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The 1-Page Marketing Plan: Get New Customers, Make More Money, And Stand Out From The Crowd
Publication: 2016 by Successwise
Business | Economics
Special resources section available on the 1-page marketing plan website. https://successwise.com/1pmpaudiobookresources/
“Focusing on the cause (value) rather than the effect (making money) will lead to much greater long-term success.”
“Knowing and not doing is the same as not knowing.”
“You have only twenty-four hours a day, so the only way you can get more achieved in a day is by using other people’s time.”
“Having a plan dramatically increases your probability of success.”
“80% of effects come from 20% of causes. Doing more of the 20% stuff is your fast track to success.”
“Jim Rohn had an excellent philosophy on the matter: “You’ve got to think winter in the summer. It’s just too easy to get faked out when the sky is blue and the clouds are fleecy. You’ve got to prepare for winter because it’s coming, it always does.”
“Most people don’t know what they want until they have been presented with it.”
“You’ll never get everything perfect the first time. You only truly learn by doing. Don’t let perfectionism become a source of procrastination to you. Remember 80% out the door is better than 100% in the drawer.”
The author says he is a collector of elegant ideas; he rarely invents anything himself. He credits many of the book’s ideas to Mal Emery, Dean Jackson, Joe Polish, Pete Godfrey, Dan Kennedy, Jim Rohn, James Schramko, Frank Kern, and Seth Godin.
Model things that are known to work reliably rather than trying to reinvent the wheel. Creativity and invention should come after you’ve mastered the basics.
Author’s summary of this book’s essence in one sentence: The fastest path to the money. This book is about growing your business fast and reaping the rewards of that kind of success.
If you didn’t go into business to make money, you’re either lying or having a hobby, not a business. Money is like oxygen for a business.
Few Good Reasons Why the Author Focus on Money Getting:
- There is almost no business problem that can’t be solved with more money.
- When you’ve taken care of yourself, you have a chance to help others.
Many business owners who are struggling blame their industry. Some complaints often heard are: it’s too competitive, margins are too low, advertising no longer works.
However, it’s rarely the industry that is truly to blame, after all, there are others in that same industry that are doing very well. People often are playing the blame game.
Many entrepreneurs fall into the trap of “entrepreneurial seizure“. (described in Michael Gerber’s classic book, The E-Myth). They start to think “Why should I work for this idiot boss of mine? I’m good at what I do—I’ll start my own business.”
They go from working for an idiot boss to becoming an idiot boss! Here is the key point—just because you’re good at the technical thing you do doesn’t mean that you are good at the business of what you do.
However, you must resolve to become good at the business of what you do; not just the technical thing you do.
Professionals have plans, they never just wing it. (Doctors, pilots, soldiers, etc). Having a plan dramatically increases your probability of success.
When someone makes a mess of something, it often becomes clear in the aftermath that they didn’t have a plan. Don’t let that be you and your business. While no one can guarantee your success, having a plan dramatically increases your probability of success.
The Pareto Principle predicts that 80% of effects come from 20% of causes. 80% of the effects come from 20% of causes. Doing more of the 20% stuff is your fast track to success.
The 64/4 rule. 64% of the effects come from 4% of the causes. Put another way—the majority of your success comes from the top 4% of your actions. 96% of what you do is a waste of time.
The best-kept secret of the rich. One thing that differentiates the wildly successful and wealthy business owners from the ones who are struggling and broke:
Struggling business owners will spend time to save money. Successful business owners will spend money to save time.
This is called leverage. You can always get more money, but you can never get more time. Look for massive leverage points. Pay attention to and expand the things that give you the most leverage. We want exponential improvement, not incremental.
By far the biggest leverage point in any business is marketing. If you get 10% better at marketing, this can have an exponential or multiplying effect on the bottom line.
What is marketing?
Marketing is the strategy you use for getting your ideal target market to know you, like you, and trust you enough to become a customer. Contains elements of advertising, promotion, publicity, public relations, and sales.
Strategy versus Tactics
All the stuff you usually associate with marketing is tactics. Strategy without tactics leads to paralysis by analysis. Tactics without strategy lead to the ‘bright shiny objects’ syndrome.
You need both strategy and tactics to be successful, but strategy must come first, and it dictates the tactics you use. This is where your marketing plan comes in. Think of your marketing plan as the architect’s blueprint for getting and retaining customers.
Good, even great, products are simply not enough. Marketing must be one of your major activities if you’re to have business success.
