Marketing they don't teach you at business school!

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The Best Way To Manage The …

The Best Way To Manage The
Customer Journey
Getting your marketing right is critical to your success, but many people who manage – or run their own – businesses have never been shown the best way to do it. This costs them tens or even hundreds of thousands of pounds in wasted effort, time and resources, not to mention all the lost business.
Marketing is not about trying to persuade some faceless aggregation of customers to see it your way. It is about a dialogue over time with a specific group of customers whose needs you understand in depth and for whom you develop an outstanding offer over the offers of competitors.

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  • 1. 2COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMarketing They Don’tTeach You At BusinessSchool!The Best Way To Manage TheCustomer JourneybyAndrew M. Pearson MBAwww.coaching-business.co.uk
  • 2. 3COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMarketing They Don’t Teach YouAt Business School!The Best Way To Manage TheCustomer JourneyA Great Company Takes a Great Idea That Puts It in Tune With ItsCustomers and Two Steps Ahead of Its Competitors - An Even GreaterCompany Will Exploit This Success With Another Great Idea!© Copyright 2012 Andrew M. PearsonALL RIGHTS RESERVED.No part of this report may be reproduced or transmitted in any form whatsoever, electronic,or mechanical, including photocopying, recording, or by any informational storage orretrieval system without express written, dated and signed permission from the author.DISCLAIMER AND/OR LEGAL NOTICES:The information presented herein represents the view of the author as of the date ofpublication. Because of the rate with which conditions change, the author reserves the rightto alter and update his opinion based on the new conditions. The report is for informationalpurposes only. Whilst every attempt has been made to verify the information provided in thisreport, neither the author nor his affiliates/partners assume any responsibility for errors,inaccuracies or omissions.
  • 3. 4COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukBy the end of this E-Book you will: Know what marketing is all about Know how to be positioned, visible and credible Know how to create a great reputation and outstanding relationships Know how to identify your ideal customer Know how to offer an impressive benefit Know how to attract the right customers Know how to increase your sales and profits Know how to implement a marketing system that will attract new customers and increasethe spend of existing onesABOUT THIS EBOOK
  • 4. 5COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukPage5 CONTENTS6 INTRODUCTION7 1. VISION AND MISSION10 2. THREE OBJECTIVES FOR BUSINESS GROWTH12 3. CREATE A CUSTOMER – OR TWO16 4. SOMETHING OF VALUE THAT’S DIFFERENT20 5. THE IMPORTANCE OF THE DATA BASE21 6. TAP INTO THE CUSTOMERS’ TREASURY27 7. MULTIPLE MARKETING APPROACHES31 8. PRICING FOR PROFIT34 9. THE CUSTOMER JOURNEY38 10. PLAN FOR EXPLOSIVE GROWTH41 11. ADOPT A MARKETING MINDSET42 12. BRINGING IT ALL TOGETHER435113. A MARKETING PLAN FOR YOUR BUSINESS14. FOR FURTHER SUPPORTCONTENTS
  • 5. 6COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukThe issue is this...… Many people have great products and services. But when they start to sell them, they areunable to convince their prospects and customers of their products’ benefits with compellingand promotable messages.Getting your marketing right is critical to your success, but many people who manage – orrun their own – businesses have never been shown the best way to do it. This costs them tensor even hundreds of thousands of pounds in wasted effort, time and resources, not tomention all the lost business.Marketing is not about trying to persuade some faceless aggregation of customers to see ityour way. It is about a dialogue over time with a specific group of customers whose needsyou understand in depth and for whom you develop an outstanding offer over the offers ofcompetitors.What is marketing?Peter Drucker, a great management writer, says that the aim of marketing is to know andunderstand the customer so well that the product or service fits him and sells itself.This is fine definition but in fact marketing is much more. Others pronounce that marketingis about establishing a targeted group of customers, products and services of superior valueto offer them, and an efficient and distinctive means to archive this, that creates the requisitefit between what the customer wants and what the company does really well.So we have a mix of products and customers together with something that creates furthersignificant differentiation. Is there anything more to add? Well yes in fact there is. NigelPiercy states that marketing is also about a process of going to market and that as such it nolonger belongs to marketing specialists but that it is owned by everyone in the business andhow it is designed and managed.Marketing as a philosophyWe should begin to note that marketing is more than a specialist activity. It is a philosophy.A viewpoint that suggests that a business and its decisions should be governed by itscustomers and what it does and that this affirmation of intent reinforced by an activitysystem that fosters differentiation all of which is supported by a customer drivenorganisation.INTRODUCTION
  • 6. 7COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukA business needs direction and goals. Ideally, this sense of purpose will be understood,shared and supported by everyone in the business, so that there is a clear, if not broad,direction for the activities and strategies required to achieve the ends, or goals, sought by thebusiness. Ultimately, such clarity will provide the basis for more detailed objectives, tasksand performance targets for individual managers and employees.Establishing business goals and direction is a key role for any management team.VISIONA vision is one of the most powerful tools available to any business and we can use it in manydifferent ways – for the business as a whole, for a new product or service, or even as asolution to a business problem. However, when we use it, the effect is always the same visioncreates a compelling force for development and change... so, what is yours?A compelling vision inspires and motivates people. It is a catalyst for stretch, creativity andinnovation, and it adds meaning and purpose to every working day.There is an interesting principle involved her and it is this. When business leaders have theconfidence and belief to aim higher and stretch for goals that are beyond their current levelsof performance, they will do it; they have no option but to do things differently, to challengeevery aspect of the way they operate and, hence, new ideas (and innovation) occur.I often ask business leaders what their objectives are, and they frequently reply withsomething like ‘carrying on doing what we are good at doing’. In a sense, this smacks ofsurvival. In todays world, there is no safety in survival as a goal.Every business has the ability to radically change its fortunes, to achieve great things, if (andonly if) it has the confidence to stretch for and set goals that go beyond what seemsreasonable.VISION AND MISSION
  • 7. 8COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMISSIONMission statements have become increasingly popular while those for vision are lessprevalent. Of course, the lack of a published statement is not necessarily an indication of alack of vision. Where they do exist, they reflect the company’s vision of a future state that,ideally, the business will achieve.Mission is the overriding raison d’être for a business. Many mission statements proveworthless, partly because they consist of loose expressions such as maximise growth potentialor provide products of the highest quality. How can a company determine whether it hasattained its maximum growth potential or highest quality?Primarily, the mission statement should address what an organisation must do in order tothrive. It should be positive, visionary and motivating.Mission statements and what they should containViews about the desired content of a mission statement vary, but whatever the variations;there are principally four key areas of concern:1. Business philosophy — what the business wants to be and how it wishes to beperceived by its stakeholders. The philosophy of a company may, therefore, encompass andemphasise the broad issues: the grand design, quality orientation, culture and ethos, role inwider society, public image and social responsibility.2. Product-market scope — what the business(es) the company wants to be in,which is not necessarily the same as it is currently active in. Of concern is thecustomer base, the product/service offering and the core activities, technologiesand capabilities to be exploited.3. Company values — what core values guide the policies, behaviour and actionsof people in the business, so that staff and management add weight to its corecompetencies and capabilities.4. Critical success factors — what are factors that our business needs to be goodat to succeed in the business and the company’s market place.A final word on vision and missionINDISPENSIBLE!
