Too Busy for Marketing
Business is good. You’re busy and making money. Yes, not all customers are equal. Some are better than others, but overall, you’re doing ok.
When you have time, you check the bottom line and notice that while turnover is good, profit is tightening. You look at your costs and think, if I’m busy, do I need to spend as much time and money on marketing? To be honest, its more the time than the money because you don’t really spend much on marketing.
So, you wind back your marketing to spend more time with your customers, a good thing. A better service, more customers.
But more customers doesn’t mean better customers. It might instead mean smaller margin customers. More price sensitive customers. It might mean more needy customers.
Over time, you might see the loss of some of your largest customers, only to be replaced by the small margin, price sensitive, needy customers. But you’re still too busy to do any marketing.
These changes occur slowly over several years. Like boiling a frog in slowly water, the market changes. What works today, doesn’t work tomorrow.
Customers no longer see the quality and value in what you provide. You know you are better than your competitors, who seem somehow to be able to get the premium customers. Their secret is that they are marketing while you aren’t. While their service may not be as great as yours, a lesser service well promoted will attract more and better customers than a better one with inferior or no marketing.
Even if you are busy, you must always be marketing. You can’t coast in business. If you are coasting, you are going downhill! Pretty soon you end up with profitless turnover.
Look at the margins for each of your services. Has there been a shift over time? Does the Cost per Sale (which includes the sales you don’t get) justify the margin? Do you know what your Cost per Sale is? How have your conversion rates changed over time for each product? How has the customer quality changed with time?
When was the last time you gave yourself a pay raise?
Analyse the structure of your business. See where the gold mines are and close the black holes. Refocus your marketing to attract your premium customers supplying you with the premium margins. Build a Sales Pipeline for those customers and slash your Cost Per Sale.
Spending more time marketing doesn’t mean longer hours if you are attracting high margin, price insensitive, easy to deal with customers.
How will you become busier with your marketing?
May Your Business Be – As You Plan It.
Dr Greg Chapman – The Profit Whisperer
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