The ONLY 3 Ways to Increase Sales in Your Small Business
Have you ever thought about the function of marketing in your business?
Is it to “get your name out there”? Or is it to generate leads? Or, is it to brand your company?
It’s all of that, but the very best marketing delivers ready to buy prospects, making the only function of your marketing to increase sales.
Regardless of the type of business you are in, there are only 3 ways to increase sales under the sun. The 3 ways are…
1. Get a Higher Price
2. Get More Clients
3. Get More Sales from Existing Clients
Get a Higher Price. If you are able to increase your price without losing too much in volume, your top line would increase. If you raise your price 20% and lose 20% of your sales volume, you are still making more profit. If you raise your price 50% and lose 50% of your sales volume, you are still making more profit.
How to get a higher price for your service- and have people stand in line to pay it
Over the years I have positioned myself at the highest price in 3 industries and have helped others do the same. The key to getting a higher price for your service is to position yourself in the right niche. We call it getting rich in the niche!
In the classic marketing book Positioning, Jack Trout and Al Ries explain that positioning is really taking up a “slot” in the mind of your target market. Kind of like a file cabinet has a specific file for a specific brand. For example, when I say laundry detergent, what comes to mind? When I say soft drink, what comes to mind? And luxury car? You see, there is a brand that occupies that file in your mind.
Your goal is to position your brand in the mind of your perfect niche market. Why a niche market? If you try to be everything to everyone, you won’t be anything significant to anyone.
This is what Starbucks has done with coffee. It’s what Harley Davidson has done with motorcycles and what Whole Foods has done in the natural foods industry. It doesn’t matter what you think of these companies. What matters is that the target market for each of these companies have embraced the brand and enthusiastically hand over their money.
To learn more about positioning your company, contact Phenomenal Products. We offer training programs to help you do this.
How to get as many high end clients you want
(without expensive advertising)
Everyone agrees that “word of mouth” is the best advertising. Everyone knows the power in someone telling another person about a service or a product. The problem is that “casual” referrals do not always create a phenomenally successful business. To generate a massive number of referrals, you need a phenomenal referral marketing system.
There are many other ways to market your business that we also use. Direct Marketing and Internet Marketing Strategies we use are very good, but our biggest return comes from our referral marketing.
What I mean by Referral Marketing is marketing to a referral source rather than directly to the end user. This is especially important with high end clients. High end clients (we will call Mercedes Clients in this illustration) prefer to buy through a referral. Typically a high end client will get a referral from a trusted friend or a trusted adviser – a consultant who in turn refers you – another consultant.
My definition of Referral Marketing
“The process of building a network of sources that will refer multiple clients to your business”
Top 10 Reasons Referral Marketing is So Effective
Reason #1: Your Network Unlimited. As you begin to build relationships with powerful referral sources and you get your clients to refer you, the network continues to grow with no end in sight.
Reason #2: Higher Quality Clients- Since Mercedes Clients seek out a referral, you get higher quality clients just from being “referral based”. Referred clients usually don’t even ask about the price. They are more concerned about quality than price.
Reason #3: Pre-Qualified Clients – By educating your referral sources, your prospective clients will be pre-qualified therefore they will already know you charge more.
Reason #4: People Trust Referrals –Wouldn’t you agree that referrals already have a level of trust for you? Sure they do. They trust you because the person they trust knows about you.
Reason #5: Reduces Competition – With referral marketing, you are no longer fighting for the best ad placement, or getting copied. Relationships are hard to duplicate.
Reason #6: Low Cost – With the right referral marketing system, you won’t spend money on expensive advertising. The cost is very low for referral marketing. Even with a Referral Reward Program (which I highly recommend), the cost is still extremely low compared to most advertising.
Reason #7: High Returns – The returns can potentially be huge. In many industries a 4 to 1 return on investment on advertising dollars would be outstanding. In other words, if you invested $1000.00 in advertising, you would get an average of $4000.00 in return. With referral marketing, if you pay a 10% referral reward and everyone cashed in on it, you would have a 10 to 1 return. In my reward program, I get a 20 to 1 return.
