Weekly Edge

Do you know what really works for your business?

Heather Frame - Wednesday, March 13, 2019

Testing and measuring is the most important thing you can do for your business.  Every aspect of your business, no matter if it’s a marketing campaign or the nuts and bolts of selling your products or services, must be tested and measured to ensure your business is running at it’s peak.

 

If you don’t test and measure, you’ll never know what really works and what doesn’t.

 

You’ll always be guessing and guessing in the world of business is a recipe for disaster.

 

That’s why we’re always surprised when we hear about people who use social media but fail to test and measure the effectiveness of what they do.

 

Like any marketing campaign, any work that you do in social media to grow your customer base should be tested and measured.  Many businesses just assume because they are using social media, it must be effective, but they couldn’t be more wrong.

 

One major difference between traditional marketing and social media marketing is social media marketing shouldn’t cost you a lot of money, so it is far easier to have an effective campaign. 

 

But as it turns out you might not be as focused on the return you get from social media as you would the return from a campaign of radio commercials you had to spend an arm and a leg for.

 

So, whether it’s traditional media or social media, you don’t want to waste time on campaigns that aren’t as affective as others and the only way to know what works best is by testing and measuring.

 

How do you start?

 

It’s simple. Just keep every lead you get from your social marketing campaign separate from your other leads.

 

If you have multiple pages and sites, keep each separate as well. This way you can figure out why some do better than others, instead of throwing away your time and effort on what doesn’t work.

 

It may be that the message isn’t uniform or maybe one ad or website has a better offer or better copy.

 

Whatever the answer is, without testing and measuring you’ll never know.

Never Test the Depth of the Water with Both Feet.

Marcus Everett - Thursday, November 30, 2017

What do you think would happen if you went through life always testing the depth of a puddle, river or body of water by jumping feet first?

 

Sometimes everything would be alright, and sometimes you would land in the water waist deep, there is just no way of knowing the outcome until it is too late, and your shoes are full of water.

 

Most right minded people can see the wisdom of not jumping in too quickly and risking success or failure on a single action.

 

So why do so many business owners jump in and test the water with both feet?

 

By this we mean we regularly see business owners face significant decisions in their business and deal with it by jumping in with both feet.  Sometimes the outcome is right and sometimes the outcome is a failure.

 

The need to make significant business decisions occur on a daily or weekly basis. These are most often in the area of finance, sales, marketing, advertising or staff management.

 

Here’s some examples of the significant decisions we’re talking about:

®  how you follow up a difficult debtor or

®  should you run an advertising campaign or

®  how are you going to take disciplinary action with a staff member.

 

Often business owners stop making significant decisions because in their experience they often lead to failure. And yet it is these significant decisions that will propel a business forward.

 

The most successful business owners, regardless of industry, test all significant business decisions with one foot at a time. By this we mean instead of making an all or nothing decision to run 6 months of TV advertising on the spot they test the depth of the water by testing and measuring the result of a short advertising run. This gives them the ability to determine if a 6 month advertising program is a good or bad decision.

 

The secret to not testing the water with both feet is to develop a business plan, test and measure each decision in a low risk way, and above all to keep making the significant business decisions every week.

 

Do you know what really works for your business?

Marcus Everett - Thursday, November 16, 2017

Testing and measuring is the most important thing you can do for your business.  Every aspect of your business, no matter if it’s a marketing campaign or the nuts and bolts of selling your products or services, must be tested and measured to ensure your business is running at it’s peak.

 

If you don’t test and measure, you’ll never know what really works and what doesn’t.

 

You’ll always be guessing and guessing in the world of business is a recipe for disaster.

 

That’s why we’re always surprised when we hear about people who use social media but fail to test and measure the effectiveness of what they do.

 

Like any marketing campaign, any work that you do in social media to grow your customer base should be tested and measured.  Many businesses just assume because they are using social media, it must be effective, but they couldn’t be more wrong.

 

One major difference between traditional marketing and social media marketing is social media marketing shouldn’t cost you a lot of money, so it is far easier to have an effective campaign. 

 

But as it turns out you might not be as focused on the return you get from social media as you would the return from a campaign of radio commercials you had to spend an arm and a leg for.

 

So, whether it’s traditional media or social media, you don’t want to waste time on campaigns that aren’t as affective as others and the only way to know what works best is by testing and measuring.

 

How do you start?

 

It’s simple. Just keep every lead you get from your social marketing campaign separate from your other leads.

 

If you have multiple pages and sites, keep each separate as well. This way you can figure out why some do better than others, instead of throwing away your time and effort on what doesn’t work.

