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Marketing They Don’t
Teach You At Business
School!
The Best Way To Manage The
Customer Journey
by
Andrew M. Pearson MBA
www.coaching-business.co.uk
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Marketing They Don’t Teach You
At Business School!
The Best Way To Manage The
Customer Journey
A Great Company Takes a Great Idea That Puts It in Tune With Its
Customers and Two Steps Ahead of Its Competitors - An Even Greater
Company Will Exploit This Success With Another Great Idea!
© Copyright 2012 Andrew M. Pearson
ALL RIGHTS RESERVED.
No part of this report may be reproduced or transmitted in any form whatsoever, electronic,
or mechanical, including photocopying, recording, or by any informational storage or
retrieval system without express written, dated and signed permission from the author.
DISCLAIMER AND/OR LEGAL NOTICES:
The information presented herein represents the view of the author as of the date of
publication. Because of the rate with which conditions change, the author reserves the right
to alter and update his opinion based on the new conditions. The report is for informational
purposes only. Whilst every attempt has been made to verify the information provided in this
report, neither the author nor his affiliates/partners assume any responsibility for errors,
inaccuracies or omissions.
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By the end of this E-Book you will:
 Know what marketing is all about
 Know how to be positioned, visible and credible
 Know how to create a great reputation and outstanding relationships
 Know how to identify your ideal customer
 Know how to offer an impressive benefit
 Know how to attract the right customers
 Know how to increase your sales and profits
 Know how to implement a marketing system that will attract new customers and increase
the spend of existing ones
ABOUT THIS EBOOK
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Page
5 CONTENTS
6 INTRODUCTION
7 1. VISION AND MISSION
10 2. THREE OBJECTIVES FOR BUSINESS GROWTH
12 3. CREATE A CUSTOMER – OR TWO
16 4. SOMETHING OF VALUE THAT’S DIFFERENT
20 5. THE IMPORTANCE OF THE DATA BASE
21 6. TAP INTO THE CUSTOMERS’ TREASURY
27 7. MULTIPLE MARKETING APPROACHES
31 8. PRICING FOR PROFIT
34 9. THE CUSTOMER JOURNEY
38 10. PLAN FOR EXPLOSIVE GROWTH
41 11. ADOPT A MARKETING MINDSET
42 12. BRINGING IT ALL TOGETHER
43
51
13. A MARKETING PLAN FOR YOUR BUSINESS
14. FOR FURTHER SUPPORT
CONTENTS
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The issue is this...
… Many people have great products and services. But when they start to sell them, they are
unable to convince their prospects and customers of their products’ benefits with compelling
and promotable messages.
Getting your marketing right is critical to your success, but many people who manage – or
run their own – businesses have never been shown the best way to do it. This costs them tens
or even hundreds of thousands of pounds in wasted effort, time and resources, not to
mention all the lost business.
Marketing is not about trying to persuade some faceless aggregation of customers to see it
your way. It is about a dialogue over time with a specific group of customers whose needs
you understand in depth and for whom you develop an outstanding offer over the offers of
competitors.
What is marketing?
Peter Drucker, a great management writer, says that the aim of marketing is to know and
understand the customer so well that the product or service fits him and sells itself.
This is fine definition but in fact marketing is much more. Others pronounce that marketing
is about establishing a targeted group of customers, products and services of superior value
to offer them, and an efficient and distinctive means to archive this, that creates the requisite
fit between what the customer wants and what the company does really well.
So we have a mix of products and customers together with something that creates further
significant differentiation. Is there anything more to add? Well yes in fact there is. Nigel
Piercy states that marketing is also about a process of going to market and that as such it no
longer belongs to marketing specialists but that it is owned by everyone in the business and
how it is designed and managed.
Marketing as a philosophy
We should begin to note that marketing is more than a specialist activity. It is a philosophy.
A viewpoint that suggests that a business and its decisions should be governed by its
customers and what it does and that this affirmation of intent reinforced by an activity
system that fosters differentiation all of which is supported by a customer driven
organisation.
INTRODUCTION
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A business needs direction and goals. Ideally, this sense of purpose will be understood,
shared and supported by everyone in the business, so that there is a clear, if not broad,
direction for the activities and strategies required to achieve the ends, or goals, sought by the
business. Ultimately, such clarity will provide the basis for more detailed objectives, tasks
and performance targets for individual managers and employees.
Establishing business goals and direction is a key role for any management team.
VISION
A vision is one of the most powerful tools available to any business and we can use it in many
different ways – for the business as a whole, for a new product or service, or even as a
solution to a business problem. However, when we use it, the effect is always the same vision
creates a compelling force for development and change... so, what is yours?
A compelling vision inspires and motivates people. It is a catalyst for stretch, creativity and
innovation, and it adds meaning and purpose to every working day.
There is an interesting principle involved her and it is this. When business leaders have the
confidence and belief to aim higher and stretch for goals that are beyond their current levels
of performance, they will do it; they have no option but to do things differently, to challenge
every aspect of the way they operate and, hence, new ideas (and innovation) occur.
I often ask business leaders what their objectives are, and they frequently reply with
something like ‘carrying on doing what we are good at doing’. In a sense, this smacks of
survival. In today's world, there is no safety in survival as a goal.
Every business has the ability to radically change its fortunes, to achieve great things, if (and
only if) it has the confidence to stretch for and set goals that go beyond what seems
reasonable.
VISION AND MISSION
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MISSION
Mission statements have become increasingly popular while those for vision are less
prevalent. Of course, the lack of a published statement is not necessarily an indication of a
lack of vision. Where they do exist, they reflect the company’s vision of a future state that,
ideally, the business will achieve.
Mission is the overriding raison d’être for a business. Many mission statements prove
worthless, partly because they consist of loose expressions such as 'maximise growth potential'
or 'provide products of the highest quality'. How can a company determine whether it has
attained its maximum growth potential or highest quality?
Primarily, the mission statement should address what an organisation must do in order to
thrive. It should be positive, visionary and motivating.
Mission statements and what they should contain
Views about the desired content of a mission statement vary, but whatever the variations;
there are principally four key areas of concern:
1. Business philosophy — what the business wants to be and how it wishes to be
perceived by its stakeholders. The philosophy of a company may, therefore, encompass and
emphasise the broad issues: the grand design, quality orientation, culture and ethos, role in
wider society, public image and social responsibility.
2. Product-market scope — what the business(es) the company wants to be in,
which is not necessarily the same as it is currently active in. Of concern is the
customer base, the product/service offering and the core activities, technologies
and capabilities to be exploited.
3. Company values — what core values guide the policies, behaviour and actions
of people in the business, so that staff and management add weight to its core
competencies and capabilities.
4. Critical success factors — what are factors that our business needs to be good
at to succeed in the business and the company’s market place.
A final word on vision and mission
INDISPENSIBLE!
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VISION AND MISSION
Questions and Assignments
TEXT RELATED
1. What is a vision statement?
2. What is a mission statement?
3. Does your company have either?
4. What are your company’s goals?
5. What would you do to set out to create / improve your vision and mission
statements?
6. Imagine a time three years from now. You are in New York on a long week
end break. You want to send a postcard home or to the office explaining
where you are, what you are doing, what inspires you, business is doing well
and what you have achieved - write the postcard home.
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The starting point is to define your company’s overall financial goals. Are you able to do this?
The next step is set out some marketing objectives that would enable us to achieve our
financial goals. Actually increasing sales and profit may be more achievable than one might
at first think!
Many business owners and managers are daunted by the idea of being unable to increase
their profits. They think it always involves increasing the number of customers. But when we
think about the options, we get some interesting results, as the tables below show:
OPTION 1: Target
Increase
Current
Result
Net
Increase
Gross
increase
• Increase the number of Customers
by:
10% 20 2 22
• Increase the average spend by: 10% £100 £10 £110
• Increase the number of times
people purchase by:
10% 10x 1x 11x
• Your Turnover will increase by: 33.1% 20,000 £26,620
What the tables show is that an increase in sales turnover can be obtained by setting targets
for sales increases in three separate result areas. These are first to increase customers
numbers, second to increase the average spend and third to increase the frequency of
purchase.
If we know what the numbers are for our business, multiplying the three figures together
should give us our existing turnover. This enables us to do ‘what if’ exercises to see what we
can achieve. If we do this continually and focus on increasing each category by just 10% we
achieve more than a 10% increase in our business, we accomplish a 33.1% increase! And if we
increase each or any of these factors by more than 10%, we will achieve even greater results.
OPTION 2: Target
Increase
Current
Result
Net
Increase
Gross
increase
• Increase the number of Customers
by:
30% 20 6 26
• Increase the average spend by: 20% £100 £20 £120
• Increase the number of times
people purchase by :
30% 10x 3x 13x
• Your Turnover will increase by: 100% + 20,000 £40,560
2. THREE OBJECTIVES FOR BUSINESS
GROWTH
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By concentrating on these factors, and the leverage they can give us, we can develop a
mindset to identify and implement the activities required to give our business the growth we
target.
OBJECTIVES FOR BUSINESS GROWTH
Questions and Assignments
TEXT RELATED
1. What turnover increase can you target?
2. Write down your company’s current turnover
3. Write down alongside what it is capable of achieving
4. Subtract one from the other for your turnover increase
5. How many new customers can you add?
6. What can you increase your customers’ average spend by?
7. What can you increase your customers’ frequency of purchase to?
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THE PURPOSE OF A BUSINESS
There is only one valid definition of the purpose of a business and that is to create a
customer. This is wonderful thought. To create a customer actually instils something that
suggests that the customer is so important that he or she is ours to look after and keep for
ages!
The majority of business owners and managers do this: they come up with a product or
service, and then they expect to go out and find people to buy their products.
This is a colossal mistake!
If you have tried marketing this way, then you know how exhausting, time consuming and
frustrating it can be. The reverse of this approach is to find the market first, find out
what the people want, and then… let them buy what they have told you they
want!
Let me give you an example. Glen makes bespoke design-and-build wrought iron products.
When I asked him who is customers were, he told me ‘anyone who’s interested!’ When I
hear that sort of thing I start to wince — like sitting in my dentist’s chair and being told ‘Now
relax this won’t hurt!’
I asked him what was the one thing his customers wanted the most? The best metals? A
secret process? Friendly approach? An endorsement? It turned out that what his customers
were really hungry for was real craftsmanship, with requirements ranging from weather
vanes to car parts, and from garden gates to household ornaments, people were prepared to
pay the going price – and more!
Customers buy from us because they see something they want. We think it might be the
product or service we offer. But invariable the value and experience that is wanted is
something deeper. We have to find this, bottle it and use it as medication.
What do customers buy?
Here is a favourite example of mine. Reckitt Benckiser’s medicinal lemon drink Lemsip
provides a great example of how to attract customers based on their emotional needs –
quite unlike the efforts of Beecham’s, a close competitor, whose marketing is based on
functional needs Beecham’s customers.
In fact, Lemsip has enlarged its customer base by creating customers through its appeals to
different customer groups. In the late 1990s, Lemsip was positioned to meet the needs of
3. CREATE A CUSTOMER – OR TWO!
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busy women seeking the comfort of a warm, soothing medicinal drink. You may remember
the campaign’s compelling offer was built around the statement ‘a hug in a mug’.
A few years later (2003), Lemsip moved into another segment, young career-minded male
executives, wishing to protect their advance up the corporate ladder, from other career-
crazed rivals. You might recall the positioning statement at the time: ‘Life goes on’.
The concept of a ‘hungry crowd’!
At the end of the day a ‘HUNGRY CROWD’ is a steady flow of a group of customers that
value what we have to offer and whose values match ours.
The point of all this is to start to concentrate on spotting customers - hungry crowds. Listen
to what people ask for, dream or complain about. It’s not enough for us to sell to people who
CAN benefit from what you sell; we need to sell to people who WANT to benefit from
the SOLUTION we offer. In fact you’ve got to find people who will CLAMOUR for your
product, so that sales and marketing becomes a lot easier...
Where is your ‘hungry crowd?’
There are lots of niche markets – our job is to find one – one around which we can build our
product or service. Look at it this way - every product or service has the potential to appeal
much more strongly to a definable group of people – or ’hungry crowd’ – more than it would
appeal to everyone else. When you spot a ’hungry crowd’ and tailor your products and
services to it, winning sales becomes much, much easier.
There are several techniques we can use to find a hungry crowd; research is one, market
sensing is another. There is no shortage of techniques. In the process though our
assessments should unearth answers to three relatively distinct questions; ‘who’ will buy,
‘what’ will be bought and ‘why’.