Reason #8: Returns Guaranteed – With a referral reward, you don’t pay it until after the product or service is paid for. With traditional advertising, you put your money on the line and hope for a return.
Reason #9: Small Time Investment – The biggest objection I get to referral marketing is “time”. See Reason #10 to overcome that challenge.
Reason #10” EXPO-NEN-TIAL MULTIPLICATION!!
Would you be interested in how investing just a few minutes a day doing something really fun would give you a return of over $10,000.00 in new business each and every month after 6 months? Of course you would. Even though I can’t guarantee it, I have seen it happen many times.
Here’s what I discovered with referral marketing:
If you invested just 30 minutes per day calling on powerful referral sources (companies that are in a position to refer you on a regular basis), do you think it’s possible to generate just $1,500.00 in new referrals in a one-month period? See the light blue column on the chart. Not too difficult for most small businesses.
What I discovered about referral marketing is that once you win the confidence of a referral source, they will continue the habit of referring you , unless you give them a reason not to. You will then continue to develop new referral sources each month to the tune of $1,500.00 each month.
All told, at the end of six months, you would be at over $10,000.00 per month in NEW referred business!
This is how I built my first company from the trunk of my car to a consistent $2.5 million per year. This is how I built a powerful training business, and it is the same method I have taught countless small business owners to use around the world. It will work for you too.
Your Referral Marketing System should include: Consistent networking, Referral Source visits, mailers, and e-mails at minimum. There are also a number of phenomenal joint-ventures, events and strategies that are amazing. To learn more about my Phenomenal Referral Marketing Systems, contact Phenomenal Products.
The Lifetime Client Marketing System – How to DOUBLE YOUR BUSINESS without adding a single customer!
The biggest marketing mistake of all is not marketing to your existing client base. Those who have already spent money with you. Did you know that statistics reveal it costs 500% more to gain a new client than to keep an existing one? Did you also know that without consistent marketing, many of your clients forget to call you and eventually end up using someone else?
It’s a hard fact to swallow, but it’s true.
A multi-industry study by The Wharton School of Business, University of Pennsylvania revealed that companies who increased their customer retention rate by a mere 5 to 11 percentage points actually increased their profits by an astounding 25 to 75 percent, depending on the industry!
Back in 1999 I was mailing four times per year to my client base. That kept my repeat rate (something you need to be tracking) consistent. I wondered what would happen if I increased the number of mailings to 12. The investment was around $20k, but the trackable return was over $200k in the first year! is my experience that many companies can double their business in the next 12 months without actually adding a single customer.
5 Critical Reasons to Market to Your Client Base
1. Get a higher price. One of the reasons to constantly be in front of your past and existing clients (other than the fact that your competitor) is marketing to them, is to reinforce your brand message which positions you at a higher value. Translation: Higher price. Constantly remind them of the reasons to always use you and build the unique experience around your company.
2. T.O.M.A. (Top Of Mind Awareness) Just because you did a great job doesn’t mean your customers will remember you. I had six thousand dollars worth of plumbing done in my commercial building. I completely forgot about the plumber that services my home. Why? Because he doesn’t have a system to stay in touch. Do you? How many of your customers are gone because of it?
3. Sell more products and services. You probably have a variety of products and services in addition to your “main” product or service. Marketing to your past clients can dramatically increase your income and profit margin!
4. Increase frequency of use. Getting your clients to purchase more often is another powerful thing that can add lots of dollars to your business.
5. Referrals! If your client has trouble remember your name, much less all the wonderful things that set you apart, what are the chances they are going to be good referral source? A strong client based marketing program can dramatically increase your referrals, especially if you have a Referral Reward Program.
Your Client Base Marketing System should include regular mailers,
e-mails, thank you cards or letters, surveys, referral cards and phone calls.