 

It may be that the message isn’t uniform or maybe one ad or website has a better offer or better copy.

 

Whatever the answer is, without testing and measuring you’ll never know.

A Quick Question with Major Ramifications…

Marcus Everett - Monday, September 25, 2017

One simple question that could help you double your profits …

 

Just imagine that with only a few words you could stumble across the one area of your business that is literally overlooked every single day in most businesses, to the point where people dismiss it as, “yeah, we’re OK in that area”.

 

Well, here it is … with one caveat …

 

If you dismiss this it’s at your own peril …

 

The Question …

 

Do you know your conversion rateS?  And yes the ‘S’ is meant to be in ALL CAPS …

 

Why … ?

 

Well, first of all do you even know the overall conversion?  If not, you have some serious room for growth, in fact, whatever you think it is, your gut feeling, halve it and, you’re MUCH closer to what it really is.

 

So, why RATES plural … ?

 

Simple, do you know it for every step of the sales process, contact 1, contact 2, and so on through however many contacts there are.  Or, each stage, like in a retail fashion store, getting you in the store is one thing, starting a conversation is another, getting clothes tried on and so on …

 

Then stage 3 … do you know it for each and every sales person at every stage of the process?  Bob might beat Mary, but Helen beats Bob, and all at different stages of the sales process, so maybe they can learn each stage from each other.

 

Then Stage 4 of knowing your conversion rate, do you know it for each marketing medium.  As in, do you know what the rates are for Yellow Pages versus Referrals, not just think you know, but actually know.

 

Finally for the more thorough amongst us, the 5th and 6th stages, how much they spend on the initial transaction and then stage 6, how much are they worth over their lifetime of buying from you?

 

Finally Stage 7, how many referrals do you get from each marketing medium and from each salesperson and so on?

 

Is this a lot of work?   YES …

 

Imagine though you knew that every $1,000 advertisement bought you 100 leads and 20 sales of $500 each.  How often would you INVEST $1,000 to make $10,000 and what if they came back for 3 years on average and spent another $2,000 on average … ?

 

Yes it’s work, but it’s much better work than struggling to pay the bills because you don’t know your numbers.

How to know if your marketing works?

Heather Frame - Wednesday, December 07, 2016

If you spend money on marketing, do you know if it is working?

 

1.     Do you have any idea how much every new customer costs you to buy?

2.     Do you know what a new customer spends with you on average?

3.     Do you know how much you are losing to make that first sale to a new customer?

4.     Do you know when each customer becomes profitable to you (first, second, third sale)?

 

One simple way to find answers to these fundamental questions is to analyze your marketing campaigns. You need to compare the total cost of the campaign with the number of new customers it brings in and how much gross profit you make per customer.

 

This can be done by developing a simple customer questionnaire, or get each sales person to ask some questions and keep notes. Then record each purchase. This will allow you to analyze whether you are making a gross profit or losing money. You can then fine-tune your campaign, drop it or keep running with it.

 

Marketing should be an investment in increased income and profitability for your business. To know if this is the case you need to measure the cause and effect results of all marketing.

 

If you can’t honestly answer the key questions, your marketing probably does suck and you just don’t know it.

 

Now is the time to analyse your marketing results.

Knowing the average lifetime value of your customers

Heather Frame - Wednesday, November 16, 2016

The best way to make money in most businesses is by making sure you stop losing any of the customers you’ve got.

If you are in business then chances are you’re losing customers right now, right this very minute.  For whatever reason, customers are lost and you see them again.  This is what we call ‘holes in the bucket’.

So how do you plug those holes?

First up, you need to work out how much each customer is worth to you.  This is called your Customer Life Time Value (CLTV).  For example, if your average customer spends $50 a month and buys 12 times a year and usually stays with you for 3 years, your CLTV would look like this

$50 x 12 = $600 x 3 = $1,800

So your average Customer Life Time Value is $1,800

Keep it simple and be conservative, but try to be as accurate as you can.  Then you simply allocate how much money you will invest on these customers to make sure they will stay with you.

Finding The Sweet Spot to Optimize Business Potential

Heather Frame - Wednesday, November 09, 2016

In cricket, it’s called ‘the sweet spot’.  That’s when you the hit the ball right off the center of the bat.  For those who have played the game, you know what we’re talking about.  The feeling you get when your bat connects with the ball; the connection felt through your hands, your wrists, your forearms.  You know it’s perfect, dead centre….and there’s no other sound like it, the satisfying ‘thump’ from a clean hit so very different from a miscue.                     