A good product or service is a customer retention tool. If we give our customers a great product or service experience, they’ll buy more from us, refer other people to us, and build up the brand through positive word of mouth.
However, before customer retention, we need to think about customer acquisition (AKA marketing). The most successful entrepreneurs always start with marketing.
Branding, mass marketing, and ego-based marketing are the domain of large companies. To achieve any kind of cut through requires an enormous budget and the use of expensive mass media.
Direct response marketing
A particular branch of marketing that gives small businesses cut through and a competitive edge on a small budget. It’s designed to ensure you get a return on investment that is measurable.
So what makes a direct response ad? Here are some of the main characteristics:
- It’s trackable.
- It’s measurable.
- It uses compelling headlines and sales copy.
- It targets a specific audience or niche.
- It makes a specific offer.
- It demands a response.
- Multi-step, short-term follow-up.
- Maintenance follow-up of unconverted leads.
3 Phases of the Marketing Journey
- Before – prospects
- During – leads
- After- customers
Download your copy of the 1-Page Marketing Plan template at 1pmp.com
Here’s what a blank template of The 1-Page Marketing Plan looks like:
ACT I — The “Before” Phase
In the “before” phase, you’re dealing with prospects. Prospects are people that may not even yet know you exist. In this phase, you’ll identify a target market, craft a compelling message for this target market, and deliver your message to them through advertising media.
The goal of this phase is to get your prospect to know you and respond to your message.
Chapter 1 — Selecting Your Target Market
Selecting your target market is a crucial first step in the marketing process. Doing so will ensure your marketing message resonates better, which in turn will make your marketing far more effective.
Your target market is not everyone. Everyone means no-one.
By focusing on the right target market for your business, you’ll be able to get a better return on the time, money, and energy you invest.
To be a successful small business marketer you need a laser-like focus on a narrow target market, sometimes called a niche. A niche is a tightly defined portion of a sub-category.
Now you may be thinking why on earth would we want to limit our market so much? Here’s why:
- You have a limited amount of money. If you focus too broadly, your marketing message will become diluted and weak.
- The other critical factor is relevance. The goal of your ad is for your prospects to say, Hey, that’s for me.
Targeting a tight niche allows you to become a big fish in a small pond. It allows you to dominate a category or geography in a way that is impossible by being general.
Dominate a niche, then once you own it, do the same with another and then another. But never do so all at once. Doing so dilutes your message and your marketing power.
A great way of figuring out your ideal target market is to use the PVP index:
P — Personal fulfillment: How much do you enjoy dealing with this type of customer? Here you rate how much you enjoy working with this market segment.
V — Value To The Marketplace: How much does this market segment value your work? Are they willing to pay you a lot of $$$ for your work?
P — Profitability: How profitable is the work you do for this market segment?
If you have one, look at a picture of your customer while doing this.
- What keeps them awake at night?
- What are they afraid of?
- What are they angry about?
- Who are they angry at?
- What are their top daily frustrations?
- What trends are occurring or will occur in their businesses and lives?
- What do they secretly ardently desire most?
- Is there a built-in bias to the way they make decisions?
- Do they have their own language or jargon?
- What magazines do they read?
- What websites do they visit?
- What’s this person’s day like?
- What is the main dominant emotion this market feels?
- What is the one thing they crave above all else?
One of the best tools for getting into the mind of your prospect is to temporarily become them by creating an avatar.
An avatar is a detailed exploration and description of your target customer and their lives. It helps tell their story so that you can visualize life from their perspective.
Chapter 1 Action Item: fill out section 1 “my target market” on the 1-page marketing plan.
Chapter 2 — Crafting Your Message
Most marketing messages are boring, timid, and ineffective. To stand out from the crowd, you need to craft a compelling message that grabs the attention of your target market. Once you have their attention, the goal of your message is to compel them to respond.
Summary of most ads from small to medium businesses which are boring, similar and useless. Wasted money and wasted opportunity.
- Company name
- Company logo
- A laundry list of services offered
- Claims of the best quality, best service, or best prices
- The offer of a “free quote”
- Contact details
Then they hope and pray that on the very day their ad runs, a prospect in immediate need of their product or service stumbles across it and takes action. The author calls it ‘marketing by accident’
To start marketing on purpose we need to look at two vital elements:
- What Is The Purpose Of Your Ad?
- What Does Your Ad Focus On?
My rule of thumb is one ad, one objective. If something in the ad isn’t helping you achieve that objective then it’s detracting from it and you should get rid of it.
