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| Business Development |
 Divide to Multiply - Your Path to SuperPROFITS
- Part 1By Mara Osis - Action International No matter what your business is, only a few basic but universal ways exist to grow it. Yes, there are hundreds of ways to improve business results but, if you look closely, you’ll see that your profits come from five basic sources. By dividing your efforts between these five, you’ll multiply your bottom line results! 95% of businesses miss the boat by focusing on only one or two growth sources. This three part article will show you successful strategies for putting “The Five Ways” to work in your business - whether you are a retailer, service company, or business-to-business firm. Renewing Your Customer Base - Whether you are just starting out or well established, you will always be looking for some new customers. Even a referral-based business can suffer attrition or other set backs that necessitate adding to your client base. ‘New business’ means generating leads. This could involve substantial cash outlay, so lead generation should be only one component of your growth strategy. When you are just starting out, you may have little choice, but NEVER undertake lead generation without solid strategies in place for closing the sale. Not only will you waste your investment, but you could create a negative image for your product or service if you stumble during the follow through. Follow That Lead! - There are hundreds of lead generators, but only a few will work well for YOUR business. Choose methods that are appropriate for your product, target market, and goals. Strategies for a retailed consumer product won’t work for an ‘non-tangible’ professional service. Approach advertising with caution when personal selling is not an option. It’s tempting to ‘get your name out’, but that’s a luxury for smaller businesses - you need sales results! Trade image for information, and include offers and ‘calls to action’ in the advertisements that your target audiences will see. Love is blind when it comes to your own product or service. Don’t fall into the trap of defining your market too widely. Know your prospect’s demographics (age, income, education, family makeup) but also their attitudes, values, and beliefs. Find out where they gather, what they read, and how they make purchasing decisions. Finally, review your marketing objectives and sales goals. Never choose a medium just because it’s inexpensive. Make sure you have the resources to follow up leads that come in. HOMEWORK: Determine how many leads you’re getting, and what’s working for you now. For the next week/month, track contacts, calls and walk-ins AND ask, “How did you find us?” It’s Not Yours Yet! - Our lead generation investment doesn’t pay off until you close the sale. If you contact four prospects for every new customer, your conversion rate is only 25%, and your acquisition cost increases. Once the prospect is in the selling environment, your actions are critical. Here are conversion strategies that work in just about any business. Reduce the pain of the buying process. Question, then listen deeply to uncovered needs. Provide ease and convenience - good parking, staying open late, wide selection or options, knowledgeable people, good turnaround, and delivery. Differentiation is key. Know your unique selling proposition - whether you are best value, leading edge, fastest, friendliest, etc. Tell your ‘magic story.’ Create a memorable buying experience. Increase customer confidence and your credibility with displays of awards and testimonials. Use tried-and-true scripts, and always ask for the sale! Survey consistently, those who bought and those who didn’t. Finally, find ways to stay in touch. Don’t push, but do persist. HOMEWORK: Measure your current conversion rate. It may be lower than you think! The Magic Starts Here - Once you know your lead generation and conversion rates use the formula below. First, apply a 10% increase to one factor, then try increasing both:  A combined focus on lead generation and conversion minimizes the cost of acquiring a new customer - three more customers for the same investment! Next issue we will look at proven ways to increase your revenues further, through customers who have already bought from you! Mara Osis works exclusively with owner-operators who want more out of their businesses…& more out of life. Contact Mara at 403.225.0906 or maraosis@action-international.com |