  • 8. 9COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukVISION AND MISSIONQuestions and AssignmentsTEXT RELATED1. What is a vision statement?2. What is a mission statement?3. Does your company have either?4. What are your company’s goals?5. What would you do to set out to create / improve your vision and missionstatements?6. Imagine a time three years from now. You are in New York on a long weekend break. You want to send a postcard home or to the office explainingwhere you are, what you are doing, what inspires you, business is doing welland what you have achieved - write the postcard home.
  • 9. 10COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukThe starting point is to define your company’s overall financial goals. Are you able to do this?The next step is set out some marketing objectives that would enable us to achieve ourfinancial goals. Actually increasing sales and profit may be more achievable than one mightat first think!Many business owners and managers are daunted by the idea of being unable to increasetheir profits. They think it always involves increasing the number of customers. But when wethink about the options, we get some interesting results, as the tables below show:OPTION 1: TargetIncreaseCurrentResultNetIncreaseGrossincrease• Increase the number of Customersby:10% 20 2 22• Increase the average spend by: 10% £100 £10 £110• Increase the number of timespeople purchase by:10% 10x 1x 11x• Your Turnover will increase by: 33.1% 20,000 £26,620What the tables show is that an increase in sales turnover can be obtained by setting targetsfor sales increases in three separate result areas. These are first to increase customersnumbers, second to increase the average spend and third to increase the frequency ofpurchase.If we know what the numbers are for our business, multiplying the three figures togethershould give us our existing turnover. This enables us to do ‘what if’ exercises to see what wecan achieve. If we do this continually and focus on increasing each category by just 10% weachieve more than a 10% increase in our business, we accomplish a 33.1% increase! And if weincrease each or any of these factors by more than 10%, we will achieve even greater results.OPTION 2: TargetIncreaseCurrentResultNetIncreaseGrossincrease• Increase the number of Customersby:30% 20 6 26• Increase the average spend by: 20% £100 £20 £120• Increase the number of timespeople purchase by :30% 10x 3x 13x• Your Turnover will increase by: 100% + 20,000 £40,5602. THREE OBJECTIVES FOR BUSINESSGROWTH
  • 10. 11COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukBy concentrating on these factors, and the leverage they can give us, we can develop amindset to identify and implement the activities required to give our business the growth wetarget.OBJECTIVES FOR BUSINESS GROWTHQuestions and AssignmentsTEXT RELATED1. What turnover increase can you target?2. Write down your company’s current turnover3. Write down alongside what it is capable of achieving4. Subtract one from the other for your turnover increase5. How many new customers can you add?6. What can you increase your customers’ average spend by?7. What can you increase your customers’ frequency of purchase to?
  • 11. 12COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukTHE PURPOSE OF A BUSINESSThere is only one valid definition of the purpose of a business and that is to create acustomer. This is wonderful thought. To create a customer actually instils something thatsuggests that the customer is so important that he or she is ours to look after and keep forages!The majority of business owners and managers do this: they come up with a product orservice, and then they expect to go out and find people to buy their products.This is a colossal mistake!If you have tried marketing this way, then you know how exhausting, time consuming andfrustrating it can be. The reverse of this approach is to find the market first, find outwhat the people want, and then… let them buy what they have told you theywant!Let me give you an example. Glen makes bespoke design-and-build wrought iron products.When I asked him who is customers were, he told me ‘anyone who’s interested!’ When Ihear that sort of thing I start to wince — like sitting in my dentist’s chair and being told ‘Nowrelax this won’t hurt!’I asked him what was the one thing his customers wanted the most? The best metals? Asecret process? Friendly approach? An endorsement? It turned out that what his customerswere really hungry for was real craftsmanship, with requirements ranging from weathervanes to car parts, and from garden gates to household ornaments, people were prepared topay the going price – and more!Customers buy from us because they see something they want. We think it might be theproduct or service we offer. But invariable the value and experience that is wanted issomething deeper. We have to find this, bottle it and use it as medication.What do customers buy?Here is a favourite example of mine. Reckitt Benckiser’s medicinal lemon drink Lemsipprovides a great example of how to attract customers based on their emotional needs –quite unlike the efforts of Beecham’s, a close competitor, whose marketing is based onfunctional needs Beecham’s customers.In fact, Lemsip has enlarged its customer base by creating customers through its appeals todifferent customer groups. In the late 1990s, Lemsip was positioned to meet the needs of3. CREATE A CUSTOMER – OR TWO!
