think it’s pretty straightforward. You need to put your thoughts in place. Create that marketing plan. Put rigour in place. Then we’ll move to the next step of saying how do we give you that lift?
How do we help you get leverage out of your marketing resources or the kinds of systemization that can be done so that marketing is happening day and day out in your business? All of that without massive effort and resulting in a predictable source of leads in your business, which will help you have those breakthroughs which you desire and which you deserve.
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Is your business set up with the tools and strategies that you need to grow in 2015? Do you have a written plan?
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