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Useful tools, tips and strategies to help your business learn, develop and expand.

3 Things You Need To Know About Your Marketing

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.

Need more marketing advice?

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I Hate Brad Sugars

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Brad Sugars is one of the top coaches in the world. In 22 years, he has owned more than 50 profitable businesses, all the while building ActionCOACH to over a 1000 offices in 50+ countries. He’s written 15 books on business and investing and has a regular column in Entrepreneur Magazine. By most standards, he is what people would call extremely successful. However he is reviled by enough people to make me want to investigate…. I called around a lot of people who had heard Brad speak at one of our events, or had dinner with him, to try and first find the ‘Brad haters’ and then figure out their reasons. Interestingly, most business owners I spoke to said that once they understood his personality and style, they actually looked forward to meeting him and hearing him speak again and again.

There were a few people though who thought that they did not care for his ‘Australian-American’ attitude at all and would keep away from him as much as possible. This is where I probed further to dig deeper into what had really ruffled people’s feathers. The most interesting insight I got turned out to be from someone who had heard Brad speak on stage for an hour in 2010. It was a three hour session and he had walked out in one hour – he had not been able to stand what he perceived as extreme arrogance.

Thinking back to the seminar 4 years ago, he said, “I’m not someone who gets easily upset, but some of the things he was saying that day just made me walk out.” He then paused and continued, “Funnily enough, when I walked out that day, there were two strategies he had talked about that just stuck with me –1. Prioritise Conversion over Leads & 2. Stop working with C and D customers These two strategies have literally saved my business from going bust!”

So here is the interesting insight I got from that conversation – sometimes we don’t particularly like a person’s style, either because they are different from us, or because they are like us! When you go to a business seminar, first pick the seminar to make sure you are listening to someone with immense practical credibility. Then when you hear him/her speak, try to focus on how what you are learning can help your business rather than on the ‘noise’ of who is delivering the message. In the end, even if you don’t like them, just one or two of their ideas may help you build, grow, or even save your business.

If you’d like to find out if Brad Sugars’ business strategies could be useful for growing your own business, you may want to check out Profit Masters.

This is Brad Sugars’ own structured, online course that is designed to empower businesses to drive sales and increase profits. You may love him, or hate him, but you cannot deny the value that he can bring to your business. And that value is available to you now.

Click here to get a free 60 minute sample training video from the Profit Masters series.

Also click here to see Brad Sugars live when he is doing his tour of the UK!


Business Reading: Get to Know Your Chimpanzee

Some books we read once, maybe twice. Some books, and usually the best kind of books are like workbooks that we keep returning to time and again. Every time we read it, we get something new out of it for our current context. The Chimp Paradox is one of those business books. Most of our clients know about this book – mainly because we always recommend it as essential business reading. Recently, we opened it again and simply had to write a recommendation to every business owner out there.

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For those of you who haven’t read it, the Chimp Paradox:

  • Helps you understand the three parts of your brain and how they each affect your decision-making.
  • Describes how the “chimp” part of your brain, the emotional part, can hijack your thought processes, leading to self-sabotaging thoughts or behaviour.
  • Uses metaphors to make the concepts easier to understand combined with case studies and practical examples the illustrate them clearly.

The concepts that are explored here are critical for business owners to understand. In today’s world, there is almost no margin for error – every business decision you make must be as precise and accurate as possible to give you the best chance of survival. If you haven’t read it yet, then bump it up the list of books to read this month – I would call it essential reading for any business owner. And if you have read it before, consider picking it up and reading through a few of the chapters again. You might be surprised at what you find there.

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Top 20 Killer Sales Questions

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Making a sale is very much an art – the art of education and persuasion. Similar to a lot of art forms, there are those with a natural flair for it who can do it without even thinking. However, boosting your sales by becoming better at persuasion is an art that can be taught, can be learned, and can be mastered.

This set of 20 questions is a collection to keep in your arsenal for whenever you need to get that little bit more information to understand your prospect better and help them make the right choice.

Print them out, memorise them, and when you get stuck in a sales conversation, pull one of them out. You’ll be surprised how well #19 and 20 work!

1. What is the most frustrating thing to you about…..? Why is that?
2. What makes you say that? (Why do you say that? / Can you give me some background on that? / What draws you to that conclusion?)
3. What do you see as the purpose of the meeting exactly?
4. What do you think causes … ? (Do you have a perspective on that?)
5. What have you done so far to address the problem?
6. What would you do differently if…?
7. What is likely to happen if…?
8. What won’t happen if…?
9. What are the implications for you if…?
10. Who benefits most from…?
11. What would you like in the future? / In an ideal world what would you have? / What would success look like for you?  What would make this perfect for you?
12. Is anyone else involved in the buying decision?
13. What are the key drivers for the other people involved?
14. Have you spoken to anyone else about this?
15. What is the most pressing issue you are facing in the business right now?
16. What would be easiest for you?
17. How important is that to you?
18. Will that be enough for you?
19. I agree you should think about it.  Often when our clients say that it’s because there is a particular issue they need to address. Is that the case with you? 
20. What would we have to do to make you go ahead with this?

Do you have any killer sales questions that work for you? Post it in the comments!

business strategy consulting LondonFound this post useful? It’s not as hard, or as complicated as it seems to be one of the top 4% businesses. Register for my online webinar and learn the language of money that top business owners speak and ways to significantly improve your sales and profits.

 


Target Markets Don’t Work

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Every good business owner knows that defining your target market is critical. However, what we’ve found, coaching businesses, is that most of them don’t know just how specific they should be getting so that their marketing is bringing in the perfect people. Let’s take the target audience “interior designers in London”. That sounds pretty specific right? Not specific enough. In fact, that’s pretty much a loose target.

Try to think of it this way: Marketing is not 1 to many. It’s 1 to 1, many times. What that means is that you should not be marketing to an audience. In fact, you want to communicate with an individual. And then you want to do that over and over again. When trying to define your target audience, instead define your target person. Who is your ideal customer or client? What kind of things do they like? What are their challenges? What are the ways that they communicate with the rest of the world? An easy way to begin defining this person is by taking an ex-customer or client – or even a current one – who was the best one you’ve ever had. If you can, interview them and find out as much detail as you can about their lives.

If you’re struggling to choose, here are a few rules of thumb when trying to choose that perfect person:

1) The target person should be easy to communicate with (responsive to marketing).

2) The target person should pay you a reasonable price with what they purchase from you (high average £ value).

3) The target person should not have a long lead time for decision making (short sales cycle).

4) The target person should be likely to come back and buy from you again and again (Repeat Business). Once you start building up that perfect person, you can then realise how to communicate with them on a personal level – and convince them that your product/service is the solution to their problems. And once you can convince that one perfect person, you’ll realise that everyone else who responds to your marketing is also another perfect client or customer.

business consulting servicesFound this post useful?

It’s not as hard, or as complicated as it seems to be one of the top 4% businesses.

Register for my online webinar, and learn the language of money that top business owners speak and ways to significantly improve your sales and profits.

 

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