  • 12. 13COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukbusy women seeking the comfort of a warm, soothing medicinal drink. You may rememberthe campaign’s compelling offer was built around the statement ‘a hug in a mug’.A few years later (2003), Lemsip moved into another segment, young career-minded maleexecutives, wishing to protect their advance up the corporate ladder, from other career-crazed rivals. You might recall the positioning statement at the time: ‘Life goes on’.The concept of a ‘hungry crowd’!At the end of the day a ‘HUNGRY CROWD’ is a steady flow of a group of customers thatvalue what we have to offer and whose values match ours.The point of all this is to start to concentrate on spotting customers - hungry crowds. Listento what people ask for, dream or complain about. It’s not enough for us to sell to people whoCAN benefit from what you sell; we need to sell to people who WANT to benefit fromthe SOLUTION we offer. In fact you’ve got to find people who will CLAMOUR for yourproduct, so that sales and marketing becomes a lot easier...Where is your ‘hungry crowd?’There are lots of niche markets – our job is to find one – one around which we can build ourproduct or service. Look at it this way - every product or service has the potential to appealmuch more strongly to a definable group of people – or ’hungry crowd’ – more than it wouldappeal to everyone else. When you spot a ’hungry crowd’ and tailor your products andservices to it, winning sales becomes much, much easier.There are several techniques we can use to find a hungry crowd; research is one, marketsensing is another. There is no shortage of techniques. In the process though ourassessments should unearth answers to three relatively distinct questions; ‘who’ will buy,‘what’ will be bought and ‘why’.The first question; ‘Who is buying?’ attempts to describe the characteristics of thecustomers within our current market or market to be examined. The second asks whatneeds and wants customers have. Here we unbundle all the features of a purchase so thatwe arrive at a list of what is bought. And third ‘Why are they buying?’ examines thebehaviour of our customers. Taken in unison, we place ourselves in a better position tocreate a proposition of value with which to match our customers’ needs.Make sure your ‘hungry crowd’ meets the right criteriaIt is one thing to find a hungry crowd but quite another to choose the right one. Some criteriaare needed. Here are some1. Does this hungry crowd have something in common with our values?2. Does it read certain publications, or visit specific websites? Are people in it membersof certain clubs or associations? Can we easily reach this group in large numbers?3. Is this group ALREADY spending money to meet the need we think they have or
  • 13. 14COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukachieve the goal that we can help them with? How do you know?4. Can our proposed market afford our solution?5. Does our proposed market WANT our solution?6. Can we give a compelling reason why this group should do business with us insteadof someone else?7. Will we enjoy working with this particular ‘hungry crowd’?8. Which unique collection of capabilities would enable us to do more for ourcustomers than our competitors? and9. What capabilities do we need to be able to do more for our customers thancompetitors?If you can’t say ‘Yes’ to all of the above questions, then I strongly suggest that you go back tothe drawing board and save yourself a whole heap of heartache.A NEVER ENDING PROCESS!!!The question a business leader should ask is: ‘Am I rediscovering new viable hungry crowds?’No customer group will remain the same forever. Aggressive competitors not only imitateattractive offers, they create new ones. This means that established companies mustcontinually strive to discover new customers for their business.We must continually watch out for what our customers want and need. Some of us have atendency to think that this means developing new products or services. But this isn’tnecessarily the case. Customers may enjoy our products and services but have different andchanging priorities. We need to identify and keep abreast of these.Often we can find new customers or changing needs and priorities and create fresh space tooperate in. Then of course there are customer groups that are not being served by ourproducts and services and we need to find them too.Remember this takes time so do not rush but think through what we have said here andthink about what you need to do to UNDERSTAND your customers needs and priorities overthe long term!
  • 14. 15COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukCREATE A CUTOMER – OR TWO!Questions and AssignmentsTEXT RELATED1. What do your customers need / want?2. Is there a danger you are actually telling them that they need you?3. What are your customers’ current priorities? Remember you may haveseveral different types of customer buying your products and services rightnow!4. Can you define them by who they are, what they buy and why they buy?5. What feedback are you getting to pinpoint/establish the value yourcustomers seek?6. How often do you do this?7. What customer groups are not being served that could be being served thatyou should be developing?8 Are there any new needs or priorities on the horizon that you should beattending to?
  • 15. 16COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukTHE PRIMACY OF VALUEHere is a practical matter; one which is probably the biggest issue for us to tackle! Thechallenge is how to please an increasingly sophisticated customer. Yet to fully appreciatewhat customer value is accommodates revelations and variations in what customers actuallyvalue.Success is directly related to our ability to provide perceived value to customers becausecustomers perceive value only in the benefits that our products and services provide. Theseperceptions are almost always connected to our ability to produce superior products, tailorsuch offerings to targeted customer groups and back all this up with advanced services.What do customers buy?There are enumerable forms of value - types of demand being placed on us by newcustomers. Take a look at some of them listed below:1. Quality does not always reflect what we think of as value; customers define it.2. Products and services that were once new and expensive are sometimes expected tobe FREE. For example, we once paid for broadband.3. Just as suppliers demand loyalty, so do customers.4. Both high quality and best prices are expected.5. Customers seek simplicity, proliferation and duplication are frustrating.6. Intriguing new and innovative products and services will be interesting for customersthat want t7. Products and services that offer customers the chance of feeling or being treateddifferently; the iPhone, designer fruit juice and a financial services package are casesin hand.8. Products and services that create an experience and enjoyment for the customer atthe point of purchase will afford enjoyable memories.9. People want to feel good about the things they buy; therefore, sellers that are sociallyresponsible or ethical will be valued.A proposition of valueIt follows that if we understand what customers’ value we should make known that we canprovide the value sought by our customers in a compelling way in comparison with yourcompetitors. Thus customers and prospects may see and understand why they should buyfrom us.4. SOMETHING OF VALUE THAT’SDIFFERENT!
  • 16. 17COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukHas your company got a value proposition? You might answer the question with an emphatic“YES!”, and if this is so, try jotting it down. If we are unable to state what makes our offermore attractive to our selected customer groups more effectively than competing offers, then,it is likely that we will not have a unique strategic position.Let me illustrate the point with some well-known examples. For example, the written valuepropositions of the following three businesses describe the positions they aim to take in theircustomers’ minds.SOME EXAMPLES• ‘The internet in my pocket’ – Apple iPhone• ‘Ladies and gentlemen serving ladies and gentlemen’ – the Ritz CarltonHotel chain• ’25 Years: Still red hot!’ – Virgin Atlantic.Finding a Value PropositionThere is no fixed format for defining a value proposition but we can find one if we dig deepenough to find the real reason why customers buy from us? Remember they’re onlyinterested in what our product or service will do for him/her. If all we are doing is telling ourcustomers about the knobs and whistles on our products we will never find out what’simportant to your customers.There is no fixed format for defining a value proposition, but a series of questions – such asthose listed below – will help Find the Value.The point about being differentThe question of SUSTAINABLE differentiation is also important. If our value proposition isany good our competitors will want a slice of the action. The answer is to develop a specialand distinctive activity system; in other words a ‘value system’ that offers additionalA seven-step process to create a value proposition1. Create a list of 7 key features of your service offer2. Ask which 3 features that offer the value being sought are the mostrelevant3. Ask which of the three is the most important4. Ask why that feature is more important5. Recap and ask again, why that point is so significant6. Ask who else might value hat sort of benefit7. Try to convert your findings into a few words
  • 17. 18COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukinimitable advantages of importance to customers and which also distinguishes our businessfrom its competitors.Consider for a moment the difference between Zara and Marks and Spencer, easy Jet andBritish Airways, as well as the Ritz and Premier Inns.When you consider each case we can see how a company’s activity system can give its offersustainable competitive strengths - even advantage. Thus if business marketing strategy isabout being different then the essence of superior value is to select and to perform activitiesdifferently, or to perform different activities to those of competitors such they that cannotimitate or equal with their operations.One last point; approaching sustainable differentiation in this way is dependent on creating aunique combination of activities (and competencies) that support and reinforce one another.