Develop your Unique Selling Proposition (USP). The questions you must ask and answer are:
Why should they buy from you rather than from your nearest competitor? If I remove your company name and logo from your website, will people still know that it is you? Or could it be any other company in your industry?
You need to position what you do in such a way that even if your competitor was operating directly opposite you, customers would cross the road to do business with you instead of your competitor.
Understand that your prospect has essentially three options:
- Buy from you.
- Buy from your competitor.
- Do nothing.
When you confuse them, you lose them.
A great way of distilling your USP is by crafting an “elevator pitch.” An elevator pitch is a concise, well-rehearsed summary of your business and its value proposition which can be delivered in the time span of an elevator ride, i.e. 30–90 seconds.
Bad marketing is highly product-focused and self-focused. Good marketing is always customer and problem/solution-focused, and that’s exactly how we want our elevator pitch to be. We want to be remembered for what problem we solve rather than for some impressive but incomprehensible title or business.
Example formula: You know [problem]? Well what we do is [solution]. In fact [proof].
Two great questions to think about when you’re crafting your offer are:
- Of all the products and services you offer, which do you have the most confidence in delivering?
- Of all the products and services you offer, which do you enjoy delivering the most?
It should also be noted that most people don’t know what they want until they’ve actually been presented with it. Also when people are doing surveys or responding to market research, they do so with logic; however, when it comes to actual purchasing, this is done with emotions and justified with logic after the fact. So you need to supplement asking with observing.
Now that you know what your market wants, you need to package it up and present it as an irresistible offer. Here are some of the essential elements:
- Reason Why
- Value Stacking
- Payment Plan
Package your offer in a way that solves the pain of your customer.
Copywriting is salesmanship in print. You need to write your sales copy as though you were talking directly to a single person.
Almost no other skill will reward you more richly than the ability to write compelling words. Being able to clearly articulate why a prospect should buy from you rather than your competitors in a way that creates an emotion and motivates them to action is the master skill of marketing.
Visit https://successwise.com/1pmpaudiobookresources/ for a list of some of the greatest headlines ever written.
Understand your target market and their emotional triggers. Always remember, people, buy with emotions first and then justify with logic afterward
The five major motivators of human behavior, especially buying behavior are:
Chapter 2 action item: what is your message to your target market? Fill in square #2 of your one-page marketing plan.
Chapter 3 — Reaching Prospects With Advertising Media
So how do you measure the success of a marketing campaign?
Here’s the short answer for the impatient: Did the marketing campaign make you more money than it cost you? Another way of putting it is, what was the return on investment (ROI) on the marketing campaign? If it cost you more than you made (or will ever make) on this campaign then it’s a failure. If it cost you less than the profits you made as a result of the campaign then it’s a success.
Rather than “getting your name out there,” you’ll fare much better by concentrating on getting the name of your prospects in here.
The money we make upfront on a campaign is known as the “front end.” The money we make on subsequent purchases is known as the “back end.” Together these figures make up the lifetime value of a customer.
The goal of your front end offer is to create a customer and make enough profit from the first transaction to at least cover the customer acquisition cost.
Lifetime value and customer acquisition cost are two of the key numbers you need to know to measure marketing effectiveness.
Constantly testing, measuring, and improving these numbers is how you build a high-growth business.
As always, with any marketing strategy, it’s vitally important to find out where your prospects “hang out” and use the appropriate media to get your message through to them. Social media may or may not be one of those places they hang out.
A successful marketing campaign has to get three vital elements right:
- Market (covered in chapter 1)
- Message (covered in chapter 2)
- Media (covered in this chapter)
Here are some of the things you need to be aware of when it comes to social media.
- Not an ideal selling environment. Think of it as a social gathering or party. When someone tries to sell, it makes everyone feel uncomfortable. However, social media is a great place to create and extend relationships.
Your social media page and profile are the property of the social network. Build and own your own marketing assets, then use social media to drive traffic to your own marketing assets.
Building a database of email subscribers plays a central role in your online marketing strategy. A prominent part of your website should be an email opt-in form. This enables you to capture the email address of website visitors and gives you the opportunity to nurture those visitors who may not be ready to buy immediately but who are interested and want more information.
Having a highly responsive list of email subscribers enables you to almost create cash on demand. You create a compelling offer with a response mechanism and send an email blast to your list. You’ll get instant feedback whether it’s a hit or a miss. It’s a great way of cheaply testing offers prior to investing in more expensive media such as print or pay-per-click advertising.
Here are some of the key dos and don’ts when it comes to email.
- Don’t spam,
- Use a commercial email marketing system.
- Email regularly.