The first question; ‘Who is buying?’ attempts to describe the characteristics of the
customers within our current market or market to be examined. The second asks what
needs and wants customers have. Here we unbundle all the features of a purchase so that
we arrive at a list of what is bought. And third ‘Why are they buying?’ examines the
behaviour of our customers. Taken in unison, we place ourselves in a better position to
create a proposition of value with which to match our customers’ needs.
Make sure your ‘hungry crowd’ meets the right criteria
It is one thing to find a hungry crowd but quite another to choose the right one. Some criteria
are needed. Here are some
1. Does this hungry crowd have something in common with our values?
2. Does it read certain publications, or visit specific websites? Are people in it members
of certain clubs or associations? Can we easily reach this group in large numbers?
3. Is this group ALREADY spending money to meet the need we think they have or
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achieve the goal that we can help them with? How do you know?
4. Can our proposed market afford our solution?
5. Does our proposed market WANT our solution?
6. Can we give a compelling reason why this group should do business with us instead
of someone else?
7. Will we enjoy working with this particular ‘hungry crowd’?
8. Which unique collection of capabilities would enable us to do more for our
customers than our competitors? and
9. What capabilities do we need to be able to do more for our customers than
competitors?
If you can’t say ‘Yes’ to all of the above questions, then I strongly suggest that you go back to
the drawing board and save yourself a whole heap of heartache.
A NEVER ENDING PROCESS!!!
The question a business leader should ask is: ‘Am I rediscovering new viable hungry crowds?’
No customer group will remain the same forever. Aggressive competitors not only imitate
attractive offers, they create new ones. This means that established companies must
continually strive to discover new customers for their business.
We must continually watch out for what our customers want and need. Some of us have a
tendency to think that this means developing new products or services. But this isn’t
necessarily the case. Customers may enjoy our products and services but have different and
changing priorities. We need to identify and keep abreast of these.
Often we can find new customers or changing needs and priorities and create fresh space to
operate in. Then of course there are customer groups that are not being served by our
products and services and we need to find them too.
Remember this takes time so do not rush but think through what we have said here and
think about what you need to do to UNDERSTAND your customers needs and priorities over
the long term!
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CREATE A CUTOMER – OR TWO!
Questions and Assignments
TEXT RELATED
1. What do your customers need / want?
2. Is there a danger you are actually telling them that they need you?
3. What are your customers’ current priorities? Remember you may have
several different types of customer buying your products and services right
now!
4. Can you define them by who they are, what they buy and why they buy?
5. What feedback are you getting to pinpoint/establish the value your
customers seek?
6. How often do you do this?
7. What customer groups are not being served that could be being served that
you should be developing?
8 Are there any new needs or priorities on the horizon that you should be
attending to?
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THE PRIMACY OF VALUE
Here is a practical matter; one which is probably the biggest issue for us to tackle! The
challenge is how to please an increasingly sophisticated customer. Yet to fully appreciate
what customer value is accommodates revelations and variations in what customers actually
value.
Success is directly related to our ability to provide perceived value to customers because
customers perceive value only in the benefits that our products and services provide. These
perceptions are almost always connected to our ability to produce superior products, tailor
such offerings to targeted customer groups and back all this up with advanced services.
What do customers buy?
There are enumerable forms of value - types of demand being placed on us by new
customers. Take a look at some of them listed below:
1. Quality does not always reflect what we think of as value; customers define it.
2. Products and services that were once new and expensive are sometimes expected to
be FREE. For example, we once paid for broadband.
3. Just as suppliers demand loyalty, so do customers.
4. Both high quality and best prices are expected.
5. Customers seek simplicity, proliferation and duplication are frustrating.
6. Intriguing new and innovative products and services will be interesting for customers
that want t
7. Products and services that offer customers the chance of feeling or being treated
differently; the iPhone, designer fruit juice and a financial services package are cases
in hand.
8. Products and services that create an experience and enjoyment for the customer at
the point of purchase will afford enjoyable memories.
9. People want to feel good about the things they buy; therefore, sellers that are socially
responsible or ethical will be valued.
A proposition of value
It follows that if we understand what customers’ value we should make known that we can
provide the value sought by our customers in a compelling way in comparison with your
competitors. Thus customers and prospects may see and understand why they should buy
from us.
4. SOMETHING OF VALUE THAT’S
DIFFERENT!
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Has your company got a value proposition? You might answer the question with an emphatic
“YES!”, and if this is so, try jotting it down. If we are unable to state what makes our offer
more attractive to our selected customer groups more effectively than competing offers, then,
it is likely that we will not have a unique strategic position.
Let me illustrate the point with some well-known examples. For example, the written value
propositions of the following three businesses describe the positions they aim to take in their
customers’ minds.
SOME EXAMPLES
• ‘The internet in my pocket’ – Apple iPhone
• ‘Ladies and gentlemen serving ladies and gentlemen’ – the Ritz Carlton
Hotel chain
• ’25 Years: Still red hot!’ – Virgin Atlantic.
Finding a Value Proposition
There is no fixed format for defining a value proposition but we can find one if we dig deep
enough to find the real reason why customers buy from us? Remember they’re only
interested in what our product or service will do for him/her. If all we are doing is telling our
customers about the knobs and whistles on our products we will never find out what’s
important to your customers.
There is no fixed format for defining a value proposition, but a series of questions – such as
those listed below – will help Find the Value.
The point about being different
The question of SUSTAINABLE differentiation is also important. If our value proposition is
any good our competitors will want a slice of the action. The answer is to develop a special
and distinctive activity system; in other words a ‘value system’ that offers additional
A seven-step process to create a value proposition
1. Create a list of 7 key features of your service offer
2. Ask which 3 features that offer the value being sought are the most
relevant
3. Ask which of the three is the most important
4. Ask why that feature is more important
5. Recap and ask again, why that point is so significant
6. Ask who else might value hat sort of benefit
7. Try to convert your findings into a few words
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inimitable advantages of importance to customers and which also distinguishes our business
from its competitors.
Consider for a moment the difference between Zara and Marks and Spencer, easy Jet and
British Airways, as well as the Ritz and Premier Inns.
When you consider each case we can see how a company’s activity system can give its offer
sustainable competitive strengths - even advantage. Thus if business marketing strategy is
about being different then the essence of superior value is to select and to perform activities
differently, or to perform different activities to those of competitors such they that cannot
imitate or equal with their operations.
One last point; approaching sustainable differentiation in this way is dependent on creating a
unique combination of activities (and competencies) that support and reinforce one another.
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SOMETHING OF VALUE THAT’S DIFFERENT!
Questions and Assignments
TEXT RELATED
1. What value proposition do you offer your customer groups?
2. What is the basis of your value proposition(s)?
3. What can you do to offer something with an angle to be noticed?
4. What value or experience are you offering your customers when they buy
your sort of product?
5. What value or experience are you offering your customers when they buy
your sort of product?
6. How often do you do this?
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It is possible that most of us have heard about companies that use customer databases. But
many companies know very little about their customers. Most think they know their
customers and everything about them. Most think that ‘all you need to know is located in
your brain or a file cabinet in your office.’
THE 5 REASONS WHY A CUSTOMER
DATABASE IS IMPORTANT
Is it conceivable that if we stopped to think about it we might just realize how much we
benefit from setting up a simple customer database system? ‘How can this be done?’ you ask.
Well, let' me give you five reasons why a customer database will help a company grow and
prosper.
1 Access to information
First of all it is likely that a considerable amount of information, if not paperwork is strewn
throughout your office without any sort of organization. You may know where it all is, but do
your people? They may need that information to help your customers. A customer database
puts all of that information in a central location where all employees can access it.
2 Knowing our customers
Second and I believe we are getting to the heart of the matter now. Just how much useful
information do you have about your customers? For example; do you know who spoke with
your customer last? What do we know of their preferences, service issues, birthdays,
interests and so forth. Do your people? Probably not! Without a customer database system,
you run the risk of looking unprofessional and unprepared because your employees may not
know about your customer's work history or needs. A customer database puts that at your
employee's fingertips.
3 Knowing when we disappoint them
Third is the issue of customer satisfaction. This is something that’s possible to track on a
customer database system. How will anyone know what our customers are thinking about
the work we do? If they are dissatisfied with what we do and how we go about doing things
we can make adjustments according to their complaints.
5. THE IMPORTANCE OF THE
DATABASE
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4 Creating loyalty
Next is the frequency of their visits to us? We need to know if our customers are returning to
us. If not, the hard truth is that it may be because of problems connected to our offer and
service. Customers feel secure knowing that their service suppliers know most things about
their needs and remember them from job to job. If we do not have a customer database we
run the risk of losing customers to our competitors who can offer the package we have. And
that can hurt.
5 Keeping costs down
Fifth and finally I want to present the reason for a database. If you have a list of customers
that have bought from you it is well worth remembering that a person who has purchased
something from us, is more likely to buy from us again. This means that the cost of
marketing to them in the future will be far less when compared to trying to get someone new
to buy your product or service.
You may have a customer database system in your company. But if you have not then you
may wish to set one up. It will help improve your business in all areas and will only help you
become a stronger business owner in the process. This, in turn, will mean a better business
and more customers coming to you again and again. Who knew all of that could happen by
becoming organized and implementing a customer database?
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THE IMPORTANCE OF THE DATABASE!
Questions and Assignments
TEXT RELATED
1. What data is important to your business?
2. What will you do to capture data??
3. Do you know where your customer groups congregate?
4. How will you communicate with your customer groups?
5. What will motivate your customer groups to respond to your
communications?
6. What will motivate your customer groups to respond to your
communications?
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Now then we move to something that is often taken for granted yet seldom applied. It is a
subject that relates to our customers – our existing customers to be precise!
I would like to start with two questions. They are these:
Put your thoughts here
Question
1
In percentage terms, how many businesses do
you think try to raise sales by increasing the
number of customers they work with rather
than trying to increase sales from existing
customers?
Question
2
If you are, or are not, one of these businesses
to what extent do you think your business is
losing opportunities to gain more sales from
existing customers?
EXISTING CUSTOMERS
It has been said that more than 95% of businesses concentrate their entire attention on
trying to get more customers, apparently unaware that it costs 5-15 times more to gain a new
customer as it does to correctly serve an existing one. Also we should note that a correctly
served existing customer is 5-15 times more likely to buy from us than a new one, and a
customer who has bought 3 times is far more likely to buy from you again than a customer
who has bought once.
So if gaining a new customer is up to 15 times more expensive and they are up to 10 times
less likely to buy from us than an existing one – what tactics should we operate to optimize
the potential with our existing customers to gain maximum loyalty and profit?
Tactics for existing customers
As you can imagine there are a number of these. And I have listed and outlined a number of
tactics below:
Referral systems
First a referral system often generates an extremely positive impact on our sales. One of the
great features of a good referral system is to impart a sense of invitation; that visitors would
be especially welcomed as we invite guests to our home. Referral systems vary from business
to business but there are things that we can do to increase the number of referrals. We can
ask for them, alert customers to the fact that referrals are a vital part of our business and we
can reward them - and we can develop and introduce a referral system.
6. TAP INTO THE CUSTOMER’S
TREASURY
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Communicating with customers
Second communicate with existing customers. When did you last mail them, or call them or
consult with them? There may be opportunities to communicate with our best customers by
letter or email items that would be of interest to our customers and appreciated them. Such
things as birthdays, holidays and events come to mind and may distinguish us from
competitors
Another tactic along these lines is to set out a clear and ongoing sales process to provide
customers – and even customers that have stopped buying from us - with compelling new
offers and a ‘back-end’ of further products or services
Yet another is to check with our best customers to find out how enhance our relationships
with them and see how they are doing.
Then there is your value proposition. This should be visible to all customers and should
clearly articulate the top three benefits that our product and service offers
The possibilities are endless.
Sales processes
This is really important. There are of course a number of processes that have inveigled their
way into sales literature but one that I would advocate here is nothing more than adopting a
conversational approach. It ensures customer focus and above all relationship development.
In fact good marketers and service suppliers do not have to sell they coach their customers.
By helping prospects and customers to make the best decisions for themselves, we add trust
and genuine value. You can ask these questions in any situation to help guide and lead your
‘selling’ activity. Remember the suggestion is a generic one. Each question should be
modified so that is business specific.
1 How can I help you? Contrast this with a style that tells!
2 What works well already? Do not rush to find the want or need, take time with this
step, build a real rapport and trust and get to the real wants later.