  • 18. 19COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukSOMETHING OF VALUE THAT’S DIFFERENT!Questions and AssignmentsTEXT RELATED1. What value proposition do you offer your customer groups?2. What is the basis of your value proposition(s)?3. What can you do to offer something with an angle to be noticed?4. What value or experience are you offering your customers when they buyyour sort of product?5. What value or experience are you offering your customers when they buyyour sort of product?6. How often do you do this?
  • 19. 20COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukIt is possible that most of us have heard about companies that use customer databases. Butmany companies know very little about their customers. Most think they know theircustomers and everything about them. Most think that ‘all you need to know is located inyour brain or a file cabinet in your office.’THE 5 REASONS WHY A CUSTOMERDATABASE IS IMPORTANTIs it conceivable that if we stopped to think about it we might just realize how much webenefit from setting up a simple customer database system? ‘How can this be done?’ you ask.Well, let me give you five reasons why a customer database will help a company grow andprosper.1 Access to informationFirst of all it is likely that a considerable amount of information, if not paperwork is strewnthroughout your office without any sort of organization. You may know where it all is, but doyour people? They may need that information to help your customers. A customer databaseputs all of that information in a central location where all employees can access it.2 Knowing our customersSecond and I believe we are getting to the heart of the matter now. Just how much usefulinformation do you have about your customers? For example; do you know who spoke withyour customer last? What do we know of their preferences, service issues, birthdays,interests and so forth. Do your people? Probably not! Without a customer database system,you run the risk of looking unprofessional and unprepared because your employees may notknow about your customers work history or needs. A customer database puts that at youremployees fingertips.3 Knowing when we disappoint themThird is the issue of customer satisfaction. This is something that’s possible to track on acustomer database system. How will anyone know what our customers are thinking aboutthe work we do? If they are dissatisfied with what we do and how we go about doing thingswe can make adjustments according to their complaints.5. THE IMPORTANCE OF THEDATABASE
  • 20. 21COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk4 Creating loyaltyNext is the frequency of their visits to us? We need to know if our customers are returning tous. If not, the hard truth is that it may be because of problems connected to our offer andservice. Customers feel secure knowing that their service suppliers know most things abouttheir needs and remember them from job to job. If we do not have a customer database werun the risk of losing customers to our competitors who can offer the package we have. Andthat can hurt.5 Keeping costs downFifth and finally I want to present the reason for a database. If you have a list of customersthat have bought from you it is well worth remembering that a person who has purchasedsomething from us, is more likely to buy from us again. This means that the cost ofmarketing to them in the future will be far less when compared to trying to get someone newto buy your product or service.You may have a customer database system in your company. But if you have not then youmay wish to set one up. It will help improve your business in all areas and will only help youbecome a stronger business owner in the process. This, in turn, will mean a better businessand more customers coming to you again and again. Who knew all of that could happen bybecoming organized and implementing a customer database?
  • 21. 22COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukTHE IMPORTANCE OF THE DATABASE!Questions and AssignmentsTEXT RELATED1. What data is important to your business?2. What will you do to capture data??3. Do you know where your customer groups congregate?4. How will you communicate with your customer groups?5. What will motivate your customer groups to respond to yourcommunications?6. What will motivate your customer groups to respond to yourcommunications?
  • 22. 23COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukNow then we move to something that is often taken for granted yet seldom applied. It is asubject that relates to our customers – our existing customers to be precise!I would like to start with two questions. They are these:Put your thoughts hereQuestion1In percentage terms, how many businesses doyou think try to raise sales by increasing thenumber of customers they work with ratherthan trying to increase sales from existingcustomers?Question2If you are, or are not, one of these businessesto what extent do you think your business islosing opportunities to gain more sales fromexisting customers?EXISTING CUSTOMERSIt has been said that more than 95% of businesses concentrate their entire attention ontrying to get more customers, apparently unaware that it costs 5-15 times more to gain a newcustomer as it does to correctly serve an existing one. Also we should note that a correctlyserved existing customer is 5-15 times more likely to buy from us than a new one, and acustomer who has bought 3 times is far more likely to buy from you again than a customerwho has bought once.So if gaining a new customer is up to 15 times more expensive and they are up to 10 timesless likely to buy from us than an existing one – what tactics should we operate to optimizethe potential with our existing customers to gain maximum loyalty and profit?Tactics for existing customersAs you can imagine there are a number of these. And I have listed and outlined a number oftactics below:Referral systemsFirst a referral system often generates an extremely positive impact on our sales. One of thegreat features of a good referral system is to impart a sense of invitation; that visitors wouldbe especially welcomed as we invite guests to our home. Referral systems vary from businessto business but there are things that we can do to increase the number of referrals. We canask for them, alert customers to the fact that referrals are a vital part of our business and wecan reward them - and we can develop and introduce a referral system.6. TAP INTO THE CUSTOMER’STREASURY
  • 23. 24COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukCommunicating with customersSecond communicate with existing customers. When did you last mail them, or call them orconsult with them? There may be opportunities to communicate with our best customers byletter or email items that would be of interest to our customers and appreciated them. Suchthings as birthdays, holidays and events come to mind and may distinguish us fromcompetitorsAnother tactic along these lines is to set out a clear and ongoing sales process to providecustomers – and even customers that have stopped buying from us - with compelling newoffers and a ‘back-end’ of further products or servicesYet another is to check with our best customers to find out how enhance our relationshipswith them and see how they are doing.Then there is your value proposition. This should be visible to all customers and shouldclearly articulate the top three benefits that our product and service offersThe possibilities are endless.Sales processesThis is really important. There are of course a number of processes that have inveigled theirway into sales literature but one that I would advocate here is nothing more than adopting aconversational approach. It ensures customer focus and above all relationship development.In fact good marketers and service suppliers do not have to sell they coach their customers.By helping prospects and customers to make the best decisions for themselves, we add trustand genuine value. You can ask these questions in any situation to help guide and lead your‘selling’ activity. Remember the suggestion is a generic one. Each question should bemodified so that is business specific.1 How can I help you? Contrast this with a style that tells!2 What works well already? Do not rush to find the want or need, take time with thisstep, build a real rapport and trust and get to the real wants later.3 If you could change one thing what would it be? Avoid quick assessments andlong lists of need and want, coach customers gently to get to their root likes andwants.4 If we solved this, what difference would that make? Feel free to repeat thequestion in several ways. Ask for the benefit of the benefit. Keep going until theycannot think of anything more. These are the reasons they will buy.5 If I could help you with that, would you be interested? Either they are or theyarent. There is little point in spending time on a solution where there is not genuineinterest. Therefore seek an alternative.Up sell and cross sell with add-ons and volumeThere are two ways to deliver benefits to customers, offer higher margins than the coreproduct and make a difference to turnover.