- Give them value.
Email is a very powerful and personal media channel. It allows you to create compelling campaigns with a high degree of automation. When done right it can be a valuable part of both an online and offline media strategy.
When it comes to your media strategy you should understand that email doesn’t replace postal mail, it complements it.
Three challenges of email marketing:
- Getting your email delivered
- Getting your email opened (have a compelling subject line)
- Getting your email read
If you write compelling content, it will be read.
No discussion of marketing or spending on media can be complete without discussing budget. When spending money on marketing one of the following three things will occur:
- Your marketing fails (i.e. you make less in profit than you spent on your marketing expenses).
- You have no idea if your marketing was a success or failure because you don’t measure the results.
- Your marketing succeeds (i.e. you make more in profit than you spent on your marketing).
For each of these scenarios there’s a simple course of action:
If your marketing consistently fails and loses you money then STOP and change what you’re doing.
If you don’t measure your marketing results that’s just plain stupid because with the technology we have readily and cheaply available, it’s easier than ever to track your marketing results and return on investment (ROI).
If your marketing is working and consistently giving you a positive ROI, then you should crank it up and throw as much money as you can at it.
Have a marketing budget during the testing phase. In the testing phase, fail often and fail cheaply until you have a winner.
Chapter 3 action item: what media will you use to reach your target market? Fill out square 3 of your 1-page marketing plan.
ACT II — The “During” Phase
In the “during” phase you’re dealing with leads. Leads are people that know you and have indicated interest in what you have to offer by responding to your marketing message. In this phase you’ll capture these interested leads in a database system, nurture them with regular value-building information and convert them into paying customers.
The goal of this phase is to get your leads to like you and what you have to offer enough to buy from you for the first time. Once they’ve bought from you, they become a customer and enter the third and final phase of your marketing process.
Chapter 4 — Capturing Leads
Capturing leads in a database system for future follow-up is critical to your marketing success. This is because only a very small percentage of interested leads may be ready to purchase from you immediately. Lead capture is all about properly handling interest and building your future sales pipeline.
In direct response marketing, the purpose of your advertising is to find people who are interested in what you do, rather than trying to make an immediate sale from the ad. When you interested leads respond, you put them on your follow-up database so that you can build value for them, position yourself as an authority, and create a relationship built on trust.
The vast majority will not be ready to make a purchasing decision on the very day they read your ad — even if they are interested in what you do.
Remember the goal is simply to generate leads. Avoid the temptation of trying to sell from your ad. At this early stage you just want to sift out the uninterested and unmotivated so that you can build your database of high probability prospects.
Hunting vs Farming
The purpose of direct marketing is to find people who are interested in what you do, rather than trying to make an immediate sale from the ad.
When interested leads respond, put them on your follow-up database so that you can:
- Build value for them
- Position yourself as an authority
- Create a relationship built on trust
The resource page at successwise.com has a pie chart showing the market for your product or services. Below are the stats from the chart:
- 30% = interested but not right now
- 30% = not interested
- 30% = would not take it even if it were free
Try to capture the top 40% with your direct marketing. If you try to make an immediate sale from your ad, you are only targeting the 3% that are ready to buy.
When you educate and teach, you are seen as an expert and authority.
You must build a marketing infrastructure for your business.
You need to have a customer relationship management (CRM) system to manage your database successfully.
- 3% = ready to buy
- 7% = very open to buying
- 30% = interested but not right now
- 30% = not interested
- 30% = would not take it even if it were free
At the absolute center of your marketing infrastructure is your database of customers and prospects, but to manage your database effectively you really need a CRM system. The CRM system is your marketing nerve center. It’s where you manage your goldmine.
You want all your leads, all your customer interactions to end up in your CRM. This is where things get exciting.
Chapter 4 action item: what is your lead capture system? Fill out square 4 of your 1-page marketing plan.
Chapter 5 — Nurturing Leads
Nurturing leads is the process of taking people from being vaguely interested in what you have to offer to desiring it and wanting to do business with you. The lead nurturing process ensures that leads are interested, motivated, qualified and predisposed to buying from you before you ever try to sell to them.
When it comes to marketing, the money is in the follow-up. Based on this we build the irresistible lead nurturing model.
Immediately after you’ve captured a lead, they should go into your system where repeated contacts are made over time. These are not contacts where you obnoxiously try to pester them into buying. You build a relationship, giving them value in advance of them buying anything from you and in the process building trust and demonstrating authority in your field of expertise.
