Post on 12-May-2015
Generating Cash Flow for Marketing in Lean Times….and Using It
WiselyCoach Thom Finn
Coach Thom Finn: Owner/Partner Harrisburg/Lancaster Coach Thom Finn: Owner/Partner Harrisburg/Lancaster OfficeOffice
Named “Global Coach of the Year/Client Results” in Sydney for Named “Global Coach of the Year/Client Results” in Sydney for 2009. Coach of the Year/Client Results for 2009. Coach of the Year/Client Results for all of North & South all of North & South America America 2009 & 2008, finalist Global Coach of the Year in 2007. 2009 & 2008, finalist Global Coach of the Year in 2007. Average increase in client net income increase :31%Average increase in client net income increase :31%
Strong back ground in revenue creation/marketing & sales Strong back ground in revenue creation/marketing & sales strategies, sales person coaching, certified copywriter, resident strategies, sales person coaching, certified copywriter, resident expert on web-based copyexpert on web-based copy
Practitioner of Theory of Constraints Consulting in organizations Practitioner of Theory of Constraints Consulting in organizations with faster results to profitability than standard approacheswith faster results to profitability than standard approaches
Specializing in leadership/management coaching with those who Specializing in leadership/management coaching with those who have focus/ADD ADHD challengeshave focus/ADD ADHD challenges
In addition to a full-time Coaching schedule ThomIn addition to a full-time Coaching schedule Thomalso owns and runs a turn-key business thatalso owns and runs a turn-key business thatgenerates overgenerates over $2 Million/year and 28% net profit$2 Million/year and 28% net profitwith virtually no investment of time.with virtually no investment of time.
Learnings….
Blinding Flashes of the Obvious
BFO’s
Write Them Down
A Poorly Written Note is Better Than..
A Great Thought Forgotten
And your Commitments to Do
BFO’s To Do’s
To Make Sure You Get the Most Out of Your Learning ...
I KNOW
7.5 Tools to Get the Most Out of Your Marketing Dollars…
1. Know “Your” Math
2. Ideal Customers - Get Your Target Right
3. “Differentiation/USP”
4. “Test & Measure”
5. “10 by 10”
6. “5-Ways”
7. Marketing Campaign “Break-Even”
8. Writing Ads that Work
7.5.
KNOW your Math….The “Math” of Discounting and of Price Increases....
40% gross margin10% price change = 25% profit changeWith a 10% Discount, what increase in customers do you need to break even?
60 60 60
4030
50
0
20
40
60
80
100
120
Base 10% Discount 10% Increase
Profit
Variable/Direct Costs
33%
1
Know Your Price Increase Math…
MarginPrice
IncreaseProfit
Increase
Decrease in
Customers to Break
Even
20% 10% 50% 33%
40% 10% 25% 20%
40% 20% 50% 33%
60% 10% 17% 14%
80% 10% 13% 11%
1
2
Here’s your target!
Differentiation…UniqueSelling Position
3
*List 10 Ways Your Business is Unique
Friendly staff
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If your competitors can say it, then it's not unique!
Shop is clean and tidyWe have a 24 hour money-back guaranteeStock in a range of sizesWe have a unique 8-step fitting program toensure that our staff fit you correctlyAll of our staff attend an intensive 2 day color co-ordination training programWe are well establishedWe care about youWe have a pick-up and delivery alterationservice to and from your homeWe have 28 different brands of coffee and tea just so you and your friend can enjoy your time with us
1.2.3.4.5.
6.
7.8.9.
10.
With Proper Differentiation….
Four Steps to Make Your Business Stand Out
1. Survey your best & most loyal customersa) Know what makes you valued from their point of view
b) What separates you from competition in their eyes
c) Is this what you thought made you different?
2. Narrow their insights into a 1 -2 sentence value statement
3. Use that statement to drive all communications
4. Test to stay on-track and at the top
Family Owned, Honest, Friendly, XX Years in Bus.
My USP
Free- No Strings- Restraining Order Ready- Coaching Session
Coaching Programs from $280 to $1700 a month
Every Session Guaranteed or $ Back
Cancel at any time
So, why do you track your checkbook better than your key business metrics?
4
4…..HOW to Test and Measure
How Did You Hear About Us
Point of Sales
ACT!, Salesforce, CRM
Interview customers
Track in excel
Peak time periods only
The Rule of “10 by 10” ...5
Who wants more…..