  • 24. 25COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukAdd on product and servicesThe first method is give customers the means to add related items to their basic purchaseswhich when combined provide greater satisfaction. This means that service and sales peopleshould be aware of the relevant combinations so that customers can choose from over theirinitial interest. There are three opportunities, and they are to:1. “Up-sell” to with a different more expensive package from one of say 3 options for thesame product (different pack sizes or something that enhances overall value),2. “Cross sell” with other products (cheese with wine)3. “Give away” complementary productsIncidentally if ideas for up sells and cross sells are hard to come by, ask your customers forsome help.Remember though to consider what customers want or value from the products and servicesthey buy. Then against each one prioritise how these wants or values might be increased tobenefit the customer.Time and volume optionsThe second way is to help customers decide the quantities and qualities in which they wantto purchase our products.For example consider what larger unit of purchase might benefit customers in some way. Adiscount for regular purchases or a ‘best buy’ with a discount or a free bonus incentive forchoosing this preferred option are alternatives.
  • 25. 26COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukTAP INTO THE CUSTOMER’S TREASURY!Questions and AssignmentsTEXT RELATED1. What data is important to your business?2. What will you do to capture data??3. Do you know where your customer groups congregate?4. How will you communicate with your customer groups?5. What will motivate your customer groups to respond to yourcommunications?6. What will motivate your customer groups to respond to yourcommunications?
  • 26. 27COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukAny attempt to grow our business can meet with sluggish results even though we have gotthe other result areas mentioned here in place – it’s almost certainly our MARKETINGTACTICS that are holding us back and restricting us to lacklustre results.MARKETING TACTICSHow many of these marketing approaches are we using? Most businesses use only one or asmall number. If we really want to optimise the potential of our business success it is vital todevelop a number of approaches into a multiple marketing profit making machine.Such tactics, and there are many more, may be used to attract leads from the core of yourmarket and others then used to nurture and convert warm leads into customers through arange of outstanding offers in a process of patient communications and relationship buildingin pursuit of advocacy all taking place in designated niches.“FRONT-END” AND “BACK-END” TACTICSThere is one important thing to bear in mind and that is that we can separate marketingtactics into two camps; “Front-End,” and “Back-End.”We should think of “Front-End“, as the first sale; the pipeline that brings new customers intothe business. The “Back-End” is the product (or hopefully the series of products and services)that you sell to your customers after they have purchased your initial offering.The question to ask now is what tactics you should use in each area. They are:• Front-End : The marketing tactics employed to attract and acquire new customers.• Back-End : The marketing tactics employed to optimize the profitability of each andevery customer relationship.7. MULTIPLE MARKETINGAPPROACHESRisk Reversal Telephone Marketing AdvocacyNewsletters Direct Sales Joint VenturesPrice promotions Advertising PRSpecial Events Conference Calls E.commsSequenced Mailing Internet Advertising Referrals
  • 27. 28COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukClearly front-end marketing is vital for your long term business success. This is why it’s soimportant to inject the power of marketing into your business so that you can increase thenumber of customers that come to your business as a continuous flow…The facts behind front end and back end marketingLet me ask you some questions, answering them should help you grasp the importance offront end and back end marketing.Let’s review these questions before we go any further, however, should you want to see theanswers to them, you will find them at the foot of this section.Short and long term issuesIn the short-term we can almost always make more money from a back-end promotion thana front-end promotion. Back-ends have a much higher conversion rate, they usually sell formore money, and we make a larger percentage of profits on them too. Why is this, you ask?Well it is because it is easier to sell to a customer than a prospect.But what about the long-term? Well, long-term we must have new customers entering intorelationships with our business, or eventually we will be put out of business. This means ofcourse that we must spend time developing effective front end promotions otherwise ourcompetitors front end offers will eventually turn ours into a lame, and undesirable ones.You see many managers and business owners get engrossed in back end sales it is so mucheasier and more profitable, who wouldn’t want to spend all their time devising new schemesto launch one offer after another to customers?Five principles to guide multiple marketing approachesThe thing is of course to find a balance for these five very important reasons:If we do not have clearly established paths for our new customers to take after their initialpurchase, it will be very difficult to test and establish the best sequence of offers on the back-end.The source of future back-ends comes from our successful front end promotions. If we fail tokeep in touch with the market place we will be forced to get back into it to work out whatcustomers want, what their priorities are and what trends and shifts in our market impactour competitiveness.1. Which sale is harder to make, the front-end or the back-end?2. Which end faces more competition?3. Which end requires constant innovation?4. Which sale has a higher conversion rate?5. Which end do you make bigger profits from?
  • 28. 29COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukWhile back-ends contribute a greater percentage of today’s profits, today’s front-ends willcontribute even more profits in the future.The customers that have the greatest potential value are the ones that are acquired mostrecently.Every business has an attrition rate and if we are not bringing in more customers than therate of attrition, we risk losing important cash flows - every day.By now the logic behind this different approach should be somewhat obvious. The upshottherefore is that we need to plan multiple approaches to attract new customers at the frontend and optimise sales at the back end.Oh! Yes I almost forgot here are the answers the questions we posed a little earlier.The answersSome last wordsIn coming ending in this section, remember the definition of marketing. Marketing isbringing the market to desire your product or service. Given this definition the question isthis; are we doing any type of marketing whatsoever, and if we are where is the focus of ourefforts?It is conceivable that far too many people mistakenly believe that the only effectivemarketing and advertising is the type that goes for the sale and for the most part theimmediate sale. This type of thinking really is flawed that can cost business people atremendous amount of lost profits.You see, the thing that is so important in business, is to live at the heart of your customersmarket and continue to sell the knowledge, the product, the service, the story and the systemthat we have created that we have designed to make a difference in people’s lives. In a sensethe only way to convince people that we can deliver on our offer is to show our product orservice in action. Just like Nike shows its products in action by fitting out the sports peoplewe admire the most.MULTIPLE MARKETING APPROACHES!1. Which sale is harder to make, the front-end or the back-end? The Front-End2. Which end faces more competition? The Front-End3. Which end requires constant innovation? The Front-End4. Which sale has a higher conversion rate? The Back-End5. Which end do you make bigger profits from? The Back-End
  • 29. 30COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukQuestions and AssignmentsTEXT RELATED1. What marketing tactics are you currently employing?2. What are they intended to achieve? Explain your objectives for each tactic3. What tactics can you employ at the front end to attract customers to yourpipeline?4. What tactics can you employ at the front end to optimise sales at the backend?5. What are the hazards of concentrating on tactics at the front end or at theback end?6. In the light of your answers consider a strategy to both attract customers atthe front end and optimise sales at the back end?