This growing list of prospects and the relationship you have with them will become the most valuable asset in your business. It’s the golden goose. Now when the prospect is finally ready to buy, you’re a welcome invited guest rather than a pest. The most important thing you can take away from this message is to become a marketing farmer. It’s a simple three-step process:
- Advertise with the intention of finding people who are interested in what you do.
- Add them to your database.
- Continually nurture them and provide them with value.
Building Your Marketing Infrastructure
Your marketing infrastructure will be made up of assets. Here are a few of the assets the author has successfully deployed in marketing infrastructures:
- Lead capture websites
- Free recorded-message info lines
- Free reports
- Direct mail sequences
- Email sequences
- Social media
- Online videos and DVDs
- Podcasts and audio CDs
- Print ads
- Handwritten notes
- Email autoresponders
- SMS autoresponders
- Shock and awe packages
A shock and awe package is essentially a physical box that you mail or deliver to prospects full of unique benefit-laden assets related to your business and industry. You can include books, DVDs or CDS, testimonials from past clients in the video, audio, or written form, etc.
A shock and awe pack should do three things:
- Give your prospect amazing, unexpected value.
- Position you as an expert and trusted authority in your field.
- Move your prospect further down the buying cycle than they would otherwise have been.
It takes different “types” to make a business work. Here are the three major types that it takes:
- The Entrepreneur — This is the ideas person or visionary. They see a problem or gap in the market and are willing to take risks so they can solve that problem for a profit. They make it up. E.g. Seeing a gap in the market for a particular product and hiring all the right people needed to get it up and running.
- The Specialist — This is an implementer of your vision. They could be an engineer, a venture capitalist, a graphic designer. They take your vision, or part of it, and help make it reality. They make it real. e.g. Building the factory to produce the product, getting the tooling right, creating the product packaging.
- The Manager — They come in every day and make sure things get done, work gets delivered and the vision is on track. They make it recur. Running the factory, making sure shipments get out on time, making sure quality is right.
A marketing calendar sets out what marketing activities have to happen on a daily, weekly, monthly, quarterly and annual basis and you put those into your schedule like you would any other important business events.
Create a marketing calendar to outline what needs to happen on a daily, weekly, monthly, quarterly, and annual basis. For example, you might decide the following marketing calendar is right for your business:
- Daily: check social media for mentions and respond appropriately.
- Weekly: write a blog post and send the link in an email blast to list subscribers.
- Monthly: mail customers and prospects a printed newsletter or postcard.
- Quarterly: send past customers who haven’t purchased recently a reactivation letter.
- Annually: send all customers a gift basket thanking them for their business.
In addition to regular, scheduled marketing activities, you need to consider event-triggered marketing activities. For example, consider these event triggers and their corresponding actions:
- Meeting a new prospect at a business event.
- You get an inbound sales inquiry.
- You get a new email list subscriber from your blog.
- Received a customer complaint.
There are few business activities that pay as highly as working on your marketing. Hire help to work in your marketing and execute the individual tasks so you can work on your marketing plan.
Chapter 5 action item: what is your lead nurturing system? Fill out square 5 of your 1-page marketing plan.
Chapter 6 — Sales Conversion
Sales conversion is all about creating enough trust and demonstrating enough value to motivate interested leads to become paying customers. Positioning yourself correctly will make the sales conversion process easy and natural for both you and your customer.
Once you have reached the level of competence, the real profit comes from the way you market yourself.
How much does a world-class violinist make? That depends on how he markets himself. Joshua Bell is one of the finest classical musicians in the world; he plays to packed audiences all around the world, making upwards of $1,000 per minute
The Washington Post asked Joshua Bell to perform a social experiment. They wanted him to play at a local subway for an hour, during which thousands of people would walk by and hear him playing.
Can you a guess how much the finest violinist in the world, playing a beautiful $3.5 million violin made in hour? A grand total of $32.
Here is the video of the experiment linked from successwise.com:
Resolve to stop positioning yourself as a commodity and competing solely on price. The result to your bottom line will be phenomenal.
Most businesses try to sell without first creating trust. They either cold call or advertise using outdated methods that no longer work.
The problem with this is you’re asking your customer to decide when they have no idea about who you are or what you’re about. They don’t know you, don’t like you, and don’t trust you yet.
Selling suddenly becomes much easier and more pleasant when you are welcomed with open arms and when the prospect is deeply interested in what you have to offer.
You need to move towards the model of… educate, educate, educate. With education, you build trust. With education, you position yourself as an expert. With education you build relationships. With education, you make the selling process easier for both buyer and seller.
