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Entries Tagged as 'Sales'

What you don’t know about your sales funnel

January 30th, 2012 · Customers/Clients, Sales

We all think and talk about our sales funnel a lot.  We’re always saying things like:

  • We need to keep it full.
  • We need to stay active with the prospects that have been in it for awhile.
  • On average, it takes a prospect X months to move through it.
  • And so on….

But consider the statistic to the right.  60% of your sales efforts are what happens before you have actively put someone into the funnel.  In other words — it’s not you who is doing the selling.

Who is?

  • Your existing customers
  • The customer who left and is working with your competitors
  • Your vendors
  • Your website
  • Review sites
  • Your social presence (or lack thereof)

How much do you know about your pre-funnel sales machine?  Do you know what’s being said?  Maybe the bigger question — how should you be influencing those conscious and accidental sales efforts?

Think about how you shop — whether it’s for work or something for home.  Do you beeline for a salesperson or sales collateral?  Or do you do a little bit of investigating first?

Get out a piece of paper and do this exercise.  Write down the bullet points I have above (starting with your existing customers) and next to each bullet point — describe what you would ideally like a prospect to hear/see/experience from each source.

Then — go to each source and see what’s actually being said/experienced.   I’m guessing you’ll identify some areas that require your attention.

After all — your prospects are paying attention to these sources — shouldn’t you?

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Marketing Insights Question: Calculating the lifetime value of your customer

December 12th, 2011 · Business owner/leader stuff, Sales, Strategy

bigstock Cost Value Matrix   Arrow And  9732935
What is your customer worth to you?

Over the next few weeks, as we head towards 2012, I want to get you thinking about your business in a new/fresh way.  I’m going to ask a single question in each post — but I’m warning you, these aren’t slam dunk questions.

I’m hopeful that as you ponder my question — it will give you some ideas for making 2012 a break out year for your organization.  If nothing else — this exercise should fine tune some of your marketing efforts.

What’s a customer worth? I’m always surprised when people don’t know the answer to this question.  If I said to you “for every $100 you give me, I will give you a client” – is that a good deal for you?  How about for every $1,000?  $5?

The truth is, most business owners have no idea what a customer is worth to their business.  If that’s the case – how do you know how much you can afford to spend to get one?

Why does this matter?  What kinds of decisions do you think you’d make in terms of acquiring new clients if I told you that over the lifetime of your relationship, every one of them is worth $500 in profit?  How would your choices change if I said each one is worth $10,000?

How do you figure out the lifetime value of a customer?

You need to know this number.  (Want to bet that your ideal customers are worth a heck of a lot more than your so-so customers?)

Not sure how to calculate the lifetime value?  Check out this great infographic (from kissmetrics)which does a nice job of modeling how you can get a good ballpark figure.

Once you know that….you know what you can do to earn a customer.  And what it costs you when you lose one.

ltv sm
Lifetime value of a customer infographic

 

Stock photo courtesy of BigStockPhoto.com

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I already know you’re an expert

September 13th, 2011 · Sales · 23 Comments

…they already know you’re capable When I get hit in the forehead twice on one day with a marketing tip — I know it’s time to share. Incident One: I’m on the phone with a potential new client who is telling me about his previous experiences with finding the right agency. He’s describing one agency [Read more...]

Marketing tip #83: You really can’t make the horse drink

August 26th, 2011 · Marketing, Sales, Strategy · 8 Comments

You can’t make a customer buy! Here’s an uncomfortable marketing truth:  With few exceptions, you cannot control potential buyers. No matter how great your product, how spectacular your price or how unparalleled your customer service reputation — if they aren’t ready to buy, they just are not ready to buy. Yes, as the old adage [Read more...]

Five elements to writing an effective sales letter

June 28th, 2011 · Sales · 16 Comments

…make me feel like you know I’m unique Writing an effective sales letter for a cold list?  Are you kidding me? Cold calling doesn’t work.  Blind sales letters go right into the circular file cabinet.  E-mail solicitation to strangers get flagged as SPAM. All of that is true.  Most of the time. And while I [Read more...]

Is retro marketing the way to sell?

March 16th, 2011 · Sales, Trends · 30 Comments

The retro Mountain Dew can It makes some sense.  How do you appeal the the 75+ million baby boomers?  You help them take a trip down memory lane by giving your product a retro make-over. I saw this Mountain Dew can on the shelf a month ago and immediately noticed how blatant they were in [Read more...]

What sells better — the future or the past?

February 14th, 2011 · Sales, Strategy · 51 Comments

Is this the future or the past? Here’s what I am pondering today.  In terms of connecting with a consumer’s emotions, what works better — pointing to the future or the past? I’m 48 (albeit a 10 year old boy trapped in man’s body) which puts me a little behind the line in terms of [Read more...]

Do you know who you’re selling to?

January 27th, 2011 · Customers/Clients, Sales · 1 Comment

Selling isn't a one size fits all proposition.  I'm not telling you anything new when I say — the more you know about your prospect, the better the experience for all concerned. We've all read the sales books that talk about being observant when you walk into someone's office.  You know — noting that they [Read more...]

Groupon: Winner or Goat?

January 22nd, 2011 · Branding, Innovation & Creativity, Sales, Strategy, Web/Tech · 15 Comments

The whole world is abuzz about Groupon.  And who doesn't love $10 worth of Cold Stone Creamery ice cream for $5?  But is Groupon right for your business? Groupon and other social-coupon sites (like LivingSocial and SocialBuy) all work the same way — a specified number of people have to pre-purchase the coupon for the deal to be activated. [Read more...]

Learn how to really sell

January 14th, 2011 · Sales · 1 Comment

Selling has always been tough.  But with the economy, changes in buyer behavior, the web, social media, sales enablement tools, and increased competition — holy buckets! To make 2011 a year of growth and prosperity, the folks at RainToday, voted the Top Sales Resource in the world in 2010, are opening enrollment to their popular [Read more...]