However, it does take a lot of practice to find the sweet spot of the bat.  Lots of mishits, nicks and frustrations as you find your perfect timing.  To get there quicker and more consistently the best cricketers have coaches to keep them on track, point out their weaknesses, and highlight their strengths.

The same is true in business.  The great majority of business owners walk around swinging their bat wildly in frustration, trying to find and then hit their market but never really hitting the sweet spot to optimize their profit potential.

On the other hand the best business owners engage a coach, to guide them in finding the sweet spot to optimize their business potential. These folk become laser focused and reach their goals far quicker and easier than the folk who go it alone swinging their bat.

How well on track are you to finding the sweet spot in your business?

 

What assumptions are you making?

Heather Frame - Wednesday, February 03, 2016

So often breakthroughs happen when you challenge assumptions.  In business you can’t guess what your customers want…. and, if you do, your promotions will most likely fail.  You’ve got to challenge common assumptions about your business, your customers, your prospects, etc.

Take prospects for instance.  Most business owners assume certain things about their prospects that in many cases are way off the mark.

In our business we challenge clients to give us proof on their assumptions.

For example, one client said that his customers wanted the cheapest price and that this was the primary motivation in buying his product.  On closer inspection we found that sure, price was important, but confidence that the product was going to work and work long term was the key driving force that led to the sale.  Imagine if we hadn’t challenged the client?  All his marketing would have been based on price.  This happens more times than you think.

So, when was the last time you challenged your own assumptions?  Or the assumptions of those around you?

Remember, to get a breakthrough you often have to challenge your assumptions.

Never Test the Depth of the Water with Both Feet

Heather Frame - Wednesday, September 30, 2015

What do you think would happen if you went through life always testing the depth of a puddle, river or body of water by jumping feet first?

Sometimes everything would be alright, and sometimes you would land in the water waist deep, there is just no way of knowing the outcome until it is too late, and your shoes are full of water.

Most right minded people can see the wisdom of not jumping in too quickly and risking success or failure on a single action.

So why do so many business owners jump in and test the water with both feet?

By this we mean we regularly see business owners face significant decisions in their business and deal with it by jumping in with both feet.  Sometimes the outcome is right and sometimes the outcome is a failure.

The need to make significant business decisions occur on a daily or weekly basis. These are most often in the area of finance, sales, marketing, advertising or staff management.

Here’s some examples of the significant decisions we’re talking about:

®  how you follow up a difficult debtor or

®  should you run an advertising campaign or

®  how are you going to take disciplinary action with a staff member.

Often business owners stop making significant decisions because in their experience they often lead to failure. And yet it is these significant decisions that will propel a business forward.

The most successful business owners, regardless of industry, test all significant business decisions with one foot at a time. By this we mean instead of making an all or nothing decision to run 6 months of TV advertising on the spot they test the depth of the water by testing and measuring the result of a short advertising run. This gives them the ability to determine if a 6 month advertising program is a good or bad decision.

The secret to not testing the water with both feet is to develop a business plan, test and measure each decision in a low risk way, and above all to keep making the significant business decisions every week.

Until next week...

Heather & Marcus

Do you know what really works for your business?

Heather Frame - Wednesday, March 11, 2015

Testing and measuring is the most important thing you can do for your business.  Every aspect of your business, no matter if it’s a marketing campaign or the nuts and bolts of selling your products or services, must be tested and measured to ensure your business is running at it’s peak.

If you don’t test and measure, you’ll never know what really works and what doesn’t.

You’ll always be guessing and guessing in the world of business is a recipe for disaster.

That’s why we’re always surprised when we hear about people who use social media but fail to test and measure the effectiveness of what they do.

Like any marketing campaign, any work that you do in social media to grow your customer base should be tested and measured.  Many businesses just assume because they are using social media, it must be effective, but they couldn’t be more wrong.

One major difference between traditional marketing and social media marketing is social media marketing shouldn’t cost you a lot of money, so it is far easier to have an effective campaign. 

But as it turns out you might not be as focused on the return you get from social media as you would the return from a campaign of radio commercials you had to spend an arm and a leg for.

So, whether it’s traditional media or social media, you don’t want to waste time on campaigns that aren’t as affective as others and the only way to know what works best is by testing and measuring.

How do you start?

It’s simple. Just keep every lead you get from your social marketing campaign separate from your other leads.

If you have multiple pages and sites, keep each separate as well. This way you can figure out why some do better than others, instead of throwing away your time and effort on what doesn’t work.

It may be that the message isn’t uniform or maybe one ad or website has a better offer or better copy.

Whatever the answer is, without testing and measuring you’ll never know.

Until next week,

Heather & Marcus