Delaying the sale accomplishes two things. First, it shows you’re willing to give long before you take, which breaks down sales resistance. Second, it presents you as an educator and expert in your field.
Offering too much choice can actually prevent sales. The psychology behind this finding is that people get caught like a deer in the headlights. Fear of making a suboptimal choice prevents them from making any choice at all.
As a business owner, you should make it abundantly clear to all staff that sales are the lifeblood of the business and that everyone is in sales.
It’s one of the most powerful ways to win more business and it’s based on the magic of “try before you buy.” Using this technique can dramatically boost your sales.
You need to offer your customers their preferred payment method — not yours.
People will generally take you at your own appraisal unless proven otherwise. Stop positioning yourself as a commodity and competing solely on price.
Chapter 6 action item: what is your sales conversion system? Fill out square 6 of your 1-page marketing plan.
ACT III — The After” Phase
In the “after” phase you’re dealing with customers. Customers are people that like you and what you have to offer enough to have paid you money at least once. In this phase you’ll turn your customers into raving fans by delivering a world class experience. You’ll then find ways of doing more business with them and increasing their lifetime value. Finally you’ll create an environment where referrals continually come your way.
The goal of this final phase is to get your customers to trust you and buy more from you. This phase continues in an ongoing “virtuous cycle” where you deepen your relationship with customers, do more business with them and get more referrals.
Chapter 7 — Delivering A World Class Experience
By delivering a world class experience, you turn customers into a tribe of raving fans who want to buy from you repeatedly. To deliver this world class experience you need to implement systems in your business and make smart use of technology.
One of the things that separates extraordinary businesses from ordinary ones is that they lead tribes, tribes of raving fans — not just customers. In your business, a tribe member is a special type of customer. One that acts as a cheerleader and is actively conspiring for you success. Your tribe members amplify your marketing message and take it to heights you’d never be able to reach on your own with paid advertising.
Building Your Tribe of Raving Fans
Qualities of extraordinary businesses that become tribe leaders:
- They continually focus on wowing their customers, which turns them into raving fans.
- They create and foster lifetime relationships.
- They make it easy and fun to deal with them.
- They create a sense of theater around their products and services.
- They have systems so that they can reliably and consistently deliver a great experience.
Create Theater Around Your Products and Services
How can a manufacturer of blenders be innovative and create theater?
Blendtec is a manufacturer of blenders—ordinary blenders like the type you would use in your kitchen at home. They’ve created an enormous viral marketing buzz by making a YouTube video series called “Will It Blend”?
Here is an example “Will it Blend?” video by Blendtec:
Your customers don’t just want to be serviced. They want to be entertained. Give them what they want by creating a sense of theatre around your product.
Plain and simple the purpose of any new technology in your business is to eliminate friction. We want the fastest and easiest path to the sale, while increasing customer satisfaction.
Become a Voice of Value to Your Tribe
You need to be a thought leader in your industry. Someone who is sought out for opinion and comment. You do this by becoming a creator of content.
Entrepreneurs are prolific content creators. Wantrepreneurs are primarily content consumers.
To become a voice of value, you need to have valuable ideas, and rarely do valuable ideas come from nowhere and interrupt you. By seeking out other voices of value—thought leaders in and out of your industry, mentors, coaches, and successful peers, you lay the foundation for building your own valuable ideas.
In our current age, the most valuable commodity is reputation. The reputation economy requires that you transform your marketing from information and high-pressure sales tactics to education-based marketing.
The twofold point of education marketing:
- Positioning yourself as an authority in your target market.
- Building relationships and becoming the trusted advisor to your target market.
The fact is, no one cares about your logo, company name, or some dubious claim about being the leader in your industry. They want to know what your product will do for them, and your backstory is essential to this.
Products Make You Money – Systems Make You a Fortune
The most valuable business systems are those which are replicable. If your business relies on a genius or superstar talent at the center of it, it is nearly impossible to replicate.
Systems allow mere mortals to run an extraordinary business.
Four Main Types of Systems You Need to Create
- Marketing system — Generate a consistent flow of leads into the business.
- Sales system — Lead nurturing, follow-up, and conversion.
- Fulfillment system — The actual thing you do in exchange for the customer’s money.
- Administration system — Accounts, reception, human resources, etc. Support of all the other business functions.
Business systems start with documented procedures and processes that allow your business to run without you.
McDonald’s is the poster-child for business systems.
Allan’s McDonald’s Badge
Benefits of implementing systems in your business:
- It builds a valuable asset.
- Leverage and scalability.
