In the last post I described the Five Profit Driver Marketing System. The first of the five profit drivers is the increase in requests.
What marketing strategy will you use to communicate with your customers and entice them to get in touch with you? There are really only four types of marketing strategies for generating requests.
- public relation
- Word of mouth
- Cold call
All query marketing falls into one of these categories, or a combination thereof. Ultimately, their effectiveness is compared based on the cost per lead for each strategy. In different markets, some of the strategies are more effective than others.
Advertising can be cost effective when speaking to your best buyers. However, I heard about a company that spent $ 50,000 on television advertising and received only one request. The cost per lead for this campaign was $ 50,000. Almost anything you can imagine would be more effective, including standing and screaming on a street corner. I want to tell you that this story had a happy ending and that the company made a massive sale with this one request, but the questioner had to think about it and still think about it today!
Based on the cost per lead, PR can create a large number of requests at very low cost because what others say about you is more important than what you say about yourself. Of course, advertising is much more difficult than just paying someone to accept your ad. There has to be an angle, a novelty in your story, so sending media releases to any point of sale you can think of is a waste of time if you don’t have a story to tell, except that your mother thinks you’re great.
Word of mouth is probably the most powerful form of marketing, but it is not enough just doing a good job for your customers and expecting the world to find a way to your door. You need to be proactive in your word of mouth strategies so that your customers or other companies are encouraged to sing your praises.
The last of these strategies is cold calling. However, randomly dialing numbers from the phone book is extremely inefficient and leads to poor response. Targeted cold calling strategies can be effective, especially if you combine them with any of the other strategies. This is also the most difficult strategy for a salesperson because the rejection rate is high, especially if there is no carefully designed script and they have not been properly trained.
Generally, a company uses a portfolio of these tactics and does not rely on a single one. A different mix of strategies is used in different industries, tailored to the potential customer profile.
How do you know which mixture is right for your company? Nobody can guarantee marketing results, so you have to design every strategy so that you can measure the response rate, the quality of the responses, and the cost per lead and ultimately the cost per sale. So when you create a new campaign, test and measure. Over time, you can use controlled tests to improve your results with the First Profit Driver.
May your business be how you plan it!
For a free preview of Dr. Get Greg Chapman’s bestseller “The five pillars of guaranteed business success“, Click here.
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Dr. Greg Chapman is the director of Strengthen business solutions and is Australia’s leading emerging business advisor and advises Australian small business owners on marketing and business strategies, planning and systems. He is also the author of The five pillars of guaranteed business success
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