Wednesday, August 24, 2011

Marketing Leverage: 3 Small Areas of Big Opportunity

Peter Drucker wrote: "Concentrate on those very few areas where a relatively minor increase in efficiency will produce a major increase in economic effectiveness."

In other words, look for small areas of big opportunity to exploit in your business. Not only can you earn more money; you can do it by working smarter, not harder.  

Here are 3 small areas of BIG opportunity in most businesses. How many can you exploit?  

1) Transaction Size -- Before chasing after market share (by selling to strangers), be sure to get wallet share (by selling to your current clients).

Two easy ways to do increase the size of your transactions are ...

  1. Cross-Sell: "Would you like fries with that?"
    In your business, what are your burgers and what are your fries? Example: If you’re an accountant doing bookkeeping, can you do taxes too? How about document storage? Document shredding? If you provide dog training, can you sell dog walking? Poop scooping? Of course you can.

  2. Upsell: "Would you like to Super Size that?"
    Do you sell a Deluxe Model? An Executive Version? An Expanded Edition? Why not? Some people aren't happy unless they spend the most and get the best. If that weren't true, there would be no first-class seats on airplanes.

2) Lost Clients -- You know the drill: It costs 5-10 times more to sell to a new client than to an existing one. But what are you doing about it?

Here's an idea: Reactivate your "lost clients" -- sell again to those people who have not bought from you in too long. When you do this, you enjoy windfall profits because your cost of acquisition is $0. An easy way to do this is to use a client reactivation letter.

3) Scripting -- Selling is like cooking: When you find a winning combination of ingredients, write them down!

Think of the last time a prospect said, "Yes" and became a client. What did you say that caused it? Was it an email you sent, a way of asking for the sale, one bullet point in your presentation?

Find that winning combination of words and use them again the next time you're in front of a prospect. And again. And again. That's a recipe for success. (FYI, the best sales script book ever written is here.)  

Think: If you get just one more sale per week by exploiting one of these 3 areas in your business, that's 50 extra orders a year. Use all 3 ideas and you could get 150 extra orders this year. What would that be worth to you?  

Bio: Kevin Donlin can help you grow your business and enjoy the breakthrough results your hard work deserves. If you're interested in boosting your revenues and profits, please click here.

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