- Lower labor costs.
- The ability to “fire” yourself.
It’s essentially a three step process:
- Identify all of the different roles in your business
- Define what tasks each role performs
- Document exactly how each task should be performed
When starting a business it’s important to think clearly and plan for how you will exit.
Chapter 7 action item: how will you deliver a world-class experience? Fill out square 7 of your 1-page marketing plan.
Chapter 8 — Increasing Customer Lifetime Value
Increasing the lifetime value of existing customers is where the real money is made. To do this you need to have strategies and tactics for getting existing customers to do more business with you. You also need to know, manage and continually improve key numbers in your business.
Five major ways to sell more to existing and past customers, increasing their lifetime value:
- Raising prices
One of the most overlooked ways of increasing the lifetime value of a customer is simply by raising prices. By not increasing your prices over a long period of time you’re effectively giving yourself a pay cut.
In Robert Cialdini’s classic book Influence: The Psychology of Persuasion, he discusses the contrast principle. The contrast principle comes into play when two different things presented sequentially feel more different than they really are. For example, if you lift a heavy object first followed by a light one, you’ll judge the second object to be lighter than it really is. If your neighbor is having a really loud party all evening, the peace and quiet you suddenly appreciate more when it’s over is the contrast principle in effect.
The same thing applies to price. When prospects buy the primary “expensive” item first, the suggested add-ons feel comparatively cheap.
When the prospect is “hot and heavy” and in the buying state of mind, they’ll be much more receptive to other offers to buy. This is your opportunity to bundle in a high margin add on. It gives the customer a better result and instantly increases your customer lifetime value.
Ascension campaigns should be a constant part of your marketing process. Very often customers stay on existing products or services even though they can benefit from and afford to move up.
Increasing the frequency with which your customers buy from you is another solid strategy for increasing lifetime value. There are many strategies for doing so but here are a few of my favorites:
- Give them a reason to come back.
- Help them buy repeatedly with subscriptions.
Marketing is a game where you need to constantly measure, manage and improve your numbers. You don’t need a long convoluted story. You just need the numbers because numbers tell us the whole story.
The difference between a customer who is just a transaction and one who is a raving fan is huge, even if the nominal dollar amount of the transaction is the same. This is because not all revenue is good and not all growth is good.
If you are delivering extra value in the way of convenience, your customer likely won’t even care that you are charging them more.
You need to know and continually improve your numbers. Here are some of the key numbers you need to know:
- Leads – the number of new leads coming into your business
- Conversion rate – the percentage of leads you converted into paying customers
- Average transaction value – the average dollar amount that leads spend with you
- Break-even point – the dollar amount you need to make to keep your doors open
It is typical to measure these numbers on a monthly basis.
Here are key metrics you need to measure and manage in a recurring or subscription business model:
- Monthly recurring revenue
- Churn rate – the percentage of recurring customers that cancel subscriptions or stop buying from you
- Customer lifetime value
Develop a company dashboard to monitor your key metrics.
Measuring, managing, and improving your metrics is key to building a high-growth business.
Polluted Revenue and the Unequal Dollar
Not all revenue is good and not all growth is good. If you take on toxic customers, you will generate polluted revenue which makes your business sick.
Four categories of your customer base:
- The Tribe
- The Churners (cannot really afford you on the basis of time or money)
- The Vampires (consume a disproportionate amount of resources compared to your average customer)
- The Snow Leopard (your best customers, rare and almost impossible to replicate)
Another way to categorize customers is by using the “Net Promoter Score” (NPS).
NPS can be as low as -100 (everybody is a detractor) or as high as +100 (everybody is a promoter). A positive NPS (i.e.,
higher than zero) is felt to be good, and an NPS of +50 is considered excellent.
NPS score is calculated based on responses to one question: “How likely is it that you would recommend our company/product/service to a friend or colleague?” based on a 1-10 scale.
Fire Problem Customers
You’ve likely heard that old business cliché, “the customer is always right.” I’m here to tell you the customer isn’t always right. Rather the right customer is always right.
Defining problem customers: the ones that complain the most, waste huge amounts of time, and always need to be chased for payment.
With the toxic customers taking up all your time and energy, it’s often the high value, respectful customers who suffer a lack of attention. Don’t give the squeaky wheels oil. Replace them.
The high-value customers who are the most profitable tend to pay on time, treat you with respect, and value your services.
Problem customers cause you to miss out on opportunities. Firing problem customers will free up valuable time and resources.
