Weekly Edge

Every Advertising Dollar Spent should be an Investment

Marcus Everett - Wednesday, February 27, 2019

Every business, small or big, advertises in the hope of finding new customers, yet at the same time most view their advertising as an expense rather than an investment.

 

As any business owner knows, you get returns from investments, not from expenses, so understanding that you're investing your advertising dollar in the hope that it will bring you a return is the only way looking at your marketing and advertising that makes sense.

 

Unfortunately this thought process happens too seldom because in the average business, the owner has little if any idea what the return on their investment is.

 

Why?

 

Too often the average small business owner doesn't take the time to measure the response that each marketing piece generates, leading to that uncertainty.  Sure, you might think your latest radio commercial, which you spent $2500 on, is drumming up business, but what if it’s your social media, that you spend virtually nothing on, that is generating the leads for you?

 

If you don’t know what your resources are doing for you, how can you ever really know how to use them most efficiently?

 

If you were to invest your money in a stock or a piece of real estate, you'd most likely keep a very keen eye on what returns you were getting from that investment, wouldn’t you?

 

So why doesn’t the average business owner look at their marketing in the same way?  After all, it’s a helpless feeling when you aren’t sure whether you're getting any return at all from the money you invest.


So how do you find out what return you're getting from each marketing piece?

 

You simply ask each customer who calls, or comes into your store how they found out about you.  You then record their response, and calculate how much business each advertising effort generates.

 

Yes it will be time consuming and you may not get every single customer right, but it will give you an idea of what works and what doesn’t and you can move forward from there, deciding which campaigns and materials are worth keeping or updating and which can be thrown in the trash.

 

But most importantly, once you've worked out the marketing campaigns that are making you money, or at least paying for themselves, and the ones that are costing you money, you'll be able to stop throwing good money away and start to increase your profits.

How to successfully manage your business and your life

Heather Frame - Wednesday, February 20, 2019

If you’re like most business owners, you have more to do than time to do it.

 

But too many entrepreneurs get so wrapped up in their business, they forget to take care of the other aspects of their lives.  And the results can be devastating!  Families are neglected, friends are lost, and physical and mental health of the business owner declines (just to name a few).

 

So here are some tips to successfully manage your business and your life:

 

§  Put systems in place – Mistakes are made when processes are not systematized.  When processes are consistent, fewer mistakes are made and there are fewer fires to put out.

§  Take the day off – Despite the temptation to work a 7-day week, take at least one day for yourself.  You will see  your productivity and your health improve (not to mention how happy your family will be to see you)

§  Go home – Set a time schedule for yourself.  Schedule the number of hours you will work and stick to that plan.

§  Set your priorities – There’s always another crisis to save.  So be sure to make special occasions with friends and family a top priority.  Don’t allow a business ‘disaster’ to hold you back.  After all, there’s bound to be another one tomorrow.

 

You’ve probably heard all these tips before, but unless you are willing to take these suggestions to heart and make a change, then you’ll never be able to effectively manage your life.

 

And remember, nobody ever lay on their deathbed wishing they had spent more time at the office!

Is your database up to date?

Marcus Everett - Wednesday, February 13, 2019

Do you have a database of your customers?

 

As you know, it is far easier to sell back to someone who has bought from you before than it is to someone who has never bought from you.  So, doesn’t it make sense to know who these people are!

 

Keeping an accurate database of all your customer’s means you ensure you have all the right names and addresses.  This is important if you have a large database that you do not regularly check.  It is especially critical if you base much of your business on mail order and direct mail.

 

If your database is out of date, you can waste a lot of time and money contacting inactive customers, or sending mail to an old address after your clients have moved.  By regularly updating your database you can be sure that your time and money is being well spent.

Moments of truth…

Heather Frame - Wednesday, February 06, 2019

Do you know what your Moments of Truth are?  They are times when it really counts to impress someone with your service.

 

Do you know what yours might be?

 

Take the time now to list as many of them as you can.  Be ruthless with yourself.  A good place to start is with your customer interaction.

 

Once you’ve jotted down some of your Moments of Truth, you’ll begin to see why it is customers leave you for a competitor.  You’ll begin to develop ideas to stop this in its tracks.

 

Before we go any further, here’s some statistics about why customers leave that may startle you.  They are:

 

1% due to death

3% due to a house move

5% due to buying from a friend

9% due to being sold by a competitor

14% due to finding a better product or price

68% due to perceived indifference

 

These figures are staggering.  68% of your customers leave because they perceive your business to be indifferent to their needs.  They feel you just don’t care.

 

Now look at how many leave because of the efforts of your opposition.  The figures are so small as to be almost negligible.  Only 9% are swayed by the active efforts of your competitors, while a mere 14% find a more attractive deal elsewhere.

 

Remember the 80:20 rule?  If you were to really do well with only 20% of your customers, you’d be looking after those that account for 80% of your revenue.  So how hard is it to hang on to that 68% slice of customers who leave just because they think you don’t care about them?  Putting this another way, how easy would it be to retain that 20% of customers who contribute the most to your bottom line just by treating them well?  Why do all the difficult (and costly) things to shore up your bottom line when a simple remedy like offering great customer service can do it for you?