3 If you could change one thing what would it be? Avoid quick assessments and
long lists of need and want, coach customers gently to get to their root likes and
wants.
4 If we solved this, what difference would that make? Feel free to repeat the
question in several ways. Ask for the benefit of the benefit. Keep going until they
cannot think of anything more. These are the reasons they will buy.
5 If I could help you with that, would you be interested? Either they are or they
aren't. There is little point in spending time on a solution where there is not genuine
interest. Therefore seek an alternative.
Up sell and cross sell with add-ons and volume
There are two ways to deliver benefits to customers, offer higher margins than the core
product and make a difference to turnover.
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Add on product and services
The first method is give customers the means to add related items to their basic purchases
which when combined provide greater satisfaction. This means that service and sales people
should be aware of the relevant combinations so that customers can choose from over their
initial interest. There are three opportunities, and they are to:
1. “Up-sell” to with a different more expensive package from one of say 3 options for the
same product (different pack sizes or something that enhances overall value),
2. “Cross sell” with other products (cheese with wine)
3. “Give away” complementary products
Incidentally if ideas for up sells and cross sells are hard to come by, ask your customers for
some help.
Remember though to consider what customers want or value from the products and services
they buy. Then against each one prioritise how these wants or values might be increased to
benefit the customer.
Time and volume options
The second way is to help customers decide the quantities and qualities in which they want
to purchase our products.
For example consider what larger unit of purchase might benefit customers in some way. A
discount for regular purchases or a ‘best buy’ with a discount or a free bonus incentive for
choosing this preferred option are alternatives.
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TAP INTO THE CUSTOMER’S TREASURY!
Questions and Assignments
TEXT RELATED
1. What data is important to your business?
2. What will you do to capture data??
3. Do you know where your customer groups congregate?
4. How will you communicate with your customer groups?
5. What will motivate your customer groups to respond to your
communications?
6. What will motivate your customer groups to respond to your
communications?
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Any attempt to grow our business can meet with sluggish results even though we have got
the other result areas mentioned here in place – it’s almost certainly our MARKETING
TACTICS that are holding us back and restricting us to lacklustre results.
MARKETING TACTICS
How many of these marketing approaches are we using? Most businesses use only one or a
small number. If we really want to optimise the potential of our business success it is vital to
develop a number of approaches into a multiple marketing profit making machine.
Such tactics, and there are many more, may be used to attract leads from the core of your
market and others then used to nurture and convert warm leads into customers through a
range of outstanding offers in a process of patient communications and relationship building
in pursuit of advocacy all taking place in designated niches.
“FRONT-END” AND “BACK-END” TACTICS
There is one important thing to bear in mind and that is that we can separate marketing
tactics into two camps; “Front-End,” and “Back-End.”
We should think of “Front-End“, as the first sale; the pipeline that brings new customers into
the business. The “Back-End” is the product (or hopefully the series of products and services)
that you sell to your customers after they have purchased your initial offering.
The question to ask now is what tactics you should use in each area. They are:
• Front-End : The marketing tactics employed to attract and acquire new customers.
• Back-End : The marketing tactics employed to optimize the profitability of each and
every customer relationship.
7. MULTIPLE MARKETING
APPROACHES
Risk Reversal Telephone Marketing Advocacy
Newsletters Direct Sales Joint Ventures
Price promotions Advertising PR
Special Events Conference Calls E.comms
Sequenced Mailing Internet Advertising Referrals
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Clearly front-end marketing is vital for your long term business success. This is why it’s so
important to inject the power of marketing into your business so that you can increase the
number of customers that come to your business as a continuous flow…
The facts behind front end and back end marketing
Let me ask you some questions, answering them should help you grasp the importance of
front end and back end marketing.
Let’s review these questions before we go any further, however, should you want to see the
answers to them, you will find them at the foot of this section.
Short and long term issues
In the short-term we can almost always make more money from a back-end promotion than
a front-end promotion. Back-ends have a much higher conversion rate, they usually sell for
more money, and we make a larger percentage of profits on them too. Why is this, you ask?
Well it is because it is easier to sell to a customer than a prospect.
But what about the long-term? Well, long-term we must have new customers entering into
relationships with our business, or eventually we will be put out of business. This means of
course that we must spend time developing effective front end promotions otherwise our
competitors front end offers will eventually turn ours into a lame, and undesirable ones.
You see many managers and business owners get engrossed in back end sales it is so much
easier and more profitable, who wouldn’t want to spend all their time devising new schemes
to launch one offer after another to customers?
Five principles to guide multiple marketing approaches
The thing is of course to find a balance for these five very important reasons:
If we do not have clearly established paths for our new customers to take after their initial
purchase, it will be very difficult to test and establish the best sequence of offers on the back-
end.
The source of future back-ends comes from our successful front end promotions. If we fail to
keep in touch with the market place we will be forced to get back into it to work out what
customers want, what their priorities are and what trends and shifts in our market impact
our competitiveness.
1. Which sale is harder to make, the front-end or the back-end?
2. Which end faces more competition?
3. Which end requires constant innovation?
4. Which sale has a higher conversion rate?
5. Which end do you make bigger profits from?
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While back-ends contribute a greater percentage of today’s profits, today’s front-ends will
contribute even more profits in the future.
The customers that have the greatest potential value are the ones that are acquired most
recently.
Every business has an attrition rate and if we are not bringing in more customers than the
rate of attrition, we risk losing important cash flows - every day.
By now the logic behind this different approach should be somewhat obvious. The upshot
therefore is that we need to plan multiple approaches to attract new customers at the front
end and optimise sales at the back end.
Oh! Yes I almost forgot here are the answers the questions we posed a little earlier.
The answers
Some last words
In coming ending in this section, remember the definition of marketing. Marketing is
bringing the market to desire your product or service. Given this definition the question is
this; are we doing any type of marketing whatsoever, and if we are where is the focus of our
efforts?
It is conceivable that far too many people mistakenly believe that the only effective
marketing and advertising is the type that goes for the sale and for the most part the
immediate sale. This type of thinking really is flawed that can cost business people a
tremendous amount of lost profits.
You see, the thing that is so important in business, is to live at the heart of your customers
market and continue to sell the knowledge, the product, the service, the story and the system
that we have created that we have designed to make a difference in people’s lives. In a sense
the only way to convince people that we can deliver on our offer is to show our product or
service in action. Just like Nike shows its products in action by fitting out the sports people
we admire the most.
MULTIPLE MARKETING APPROACHES!
1. Which sale is harder to make, the front-end or the back-end? The Front-End
2. Which end faces more competition? The Front-End
3. Which end requires constant innovation? The Front-End
4. Which sale has a higher conversion rate? The Back-End
5. Which end do you make bigger profits from? The Back-End
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Questions and Assignments
TEXT RELATED
1. What marketing tactics are you currently employing?
2. What are they intended to achieve? Explain your objectives for each tactic
3. What tactics can you employ at the front end to attract customers to your
pipeline?
4. What tactics can you employ at the front end to optimise sales at the back
end?
5. What are the hazards of concentrating on tactics at the front end or at the
back end?
6. In the light of your answers consider a strategy to both attract customers at
the front end and optimise sales at the back end?
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Here’s a question? What do you think would improve the bottom line?
1. A 10% increase in price
2. A 10% reduction in costs or
3. A 10% increase in volume sales
BE WARY OF REDUCING PRICES
You will find that most people would opt for options 2 and 3 (volume sales or cost
reduction). But when you get down to it, a price increase will often lead to profit
improvement - if you can get away with it. The sceptics among you might argue, “a price
increase will only work if you do not lose sales”.
Be wary of stimulating sales by cutting prices. It may boost top line turnover, but it can
devastate your profits. And think hard before cutting costs. You could decrease value, lose
custom and damage your hard earned reputation.
Raising prices meanwhile, may jeopardise turnover, but can in fact create a fitter business, a
focus on loyal customers, reduced working capital all of which engenders a higher rate of
return.
One further issue is that we should never compete on price alone. We should start by making
sure that what we are offering exactly what meets needs of our customers, and sell on best
value rather than lowest price. Sell what someone wants and they’ll pay for it. Sell what no-
one wants, and we will not even be able to give it away.
Here’s how to do it - and go “up market”
What follows is a shortlist of pricing tactics for high value products some of which are pretty
familiar.
1. Guarantees – Often customers will part with their money more readily and pay a
higher price, if they know that they can get their money back if something goes wrong
2. Outstanding service – Study after study has shown that customers are willing to
pay more if you give them great service. Research also shows that companies that
provide great service grow twice as fast as those with bad service
3. Price as an investment – Describing your price as an ‘investment’ rather than a
cost can often go along way towards persuading customers to buy
8. PRICING FOR PROFIT
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4. Explain why – Be prepared to explain why prices have risen, perhaps as a result of
cost increases, and point out that, had it not been for improvements in your own
productivity and efficiency, the increase would’ve been even higher. Better still;
explain that the price has increased as the result of improvements to the quality of
the product. Emphasize the enhanced customer support, faster and more convenient
delivery and other factors which make the product better and therefore worth paying
more for
5. Justify your prices - It is vital to have a strong justification and defence for your
high prices prepared in advance. This is likely to include knowing the prices of your
most expensive competition, demonstrating the savings and benefits from your
product and demonstrating that your product is hugely superior and therefore
slightly more expensive because…
6. Use “Non-price increases” – For example, consider charging extra for
installation, delivery, insurance, handling, storage, urgent orders or rapid delivery.
You should also try increasing your minimum order size and introducing a surcharge
for any orders below that threshold, revising your discount structure, slimming down
the specification of your product and stripping out any expensive features that are
only limited value to the customer, and charging interest on overdue accounts
7. Change the package – If a customer tries to knock you down on price, don’t
change the price, and change the package. In other words, never simply crumple on
price. Always trade a price reduction for some concession from the customer e.g. a
larger order or cash up front.
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PRICING FOR PROFIT!
Questions and Assignments
TEXT RELATED
1. How do you know that you are charging the ‘right' amount for your products
and services?
2. Have you tested higher prices?
3. What marketing tactics will sustain premium prices??
4. What price promotions could you employ at the back end?
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THE MARKETING FUNNEL – WHERE CAN YOUR
BUSINESS DO BETTER?
Having a consistent flow of customers year after year remains the no. 1 challenge for most
managers and business-owners. Attracting a steady stream of customers and commanding
higher prices are important goals. One way that this can be done is to a customer journey
system or funnel method of marketing.
Picture a funnel! It's wide and open at the top, and small and narrow at the bottom. A
marketing funnel is exactly the same. Many prospects enter the funnel at the top but only a
few continue down to the bottom. Those who make it to the bottom are your high value
customers. In simplistic terms, all you have to do is attract many prospects in at the top and
turn them into customers in the funnel and therefore profits should come out the bottom.
It is a very powerful way of thinking about and how you want to spend time and money in
marketing and building your business.
However, there are two important things to note. First, many businesses spend plenty of
money attracting people to their companies, but not enough making sure that these people
are converted into sales. Secondly, small businesses often neglect marketing to existing
customers. Marketing efforts should also be focused on moving people down the marketing
funnel as well as into it at the top.
LIVING AT THE CORE OF THE CUSTOMER’S WORLD
Promotion does not work. So rather than hit the market with another leaflet or even more
telesales, what if you aim to build a reservoir of leads with tactics in the heart of the niche -
the customers world - so as to let your reputation appreciate in the minds of a sufficient
number of potential buyers?
It is a known fact that you will never sell our products and use your skills until you are
trusted. Until somebody has confidence in us, he or she is unlikely to want to buy from us.
For that trust to be created, our prospects must know about us to begin with.
Rather than go searching for customers, your objective is to position ourselves in such a way
that they find you!
Tactics for Living at the Core
9. THE CUSTOMER JOURNEY
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1. Create a Point of Recognition – the sales points you offer match the needs of
your ideal customers … it is far easier to be found in a niche with a convincing and a
compelling offer and credible point of difference than on terrain with little variation.
It is this positioning that actually underpins credibility – not how well we do what we
say we do. See Chapter 4 Something of Value that’s Different.
2. Who Needs to Know About You to Come to You? – So who and how
many people need to know about you in order to generate the volume of
enquiries you would like to receive? All this means that it is vital to specify
and describe clearly the niche(s) you are in.
3. What Are Your Routes to Them to Generate A Great Reputation?”-
These routes include the strategies listed in Chapter 7 Multiple Marketing
Strategies.