  • 30. 31COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukHere’s a question? What do you think would improve the bottom line?1. A 10% increase in price2. A 10% reduction in costs or3. A 10% increase in volume salesBE WARY OF REDUCING PRICESYou will find that most people would opt for options 2 and 3 (volume sales or costreduction). But when you get down to it, a price increase will often lead to profitimprovement - if you can get away with it. The sceptics among you might argue, “a priceincrease will only work if you do not lose sales”.Be wary of stimulating sales by cutting prices. It may boost top line turnover, but it candevastate your profits. And think hard before cutting costs. You could decrease value, losecustom and damage your hard earned reputation.Raising prices meanwhile, may jeopardise turnover, but can in fact create a fitter business, afocus on loyal customers, reduced working capital all of which engenders a higher rate ofreturn.One further issue is that we should never compete on price alone. We should start by makingsure that what we are offering exactly what meets needs of our customers, and sell on bestvalue rather than lowest price. Sell what someone wants and they’ll pay for it. Sell what no-one wants, and we will not even be able to give it away.Here’s how to do it - and go “up market”What follows is a shortlist of pricing tactics for high value products some of which are prettyfamiliar.1. Guarantees – Often customers will part with their money more readily and pay ahigher price, if they know that they can get their money back if something goes wrong2. Outstanding service – Study after study has shown that customers are willing topay more if you give them great service. Research also shows that companies thatprovide great service grow twice as fast as those with bad service3. Price as an investment – Describing your price as an ‘investment’ rather than acost can often go along way towards persuading customers to buy8. PRICING FOR PROFIT
  • 31. 32COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk4. Explain why – Be prepared to explain why prices have risen, perhaps as a result ofcost increases, and point out that, had it not been for improvements in your ownproductivity and efficiency, the increase would’ve been even higher. Better still;explain that the price has increased as the result of improvements to the quality ofthe product. Emphasize the enhanced customer support, faster and more convenientdelivery and other factors which make the product better and therefore worth payingmore for5. Justify your prices - It is vital to have a strong justification and defence for yourhigh prices prepared in advance. This is likely to include knowing the prices of yourmost expensive competition, demonstrating the savings and benefits from yourproduct and demonstrating that your product is hugely superior and thereforeslightly more expensive because…6. Use “Non-price increases” – For example, consider charging extra forinstallation, delivery, insurance, handling, storage, urgent orders or rapid delivery.You should also try increasing your minimum order size and introducing a surchargefor any orders below that threshold, revising your discount structure, slimming downthe specification of your product and stripping out any expensive features that areonly limited value to the customer, and charging interest on overdue accounts7. Change the package – If a customer tries to knock you down on price, don’tchange the price, and change the package. In other words, never simply crumple onprice. Always trade a price reduction for some concession from the customer e.g. alarger order or cash up front.
  • 32. 33COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukPRICING FOR PROFIT!Questions and AssignmentsTEXT RELATED1. How do you know that you are charging the ‘right amount for your productsand services?2. Have you tested higher prices?3. What marketing tactics will sustain premium prices??4. What price promotions could you employ at the back end?
  • 33. 34COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukTHE MARKETING FUNNEL – WHERE CAN YOURBUSINESS DO BETTER?Having a consistent flow of customers year after year remains the no. 1 challenge for mostmanagers and business-owners. Attracting a steady stream of customers and commandinghigher prices are important goals. One way that this can be done is to a customer journeysystem or funnel method of marketing.Picture a funnel! Its wide and open at the top, and small and narrow at the bottom. Amarketing funnel is exactly the same. Many prospects enter the funnel at the top but only afew continue down to the bottom. Those who make it to the bottom are your high valuecustomers. In simplistic terms, all you have to do is attract many prospects in at the top andturn them into customers in the funnel and therefore profits should come out the bottom.It is a very powerful way of thinking about and how you want to spend time and money inmarketing and building your business.However, there are two important things to note. First, many businesses spend plenty ofmoney attracting people to their companies, but not enough making sure that these peopleare converted into sales. Secondly, small businesses often neglect marketing to existingcustomers. Marketing efforts should also be focused on moving people down the marketingfunnel as well as into it at the top.LIVING AT THE CORE OF THE CUSTOMER’S WORLDPromotion does not work. So rather than hit the market with another leaflet or even moretelesales, what if you aim to build a reservoir of leads with tactics in the heart of the niche -the customers world - so as to let your reputation appreciate in the minds of a sufficientnumber of potential buyers?It is a known fact that you will never sell our products and use your skills until you aretrusted. Until somebody has confidence in us, he or she is unlikely to want to buy from us.For that trust to be created, our prospects must know about us to begin with.Rather than go searching for customers, your objective is to position ourselves in such a waythat they find you!Tactics for Living at the Core9. THE CUSTOMER JOURNEY
  • 34. 35COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk1. Create a Point of Recognition – the sales points you offer match the needs ofyour ideal customers … it is far easier to be found in a niche with a convincing and acompelling offer and credible point of difference than on terrain with little variation.It is this positioning that actually underpins credibility – not how well we do what wesay we do. See Chapter 4 Something of Value that’s Different.2. Who Needs to Know About You to Come to You? – So who and howmany people need to know about you in order to generate the volume ofenquiries you would like to receive? All this means that it is vital to specifyand describe clearly the niche(s) you are in.3. What Are Your Routes to Them to Generate A Great Reputation?”-These routes include the strategies listed in Chapter 7 Multiple MarketingStrategies.PERFECTING THE CUSTOMER JOURNEYWith the aim being to move people down the funnel one major mistake that manycompanies make is to only have one type of service. This often leads to one of two scenarios.Either the service company becomes inundated with work and is unable to fulfil additionalorders, or no one is buying the service.The solution is to offer more layers in your marketing funnel. People may not wish to take aleap of faith and purchase an expensive service from you but they may be interested in‘testing the water’ with a smaller purchase of some kind.Therefore offer lower-priced introductory products and services such as a cut-down versionof your main service.TrustIt takes a while for people to begin to trust a potential supplier so you should initially providea means to allow a relationship to develop. Once in your marketing funnel you can thenmarket to your prospects and encourage them to make a couple of lower value purchases.Having seen the quality and/or benefits first-hand you will be in with a good chance ofmoving those customers towards the bottom of your marketing funnel.Not everyone will follow you through the funnel from beginning to end, in fact, only a fewwill, but these will be the customers who will make you more money in the end. Others willnever spend more than a certain amount with you, but they might do this for years to come!And don’t forget – once your customers near the tip of the funnel the marketing need notstop there. As we have seen today’s marketers need to build a more authentic, deeperrelationship with customers by truly engaging them to earn their loyalty—and this is howcompanies can begin to cultivate advocates.