Number of Leadsx
Conversion Rate=
Customersx
# of Transactionsx
Avg. $$$ Sale=
RevenueX
Margin =
$ Profit $
6
With just a 10% increase...Number of Leads
XConversion Rate
=Customers
XNo of Transactions
XAvg. $$$ Sale
=Revenue
XProfit Margins
=$ Profits $
4,000 X25% =1,000 X 2 X $100 =$200,000 X 25% =$50,000
4,400 X27.5% =1,210 X 2.2 X $110 =$292,820 X 27.5% =$80,525
A 10% increase in each of the 5 areas will result in a 61% increase in Profits?
Do it 2 years in a row and your profits will increase by 159% compared to baseline?
Number of Leadsx
Conversion Rate=
Customersx
# of Transactionsx
Avg. $$$ Sale=
Revenuex
Profit Margins =
$ Profits $
Did You Know That...
Number of Leadsx
Conversion Rate=
Customersx
# of Transactionsx
Avg. $$$ Sale=
Revenuex
Profit Margins =
$ Profits $
How We Will Apply the Rule of “10 by 10” to Grow Your Business...
Work on 5 LG Strategies
Work on 5 CR Strategies
Work on 5 #T Strategies
Work on 5 Avg. $$ Sale Strategies
Work on 5 PM Strategies
Marketing Campaign Break-Even Analysis
Total Cost $ ______divided by
Average Profit ($) per Customer $ ______equals
Number of Customers Required ______divided by
Measured Conversion Rate ______equals
Number of Leads Required ______
What is the probability that the campaign will generate the required number of Leads?
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Test AdvertisementTest Advertisement AA BB
Advertisement CostAdvertisement Cost $1,000$1,000 $1,000$1,000
No. Of LeadsNo. Of Leads 1,0001,000 100100
Conversion/SalesConversion/Sales 100100 5050
Ave $$$ SaleAve $$$ Sale $500$500 $1,000$1,000
Ave $$$ ProfitAve $$$ Profit $200$200 $200$200
Lifetime ValueLifetime Value $5,000$5,000 $10,000$10,000
ReferralsReferrals 1010 22
Calculate Your Campaign Break-Even Point
$2500 Direct Mail Campaign
Start with 5-Ways Data Average $ Sale
Average Profit
Conversion Rate
Use prior Test & Measure Data Response rate from targeted DM = 1.5%
Calculate Your Campaign Break-Even PointCost = $2500
Avg. $ Profit = $25
# Customers Req’d = Cost/Avg. Profit Per Customer
= $2500/$25 = 100
Conversion Rate 20% (Measured – not guessed)
# Leads Req’d = # Customers Req’d./Conv. Rate
= 100/0.20 = 500
# Leads Expected = # Pcs. X Response Rate
= 10,000 x .015 = 150
1. Using your company name as the headline…
2. Not using the word “You” or some connotation in the headline…
3. Not opening a “loop”… Where the prospect has to continue reading to get the answer…
4. Not having a clear “Call To Action”…
5. Trying to do/say too much…
Writing Ads that Work… 7.5
The Headline is the ad for your ad…
Does it select the right readership?
Does it invoke curiosity? A promise of meaningful benefit?
Will it stop the target market in their tracks?
20 - 25% of the size of the ad
Writing Ads that Work ….
Headline
Target(s)Call to Action
Testimonial
Benefits
Offer
Loop ..”Who do they want???”
“You”
Seen this lately?
“Family Owned & Operated”
28 Years in Business
“Friendly” or “Professional”
Fully Insured
Caring, Trained Staff
On-Time Service
Benefits
USP
Call to ActionScarcity
Applied to Websites: Before
Applied to Websites: After
Putting the Puzzle Together
“USP”“Test &
Measure”“10 by 10”
“5-Ways”
“Ads that
Work”
“B-E Analysis”
“Ideal
Target”
“I look around for 1-foot bars that I can step over.”~Warren Buffet
“I don't look to jump over 7-foot bars:
From Your BFO Sheet….
And your Commitments to Do
BFO’s To Do’s
Do you REALLY want to get this stuff done?
No….I just wrote stuff to get you off my back
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What would it be like if youEXECUTED what you wrote down….
Yes…but it’s really not that importantYes! I do…I really do…
Take the information on Group Coaching
This Presentation avialable…take a blue sheet
Marketing is… ______.