Archive for July, 2007

Getting Everything You Can Out of All You've Got

Jay Abraham calls himself “America’s Number One Marketing Wizard”. His client list is impressive and in his 25 years he has amassed a lot of knowledge about what works – why – and when.

In this dense book (published in 2000), Jay focuses on using marketing to increase your business revenue. His book starts with a simple formula:

Number of clients * Average Client Sale * Sale Frequency = Total Income

His book then proceeds to show ways to increase the number of clients, increase the average client sale, and/or increase the sale frequency.

The book contains a very useful 50 question list to help you focus your marketing (“Where do my clients come from specifically (demographics)? When I create a new client for my business or profession, who else have I directly created a new client for? Who are my biggest competitors and what do they offer that I do not?”).

While some of Jay’s suggestions require larger budgets to achieve, some of his ideas are quite provocative:

  • Calculate the lifetime value of a client and spend appropriately to capture new ones.

  • Better than risk-free guarantees

  • Create better add-ons – what does your client need before using your product? After? Make it easier to purchase automatically.

  • Always test your marketing pieces (split-testing, telephone, email, sample, price, etc.) Measure your ROI. Consider split testing.

  • Creating host-beneficiary relationships

  • Creating a (detailed) referral system

  • Regaining inactive clients

  • Direct mail piece suggestions

  • Pre-qualifying leads

  • Telemarketing scripts

  • Bartering

Each of the chapters is full of case studies and examples that help to explain his principles. Any one of these ideas could produce a wealth of results for your business.

(Prerequisite: Marketing 102: Co-marketing and Cross-marketing)

“Branding” is providing a consistent message to your customers. It’s rooted in the combination of your core values and your strategic plan for your company (think of it as your “business persona”). Every time you have an interaction with your (prospective) customers you want to reinforce your brand (by phone, in person, via email, on website, or print). You’re sending a consistent message of why someone would choose to do business with you.

Here are key points I focus on when I create (or review) marketing materials. Each of the points has implications in crafting the branding message.

  1. What are your core values? Your core values identify you to the world, and include: collaboration, cost-sensitivity, diversity, education, efficiency, excellence, flexibility, fun, holistic, innovative, preventive, service, social responsibility, sustainability, and teamwork). There are no right or wrong values – but they must “fit” your business.
  2. What makes you different? Knowing your competition is important to make sure you don’t fall into a “me-too” message. Your materials need to make you stand out.
  3. What’s your plan for 2+ years? Are you planning to focus on one aspect of your business? Planning to change direction or grow? Your marketing materials can help you make the transition smoothly.
  4. Who will be getting this document? Different audiences have different informational needs. The benefit to your services would be different for a potential customer than an investor.
  5. How will the document be delivered? If you’re mailing the material, besides optimizing its size / weight (to save mailing costs), you’ll want to design it so it will be read (and not deemed “junk mail”). If you’re emailing it, you’ll want to likewise ensure it’s not labelled “spam” as well as making it easy for people to read it (plain text, a downloadable PDF, a link to a web page, etc.).
  6. What’s the purpose of the document? Besides Marketing 101 information, you need a “call to action” – a reason for someone to contact you NOW. How you convey your benefits depends on the main purpose of the document: educating (about a problem they didn’t know about), convincing (why you’re the best), enumerating (all the different things you can do), or swaying (from a preconceived notion). Often people try to make one marketing piece “do it all” (very tempting, especially when you’re spending a lot of money on a project).
  7. What other materials do you provide? Your materials should have a consistent look (except during a business makeover) and tone (that reflect your core values).
  8. What are the demographics of your customers? Older people have an easier time reading bigger fonts. Younger people might prefer something “hip”. Men and women process text differently. Different cultures have certain color / graphic taboos.
  9. Will you be excerpting any of this material for use in another format? If so, you’ll want to ensure that your graphics and fonts can work across the formats (for example, you want high-quality graphics for print, but lower-quality graphics for quick-loading web pages).
  10. Have you “tested” the material (or previous materials)? Remember you’re trying to create a dialogue with your customers – you need to listen to what people think to make sure what you’re saying is what they are hearing. You want to attract the right customers.
  11. How will you measure the effectiveness? You need to determine your “ROI” (return on investment).
  12. How often will the same people be receiving it? Will you be rotating a message / offer or sending the same message?