This document discusses five ways for companies to increase profitability through marketing: 1) Know your target demographics and cater to their needs, 2) Focus marketing efforts on the top 20% of customers who generate 80% of sales, 3) Upsell additional products and services to existing customers, 4) Capitalize on emerging industry trends, and 5) Strive to retain existing customers through good customer service and special offers for repeat business. The document emphasizes that understanding customers drives profitability more than acquiring new customers and that adapting to trends keeps the business relevant.

1. Increasing Profitability Through
Marketing
By
Ashra Rehmat

2. Introduction
• Often the difference between solid business
growth and stagnation is the type of sales
operations and strategies that are
implemented.
• Companies that thrive are able to perpetually
increase profitability without compromising
the quality of products or services. Those that
fail tend to lack the insight it takes to keep up
with competitors.

3. • These are ways to maximize your business’s
profitability and position it for long-term
success.
 Know Your Demographics
 Focus on Valuable Customers
 Upsell to Your Customers
 Capitalize on Trends
 Strive for Customer Retention

4. Know Your Demographics
• One of the biggest precursors to success is
understanding who your target audience is and
catering to their needs and wants.
• In some cases, this will be a broad demographic
that encompasses a large audience.
• Other times, this will be much narrower and your
efforts will be focused on a tiny audience.
• Basing your products or services, marketing
campaign, and company culture accordingly
should make it easier to reach your demographic
and create a mass of loyal customers.

5. Focus on Valuable Customers
• When applied to business, Pareto’s 80/20
principle implies that 80 percent of customers
account for 20 percent of sales, and the other
20 percent account for 80 percent of sales.
• By understanding and implementing this
principle, you can prioritize your efforts and
aggressively pursue the top 20 percent of
customers that result in the bulk of sales.

6. The “80/20” Customer Pyramid
Most Profitable
Customers
Least Profitable
Customers
Other
Customers
Best
Customers

7. The Expanded Customer Pyramid
Most Profitable
Customers
Least Profitable
Customers
Gold
Iron
Lead
Platinum

8. • Knowing your demographic ties into this
because creating a general profile will help
you rank leads so you know which ones to
focus on.
• You can take it one step further by utilizing
lead scoring software like Marketo and Optify,
which use data to rank leads.

9. Upsell to Your Customers
• Whenever a customer is about to make a
purchase, it’s smart to make them aware of an
additional product or service that can enhance
their initial purchase.
• Perhaps the most classic example is a fast food
employee asking “would you like fries with that?”
when ordering a burger. Since a customer has an
obvious interest in a particular product or service,
there is a good chance they will be open to
buying something to complement it.

10. Capitalize on Trends
• Just like in life, the business world is
constantly fluctuating. Staying side by side of
industry trends should keep your company
relevant and increase profitability when
something is hot.
• If consumers are going crazy over a particular
product, you could order a large quantity to
meet demand.

11. Cont…
• One way to keep an eye on things is with
Google Alerts, which provides you with up-to-
date information on your industry.
• Whenever a new trend arises, you will be the
first to know, and you can take the
appropriate actions.

12. Strive for Customer
Retention
• Generating new leads is an important part of
business growth. The problem is that some
companies are so fixated on this that they fail
to retain some of their most valuable
customers.
• From a practicality standpoint, converting
first-time customers into repeat sales is very
effective and lays out the foundation for a
successful future.

13. Cont…
• According to “Marketing Metrics,” it’s 50
percent easier to sell to previous customers
than to new leads. That’s why it behooves you
to reach out to existing customers and try to
get their repeat business.
• This can include offering professional
customer service, sending out thank-you
emails after a purchase, or alerting previous
customers of special deals that apply to them.

14. Conclusion
• Increasing profitability isn’t rocket science. It
just requires a logical approach and
incorporating the right strategies.
• By consistently giving customers what they
want, you can maximize profit margins in the
short term and ensure that you remain
competitive in the future.

15. Thank You