PERFECTING THE CUSTOMER JOURNEY
With the aim being to move people down the funnel one major mistake that many
companies make is to only have one type of service. This often leads to one of two scenarios.
Either the service company becomes inundated with work and is unable to fulfil additional
orders, or no one is buying the service.
The solution is to offer more layers in your marketing funnel. People may not wish to take a
leap of faith and purchase an expensive service from you but they may be interested in
‘testing the water’ with a smaller purchase of some kind.
Therefore offer lower-priced introductory products and services such as a cut-down version
of your main service.
Trust
It takes a while for people to begin to trust a potential supplier so you should initially provide
a means to allow a relationship to develop. Once in your marketing funnel you can then
market to your prospects and encourage them to make a couple of lower value purchases.
Having seen the quality and/or benefits first-hand you will be in with a good chance of
moving those customers towards the bottom of your marketing funnel.
Not everyone will follow you through the funnel from beginning to end, in fact, only a few
will, but these will be the customers who will make you more money in the end. Others will
never spend more than a certain amount with you, but they might do this for years to come!
And don’t forget – once your customers near the tip of the funnel the marketing need not
stop there. As we have seen today’s marketers need to build a more authentic, deeper
relationship with customers by truly engaging them to earn their loyalty—and this is how
companies can begin to cultivate advocates.
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Thus the client journey moves a level deeper to account for advocacy. There are two reasons
that cultivating and enabling advocacy is critical in today’s world:
1. People trust other people more than they trust companies. A recommendation from a
friend or family member is still the single most important criteria in making a
purchase decision and recommendations from strangers online also hold more
weight than marketing messages.
2. With the growing voice of the customer online and the “power” (virtual megaphone)
handed to them through social media outlets, it’s important to help make sure the
voice of happy customers is louder than that of the few unhappy customers.
Cultivating and enabling advocates will generate authentic word-of-mouth, bringing the best
new customer prospects into the marketing funnel.
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THE CUSTOMER JOURNEY!
Questions and Assignments
TEXT RELATED
1. What's in your marketing funnel? Take out a sheet of paper, draw a funnel
shape and list the products and services you offer.
2. Do you see any gaps in your offerings from free or low priced to high priced?
3. Work out what you can do to fill these gaps with a range of carefully priced or
attractive options!
4. Do you have advocates in your business?
5. What ideas do your loyal customers give you to help you expand your business
6. What could you do to help them refer and or advocate your business?
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THE ROLE OF METRICS
In recent years measurable performance and accountability have become essential keys to
marketing success. But few managers and business owners appreciate the range of measures
or metrics by which they can evaluate and improve their company’s marketing strategies.
Consequently we must select, calculate and explain crucial marketing (and business) metrics.
We must understand how each is constructed and how to use them in decision making. And
so as the old adage states; ‘If you can’t measure it, you can’t manage it’ we must identify the
measures that will help us evaluate our plans and actions, explain variances, judge
performance, and leverage points for improvement in numerical terms.
The role of processes
All this requires a strong command of the processes that enable us to set measures of
performance. Every business is made up of a series of processes that convert inputs into
outputs. It is in these very themes of input, conversion and output that we have the means to
understand how each process works and what it delivers and then to do everything we can to
improve them to achieve more output from every input. Therefore, one of the keys to making
our business more successful is to identify our businesses’ most important processes.
TWO IMPORTANT METRICS
There are metrics for almost anything. Key ones that concern us are measures such as;
customer service, customer satisfaction and willingness to recommend, product profitability,
customer profitability, sales effectiveness, cost per transaction and so forth
But for now we would like to mention two fundamental metrics that are so robust that just
knowing these two numbers will give a pretty clear idea of how well our business is
performing. Let me define these two terms for you:
10. PLAN FOR EXPLOSIVE GROWTH!
Cost Per
Acquisition
The marketing and advertising expenses needed to generate a
new customer. Online, this includes money spent to entice the
visitor to the web site, the payroll costs of a live rep if there is
live chat on the website, etc…
Lifetime
Customer Value
The total value (in terms of money spent) of your average
customers spanning the entire period that these customers are
likely to do business with you.
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There are a number of ways to calculate these metrics. For example we could calculate the
lifetime value of a customer by the total amount of money spent in the lifetime customer
value equation, and or the total amount of profit received. Alternatively we could use cost per
acquisition to determine what is spent to convert a prospect into a customer.
Let’s say that the life time value of a supermarket customer is in excess of £50,000. Or to put
it another way, the average customer will spend more than £50,000 in his/her lifetime at the
supermarket. It means of course that when we go into complain about the broken bottle of
jam and they respond by telling you that you must have done it, they have just waived
goodbye to at least £50,000!
Imagine if a business loses just one customer per day and the average customer-spend is £50
per week, then the net loss to the business is a staggering £949,000!
Couple this with a couple of other statistics like discount rate and the net present value of
future cash flows and you begin to see why customer retention is so critical.
What are you accomplishing?
But, before we go any further, can you rattle off what your business is currently paying to
acquire a customer? Even better, can you break your cost per acquisition down from
different sources of feedback (word of mouth recommendation, advertising etc)?
And can you state what the lifetime or long-term value of your customers is? And once again,
what about the value of the customer broken up by the different sources they were generated
from?
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PLAN FOR EXPLOSIVE GROWTH!
Questions and Assignments
TEXT RELATED
1. What are your most important processes?
2. Do you measure their performance?
3. What is the life time value of your customers?
4. What is the cost of acquisition?
5. How can you improve each important process?
6. Are you able to get everyone in the team to think about how to improve each
one?
7. Do you generate further ideas by talking to customers find their needs and
priorities?
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There are two types of mindset. People tend to fall into one category or another. There are
those that put marketing to one side. They believe that they have a great product or service
and assume customers will buy them. Invariably they don’t. Then there is the other mindset,
here people go out and get good at marketing. These people believe that business success is
down to good marketing. These people will actively take an interest in their customers, and
will want to find their needs and encourage them to buy their products with couched in
matching benefits.
Whatever category we are in, we must begin to appreciate the main processes ‘of going to
market.’ In other words identify and implement the marketing tools, tactics and plans that
are so necessary to market your business in practice and categorically how to make it
happen.
11. ADOPT A MARKETING MINDSET
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So there you have it; the fundamentals of marketing, packed into a ‘crash course.’ What
comes next is a short summary of the main principles to develop a marketing strategy. There
are five essential principles to consider all which that contribute to overall profits and to the
overall success of your marketing;
1. Your objectives. Set out an overall turnover and profit target and establish
objectives for new customers, increased average spend and frequency of purchase
2. Your customer group (or niche). Identify your niche and a compelling
promotable message that creates an “I‘ve got to have that!” response.
3. Your offer, by this I mean the package that demonstrates the overall value of the
offer is worth the cost of paying for it.
4. Your database. When it comes to marketing the most important thing is the
database – without it sustainability is doomed.
5. Your multiple marketing approach, these need to speak to the niche, build
relationships with its incumbents and tackle their needs and wants convincingly.
The key is to unite an offering of superior value with a targeted customer group, together
with an efficient and distinctive game plan, or means, to create a fit between what the
customer needs and what the company does really well in the face its competition.
Let me put it another way! Let your targeted and distinctive offer be the brass and your game
plan be the gold! Blend the two metals in the refiners fire and what will you gain? You will
bring into being rich Corinthian metal, fit to compare with the creative castings of other
marketers that have created their own shining reputations in business.
12. BRINGING IT ALL TOGETHER
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A MARKETING PLAN FOR YOUR BUSINESS
NOW TRY THIS - SOME WORK FOR YOU
Complete the tables below to build your marketing plan
1. VISION AND MISSION
VISION
MISSION
Business definition
Core competence
Values
Indications of
future direction
Refer to Section one to draw up a vision statement. Summarize the overall mission
statement – or sense of purpose and put this into a marketing context in terms of
required marketing objectives.
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2. FINANCIAL GOALS
Period 2010 -
Sales Value (£)
Sales Volume (units)
3. POSITIONING - CUSTOMERS AND OFFERS
1) EXISTING CUSTOMERS
Customer
group
name
Customer
characteristics
Criteria for
selecting as a
priority
Product -
service mix
Compelling
offer
2) EXISTING CUSTOMERS
Customer
group
name
Customer
characteristics
Criteria for
selecting as a
priority
Product -
service mix
Compelling
offer
List target markets in order of importance, describe each, state why
each is important ascribe particular products/ services and the offer to
each.
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4. MARKETING OBJECTIVES
1) INCREASING SALES FROM NEW CUSTOMERS
No. of
customers
Transaction
value
Total
Now
Aim
2) INCREASE SALES FROM CURRENT CUSTOMERS
No. of
customers
Transaction
value
Frequency
of purchase
Total
Now
Aim
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Refer to section 2 to define objectives for new and existing customers. Also relate
these objectives to the customer groups that you have identified in Step 3 of your
plan.
5. MARKETING TACTICS
The key thing is to plan and carry out what you are comfortable with but also what will put
you into the core of your customer’s world – this means that a certain amount of “stretch” is
required on your part.
One way of choosing your tactics is to ask yourself whether or not the tactic;
• Can help you develop an opportunity
• Is applicable
• Can be implemented
• Is important
• Help make you different
• Can offer value
Remember, you cannot select an excessive number of tactics to operate. Careful planning
and timing is required. But even then you will find that you will establish what works for you
so your final selection will follow quite a bit of trial and error.
Remember the importance of multiple approaches? Consider your tactics from front end and
back end perspectives.
1) FRONT END:INCREASE THE NUMBER OF CUSTOMERS
Tactic Timing Contribution
to sales
1
2
3
4
5
47
COACHING BUSINESS
01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk
2) BACK END: INCREASE SALES FROM CURRENT CUSTOMERS
6. PROCESS/CUSTOMER LIASON
Areas requiring
attention
Issue Required Action
Customer
information
Product
information
Information on
prices
Information on
offers
Product support
Promotions
Customer feedback
Communications
with customers
Complaints
Suggestions
Sales results
Interpersonal
relationships
Training
Tactic Timing Contribution
to sales
1
2
3
4
5
48
COACHING BUSINESS
01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk
Research
Other
This is the business helping customers, making life easier for customers to deal with
the business, improving flows of information and communications.
7. SUMMARY OF PLAN TASKS TIMING & COSTS
Tasks Person
responsible
Dates for
activity
Anticipated
cost
Implications
The main marketing activities should be entered into column 1. People must now
take ownership of identified actions and potentially contribute to identifying them,
determining schedules and costs.
49
COACHING BUSINESS
01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk
8. MARKETING METRICS
Metric Current
Result
Planned
Result
Actual
Result
Gap Reason
for Gap
1 Sales, profit by
product and by
customer
2 Visits, customers,
retention
3 Customer
satisfaction,
willingness to
recommend
4 Sales effectiveness
and results
5 Sales on offers,
promotions and
prices
6 Cost of acquisition
7 Lifetime value
8 Others
Determine measures for benchmarking purposes. The list measurements are
extensive. These or alternatives may be chosen but the application of metrics leads
to better decisions which leads to better results.
50
COACHING BUSINESS
01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk
9. COST AND BUDGET SUMMARY
Task Cost Implication for the
business
Summarize the costs/budget for each of the main marketing tactics/activities and
outline the implications from the combined totals of these costs.
51
COACHING BUSINESS
01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk
For further support
Call Andrew Pearson on 01280 844966 or
email andrew@coaching-business.co.uk
About Coaching Business!
Andrew M Pearson
Coaching Business
Andrew M Pearson NDA, Dip M, MBA is considered to be a prominent expert in the fields of
strategy, marketing and operations management. He tutors at Oxford Business School and is
also a visiting lecturer at Warwick University.
In addition to UK business school experience he has led and presented seminars and
workshops at business forums throughout the world. He has extensive experience as a
business coach, consultant and management speaker and has worked with managers and
management students in the UK, Europe, China and Libya. He focuses on issues of strategy
development, planning and implementation.
His publications include; How to Invent New Business and How to Build a Business that
Works Without You. A third volume, entitled The Strategic Manifesto, will follow in 2010.
Andrew set up his first business aged 25 and steered it to market leadership and a turnover
of £11m in 6 years. Since then, he’s held senior management and professorial posts at a
number of UK firms, including four years with Cargill, during which he founded pioneering
strategies for business development in Eastern Europe.
