Bybbc version cash flow and making your marketing work May 2013
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Bybbc version cash flow and making your marketing work May 2013

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  • Story: Driving – remember you had a great idea, just can’t remember what it was.
  • Anyone with teenage kids … experts at this … Yeah I Know Mum … When older do it a little more politely … cross arms and say it to yourself … KILLS Learning … Get agreement everyone will treat today as a totally new experience … Introduce ISN’T THAT INTERESTING … ? Total 2 Mins
  • Client felt they were in a price competitive environment. Felt that they had to come in low on job bids. Took some jobs that generated no profit.
  • Anywhere from 6 to 10 times easier to sell to current customers, than to identify and sell to new prospects.
  • So lets look at a few points of uniqueness (go through list) What are some of the common links between the unique area: Specific Different etc Important fact – marketing is all about perceptions – so sometimes you may be the same but you market as a point of difference
  • Spoke with a chiropractor last year. Running same ad for 6 months straight. Not one identified Lead from the ad. An example of this would be an testing the effectiveness of an advertising flyer. You try three separate designs and issue them in a limited market to a similar area. On each one you have a different special offer code. In order to obtain the offer they have to quote the code so you know exactly where they heard about it. You then record these results to identify which add was the best and then you choose this one to advertise on a large scale
  • Don’t rely on just one or two marketing strategies to bring in 100% of your business; rather spread the load (and the risk) by having multiple strategies that each bring in just 10% of your business. Why Test & Measure? To know where you are – so that you will know what impact (+/-) actions are having Because 80% of all marketing fails Why follow a 10 by 10 approach? Because 80% of all marketing fails
  • Took up snowboarding 3 years ago. Went to local ski shop – walked out with board, boots and bindings. 17 year old sales person wasn’t trained to let me know that, as a new snowboarder, there were a few items I might consider. Helmet, writs guards, binding tool and lock. Could have increased the sale by 10 – 20%.
  • Talk about the priority for review: Margins Conversion Rate Avg $ Sale # Transactions Lead Generation
  • Father and son cleaning business. Asked what their Conversion Rate was. Son said about 80%. We said, isn’t that interesting. Father took out log book – got 9 out of 20 of last jobs. That’s 45%. We said that’s great – we can improve 45%. We actually got their CR up to about 70% on average. This, combined with a price increase, tripled their revenue in a matter of months.
  • Father and son cleaning business. Asked what their Conversion Rate was. Son said about 80%. We said, isn’t that interesting. Father took out log book – got 9 out of 20 of last jobs. That’s 45%. We said that’s great – we can improve 45%. We actually got their CR up to about 70% on average. This, combined with a price increase, tripled their revenue in a matter of months.
  • Do you think the chiropractor would have continued spending this money if they had done the Break-Even analysis?
  • One client – “We’ll change the way you look” headline. Only problem, couldn’t tell who the “You” was.
  • (5 min) Ask the questions – 3 minutes and talk about them with people on table It might be obvious – something springs to mind Or something or someone you regularly complain about It might be a concern you have – about your competition, your team, your cash flow Who’d like to share Now I’d like to ask you the question – what is the impact on you by not addressing these challenges? What will be the future impact if this keeps going the same way? So how are you preparing to overcome them? lets look at what required step by step to create it…
  • So lets look at a few points of uniqueness (go through list) What are some of the common links between the unique area: Specific Different etc Important fact – marketing is all about perceptions – so sometimes you may be the same but you market as a point of difference
  • So lets look at a few points of uniqueness (go through list) What are some of the common links between the unique area: Specific Different etc Important fact – marketing is all about perceptions – so sometimes you may be the same but you market as a point of difference

Bybbc version cash flow and making your marketing work May 2013 Bybbc version cash flow and making your marketing work May 2013 Presentation Transcript