Better still, you can kill two birds with one stone by sending your problem customers to your direct competitors. You’ll be freeing yourself of them while lumping your competitors with them.
Chapter 8 action item: how will you increase customer lifetime value? Fill out square 8 of your 1-page marketing plan.
Chapter 9 — Orchestrating And Stimulating Referrals
Orchestrating and stimulating referrals is an active process. Many businesses wish and hope for referrals but don’t have a deliberate system for making them happen. By implementing some simple tactics you can make the flow of referrals a more reliable part of your marketing process.
Ask and You Will Receive – The Law of 250
The average number of guests at a wedding or funeral is about 250. Most people have about 250 people in their lives who are important enough to invite to a wedding or funeral. Every customer represents 250 potential referrals if you do a great job or 250 enemies if you do a poor job.
One of the best ways to get referrals is by straight out asking for them from customers for whom you’ve delivered a good result.
All referrals happen through a conversation between two or more people. When these conversations are happening, three things must happen for someone to refer you:
- They have to notice that the conversation is about whatever you do.
- They have to think about you.
- They have to introduce you into the conversation and ultimately introduce you to the person they are talking to.
By increasing the reliability of word of mouth marketing, you take back control of your lead flow and build a solid foundation for rapid business growth.
Finding other complementary businesses that your customer deals with before they deal with you can help you uncover untapped profits in your business. Setting up a joint venture (JV) arrangement with one or more of these businesses that is not in direct competition with you can be a cheap or free source of leads.
Look at who has your customers before you and after you and find ways of creating value in both directions. This can become an important source of new customers and new revenue for your business.
It is important to understand the psychology behind referral marketing before looking at specific tactics.
Think back to the last time you recommended a restaurant or movie to a friend. Were you doing so as a favor to the owner? You made the referral because it made you feel good.
Chapter 9 action item: how will you orchestrate and stimulate referrals? Fill out square 9 of your 1-page marketing plan.
Knowing and not doing is the same as not knowing.
You need to make the mistakes, risk looking foolish, and invest in yourself and your business. In my experience I’ve found that entrepreneurs fail to implement for one of the following three reasons:
- Paralysis By Analysis
- Inability To Delegate
- My Business Is Different
As entrepreneurs, we only get paid for bringing value to the market—not for time.
If we deliver a huge amount of value to the marketplace, we get a huge payday. If we flop, we make a loss.
Your view of time affects everything you do in your business. For the entrepreneur time is not money. Value is money. Time is just one of the inputs it takes to deliver value to the market. Make marketing a daily process. Create your own 1-Page Marketing Plan and most importantly implement the plan. Spend time daily doing business and building value.
If you want to stay ahead of change and disruption in business, you need to constantly ask these questions:
- What business do I need to be in?
- What technologies are coming that are going to disrupt my industry?
- How can I take advantage of the coming changes in technology rather than fight them?
Having a culture of innovation, anticipating what’s coming in your industry and running some skunkworks projects in your business will give your business a massive competitive advantage.
Remember, no one knows how good your products or services are until after the sale. Before they buy, they only know how good your marketing is. Put simply the best marketer wins every time.
If nothing changes in your regular routine, nothing will change in your business or personal life.
A commonality among high-growth businesses is that they have a strong focus on marketing.
It is time to decide to become a great marketer and transform yourself from a business owner to a marketer who owns a business.
If you continue to do what you’ve always done, you’ll continue to get the same results you’ve always gotten.
Building a successful business enables you to live life on your own terms. You deserve business success, and it is attainable for YOU.
This book is one of the best marketing books I’ve read. I found Allan’s strategies and concepts very helpful, and I learned a lot from them. The author made it easy to understand, and he shared a beautiful template that I can use to create my next marketing plan. I recommend this to all entrepreneurs! Whether you’re a novice or an experienced entrepreneur, 1PMP is the fastest and easiest way to create a marketing plan.
About Allan Dib
Allan Dib is a serial entrepreneur, rebellious marketer, and technology expert. He has started and grown multiple businesses in various industries, including IT, telecommunications, and marketing. One of his previous businesses was in the telecommunications industry, where he faced heated competition from multibillion-dollar, multinational competitors.
Allan grew this business from startup to four years later named by Business Review Weekly (BRW) as one of Australia’s fastest-growing companies—earning a spot on the coveted BRW Fast 100 list. Allan is passionate about helping businesses find new and innovative ways to leverage technology and marketing to facilitate rapid business growth. As a highly sought after business coach, consultant, and public speaker, he frequently shares his proven strategies and cutting edge tactics with people worldwide.
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