  • 35. 36COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukThus the client journey moves a level deeper to account for advocacy. There are two reasonsthat cultivating and enabling advocacy is critical in today’s world:1. People trust other people more than they trust companies. A recommendation from afriend or family member is still the single most important criteria in making apurchase decision and recommendations from strangers online also hold moreweight than marketing messages.2. With the growing voice of the customer online and the “power” (virtual megaphone)handed to them through social media outlets, it’s important to help make sure thevoice of happy customers is louder than that of the few unhappy customers.Cultivating and enabling advocates will generate authentic word-of-mouth, bringing the bestnew customer prospects into the marketing funnel.
  • 36. 37COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukTHE CUSTOMER JOURNEY!Questions and AssignmentsTEXT RELATED1. Whats in your marketing funnel? Take out a sheet of paper, draw a funnelshape and list the products and services you offer.2. Do you see any gaps in your offerings from free or low priced to high priced?3. Work out what you can do to fill these gaps with a range of carefully priced orattractive options!4. Do you have advocates in your business?5. What ideas do your loyal customers give you to help you expand your business6. What could you do to help them refer and or advocate your business?
  • 37. 38COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukTHE ROLE OF METRICSIn recent years measurable performance and accountability have become essential keys tomarketing success. But few managers and business owners appreciate the range of measuresor metrics by which they can evaluate and improve their company’s marketing strategies.Consequently we must select, calculate and explain crucial marketing (and business) metrics.We must understand how each is constructed and how to use them in decision making. Andso as the old adage states; ‘If you can’t measure it, you can’t manage it’ we must identify themeasures that will help us evaluate our plans and actions, explain variances, judgeperformance, and leverage points for improvement in numerical terms.The role of processesAll this requires a strong command of the processes that enable us to set measures ofperformance. Every business is made up of a series of processes that convert inputs intooutputs. It is in these very themes of input, conversion and output that we have the means tounderstand how each process works and what it delivers and then to do everything we can toimprove them to achieve more output from every input. Therefore, one of the keys to makingour business more successful is to identify our businesses’ most important processes.TWO IMPORTANT METRICSThere are metrics for almost anything. Key ones that concern us are measures such as;customer service, customer satisfaction and willingness to recommend, product profitability,customer profitability, sales effectiveness, cost per transaction and so forthBut for now we would like to mention two fundamental metrics that are so robust that justknowing these two numbers will give a pretty clear idea of how well our business isperforming. Let me define these two terms for you:10. PLAN FOR EXPLOSIVE GROWTH!Cost PerAcquisitionThe marketing and advertising expenses needed to generate anew customer. Online, this includes money spent to entice thevisitor to the web site, the payroll costs of a live rep if there islive chat on the website, etc…LifetimeCustomer ValueThe total value (in terms of money spent) of your averagecustomers spanning the entire period that these customers arelikely to do business with you.
  • 38. 39COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukThere are a number of ways to calculate these metrics. For example we could calculate thelifetime value of a customer by the total amount of money spent in the lifetime customervalue equation, and or the total amount of profit received. Alternatively we could use cost peracquisition to determine what is spent to convert a prospect into a customer.Let’s say that the life time value of a supermarket customer is in excess of £50,000. Or to putit another way, the average customer will spend more than £50,000 in his/her lifetime at thesupermarket. It means of course that when we go into complain about the broken bottle ofjam and they respond by telling you that you must have done it, they have just waivedgoodbye to at least £50,000!Imagine if a business loses just one customer per day and the average customer-spend is £50per week, then the net loss to the business is a staggering £949,000!Couple this with a couple of other statistics like discount rate and the net present value offuture cash flows and you begin to see why customer retention is so critical.What are you accomplishing?But, before we go any further, can you rattle off what your business is currently paying toacquire a customer? Even better, can you break your cost per acquisition down fromdifferent sources of feedback (word of mouth recommendation, advertising etc)?And can you state what the lifetime or long-term value of your customers is? And once again,what about the value of the customer broken up by the different sources they were generatedfrom?
  • 39. 40COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukPLAN FOR EXPLOSIVE GROWTH!Questions and AssignmentsTEXT RELATED1. What are your most important processes?2. Do you measure their performance?3. What is the life time value of your customers?4. What is the cost of acquisition?5. How can you improve each important process?6. Are you able to get everyone in the team to think about how to improve eachone?7. Do you generate further ideas by talking to customers find their needs andpriorities?
