What is Marketing?
Marketing is a term used to define a whole range of functions within a business and is expressed in a whole range of contexts. So exactly what is marketing?
If we pare back the rhetoric, marketing is simply the strategies we employ to move our products/services from us to the client profitably. Marketing is the process of converting prospects to customers.
It is much more than just advertising and promotion. Marketing also includes: understanding who is your target market; what is your competitive advantage; what are your product, pricing and distribution strategies as well as promotion & advertising. It is the combination of these factors that determines the effectiveness of your marketing programs.
If we think in these terms it becomes obvious we need to review and expand effort into these strategies during tough times.
The Sales Conveyor Belt
In order to survive we must maintain momentum with our sales. Think of the sales effort as a long conveyor belt of “prospects” being loaded one end and sales unloading (completed) at the other. There are some losses along the way so that not every prospect becomes a customer.
The more raw material (prospects) we can load the more opportunity we have to create sales. In some cases the more prospects being delivered the more selective we can be about whom we want to convert into a sale.
If we stop loading the conveyor belt with prospects, even for a short period, how long must we wait before the next batch are loaded and arrive to us ready for conversion into sales?
It will vary greatly from one type of industry to another however the research is clear and cites five times as the average number of contacts that need to be made with a prospect before they are likely to be getting close to conversion. And this figure relates to prospects who actually need the service anyway!
A prospect is quick to say “No!” which to the seasoned sales person actually means “not yet”. The industry averages are that the average sales person stops selling after 2 “No’s” and the average customer will buy after 5 offers or contacts.
So the loading of the conveyor must go on, especially in tough times.
This however can be difficult when profit and cash flow figures are constantly moving our focus toward expenditure reductions rather than expansion. This environment provides us the opportunity of being creative with our strategies to maintain volume prospects and therefore sales conversions in tough times.
How diverse is your promotions strategy?
Advertising is expensive and alone is not the most efficient way to secure prospects. So where can we boost our promotional or prospect gathering efforts without necessarily increasing expenditure?
Rule one in business, and therefore marketing, is to attack with an integrated plan.
This means that any promotional activity you plan must leverage off another. For example if you intend running an industry seminar as a means of adding value to your customers while raising your company profile, what support activities will you engage to maximise the effect? Advertising, direct mail, press releases? What will be the next major activity you will use to leverage off the success of the seminar?
Develop a Contract Program
Even a simple contact program woven into your promotional plan will greatly assist in maintaining volume onto the conveyor.
What is a contact program? It is a simple system for maintaining the profile of your company in the mind of the client and prospect. There are 5 simple steps to creating a contact program:
Group your customers into A, B, and C class customers by defining the characteristics that make a great customer and scoring each customer against this criteria. It might include: Spending level, fit with your strategic direction, fit with your Company culture, length of relationship, potential for growth in sales, etc. A Class are your very best customers and is where you should be focusing your internal marketing efforts.
List all the potential contact activities that you could have including: visits, phone calls, mailings, newsletters, special offers, etc.
For each Customer class decide what level of contact you will have for each activity. For example: All customers will get your newsletter. A Class customers will get a visit once per annum. B Class customers will get a Customer Service call once per annum. Only A & B Class customers will get access to special offers. A Class customers will get invited to a special event at your business.
Check that you have met the 90-Day rule. This is a basic business rule that says that each contact needs to be contacted every 90 days at a minimum.
Letting contact lapse later than 90 days will mean that you will disappear from your customers conscious thought. This is a basic rule that should never be broken. At a minimum maintain the 90 day rule with your A class customers.
Systematise your contact program. Lock it into your annual program and plan ahead for items like newsletters, offers and special events.
How do I create a contact system?
You can buy all sorts of Contact Management Software or it might be as simple as creating a client/prospect card with that persons details. By creating a 1 to 12 file each card can be filed according to the month of their next contact. Make sure you record all details and that you set up systems to collect Customer details in your business.
Because you have recorded the type of contact made previously you can easily pickup on what was discussed or send something that hits to previous conversations. This way you are adding value to the client while achieving your goal.
Your type of contact can be as diverse as your imagination and might include such things as birthday cards, industry stats, tender opportunities, client referrals.
Once a contact is made you nominate the time ahead for the next contact and simply file the card into that month.
Every month you can select the cards from the corresponding month and make contact. Its that simple. It can be useful to start a collection of information and ideas that can be used as part of your contact program.
Of course technology allows you speed up this process however for me the manual system is great as my 1 12 card box with Contact Program emblazoned across the front sits on my desk staring at me so I dont forget the importance of continually loading the conveyor.
If you would like to investigate some of the software options for Contact Management or CRM (Customer Relationship Management) then some of the more popular software titles are: ACT!2000, MAUS CRM, and Maximiser.
Conclusions
Marketing is as diverse as the many definition surrounding it suffice to say that no sales equals no business so think creatively about ways to boost your efforts in tough times.
Tough economic times provide the opportunity for the focused to put distance between themselves and their competition. Revisit your strategic plan, crank up your promotional effort and get that conveyor humming with prospects.
by Ross Holding
Next Steps
- Review your Marketing. Convert it to a one Page plan so that you can manage it effectively.
- Develop a Marketing. If you don’t have a Marketing Plan (or you really need to give it a “big rework”) – Develop a plan now! Don’t wait until its too late! Our on-line Marketing & Sales Training program will help you develop and apply a marketing plan to your business in less than 8 weeks. Click here for more information. Alternatively, contact your MindShop Coach.
- Develop a Contact Program to keep feeding your Sales conveyor. This is a relatively simple task. Contact your Mindshop Facilitator for more information or enrol in our on-line Marketing & Sales Training Program.