Clients include:
• A P Moller Terminals
• Andersons Consulting
• BALI (SE)
• Centaur Grain Ltd
• Channel Express Ltd
• Dart Plc
• Edexcel
• Everglade Windows Ltd
• Fowler Welch Ltd
• Hartley’s Nurseries Ltd
• LEAF
• Mack International Ltd
• Palmstead Nurseries Ltd
• Velcourt Ltd
Further E-books and coaching support:
• Transforming the Process of Going to Market
• Rejuvenating the Mature Business
• Challenging the rules of the game
• How to build a business that runs without you
• Customer Driven Market Change
• Creating Time to Think and Plan
• So You Think You Know Your Customers
For more information:
Please contact Andrew for a chat on
01280 844966 and for more information visit
www.coaching-business.co.uk

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Marketing they don't teach you at business school!

  • 1.
  • 2. 2 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Marketing They Don’t Teach You At Business School! The Best Way To Manage The Customer Journey by Andrew M. Pearson MBA www.coaching-business.co.uk
  • 3. 3 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Marketing They Don’t Teach You At Business School! The Best Way To Manage The Customer Journey A Great Company Takes a Great Idea That Puts It in Tune With Its Customers and Two Steps Ahead of Its Competitors - An Even Greater Company Will Exploit This Success With Another Great Idea! © Copyright 2012 Andrew M. Pearson ALL RIGHTS RESERVED. No part of this report may be reproduced or transmitted in any form whatsoever, electronic, or mechanical, including photocopying, recording, or by any informational storage or retrieval system without express written, dated and signed permission from the author. DISCLAIMER AND/OR LEGAL NOTICES: The information presented herein represents the view of the author as of the date of publication. Because of the rate with which conditions change, the author reserves the right to alter and update his opinion based on the new conditions. The report is for informational purposes only. Whilst every attempt has been made to verify the information provided in this report, neither the author nor his affiliates/partners assume any responsibility for errors, inaccuracies or omissions.
  • 4. 4 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk By the end of this E-Book you will:  Know what marketing is all about  Know how to be positioned, visible and credible  Know how to create a great reputation and outstanding relationships  Know how to identify your ideal customer  Know how to offer an impressive benefit  Know how to attract the right customers  Know how to increase your sales and profits  Know how to implement a marketing system that will attract new customers and increase the spend of existing ones ABOUT THIS EBOOK
  • 5. 5 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Page 5 CONTENTS 6 INTRODUCTION 7 1. VISION AND MISSION 10 2. THREE OBJECTIVES FOR BUSINESS GROWTH 12 3. CREATE A CUSTOMER – OR TWO 16 4. SOMETHING OF VALUE THAT’S DIFFERENT 20 5. THE IMPORTANCE OF THE DATA BASE 21 6. TAP INTO THE CUSTOMERS’ TREASURY 27 7. MULTIPLE MARKETING APPROACHES 31 8. PRICING FOR PROFIT 34 9. THE CUSTOMER JOURNEY 38 10. PLAN FOR EXPLOSIVE GROWTH 41 11. ADOPT A MARKETING MINDSET 42 12. BRINGING IT ALL TOGETHER 43 51 13. A MARKETING PLAN FOR YOUR BUSINESS 14. FOR FURTHER SUPPORT CONTENTS
  • 6. 6 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk The issue is this... … Many people have great products and services. But when they start to sell them, they are unable to convince their prospects and customers of their products’ benefits with compelling and promotable messages. Getting your marketing right is critical to your success, but many people who manage – or run their own – businesses have never been shown the best way to do it. This costs them tens or even hundreds of thousands of pounds in wasted effort, time and resources, not to mention all the lost business. Marketing is not about trying to persuade some faceless aggregation of customers to see it your way. It is about a dialogue over time with a specific group of customers whose needs you understand in depth and for whom you develop an outstanding offer over the offers of competitors. What is marketing? Peter Drucker, a great management writer, says that the aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. This is fine definition but in fact marketing is much more. Others pronounce that marketing is about establishing a targeted group of customers, products and services of superior value to offer them, and an efficient and distinctive means to archive this, that creates the requisite fit between what the customer wants and what the company does really well. So we have a mix of products and customers together with something that creates further significant differentiation. Is there anything more to add? Well yes in fact there is. Nigel Piercy states that marketing is also about a process of going to market and that as such it no longer belongs to marketing specialists but that it is owned by everyone in the business and how it is designed and managed. Marketing as a philosophy We should begin to note that marketing is more than a specialist activity. It is a philosophy. A viewpoint that suggests that a business and its decisions should be governed by its customers and what it does and that this affirmation of intent reinforced by an activity system that fosters differentiation all of which is supported by a customer driven organisation. INTRODUCTION
  • 7. 7 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk A business needs direction and goals. Ideally, this sense of purpose will be understood, shared and supported by everyone in the business, so that there is a clear, if not broad, direction for the activities and strategies required to achieve the ends, or goals, sought by the business. Ultimately, such clarity will provide the basis for more detailed objectives, tasks and performance targets for individual managers and employees. Establishing business goals and direction is a key role for any management team. VISION A vision is one of the most powerful tools available to any business and we can use it in many different ways – for the business as a whole, for a new product or service, or even as a solution to a business problem. However, when we use it, the effect is always the same vision creates a compelling force for development and change... so, what is yours? A compelling vision inspires and motivates people. It is a catalyst for stretch, creativity and innovation, and it adds meaning and purpose to every working day. There is an interesting principle involved her and it is this. When business leaders have the confidence and belief to aim higher and stretch for goals that are beyond their current levels of performance, they will do it; they have no option but to do things differently, to challenge every aspect of the way they operate and, hence, new ideas (and innovation) occur. I often ask business leaders what their objectives are, and they frequently reply with something like ‘carrying on doing what we are good at doing’. In a sense, this smacks of survival. In today's world, there is no safety in survival as a goal. Every business has the ability to radically change its fortunes, to achieve great things, if (and only if) it has the confidence to stretch for and set goals that go beyond what seems reasonable. VISION AND MISSION
  • 8. 8 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk MISSION Mission statements have become increasingly popular while those for vision are less prevalent. Of course, the lack of a published statement is not necessarily an indication of a lack of vision. Where they do exist, they reflect the company’s vision of a future state that, ideally, the business will achieve. Mission is the overriding raison d’être for a business. Many mission statements prove worthless, partly because they consist of loose expressions such as 'maximise growth potential' or 'provide products of the highest quality'. How can a company determine whether it has attained its maximum growth potential or highest quality? Primarily, the mission statement should address what an organisation must do in order to thrive. It should be positive, visionary and motivating. Mission statements and what they should contain Views about the desired content of a mission statement vary, but whatever the variations; there are principally four key areas of concern: 1. Business philosophy — what the business wants to be and how it wishes to be perceived by its stakeholders. The philosophy of a company may, therefore, encompass and emphasise the broad issues: the grand design, quality orientation, culture and ethos, role in wider society, public image and social responsibility. 2. Product-market scope — what the business(es) the company wants to be in, which is not necessarily the same as it is currently active in. Of concern is the customer base, the product/service offering and the core activities, technologies and capabilities to be exploited. 3. Company values — what core values guide the policies, behaviour and actions of people in the business, so that staff and management add weight to its core competencies and capabilities. 4. Critical success factors — what are factors that our business needs to be good at to succeed in the business and the company’s market place. A final word on vision and mission INDISPENSIBLE!
  • 9. 9 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk VISION AND MISSION Questions and Assignments TEXT RELATED 1. What is a vision statement? 2. What is a mission statement? 3. Does your company have either? 4. What are your company’s goals? 5. What would you do to set out to create / improve your vision and mission statements? 6. Imagine a time three years from now. You are in New York on a long week end break. You want to send a postcard home or to the office explaining where you are, what you are doing, what inspires you, business is doing well and what you have achieved - write the postcard home.
  • 10. 10 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk The starting point is to define your company’s overall financial goals. Are you able to do this? The next step is set out some marketing objectives that would enable us to achieve our financial goals. Actually increasing sales and profit may be more achievable than one might at first think! Many business owners and managers are daunted by the idea of being unable to increase their profits. They think it always involves increasing the number of customers. But when we think about the options, we get some interesting results, as the tables below show: OPTION 1: Target Increase Current Result Net Increase Gross increase • Increase the number of Customers by: 10% 20 2 22 • Increase the average spend by: 10% £100 £10 £110 • Increase the number of times people purchase by: 10% 10x 1x 11x • Your Turnover will increase by: 33.1% 20,000 £26,620 What the tables show is that an increase in sales turnover can be obtained by setting targets for sales increases in three separate result areas. These are first to increase customers numbers, second to increase the average spend and third to increase the frequency of purchase. If we know what the numbers are for our business, multiplying the three figures together should give us our existing turnover. This enables us to do ‘what if’ exercises to see what we can achieve. If we do this continually and focus on increasing each category by just 10% we achieve more than a 10% increase in our business, we accomplish a 33.1% increase! And if we increase each or any of these factors by more than 10%, we will achieve even greater results. OPTION 2: Target Increase Current Result Net Increase Gross increase • Increase the number of Customers by: 30% 20 6 26 • Increase the average spend by: 20% £100 £20 £120 • Increase the number of times people purchase by : 30% 10x 3x 13x • Your Turnover will increase by: 100% + 20,000 £40,560 2. THREE OBJECTIVES FOR BUSINESS GROWTH
  • 11. 11 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk By concentrating on these factors, and the leverage they can give us, we can develop a mindset to identify and implement the activities required to give our business the growth we target. OBJECTIVES FOR BUSINESS GROWTH Questions and Assignments TEXT RELATED 1. What turnover increase can you target? 2. Write down your company’s current turnover 3. Write down alongside what it is capable of achieving 4. Subtract one from the other for your turnover increase 5. How many new customers can you add? 6. What can you increase your customers’ average spend by? 7. What can you increase your customers’ frequency of purchase to?
  • 12. 12 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk THE PURPOSE OF A BUSINESS There is only one valid definition of the purpose of a business and that is to create a customer. This is wonderful thought. To create a customer actually instils something that suggests that the customer is so important that he or she is ours to look after and keep for ages! The majority of business owners and managers do this: they come up with a product or service, and then they expect to go out and find people to buy their products. This is a colossal mistake! If you have tried marketing this way, then you know how exhausting, time consuming and frustrating it can be. The reverse of this approach is to find the market first, find out what the people want, and then… let them buy what they have told you they want! Let me give you an example. Glen makes bespoke design-and-build wrought iron products. When I asked him who is customers were, he told me ‘anyone who’s interested!’ When I hear that sort of thing I start to wince — like sitting in my dentist’s chair and being told ‘Now relax this won’t hurt!’ I asked him what was the one thing his customers wanted the most? The best metals? A secret process? Friendly approach? An endorsement? It turned out that what his customers were really hungry for was real craftsmanship, with requirements ranging from weather vanes to car parts, and from garden gates to household ornaments, people were prepared to pay the going price – and more! Customers buy from us because they see something they want. We think it might be the product or service we offer. But invariable the value and experience that is wanted is something deeper. We have to find this, bottle it and use it as medication. What do customers buy? Here is a favourite example of mine. Reckitt Benckiser’s medicinal lemon drink Lemsip provides a great example of how to attract customers based on their emotional needs – quite unlike the efforts of Beecham’s, a close competitor, whose marketing is based on functional needs Beecham’s customers. In fact, Lemsip has enlarged its customer base by creating customers through its appeals to different customer groups. In the late 1990s, Lemsip was positioned to meet the needs of 3. CREATE A CUSTOMER – OR TWO!
