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~~ The Outstanding Results in Marketing ~~
Leading Small Business Marketing Newsletter
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Welcome back to Outstanding Results in Marketing!
In this issue:
1. Golden Rule #8 of Successful Advertising.
2. Scratch your… discount - brilliant retail strategy
3. Getting Referrals - the seventh step in
Advanced Successful Selling.
4. How To Write Headlines That Get You Up To 300% -
400% Better Response
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1. Golden Rule #8 of Successful Advertising.
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Never ever run any advertisement without monitoring the response. In other words, if it doesn’t sell your products get rid of it. FAST!! 99% of ad agencies, newspaper and radio reps hate the idea of monitoring.
Their advice is “Repetition is the key to success!!” The only trouble is, they are referring to …
Their success - Not yours
Since they get paid by the quantity of advertising you place, it’s not always in their best interest to teach you how to halve the amount of advertising you do and double the effectiveness.
And that’s exactly what is possible. Once you find an advertisement, sales pitch or marketing strategy that works - - keep doing it. Remember, the market place is constantly changing. You may get tired of seeing the same old ads but your new and existing customers will not.
If it’s working don’t change it!
Statistics New Zealand tells us 57,890 people were born in this country last year and 28,140 died. If your advertisement sold baby clothes to new mothers this year, it will probably work just as well with new mothers next year.
If you were an undertaker and your advertisement attracted new customers this year, it will continue to work next year and the year after.
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2. Scratch your discount - What A brilliant retail strategy ========================================================
Now, if you are in The Retail business - this is your day, if not - your day will be in the next newsletter.
I have a confession to make - I don’t like shopping, MMM no let me make that very clear “I Hate Shopping with a passion!”.
Maybe this is a male thing {To Findout Check Out Your Preferences here}. However my lovely wife Erlinda likes to shop.
So, once in the blue moon I give up and we immerse ourselves into Retail Therapy.
As we walked into one of the shops, friendly shop assistant approached us and to my delight didn’t start with the standard old “may I help you?”. Instead she introduced herself - “Hello Jennifer” - I said. Jennifer asked if we’ve been there before and then gave us a “Scratch & Win Ticket”
She explained that we just need to scratch it - just like a lotto scratch ticket - and it will reveal OUR discount on any item in the store.
We did and to our excitement is was 30% off any item.
Jennifer mentioned that 30% is quite rear, most of “scratches” today had 10-15-20% discounts.
What Do You Think we DID?? What would you have done?, did we use 30% discount to buy any items in this store?
You betcha we did!! - we’ve spent healthy $136.50 on nice $195 dress.
Did we plan to spend this money in that shop?
Maybe, But I don’t think so, hmmmm…. Would you like to have their conversion to sale ratio in your business?
I am guessing that they would have increased sales by at least 50% during the time they ran this “Scratch & Win” promotion.
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3. Getting referrals - the seventh step in Advanced Successful Selling.
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Now, if you have missed the article on the sixth step - Ask for Order (aka Close) - you may review it here ..just look back through this blog.
The easiest way to build your business is through word of mouth. This is if you have clients. What if you have got just started?
In order to get referrals you need to communicate with your existing customers or if you haven’t got any - you need to network.
For some of the businesses I work with the idea of communicating with their customers is not that appealing, they would rather spend thousands of dollars soliciting new business, than leveraging off their existing clients. :twisted”
Consider this example - let’s say that it costs $20 to attract a new customer and $5 to keep an existing one. Also let’s say that your business has got just 30 customers.
Should you focus on finding new customers and actually attract 10 of them, this will have cost you $200 or $20 times 10.
Since your focus has been elsewhere, because at the end of the period you find that you have only 5 of your original 30 customers Left. Each of these customers has cost you $5 to retain, so your total retention costs are $25 or $5 times 5.
The net result to your business is 15 customers, 10 new, and 5 retained, at a total cost of $225. Your average cost per customer is $15.
Now, let’s say that your focus had been on keeping customers (customer retention) rather then attracting new ones, and you decided to spend extra $3 per existing customer.
You attract 3 customers as a cost of $60, or $20 times 2. However your retention efforts mean that you now retain all 30 of your original customers at a cost of, $240 or $8 times 30. This time your total cost is $300, at an average cost per customer of $9.09
In the second case, your total costs for the period are
$75 greater. However your business has now 33 customers, over twice the number achieved with the first strategy.
