Doing Business in Hard Times


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Doing Business in Hard Times shows how to prioritize customer value and how to project future revenue based on customer segments in your business.

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Doing Business in Hard Times

  1. 1. Doing Business in HardTimesSecrets of Multiplying Your IncomeFrom Existing CustomersPresented By: Denise Hester, M & M of NC 919-680-2878
  2. 2. What you will get fromthis seminar A new way of looking at your business Calculating the value of your existing customers Multiplying the value of your existing customers for greater profit
  3. 3. What else you will getfrom this seminar
  4. 4. Nothing happens untilsomething sells We are always engaged in sales Easier to sell to current customers New customers sometimes more expensive New customers sometimes more demanding & unpredicatble
  5. 5. What is marketing?The relationship that allows you toattract and maintain sufficientcustomers who value your product orservice enough so you can profit fromthat relationship
  6. 6. What is marketing’s rolein business? Establishes your competitive advantage in the marketplace Defines your unique difference that customers are willing to pay for What makes customers choose your business over a competitor
  7. 7. Remember ROGER R Rank customers by their value to your business (Market Segmentation) O Obtain info on what your customers value and are willing to pay for (Market Research) G Generate value for each market segment (5 P’s) E Evaluate the results R Refine and repeat based on feedback from customers and your bottom line
  8. 8. Rank customers by theirvalue to your business Recency How recent was last sale Frequency How often do they buy Amount How much do they spend
  9. 9. List customers in eachsegment A List All Stars (Visit often and spend the most) B List Better-Than-Most (Visit less often and spend less) C List Clandestine (Visit once in a while and spend little) D List Defectors (Visit every once in a blue moon) E List Extinct (No longer exist as customers)
  10. 10. Another Way to RankYour Customers
  11. 11. Make a list of customersin each segment A List B List C List D List E ListObserve 80/20 Rule at work during this exercise
  12. 12. Obtain info on whatcustomers value bysegment A List B List C List D List E List
  13. 13. Generate buzz throughmarketing process (5P’s) The 5 P’s define your capabilities that give you the competitive advantage in the marketplace Proposition (Value Statement) Place People Price Process
  14. 14. Evaluate Results Experiment with value proposition until you deliver what customers want Alter the 5 P’s as required by your market Use contact management system1. Your memory (not recommended)2. Index cards3. Telephone4. Computer software (Word processors, spreadsheets, point-of-sale)5. Social media (Facebook, Twitter)
  15. 15. Repeat Refine the value proposition to each segment based on measurable feedback Repeat all the previous steps over again until you see a measurable difference in your bottom line.
  16. 16. Calculating the Value ofCustomers to YourBusiness
  17. 17. Secret #1: ExceedExpectations for A & BCustomers Lavish attention on these customers because they ARE your business from a cash flow perspective You can only depend on A’s & B’s for cash flow Keep them very happy
  18. 18. Secret #2: Migrate Ccustomers into A’s & B’s Intense market research to find what it would take to move C’s up the loyalty ladder to becoming an A or B Understand why they are not visiting more Enhance the relationship to provide incentive for more visits & more spending
  19. 19. Secret #3: Identify How YourCustomers Want to Feel Identify where your customers “live” emotionally Determine their “state of being” Connect with their wants & needs
  20. 20. Secret #4: Create theenvironment customers wantSome possible environments are: Stress Relief Safety Security Hope Ease of Use Dependability Status
  21. 21. Summary Business is all about relationships Find out where you stand with ROGER Build on existing base of customers you already know and who already patronize your business