  • 13. 13 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk busy women seeking the comfort of a warm, soothing medicinal drink. You may remember the campaign’s compelling offer was built around the statement ‘a hug in a mug’. A few years later (2003), Lemsip moved into another segment, young career-minded male executives, wishing to protect their advance up the corporate ladder, from other career- crazed rivals. You might recall the positioning statement at the time: ‘Life goes on’. The concept of a ‘hungry crowd’! At the end of the day a ‘HUNGRY CROWD’ is a steady flow of a group of customers that value what we have to offer and whose values match ours. The point of all this is to start to concentrate on spotting customers - hungry crowds. Listen to what people ask for, dream or complain about. It’s not enough for us to sell to people who CAN benefit from what you sell; we need to sell to people who WANT to benefit from the SOLUTION we offer. In fact you’ve got to find people who will CLAMOUR for your product, so that sales and marketing becomes a lot easier... Where is your ‘hungry crowd?’ There are lots of niche markets – our job is to find one – one around which we can build our product or service. Look at it this way - every product or service has the potential to appeal much more strongly to a definable group of people – or ’hungry crowd’ – more than it would appeal to everyone else. When you spot a ’hungry crowd’ and tailor your products and services to it, winning sales becomes much, much easier. There are several techniques we can use to find a hungry crowd; research is one, market sensing is another. There is no shortage of techniques. In the process though our assessments should unearth answers to three relatively distinct questions; ‘who’ will buy, ‘what’ will be bought and ‘why’. The first question; ‘Who is buying?’ attempts to describe the characteristics of the customers within our current market or market to be examined. The second asks what needs and wants customers have. Here we unbundle all the features of a purchase so that we arrive at a list of what is bought. And third ‘Why are they buying?’ examines the behaviour of our customers. Taken in unison, we place ourselves in a better position to create a proposition of value with which to match our customers’ needs. Make sure your ‘hungry crowd’ meets the right criteria It is one thing to find a hungry crowd but quite another to choose the right one. Some criteria are needed. Here are some 1. Does this hungry crowd have something in common with our values? 2. Does it read certain publications, or visit specific websites? Are people in it members of certain clubs or associations? Can we easily reach this group in large numbers? 3. Is this group ALREADY spending money to meet the need we think they have or
  • 14. 14 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk achieve the goal that we can help them with? How do you know? 4. Can our proposed market afford our solution? 5. Does our proposed market WANT our solution? 6. Can we give a compelling reason why this group should do business with us instead of someone else? 7. Will we enjoy working with this particular ‘hungry crowd’? 8. Which unique collection of capabilities would enable us to do more for our customers than our competitors? and 9. What capabilities do we need to be able to do more for our customers than competitors? If you can’t say ‘Yes’ to all of the above questions, then I strongly suggest that you go back to the drawing board and save yourself a whole heap of heartache. A NEVER ENDING PROCESS!!! The question a business leader should ask is: ‘Am I rediscovering new viable hungry crowds?’ No customer group will remain the same forever. Aggressive competitors not only imitate attractive offers, they create new ones. This means that established companies must continually strive to discover new customers for their business. We must continually watch out for what our customers want and need. Some of us have a tendency to think that this means developing new products or services. But this isn’t necessarily the case. Customers may enjoy our products and services but have different and changing priorities. We need to identify and keep abreast of these. Often we can find new customers or changing needs and priorities and create fresh space to operate in. Then of course there are customer groups that are not being served by our products and services and we need to find them too. Remember this takes time so do not rush but think through what we have said here and think about what you need to do to UNDERSTAND your customers needs and priorities over the long term!
  • 15. 15 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk CREATE A CUTOMER – OR TWO! Questions and Assignments TEXT RELATED 1. What do your customers need / want? 2. Is there a danger you are actually telling them that they need you? 3. What are your customers’ current priorities? Remember you may have several different types of customer buying your products and services right now! 4. Can you define them by who they are, what they buy and why they buy? 5. What feedback are you getting to pinpoint/establish the value your customers seek? 6. How often do you do this? 7. What customer groups are not being served that could be being served that you should be developing? 8 Are there any new needs or priorities on the horizon that you should be attending to?
  • 16. 16 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk THE PRIMACY OF VALUE Here is a practical matter; one which is probably the biggest issue for us to tackle! The challenge is how to please an increasingly sophisticated customer. Yet to fully appreciate what customer value is accommodates revelations and variations in what customers actually value. Success is directly related to our ability to provide perceived value to customers because customers perceive value only in the benefits that our products and services provide. These perceptions are almost always connected to our ability to produce superior products, tailor such offerings to targeted customer groups and back all this up with advanced services. What do customers buy? There are enumerable forms of value - types of demand being placed on us by new customers. Take a look at some of them listed below: 1. Quality does not always reflect what we think of as value; customers define it. 2. Products and services that were once new and expensive are sometimes expected to be FREE. For example, we once paid for broadband. 3. Just as suppliers demand loyalty, so do customers. 4. Both high quality and best prices are expected. 5. Customers seek simplicity, proliferation and duplication are frustrating. 6. Intriguing new and innovative products and services will be interesting for customers that want t 7. Products and services that offer customers the chance of feeling or being treated differently; the iPhone, designer fruit juice and a financial services package are cases in hand. 8. Products and services that create an experience and enjoyment for the customer at the point of purchase will afford enjoyable memories. 9. People want to feel good about the things they buy; therefore, sellers that are socially responsible or ethical will be valued. A proposition of value It follows that if we understand what customers’ value we should make known that we can provide the value sought by our customers in a compelling way in comparison with your competitors. Thus customers and prospects may see and understand why they should buy from us. 4. SOMETHING OF VALUE THAT’S DIFFERENT!
  • 17. 17 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Has your company got a value proposition? You might answer the question with an emphatic “YES!”, and if this is so, try jotting it down. If we are unable to state what makes our offer more attractive to our selected customer groups more effectively than competing offers, then, it is likely that we will not have a unique strategic position. Let me illustrate the point with some well-known examples. For example, the written value propositions of the following three businesses describe the positions they aim to take in their customers’ minds. SOME EXAMPLES • ‘The internet in my pocket’ – Apple iPhone • ‘Ladies and gentlemen serving ladies and gentlemen’ – the Ritz Carlton Hotel chain • ’25 Years: Still red hot!’ – Virgin Atlantic. Finding a Value Proposition There is no fixed format for defining a value proposition but we can find one if we dig deep enough to find the real reason why customers buy from us? Remember they’re only interested in what our product or service will do for him/her. If all we are doing is telling our customers about the knobs and whistles on our products we will never find out what’s important to your customers. There is no fixed format for defining a value proposition, but a series of questions – such as those listed below – will help Find the Value. The point about being different The question of SUSTAINABLE differentiation is also important. If our value proposition is any good our competitors will want a slice of the action. The answer is to develop a special and distinctive activity system; in other words a ‘value system’ that offers additional A seven-step process to create a value proposition 1. Create a list of 7 key features of your service offer 2. Ask which 3 features that offer the value being sought are the most relevant 3. Ask which of the three is the most important 4. Ask why that feature is more important 5. Recap and ask again, why that point is so significant 6. Ask who else might value hat sort of benefit 7. Try to convert your findings into a few words
  • 18. 18 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk inimitable advantages of importance to customers and which also distinguishes our business from its competitors. Consider for a moment the difference between Zara and Marks and Spencer, easy Jet and British Airways, as well as the Ritz and Premier Inns. When you consider each case we can see how a company’s activity system can give its offer sustainable competitive strengths - even advantage. Thus if business marketing strategy is about being different then the essence of superior value is to select and to perform activities differently, or to perform different activities to those of competitors such they that cannot imitate or equal with their operations. One last point; approaching sustainable differentiation in this way is dependent on creating a unique combination of activities (and competencies) that support and reinforce one another.
  • 19. 19 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk SOMETHING OF VALUE THAT’S DIFFERENT! Questions and Assignments TEXT RELATED 1. What value proposition do you offer your customer groups? 2. What is the basis of your value proposition(s)? 3. What can you do to offer something with an angle to be noticed? 4. What value or experience are you offering your customers when they buy your sort of product? 5. What value or experience are you offering your customers when they buy your sort of product? 6. How often do you do this?
  • 20. 20 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk It is possible that most of us have heard about companies that use customer databases. But many companies know very little about their customers. Most think they know their customers and everything about them. Most think that ‘all you need to know is located in your brain or a file cabinet in your office.’ THE 5 REASONS WHY A CUSTOMER DATABASE IS IMPORTANT Is it conceivable that if we stopped to think about it we might just realize how much we benefit from setting up a simple customer database system? ‘How can this be done?’ you ask. Well, let' me give you five reasons why a customer database will help a company grow and prosper. 1 Access to information First of all it is likely that a considerable amount of information, if not paperwork is strewn throughout your office without any sort of organization. You may know where it all is, but do your people? They may need that information to help your customers. A customer database puts all of that information in a central location where all employees can access it. 2 Knowing our customers Second and I believe we are getting to the heart of the matter now. Just how much useful information do you have about your customers? For example; do you know who spoke with your customer last? What do we know of their preferences, service issues, birthdays, interests and so forth. Do your people? Probably not! Without a customer database system, you run the risk of looking unprofessional and unprepared because your employees may not know about your customer's work history or needs. A customer database puts that at your employee's fingertips. 3 Knowing when we disappoint them Third is the issue of customer satisfaction. This is something that’s possible to track on a customer database system. How will anyone know what our customers are thinking about the work we do? If they are dissatisfied with what we do and how we go about doing things we can make adjustments according to their complaints. 5. THE IMPORTANCE OF THE DATABASE
  • 21. 21 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk 4 Creating loyalty Next is the frequency of their visits to us? We need to know if our customers are returning to us. If not, the hard truth is that it may be because of problems connected to our offer and service. Customers feel secure knowing that their service suppliers know most things about their needs and remember them from job to job. If we do not have a customer database we run the risk of losing customers to our competitors who can offer the package we have. And that can hurt. 5 Keeping costs down Fifth and finally I want to present the reason for a database. If you have a list of customers that have bought from you it is well worth remembering that a person who has purchased something from us, is more likely to buy from us again. This means that the cost of marketing to them in the future will be far less when compared to trying to get someone new to buy your product or service. You may have a customer database system in your company. But if you have not then you may wish to set one up. It will help improve your business in all areas and will only help you become a stronger business owner in the process. This, in turn, will mean a better business and more customers coming to you again and again. Who knew all of that could happen by becoming organized and implementing a customer database?
  • 22. 22 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk THE IMPORTANCE OF THE DATABASE! Questions and Assignments TEXT RELATED 1. What data is important to your business? 2. What will you do to capture data?? 3. Do you know where your customer groups congregate? 4. How will you communicate with your customer groups? 5. What will motivate your customer groups to respond to your communications? 6. What will motivate your customer groups to respond to your communications?
  • 23. 23 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Now then we move to something that is often taken for granted yet seldom applied. It is a subject that relates to our customers – our existing customers to be precise! I would like to start with two questions. They are these: Put your thoughts here Question 1 In percentage terms, how many businesses do you think try to raise sales by increasing the number of customers they work with rather than trying to increase sales from existing customers? Question 2 If you are, or are not, one of these businesses to what extent do you think your business is losing opportunities to gain more sales from existing customers? EXISTING CUSTOMERS It has been said that more than 95% of businesses concentrate their entire attention on trying to get more customers, apparently unaware that it costs 5-15 times more to gain a new customer as it does to correctly serve an existing one. Also we should note that a correctly served existing customer is 5-15 times more likely to buy from us than a new one, and a customer who has bought 3 times is far more likely to buy from you again than a customer who has bought once. So if gaining a new customer is up to 15 times more expensive and they are up to 10 times less likely to buy from us than an existing one – what tactics should we operate to optimize the potential with our existing customers to gain maximum loyalty and profit? Tactics for existing customers As you can imagine there are a number of these. And I have listed and outlined a number of tactics below: Referral systems First a referral system often generates an extremely positive impact on our sales. One of the great features of a good referral system is to impart a sense of invitation; that visitors would be especially welcomed as we invite guests to our home. Referral systems vary from business to business but there are things that we can do to increase the number of referrals. We can ask for them, alert customers to the fact that referrals are a vital part of our business and we can reward them - and we can develop and introduce a referral system. 6. TAP INTO THE CUSTOMER’S TREASURY
  • 24. 24 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Communicating with customers Second communicate with existing customers. When did you last mail them, or call them or consult with them? There may be opportunities to communicate with our best customers by letter or email items that would be of interest to our customers and appreciated them. Such things as birthdays, holidays and events come to mind and may distinguish us from competitors Another tactic along these lines is to set out a clear and ongoing sales process to provide customers – and even customers that have stopped buying from us - with compelling new offers and a ‘back-end’ of further products or services Yet another is to check with our best customers to find out how enhance our relationships with them and see how they are doing. Then there is your value proposition. This should be visible to all customers and should clearly articulate the top three benefits that our product and service offers The possibilities are endless. Sales processes This is really important. There are of course a number of processes that have inveigled their way into sales literature but one that I would advocate here is nothing more than adopting a conversational approach. It ensures customer focus and above all relationship development. In fact good marketers and service suppliers do not have to sell they coach their customers. By helping prospects and customers to make the best decisions for themselves, we add trust and genuine value. You can ask these questions in any situation to help guide and lead your ‘selling’ activity. Remember the suggestion is a generic one. Each question should be modified so that is business specific. 1 How can I help you? Contrast this with a style that tells! 2 What works well already? Do not rush to find the want or need, take time with this step, build a real rapport and trust and get to the real wants later. 3 If you could change one thing what would it be? Avoid quick assessments and long lists of need and want, coach customers gently to get to their root likes and wants. 4 If we solved this, what difference would that make? Feel free to repeat the question in several ways. Ask for the benefit of the benefit. Keep going until they cannot think of anything more. These are the reasons they will buy. 5 If I could help you with that, would you be interested? Either they are or they aren't. There is little point in spending time on a solution where there is not genuine interest. Therefore seek an alternative. Up sell and cross sell with add-ons and volume There are two ways to deliver benefits to customers, offer higher margins than the core product and make a difference to turnover.
