In this article we will discuss small business marketing tips I learnt when listening to a fantastic audio interview by Tony Robbins of Jay Abraham. For those that don’t know about Jay Abraham he is an absolute marketing guru having generated over $9.4B of increased sales for businesses worldwide. Jay has spent the last 25 years solving problems and significantly increasing the bottom lines of over 10,000 clients in more than 400 industries worldwide. Jay’s site has some wonderful free small business marketing resources to fast-track your business’ growth.
If you haven’t heard this wonderful interview I encourage you to access it here.
Here are the small business marketing tips I discovered that you can apply in your business today!
1. When creating a sales document, be it an advertisement, flyer, landing page etc, make the headline the benefit the customer will receive rather than a description of the product
2. As a starting point to work out how much you can spend to acquire new customers via marketing and advertising you first need to understand the lifetime value of your existing customers. In a worse case scenario, what is the minimum they purchase from you in the initial sale, how much will they purchase from you over the rest of the year and what is the average number of years your customers remain clients?
3. An example of the above Jay talks about in the interview is a business that changed the way they remunerated their sales staff from paying 20% of upfront sale to 100% as they worked out that the $200 gross profit they made upfront was small in comparison to the $2800 they made thereafter from repeat sales. As this increased sales staff motivation sales tripled. Can you apply this to your business?
4. Another example is a business that went to radio stations and said that they would give them 100% of the profits on any sales they made, once again because they understood the lifetime value of the customer was far greater than the upfront sale they were giving up
5. The above tips highlight the key with any product you are selling. Work hard on developing a backend sales strategy as that is what allows you to provide valuable front end benefits to those promoting your products
6. There are three ways to increase business, increase the number of customers, increase the unit of sale, increase the frequency of purchase or residual value of the customer – you can do the latter by offering an inducement to repurchase from you
7. One thing that holds many people back from pursuing the above small business marketing strategies are often their expertise. They know their industry so well but they only know the way their industry operates in respect of how they attract customers and thus their expertise inhibits them. Most people in industry are doing things the same way +/- 20%, it could be selling through trade shows or trade publications, telemarketing, selling through subcontractors/affiliates. One of these is the primary way each particular industry participant attracts business and most ignore all other alternate ways of marketing to potential customers.
Here are the 4 steps to deal with this -
- How much more can you sell to existing customers eg repeat sales of the same product or complimentary products
- Consider first are your existing customers and/or those you have sold to in the past happy?. “Can they see or seize the specific benefit you said you would be able to offer them?
- Go back to each customer you have sold to in the past and tell them the specific values they received from dealing with you and ask them to confirm they did receive that benefit. Touch on the emotional gains they have received. Then denominate it in dollars the benefit they received from dealing with you
- Ask the customer after showing them all the emotional and tangible benefits they received by dealing with you to think whether there are any friends or family of theirs that would benefit from the same value they got. It becomes a question of morals then as the customer doesn’t want to have their friend or family member miss out on the benefits you got!
8. To increase revenue from your marketing & sales efforts first establish what is the current status quo and the variance ie what are your current baseline conversion rates (meaning of all your different marketing approaches what is the least successful and what is the % of converted sales are you getting from this strategy) and what is the variance in those conversion rates between different strategies. The goal is to raise the baseline & lower the variance.
9. You achieve the above by testing all your different methods and either replacing your baseline sales/marketing strategy with that which produces a better result or if the baseline strategy is working well enough and is profitable keep that strategy going and build a broader base by introducing new strategies, testing the ones that produce a better result and stopping the ones that don’t.
10. The following is an example Jay gives of a company that sold gold, silver & rare coins by physical delivery. With Jay Abraham’s marketing advice they were able to turn a business turning over $300K p.a. to one making $2B in sales! Here’s how he did it, step by step.
- First step was to undersell their service ie get the customer comfortable first by encouraging them to invest less than they had the capacity to
- Once the customer was comfortable they got them to buy more of that particular investment whether it was gold, silver or rare coins
- They then sold to the customer another one of their products, eg if they originally bought gold they sold them some rare coins etc etc. Once again a little bit at first then a little bit more
By the successful application of the above strategy you will increase the residual value of each customer (allowing more to be spent on marketing/advertising upfront to attract more potential customers like them)
11. Revenue generation opportunities – have a think about what you do in your business that is done better than others in your industry. Turn that knowledge into a product you license as a training program to your competitors or those that sell the same type of service as yours in a different region.
12. Want to know the four critical factors in generating a lead? 1. How much does the lead cost? 2. What is the conversion rate? 3. How much is the unit of sale? 4. What is the residual value of the customer?
13. What are the key questions you need to ask about your business’ sales & marketing efforts? 1. Where is your business coming from? 2. Where are your repeat customers coming from? 3. Are you “offering more” to those customers who are frequent buyers of your products or services? 4. Who stands to benefit more than you by you being more successful? It could be your customers, suppliers etc 5.Who has already put the time and effort into acquiring customers you are targeting that could make an introduction to them of yourself in a positive way? 6. What other ways can I benefit from the goodwill of my customers in and ethical and beneficial way? 7. What ways can I reduce the risk of a transaction not occurring to increase conversion rates?
14. Risk Reversal Techniques – How to increase lead conversion rates – You first need to understand that in every transaction there is always one side that is being asked to take on the majority of the risk of a transaction. If you can think of ways in which you reduce the risk to customers in a transaction you will own the business. It could be a money back guarantee, free trial period etc. In reality there is usually always an implicit guarantee that if customers aren’t happy they will be refunded but it is often swept under the carpet. You will get much better results if you make that abundantly clear from the outset. Reduce the risk to the customer in the transaction.
INSIST THAT A SATISFACTION GUARANTEE BE A CONDITION OF DOING BUSINESS WITH YOU
NB this won’t work if you don’t have something of value to offer. Ask yourself this question when considering this implicit guarantee DOES YOUR PRODUCT PERFORM AT THE LEVEL YOU PROMISE?
15. What is your Unique Value Proposition (UVP) – what is the UNIQUE benefit that you bring to the customer. Not sure? Think about products you have purchased, what motivated you buy these products? What was the outcome or result you were expecting having purchased that product or service? How did they convey that to me? What selling/closing/risk reversal methods did they use? Once you have had a look at this think about how you can build those techniques into your own UVP
16. Think of other companies that offer services that you offer in other districts. If it is clear that neither of you will ever compete in each other’s markets look to strike up relationships to share resources & ideas. Then go to businesses that are similar, then to people totally outside your industry and just pick their minds. Why do this? Because discovering other methods, other ways of doing things is what will deliver you a competitive advantage.
17. Think of the types of products and services that a customer needs to either have or have in the future to make utilising your product or service work for them and seek to make associations with companies that offer those services
18. Finally, would you like to know how to value a business? Well of course this should be very clear in a well prepared business plan but one good way is to determine what is the value of a customer to that business? Are there ways in which more sales can be made to that customer at a higher unit price and more often and across multiple products? If a business has the capacity to do these things, chances are it is worthy of considering.
I hope you enjoyed reading this article as much as I did sharing it. Have you used any of the small business marketing tips mentioned above? What has worked and what hasn’t? Do you have other tips?
Feel free to share your comments below!