  • 40. 41COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukThere are two types of mindset. People tend to fall into one category or another. There arethose that put marketing to one side. They believe that they have a great product or serviceand assume customers will buy them. Invariably they don’t. Then there is the other mindset,here people go out and get good at marketing. These people believe that business success isdown to good marketing. These people will actively take an interest in their customers, andwill want to find their needs and encourage them to buy their products with couched inmatching benefits.Whatever category we are in, we must begin to appreciate the main processes ‘of going tomarket.’ In other words identify and implement the marketing tools, tactics and plans thatare so necessary to market your business in practice and categorically how to make ithappen.11. ADOPT A MARKETING MINDSET
  • 41. 42COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukSo there you have it; the fundamentals of marketing, packed into a ‘crash course.’ Whatcomes next is a short summary of the main principles to develop a marketing strategy. Thereare five essential principles to consider all which that contribute to overall profits and to theoverall success of your marketing;1. Your objectives. Set out an overall turnover and profit target and establishobjectives for new customers, increased average spend and frequency of purchase2. Your customer group (or niche). Identify your niche and a compellingpromotable message that creates an “I‘ve got to have that!” response.3. Your offer, by this I mean the package that demonstrates the overall value of theoffer is worth the cost of paying for it.4. Your database. When it comes to marketing the most important thing is thedatabase – without it sustainability is doomed.5. Your multiple marketing approach, these need to speak to the niche, buildrelationships with its incumbents and tackle their needs and wants convincingly.The key is to unite an offering of superior value with a targeted customer group, togetherwith an efficient and distinctive game plan, or means, to create a fit between what thecustomer needs and what the company does really well in the face its competition.Let me put it another way! Let your targeted and distinctive offer be the brass and your gameplan be the gold! Blend the two metals in the refiners fire and what will you gain? You willbring into being rich Corinthian metal, fit to compare with the creative castings of othermarketers that have created their own shining reputations in business.12. BRINGING IT ALL TOGETHER
  • 42. 43COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukA MARKETING PLAN FOR YOUR BUSINESSNOW TRY THIS - SOME WORK FOR YOUComplete the tables below to build your marketing plan1. VISION AND MISSIONVISIONMISSIONBusiness definitionCore competenceValuesIndications offuture directionRefer to Section one to draw up a vision statement. Summarize the overall missionstatement – or sense of purpose and put this into a marketing context in terms ofrequired marketing objectives.
  • 43. 44COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk2. FINANCIAL GOALSPeriod 2010 -Sales Value (£)Sales Volume (units)3. POSITIONING - CUSTOMERS AND OFFERS1) EXISTING CUSTOMERSCustomergroupnameCustomercharacteristicsCriteria forselecting as apriorityProduct -service mixCompellingoffer2) EXISTING CUSTOMERSCustomergroupnameCustomercharacteristicsCriteria forselecting as apriorityProduct -service mixCompellingofferList target markets in order of importance, describe each, state whyeach is important ascribe particular products/ services and the offer toeach.
  • 44. 45COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk4. MARKETING OBJECTIVES1) INCREASING SALES FROM NEW CUSTOMERSNo. ofcustomersTransactionvalueTotalNowAim2) INCREASE SALES FROM CURRENT CUSTOMERSNo. ofcustomersTransactionvalueFrequencyof purchaseTotalNowAim
  • 45. 46COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukRefer to section 2 to define objectives for new and existing customers. Also relatethese objectives to the customer groups that you have identified in Step 3 of yourplan.5. MARKETING TACTICSThe key thing is to plan and carry out what you are comfortable with but also what will putyou into the core of your customer’s world – this means that a certain amount of “stretch” isrequired on your part.One way of choosing your tactics is to ask yourself whether or not the tactic;• Can help you develop an opportunity• Is applicable• Can be implemented• Is important• Help make you different• Can offer valueRemember, you cannot select an excessive number of tactics to operate. Careful planningand timing is required. But even then you will find that you will establish what works for youso your final selection will follow quite a bit of trial and error.Remember the importance of multiple approaches? Consider your tactics from front end andback end perspectives.1) FRONT END:INCREASE THE NUMBER OF CUSTOMERSTactic Timing Contributionto sales12345
  • 46. 47COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk2) BACK END: INCREASE SALES FROM CURRENT CUSTOMERS6. PROCESS/CUSTOMER LIASONAreas requiringattentionIssue Required ActionCustomerinformationProductinformationInformation onpricesInformation onoffersProduct supportPromotionsCustomer feedbackCommunicationswith customersComplaintsSuggestionsSales resultsInterpersonalrelationshipsTrainingTactic Timing Contributionto sales12345
  • 47. 48COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukResearchOtherThis is the business helping customers, making life easier for customers to deal withthe business, improving flows of information and communications.7. SUMMARY OF PLAN TASKS TIMING & COSTSTasks PersonresponsibleDates foractivityAnticipatedcostImplicationsThe main marketing activities should be entered into column 1. People must nowtake ownership of identified actions and potentially contribute to identifying them,determining schedules and costs.
  • 48. 49COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk8. MARKETING METRICSMetric CurrentResultPlannedResultActualResultGap Reasonfor Gap1 Sales, profit byproduct and bycustomer2 Visits, customers,retention3 Customersatisfaction,willingness torecommend4 Sales effectivenessand results5 Sales on offers,promotions andprices6 Cost of acquisition7 Lifetime value8 OthersDetermine measures for benchmarking purposes. The list measurements areextensive. These or alternatives may be chosen but the application of metrics leadsto better decisions which leads to better results.
  • 49. 50COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk9. COST AND BUDGET SUMMARYTask Cost Implication for thebusinessSummarize the costs/budget for each of the main marketing tactics/activities andoutline the implications from the combined totals of these costs.
  • 50. 51COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukFor further supportCall Andrew Pearson on 01280 844966 oremail andrew@coaching-business.co.ukAbout Coaching Business!Andrew M PearsonCoaching BusinessAndrew M Pearson NDA, Dip M, MBA is considered to be a prominent expert in the fields ofstrategy, marketing and operations management. He tutors at Oxford Business School and isalso a visiting lecturer at Warwick University.In addition to UK business school experience he has led and presented seminars andworkshops at business forums throughout the world. He has extensive experience as abusiness coach, consultant and management speaker and has worked with managers andmanagement students in the UK, Europe, China and Libya. He focuses on issues of strategydevelopment, planning and implementation.His publications include; How to Invent New Business and How to Build a Business thatWorks Without You. A third volume, entitled The Strategic Manifesto, will follow in 2010.Andrew set up his first business aged 25 and steered it to market leadership and a turnoverof £11m in 6 years. Since then, he’s held senior management and professorial posts at anumber of UK firms, including four years with Cargill, during which he founded pioneeringstrategies for business development in Eastern Europe.Clients include:• A P Moller Terminals• Andersons Consulting• BALI (SE)• Centaur Grain Ltd• Channel Express Ltd• Dart Plc• Edexcel• Everglade Windows Ltd• Fowler Welch Ltd• Hartley’s Nurseries Ltd• LEAF• Mack International Ltd• Palmstead Nurseries Ltd• Velcourt LtdFurther E-books and coaching support:• Transforming the Process of Going to Market• Rejuvenating the Mature Business• Challenging the rules of the game• How to build a business that runs without you• Customer Driven Market Change• Creating Time to Think and Plan• So You Think You Know Your CustomersFor more information:Please contact Andrew for a chat on01280 844966 and for more information visitwww.coaching-business.co.uk