  • 25. 25 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Add on product and services The first method is give customers the means to add related items to their basic purchases which when combined provide greater satisfaction. This means that service and sales people should be aware of the relevant combinations so that customers can choose from over their initial interest. There are three opportunities, and they are to: 1. “Up-sell” to with a different more expensive package from one of say 3 options for the same product (different pack sizes or something that enhances overall value), 2. “Cross sell” with other products (cheese with wine) 3. “Give away” complementary products Incidentally if ideas for up sells and cross sells are hard to come by, ask your customers for some help. Remember though to consider what customers want or value from the products and services they buy. Then against each one prioritise how these wants or values might be increased to benefit the customer. Time and volume options The second way is to help customers decide the quantities and qualities in which they want to purchase our products. For example consider what larger unit of purchase might benefit customers in some way. A discount for regular purchases or a ‘best buy’ with a discount or a free bonus incentive for choosing this preferred option are alternatives.
  • 26. 26 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk TAP INTO THE CUSTOMER’S TREASURY! Questions and Assignments TEXT RELATED 1. What data is important to your business? 2. What will you do to capture data?? 3. Do you know where your customer groups congregate? 4. How will you communicate with your customer groups? 5. What will motivate your customer groups to respond to your communications? 6. What will motivate your customer groups to respond to your communications?
  • 27. 27 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Any attempt to grow our business can meet with sluggish results even though we have got the other result areas mentioned here in place – it’s almost certainly our MARKETING TACTICS that are holding us back and restricting us to lacklustre results. MARKETING TACTICS How many of these marketing approaches are we using? Most businesses use only one or a small number. If we really want to optimise the potential of our business success it is vital to develop a number of approaches into a multiple marketing profit making machine. Such tactics, and there are many more, may be used to attract leads from the core of your market and others then used to nurture and convert warm leads into customers through a range of outstanding offers in a process of patient communications and relationship building in pursuit of advocacy all taking place in designated niches. “FRONT-END” AND “BACK-END” TACTICS There is one important thing to bear in mind and that is that we can separate marketing tactics into two camps; “Front-End,” and “Back-End.” We should think of “Front-End“, as the first sale; the pipeline that brings new customers into the business. The “Back-End” is the product (or hopefully the series of products and services) that you sell to your customers after they have purchased your initial offering. The question to ask now is what tactics you should use in each area. They are: • Front-End : The marketing tactics employed to attract and acquire new customers. • Back-End : The marketing tactics employed to optimize the profitability of each and every customer relationship. 7. MULTIPLE MARKETING APPROACHES Risk Reversal Telephone Marketing Advocacy Newsletters Direct Sales Joint Ventures Price promotions Advertising PR Special Events Conference Calls E.comms Sequenced Mailing Internet Advertising Referrals
  • 28. 28 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Clearly front-end marketing is vital for your long term business success. This is why it’s so important to inject the power of marketing into your business so that you can increase the number of customers that come to your business as a continuous flow… The facts behind front end and back end marketing Let me ask you some questions, answering them should help you grasp the importance of front end and back end marketing. Let’s review these questions before we go any further, however, should you want to see the answers to them, you will find them at the foot of this section. Short and long term issues In the short-term we can almost always make more money from a back-end promotion than a front-end promotion. Back-ends have a much higher conversion rate, they usually sell for more money, and we make a larger percentage of profits on them too. Why is this, you ask? Well it is because it is easier to sell to a customer than a prospect. But what about the long-term? Well, long-term we must have new customers entering into relationships with our business, or eventually we will be put out of business. This means of course that we must spend time developing effective front end promotions otherwise our competitors front end offers will eventually turn ours into a lame, and undesirable ones. You see many managers and business owners get engrossed in back end sales it is so much easier and more profitable, who wouldn’t want to spend all their time devising new schemes to launch one offer after another to customers? Five principles to guide multiple marketing approaches The thing is of course to find a balance for these five very important reasons: If we do not have clearly established paths for our new customers to take after their initial purchase, it will be very difficult to test and establish the best sequence of offers on the back- end. The source of future back-ends comes from our successful front end promotions. If we fail to keep in touch with the market place we will be forced to get back into it to work out what customers want, what their priorities are and what trends and shifts in our market impact our competitiveness. 1. Which sale is harder to make, the front-end or the back-end? 2. Which end faces more competition? 3. Which end requires constant innovation? 4. Which sale has a higher conversion rate? 5. Which end do you make bigger profits from?
  • 29. 29 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk While back-ends contribute a greater percentage of today’s profits, today’s front-ends will contribute even more profits in the future. The customers that have the greatest potential value are the ones that are acquired most recently. Every business has an attrition rate and if we are not bringing in more customers than the rate of attrition, we risk losing important cash flows - every day. By now the logic behind this different approach should be somewhat obvious. The upshot therefore is that we need to plan multiple approaches to attract new customers at the front end and optimise sales at the back end. Oh! Yes I almost forgot here are the answers the questions we posed a little earlier. The answers Some last words In coming ending in this section, remember the definition of marketing. Marketing is bringing the market to desire your product or service. Given this definition the question is this; are we doing any type of marketing whatsoever, and if we are where is the focus of our efforts? It is conceivable that far too many people mistakenly believe that the only effective marketing and advertising is the type that goes for the sale and for the most part the immediate sale. This type of thinking really is flawed that can cost business people a tremendous amount of lost profits. You see, the thing that is so important in business, is to live at the heart of your customers market and continue to sell the knowledge, the product, the service, the story and the system that we have created that we have designed to make a difference in people’s lives. In a sense the only way to convince people that we can deliver on our offer is to show our product or service in action. Just like Nike shows its products in action by fitting out the sports people we admire the most. MULTIPLE MARKETING APPROACHES! 1. Which sale is harder to make, the front-end or the back-end? The Front-End 2. Which end faces more competition? The Front-End 3. Which end requires constant innovation? The Front-End 4. Which sale has a higher conversion rate? The Back-End 5. Which end do you make bigger profits from? The Back-End
  • 30. 30 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Questions and Assignments TEXT RELATED 1. What marketing tactics are you currently employing? 2. What are they intended to achieve? Explain your objectives for each tactic 3. What tactics can you employ at the front end to attract customers to your pipeline? 4. What tactics can you employ at the front end to optimise sales at the back end? 5. What are the hazards of concentrating on tactics at the front end or at the back end? 6. In the light of your answers consider a strategy to both attract customers at the front end and optimise sales at the back end?
  • 31. 31 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Here’s a question? What do you think would improve the bottom line? 1. A 10% increase in price 2. A 10% reduction in costs or 3. A 10% increase in volume sales BE WARY OF REDUCING PRICES You will find that most people would opt for options 2 and 3 (volume sales or cost reduction). But when you get down to it, a price increase will often lead to profit improvement - if you can get away with it. The sceptics among you might argue, “a price increase will only work if you do not lose sales”. Be wary of stimulating sales by cutting prices. It may boost top line turnover, but it can devastate your profits. And think hard before cutting costs. You could decrease value, lose custom and damage your hard earned reputation. Raising prices meanwhile, may jeopardise turnover, but can in fact create a fitter business, a focus on loyal customers, reduced working capital all of which engenders a higher rate of return. One further issue is that we should never compete on price alone. We should start by making sure that what we are offering exactly what meets needs of our customers, and sell on best value rather than lowest price. Sell what someone wants and they’ll pay for it. Sell what no- one wants, and we will not even be able to give it away. Here’s how to do it - and go “up market” What follows is a shortlist of pricing tactics for high value products some of which are pretty familiar. 1. Guarantees – Often customers will part with their money more readily and pay a higher price, if they know that they can get their money back if something goes wrong 2. Outstanding service – Study after study has shown that customers are willing to pay more if you give them great service. Research also shows that companies that provide great service grow twice as fast as those with bad service 3. Price as an investment – Describing your price as an ‘investment’ rather than a cost can often go along way towards persuading customers to buy 8. PRICING FOR PROFIT
  • 32. 32 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk 4. Explain why – Be prepared to explain why prices have risen, perhaps as a result of cost increases, and point out that, had it not been for improvements in your own productivity and efficiency, the increase would’ve been even higher. Better still; explain that the price has increased as the result of improvements to the quality of the product. Emphasize the enhanced customer support, faster and more convenient delivery and other factors which make the product better and therefore worth paying more for 5. Justify your prices - It is vital to have a strong justification and defence for your high prices prepared in advance. This is likely to include knowing the prices of your most expensive competition, demonstrating the savings and benefits from your product and demonstrating that your product is hugely superior and therefore slightly more expensive because… 6. Use “Non-price increases” – For example, consider charging extra for installation, delivery, insurance, handling, storage, urgent orders or rapid delivery. You should also try increasing your minimum order size and introducing a surcharge for any orders below that threshold, revising your discount structure, slimming down the specification of your product and stripping out any expensive features that are only limited value to the customer, and charging interest on overdue accounts 7. Change the package – If a customer tries to knock you down on price, don’t change the price, and change the package. In other words, never simply crumple on price. Always trade a price reduction for some concession from the customer e.g. a larger order or cash up front.
  • 33. 33 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk PRICING FOR PROFIT! Questions and Assignments TEXT RELATED 1. How do you know that you are charging the ‘right' amount for your products and services? 2. Have you tested higher prices? 3. What marketing tactics will sustain premium prices?? 4. What price promotions could you employ at the back end?
  • 34. 34 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk THE MARKETING FUNNEL – WHERE CAN YOUR BUSINESS DO BETTER? Having a consistent flow of customers year after year remains the no. 1 challenge for most managers and business-owners. Attracting a steady stream of customers and commanding higher prices are important goals. One way that this can be done is to a customer journey system or funnel method of marketing. Picture a funnel! It's wide and open at the top, and small and narrow at the bottom. A marketing funnel is exactly the same. Many prospects enter the funnel at the top but only a few continue down to the bottom. Those who make it to the bottom are your high value customers. In simplistic terms, all you have to do is attract many prospects in at the top and turn them into customers in the funnel and therefore profits should come out the bottom. It is a very powerful way of thinking about and how you want to spend time and money in marketing and building your business. However, there are two important things to note. First, many businesses spend plenty of money attracting people to their companies, but not enough making sure that these people are converted into sales. Secondly, small businesses often neglect marketing to existing customers. Marketing efforts should also be focused on moving people down the marketing funnel as well as into it at the top. LIVING AT THE CORE OF THE CUSTOMER’S WORLD Promotion does not work. So rather than hit the market with another leaflet or even more telesales, what if you aim to build a reservoir of leads with tactics in the heart of the niche - the customers world - so as to let your reputation appreciate in the minds of a sufficient number of potential buyers? It is a known fact that you will never sell our products and use your skills until you are trusted. Until somebody has confidence in us, he or she is unlikely to want to buy from us. For that trust to be created, our prospects must know about us to begin with. Rather than go searching for customers, your objective is to position ourselves in such a way that they find you! Tactics for Living at the Core 9. THE CUSTOMER JOURNEY
  • 35. 35 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk 1. Create a Point of Recognition – the sales points you offer match the needs of your ideal customers … it is far easier to be found in a niche with a convincing and a compelling offer and credible point of difference than on terrain with little variation. It is this positioning that actually underpins credibility – not how well we do what we say we do. See Chapter 4 Something of Value that’s Different. 2. Who Needs to Know About You to Come to You? – So who and how many people need to know about you in order to generate the volume of enquiries you would like to receive? All this means that it is vital to specify and describe clearly the niche(s) you are in. 3. What Are Your Routes to Them to Generate A Great Reputation?”- These routes include the strategies listed in Chapter 7 Multiple Marketing Strategies. PERFECTING THE CUSTOMER JOURNEY With the aim being to move people down the funnel one major mistake that many companies make is to only have one type of service. This often leads to one of two scenarios. Either the service company becomes inundated with work and is unable to fulfil additional orders, or no one is buying the service. The solution is to offer more layers in your marketing funnel. People may not wish to take a leap of faith and purchase an expensive service from you but they may be interested in ‘testing the water’ with a smaller purchase of some kind. Therefore offer lower-priced introductory products and services such as a cut-down version of your main service. Trust It takes a while for people to begin to trust a potential supplier so you should initially provide a means to allow a relationship to develop. Once in your marketing funnel you can then market to your prospects and encourage them to make a couple of lower value purchases. Having seen the quality and/or benefits first-hand you will be in with a good chance of moving those customers towards the bottom of your marketing funnel. Not everyone will follow you through the funnel from beginning to end, in fact, only a few will, but these will be the customers who will make you more money in the end. Others will never spend more than a certain amount with you, but they might do this for years to come! And don’t forget – once your customers near the tip of the funnel the marketing need not stop there. As we have seen today’s marketers need to build a more authentic, deeper relationship with customers by truly engaging them to earn their loyalty—and this is how companies can begin to cultivate advocates.
