Back to Black (Out of the Red)

Clients and other consultants often ask us variations of the following question:

“Which step of your system generates the most profit in the shortest time?”

Now I’m sure we’re not the only consultants to hear this type of question. The question is rooted in the nature of business. The question is also rooted in our human nature. The question may be a capricious query stemming from a desire for instant gratification, or it may be a desperate plea of one who has nothing more to lose.

Those familiar with our system know that we believe marketing is much more than getting more prospects inquiring about your product or service. We believe that marketing should be systematic, and simultaneously do three things:

1. Increase your qualified prospects

2. Increase your conversion ratio of prospects to paying customers

3. Increase the value of each individual customer

The reality is that any number of things could be what catches on and creating the desired results, that’s a big reason why a system is important.  Anyone with experience would agree that putting all of your eggs into one basket is not the wisest of methodologies.

But if there are three ways to grow, why do so many advertising and marketing firms only focus on one?

The beauty of being able to create growth in three separate areas is the mathematical assurance of exponential growth when all three work together. This exponential aspect of our system has allowed us to guarantee results for almost 20 years now. Providing your clients with a guarantee: that they will get more of what they want – profits – out of what they already have – assets, is a fun thing to be able to do.

Is there just one right answer to the question of the largest ROI in the shortest amount of time?  No, there are many.  But, if you are interested, we’ll share with you what our experience in the last 20 years has been.  Of the 7 steps in our system, we have recognized one that seems to consistently produce extraordinary results.

As a consultant, how often do you hear someone tell you they “need more customers?”  As a business owner, how often have you though that “more customers” would be the answer to your problems?

Many times a business owner or manager thinks the solution to their problems is more customers, but after evaluation, it is clear that they don’t need more customers, what they need is to get more out of the prospects that are already coming their way.   In other words, there is plenty of room for growth through increasing the conversion ratio of prospects to paying customers and increasing the value of each customer.  Working on the marketing and sales processes from the inside out is much more efficient than trying to bring in more customers.  There are mounds of statistics that show that maintaining a customer is anywhere from 5-10 times less expensive than trying to acquire a new one.  In fact, in some cases, bringing in too many prospects when the business isn’t equipped to handle them could be detrimental.

If you haven’t already guessed it, I’m talking about Step 2 of our system: “Integrating the USP” into your current sales and marketing processes.

It goes without saying that developing an effective USP (unique selling proposition) is the necessary first step here, and this is so much more than branding, positioning, or developing a creative slogan or catch phrase. What good is creative and targeted messaging if it’s not communicated effectively? Not just in advertising, but by all levels of the company, in every aspect of the customer experience.

After creating a Unique Selling Proposition, Step two ensures that the USP is integrated in to the sales force, in scripting, in literature, and in presentations. It is so crucial for the marketing and sales departments to be on the same page here. Anyone who answers the phones needs to be communicating the USP. It needs to be on the website, everywhere. Integrating a powerful USP into your sales process is a very quick and easy way to increase both the conversion rate of prospects to paying customers, as well as increase the value and worth of each individual customer through the average transactional value and the frequency of purchase.

In conclusion, there are many ways to increase your bottom line, getting you out of the red and back into black. Our experience has shown that one of the quickest and most effective ways of doing just that is through the comprehensive integration of a powerful USP.

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~ by 21stCenturyMarketingSystems on February 11, 2010.

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