  • Generating Cash Flowfor Marketing in LeanTimes….and Using ItWiselyCoach Thom Finn
  • Coach Thom Finn: Owner/Partner Harrisburg/LancasterCoach Thom Finn: Owner/Partner Harrisburg/LancasterOfficeOffice Named “Global Coach of the Year/Client Results” in Sydney forNamed “Global Coach of the Year/Client Results” in Sydney for2009. Coach of the Year/Client Results for2009. Coach of the Year/Client Results for all of North & Southall of North & SouthAmericaAmerica 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 & salesStrong back ground in revenue creation/marketing & salesstrategies, sales person coaching, certified copywriter, residentstrategies, sales person coaching, certified copywriter, residentexpert on web-based copyexpert on web-based copy Practitioner of Theory of Constraints Consulting in organizationsPractitioner of Theory of Constraints Consulting in organizationswith faster results to profitability than standard approacheswith faster results to profitability than standard approaches Specializing in leadership/management coaching with those whoSpecializing in leadership/management coaching with those whohave 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 ObviousBFO’sWrite Them DownA 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 theMost Out of Your Learning ...IKNOW
  • 7.5 Tools to Get the Most Out of YourMarketing Dollars…1. Know “Your” Math2. Ideal Customers - Get Your Target Right3. “Differentiation/USP”4. “Test & Measure”5. “10 by 10”6. “5-Ways”7. Marketing Campaign “Break-Even”8. Writing Ads that Work7.5.
  • KNOW your Math….The “Math” ofDiscounting and of Price Increases....40% gross margin10% price change = 25%profit changeWith a 10% Discount, what increase incustomers do you need to break even?60 60 60403050020406080100120Base 10% Discount 10% IncreaseProfitVariable/Direct Costs33%1
  • Know Your Price IncreaseMath…MarginPriceIncreaseProfitIncreaseDecreaseinCustomersto BreakEven20% 10% 50% 33%40% 10% 25% 20%40% 20% 50% 33%60% 10% 17% 14%80% 10% 13% 11%1
  • 2Here’syourtarget!
  • Differentiation…UniqueSelling Position3
  • *List 10 Ways YourBusiness is UniqueFriendly staff√√√√√If your competitors cansay it, then its notunique!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 daycolor 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 soyou and your friend can enjoy your time with us1.2.3.4.5.6.7.8.9.10.
  • With Proper Differentiation….
  • Four Steps to Make Your Business Stand Out1. Survey your best & most loyal customersa) Know what makes you valued from their point of viewb) What separates you from competition in their eyesc) Is this what you thought made you different?2. Narrow their insights into a 1 -2 sentence valuestatement3. Use that statement to drive all communications4. Test to stay on-track and at the topFamily Owned, Honest, Friendly, XX Years in Bus.
  • My USP Free- No Strings- Restraining OrderReady- Coaching Session Coaching Programs from $280 to $1700a month Every Session Guaranteed or $ Back Cancel at any time
  • So, why do you track your checkbook betterthan 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 LeadsxConversion Rate=Customersx# of TransactionsxAvg. $$$ Sale=RevenueXMargin=$ Profit $6
  • With just a 10% increase...Number of LeadsXConversion Rate=CustomersXNo of TransactionsXAvg. $$$ Sale=RevenueXProfit Margins=$ Profits $4,000X25%=1,000X2X$100=$200,000X25%=$50,0004,400X27.5%=1,210X2.2X$110=$292,820X27.5%=$80,525
  • A 10% increase in each of the 5 areas willresult in a 61% increase in Profits?Do it 2 years in a row and your profits willincrease by 159% compared to baseline?Number of LeadsxConversion Rate=Customersx# of TransactionsxAvg. $$$ Sale=RevenuexProfit Margins=$ Profits $Did You Know That...
  • Number of LeadsxConversion Rate=Customersx# of TransactionsxAvg. $$$ Sale=RevenuexProfit Margins=$ Profits $How We Will Apply the Rule of “10 by 10”to Grow Your Business...Work on 5 LG StrategiesWork on 5 CR StrategiesWork on 5 #T StrategiesWork on 5 Avg. $$ Sale StrategiesWork on 5 PM Strategies
  • Marketing Campaign Break-EvenAnalysisTotal Cost $ ______divided byAverage Profit ($) per Customer $ ______equalsNumber of Customers Required ______divided byMeasured Conversion Rate ______equalsNumber of Leads Required ______What is the probability that the campaign willgenerate the required number of Leads?7
  • Test AdvertisementTest Advertisement AA BBAdvertisement CostAdvertisement Cost $1,000$1,000 $1,000$1,000No. Of LeadsNo. Of Leads 1,0001,000 100100Conversion/SalesConversion/Sales 100100 5050Ave $$$ SaleAve $$$ Sale $500$500 $1,000$1,000Ave $$$ ProfitAve $$$ Profit $200$200 $200$200Lifetime ValueLifetime Value $5,000$5,000 $10,000$10,000ReferralsReferrals 1010 22
  • Calculate Your CampaignBreak-Even Point$2500 Direct Mail CampaignStart with 5-Ways Data Average $ Sale Average Profit Conversion RateUse prior Test & Measure Data Response rate from targeted DM = 1.5%
  • Calculate Your CampaignBreak-Even PointCost = $2500Avg. $ Profit = $25# Customers Req’d = Cost/Avg. Profit Per Customer= $2500/$25 = 100Conversion 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 someconnotation in the headline…3. Not opening a “loop”… Where the prospecthas 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 meaningfulbenefit? Will it stop the target market in their tracks? 20 - 25% of the size of the adWriting Ads that Work ….
  • HeadlineTarget(s)Call toActionTestimonialBenefitsOfferLoop ..”Who dothey want???”“You”
  • Seen this lately? “Family Owned & Operated” 28 Years in Business “Friendly” or “Professional” Fully Insured Caring, Trained Staff On-Time Service
  • BenefitsUSPCall to ActionScarcity
  • Applied to Websites: Before
  • Applied to Websites: After
  • Putting the Puzzle Together“USP”“Test &Measure”“10 by 10”“5-Ways”“Ads thatWork”“B-EAnalysis”“IdealTarget”
  • “I look around for 1-foot bars that I can step over.”~Warren Buffet“I dont 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 getthis stuff done?No….I just wrote stuff to get you off my back√√What would it be like ifyouEXECUTED what youwrote down….Yes…but it’s really not that importantYes! I do…I really do…Take the information on Group CoachingThis Presentation avialable…take a bluesheet
  • Marketing is…______.