The sad fact is that even in those businesses that understand this, and say they have a focus on retaining customers and getting more value from them, they can’t help but spend 70-80% of their marketing budgets on trying to get new customers. As soon as they got them and sold them - they tend to repeat..repeat and repeat
Now, let’s consider third scenario… No, I’m not going to bore you with the numbers this time, - consider that you’ve spent $5 more per customer on a formal referral program. So that 50% of your existing customers have successfully referred someone else to your business.
If you still follow the numbers you’ll end up with 49 customers.
The key here is FORMAL and SYSTEMATIC referral strategies.
Personally I have collected and used on various occasions
106 referral strategies. They definitely work and I spend almost nothing on advertising.
Why is it easy to get business through referrals?
Simply because it’s not you who’s promoting your business, but someone who has had experience as a customer and was extremely satisfied. You are biased and they are not, therefore other people believe they can be trusted more than YOU!
I would Like to invite you to tell me the best thing you’ve done to promote your business. I’ll share it with all of my subscribers, so that everyone can benefit, plus your business will be promoted for free. Axel@getleverage.biz and Put in the subject line “BestThingThatWorkedForMeWas”
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4. How To Write Headlines That Get You Up To 300% - 400% Better Response
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Why do most of the main articles in magazines start with headline relating to disaster, murders, sex and corruption? Well, I’m going to tell you. Its because that’s what sells newspapers.
It attracts people who read newspapers and sometimes even those who don’t, and they buy it.
The only purpose of a headline is to target the person you want to reach and to sell them on
wanting to know more.
The headline therefore becomes the ad for the ad. It must be strong enough to “flag attention” and stop the reader, listener or viewer “in their tracks”. Its job then is to entice them to read on or pay further attention to the message that follows.
Let’s face it; we all have natural resistance to advertising. These days we are bombarded with
thousands upon thousands of commercial messages. Unless the headline is of particular interest, or in some way says “I’m talking to you!” we will tend to ignore it.
How to target your market with your headlines
Being clever, humorous, or obstructive is one of the dumbest wastes of money you can make, when it comes to headlines and ad writing. Don’t do it.
Instead come up with a headline that communicates your purpose for running the ad and then qualify the reader. For example:
“If You Are Looking For a Convenient Source For Quality Plumbing Supplies, We Sell 100% Guaranteed Plumbing Parts Exclusively To Contractors At 10% Over Cost, With 30 Day Invoicing And A Special Added Discount for Orders Over $1500.”
Or
“Here’s a Quick & Easy Way To Become Tight, Lean Attractive, Radiant, And Remarkably Healthy In Just 45 Minutes, Three Times A Week… 100% Guaranteed Or You Pay Nothing.”
Whatever you sell, and whomever you want to reach with your offer, be specific. Call out to them in your headline. Send your message directly to your target prospects, and tell them what you are offering, and what’s in it for them.
On the average, five times as many people read the headline as read the body copy. When you have written your headline, you have spent 80 cents out of your dollar.
To achieve maximum results advertisers should put themselves in the customers shoes and say
to themselves “What’s In It For Me?”
Just remember W.I.I.F.M.
How effective are your advertisements? Are you getting the response you want with them? If not Call Axel or Jason and we will help you at least double the response you are getting with
your advertisements, while cutting ad costs - guaranteed.
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This is a fresh result from one of our clients:
“Axel was working with me since October 2004. Our first marketing campaign was a mail out to
120 of our non-active clients. The result: 30 of them have booked their appointments, spending in excess of $750. The cost of campaign was $60.
Axel keeps things simple and gives us hands-on help with writing the letters and ads. Next campaign has netted us $1,400 in sales. This campaign cost us around $100.
Axel has provided us with CRM database and has helped us to customize it to suit our needs. As
the result we can now track new business and keep in touch with existing customers. We are now moving into e-mail marketing, so I expect the cost of the marketing campaigns to be even
cheaper and results even better” N, Owner, Beauty therapy
Now, if you’d like to know how similar results can be achieved in your business, register
your interest by clicking on link bellow:
mailto:info@getleverage.biz?subject=TellMeMore&body=AxelHowDoYouDoThis
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In Next issue:
1. Golden Rule #9 of Successful Advertising.
2. Getting testimonials - the last step in Advanced Successful Selling - don’t get it right and spend fortune on soliciting new business.
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And finally the thought of the month:
Expect nothing - enjoy the unexpected