  • 36. 36 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Thus the client journey moves a level deeper to account for advocacy. There are two reasons that cultivating and enabling advocacy is critical in today’s world: 1. People trust other people more than they trust companies. A recommendation from a friend or family member is still the single most important criteria in making a purchase decision and recommendations from strangers online also hold more weight than marketing messages. 2. With the growing voice of the customer online and the “power” (virtual megaphone) handed to them through social media outlets, it’s important to help make sure the voice of happy customers is louder than that of the few unhappy customers. Cultivating and enabling advocates will generate authentic word-of-mouth, bringing the best new customer prospects into the marketing funnel.
  • 37. 37 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk THE CUSTOMER JOURNEY! Questions and Assignments TEXT RELATED 1. What's in your marketing funnel? Take out a sheet of paper, draw a funnel shape and list the products and services you offer. 2. Do you see any gaps in your offerings from free or low priced to high priced? 3. Work out what you can do to fill these gaps with a range of carefully priced or attractive options! 4. Do you have advocates in your business? 5. What ideas do your loyal customers give you to help you expand your business 6. What could you do to help them refer and or advocate your business?
  • 38. 38 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk THE ROLE OF METRICS In recent years measurable performance and accountability have become essential keys to marketing success. But few managers and business owners appreciate the range of measures or metrics by which they can evaluate and improve their company’s marketing strategies. Consequently we must select, calculate and explain crucial marketing (and business) metrics. We must understand how each is constructed and how to use them in decision making. And so as the old adage states; ‘If you can’t measure it, you can’t manage it’ we must identify the measures that will help us evaluate our plans and actions, explain variances, judge performance, and leverage points for improvement in numerical terms. The role of processes All this requires a strong command of the processes that enable us to set measures of performance. Every business is made up of a series of processes that convert inputs into outputs. It is in these very themes of input, conversion and output that we have the means to understand how each process works and what it delivers and then to do everything we can to improve them to achieve more output from every input. Therefore, one of the keys to making our business more successful is to identify our businesses’ most important processes. TWO IMPORTANT METRICS There are metrics for almost anything. Key ones that concern us are measures such as; customer service, customer satisfaction and willingness to recommend, product profitability, customer profitability, sales effectiveness, cost per transaction and so forth But for now we would like to mention two fundamental metrics that are so robust that just knowing these two numbers will give a pretty clear idea of how well our business is performing. Let me define these two terms for you: 10. PLAN FOR EXPLOSIVE GROWTH! Cost Per Acquisition The marketing and advertising expenses needed to generate a new customer. Online, this includes money spent to entice the visitor to the web site, the payroll costs of a live rep if there is live chat on the website, etc… Lifetime Customer Value The total value (in terms of money spent) of your average customers spanning the entire period that these customers are likely to do business with you.
  • 39. 39 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk There are a number of ways to calculate these metrics. For example we could calculate the lifetime value of a customer by the total amount of money spent in the lifetime customer value equation, and or the total amount of profit received. Alternatively we could use cost per acquisition to determine what is spent to convert a prospect into a customer. Let’s say that the life time value of a supermarket customer is in excess of £50,000. Or to put it another way, the average customer will spend more than £50,000 in his/her lifetime at the supermarket. It means of course that when we go into complain about the broken bottle of jam and they respond by telling you that you must have done it, they have just waived goodbye to at least £50,000! Imagine if a business loses just one customer per day and the average customer-spend is £50 per week, then the net loss to the business is a staggering £949,000! Couple this with a couple of other statistics like discount rate and the net present value of future cash flows and you begin to see why customer retention is so critical. What are you accomplishing? But, before we go any further, can you rattle off what your business is currently paying to acquire a customer? Even better, can you break your cost per acquisition down from different sources of feedback (word of mouth recommendation, advertising etc)? And can you state what the lifetime or long-term value of your customers is? And once again, what about the value of the customer broken up by the different sources they were generated from?
  • 40. 40 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk PLAN FOR EXPLOSIVE GROWTH! Questions and Assignments TEXT RELATED 1. What are your most important processes? 2. Do you measure their performance? 3. What is the life time value of your customers? 4. What is the cost of acquisition? 5. How can you improve each important process? 6. Are you able to get everyone in the team to think about how to improve each one? 7. Do you generate further ideas by talking to customers find their needs and priorities?
  • 41. 41 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk There are two types of mindset. People tend to fall into one category or another. There are those that put marketing to one side. They believe that they have a great product or service and assume customers will buy them. Invariably they don’t. Then there is the other mindset, here people go out and get good at marketing. These people believe that business success is down to good marketing. These people will actively take an interest in their customers, and will want to find their needs and encourage them to buy their products with couched in matching benefits. Whatever category we are in, we must begin to appreciate the main processes ‘of going to market.’ In other words identify and implement the marketing tools, tactics and plans that are so necessary to market your business in practice and categorically how to make it happen. 11. ADOPT A MARKETING MINDSET
  • 42. 42 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk So there you have it; the fundamentals of marketing, packed into a ‘crash course.’ What comes next is a short summary of the main principles to develop a marketing strategy. There are five essential principles to consider all which that contribute to overall profits and to the overall success of your marketing; 1. Your objectives. Set out an overall turnover and profit target and establish objectives for new customers, increased average spend and frequency of purchase 2. Your customer group (or niche). Identify your niche and a compelling promotable message that creates an “I‘ve got to have that!” response. 3. Your offer, by this I mean the package that demonstrates the overall value of the offer is worth the cost of paying for it. 4. Your database. When it comes to marketing the most important thing is the database – without it sustainability is doomed. 5. Your multiple marketing approach, these need to speak to the niche, build relationships with its incumbents and tackle their needs and wants convincingly. The key is to unite an offering of superior value with a targeted customer group, together with an efficient and distinctive game plan, or means, to create a fit between what the customer needs and what the company does really well in the face its competition. Let me put it another way! Let your targeted and distinctive offer be the brass and your game plan be the gold! Blend the two metals in the refiners fire and what will you gain? You will bring into being rich Corinthian metal, fit to compare with the creative castings of other marketers that have created their own shining reputations in business. 12. BRINGING IT ALL TOGETHER
  • 43. 43 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk A MARKETING PLAN FOR YOUR BUSINESS NOW TRY THIS - SOME WORK FOR YOU Complete the tables below to build your marketing plan 1. VISION AND MISSION VISION MISSION Business definition Core competence Values Indications of future direction Refer to Section one to draw up a vision statement. Summarize the overall mission statement – or sense of purpose and put this into a marketing context in terms of required marketing objectives.
  • 44. 44 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk 2. FINANCIAL GOALS Period 2010 - Sales Value (£) Sales Volume (units) 3. POSITIONING - CUSTOMERS AND OFFERS 1) EXISTING CUSTOMERS Customer group name Customer characteristics Criteria for selecting as a priority Product - service mix Compelling offer 2) EXISTING CUSTOMERS Customer group name Customer characteristics Criteria for selecting as a priority Product - service mix Compelling offer List target markets in order of importance, describe each, state why each is important ascribe particular products/ services and the offer to each.
  • 45. 45 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk 4. MARKETING OBJECTIVES 1) INCREASING SALES FROM NEW CUSTOMERS No. of customers Transaction value Total Now Aim 2) INCREASE SALES FROM CURRENT CUSTOMERS No. of customers Transaction value Frequency of purchase Total Now Aim
  • 46. 46 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Refer to section 2 to define objectives for new and existing customers. Also relate these objectives to the customer groups that you have identified in Step 3 of your plan. 5. MARKETING TACTICS The key thing is to plan and carry out what you are comfortable with but also what will put you into the core of your customer’s world – this means that a certain amount of “stretch” is required on your part. One way of choosing your tactics is to ask yourself whether or not the tactic; • Can help you develop an opportunity • Is applicable • Can be implemented • Is important • Help make you different • Can offer value Remember, you cannot select an excessive number of tactics to operate. Careful planning and timing is required. But even then you will find that you will establish what works for you so your final selection will follow quite a bit of trial and error. Remember the importance of multiple approaches? Consider your tactics from front end and back end perspectives. 1) FRONT END:INCREASE THE NUMBER OF CUSTOMERS Tactic Timing Contribution to sales 1 2 3 4 5
  • 47. 47 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk 2) BACK END: INCREASE SALES FROM CURRENT CUSTOMERS 6. PROCESS/CUSTOMER LIASON Areas requiring attention Issue Required Action Customer information Product information Information on prices Information on offers Product support Promotions Customer feedback Communications with customers Complaints Suggestions Sales results Interpersonal relationships Training Tactic Timing Contribution to sales 1 2 3 4 5
  • 48. 48 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk Research Other This is the business helping customers, making life easier for customers to deal with the business, improving flows of information and communications. 7. SUMMARY OF PLAN TASKS TIMING & COSTS Tasks Person responsible Dates for activity Anticipated cost Implications The main marketing activities should be entered into column 1. People must now take ownership of identified actions and potentially contribute to identifying them, determining schedules and costs.
  • 49. 49 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk 8. MARKETING METRICS Metric Current Result Planned Result Actual Result Gap Reason for Gap 1 Sales, profit by product and by customer 2 Visits, customers, retention 3 Customer satisfaction, willingness to recommend 4 Sales effectiveness and results 5 Sales on offers, promotions and prices 6 Cost of acquisition 7 Lifetime value 8 Others Determine measures for benchmarking purposes. The list measurements are extensive. These or alternatives may be chosen but the application of metrics leads to better decisions which leads to better results.
  • 50. 50 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk 9. COST AND BUDGET SUMMARY Task Cost Implication for the business Summarize the costs/budget for each of the main marketing tactics/activities and outline the implications from the combined totals of these costs.
  • 51. 51 COACHING BUSINESS 01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk For further support Call Andrew Pearson on 01280 844966 or email andrew@coaching-business.co.uk About Coaching Business! Andrew M Pearson Coaching Business Andrew M Pearson NDA, Dip M, MBA is considered to be a prominent expert in the fields of strategy, marketing and operations management. He tutors at Oxford Business School and is also a visiting lecturer at Warwick University. In addition to UK business school experience he has led and presented seminars and workshops at business forums throughout the world. He has extensive experience as a business coach, consultant and management speaker and has worked with managers and management students in the UK, Europe, China and Libya. He focuses on issues of strategy development, planning and implementation. His publications include; How to Invent New Business and How to Build a Business that Works Without You. A third volume, entitled The Strategic Manifesto, will follow in 2010. Andrew set up his first business aged 25 and steered it to market leadership and a turnover of £11m in 6 years. Since then, he’s held senior management and professorial posts at a number of UK firms, including four years with Cargill, during which he founded pioneering strategies for business development in Eastern Europe. Clients include: • A P Moller Terminals • Andersons Consulting • BALI (SE) • Centaur Grain Ltd • Channel Express Ltd • Dart Plc • Edexcel • Everglade Windows Ltd • Fowler Welch Ltd • Hartley’s Nurseries Ltd • LEAF • Mack International Ltd • Palmstead Nurseries Ltd • Velcourt Ltd Further E-books and coaching support: • Transforming the Process of Going to Market • Rejuvenating the Mature Business • Challenging the rules of the game • How to build a business that runs without you • Customer Driven Market Change • Creating Time to Think and Plan • So You Think You Know Your Customers For more information: Please contact Andrew for a chat on 01280 844966 and for more information visit www.coaching-business.co.uk