Most businesses make marketing so much harder than it needs to be.
This is because they focus on the 20% of marketing that is difficult, expensive and unpredictable. And, at the same time, they pay little or no attention to the other 80% – the stuff that’s easy and inexpensive.
Let me show you what I mean.
In business, we do certain things to bring in money:
- We go out into the marketplace (literally or figuratively) and tell people about our product/service.
- When people enquire – or visit our website – we try to turn those enquiries into sales.
- While they’re buying, we may offer them a deal on complimentary products or services.
- Once we’ve sold something to someone, we try to maintain a relationship with them where they continue to buy from us again and again.
- And, if they’re happy, we sometimes receive referrals from them, which means additional customers/enquiries.
The 5 Steps of the Sales/Marketing Process
These are what I call “The 5 Steps of the Sales/Marketing Process”
1. External Lead Generation
2. Converting leads to clients
If you improve your effectiveness in any one of those areas, you’ll increase your sales.
So, if you bring in 10% more leads, all things being equal, your sales will increase by 10%. Or, if you have the same number of enquiries but close 10% more of them, that’s 10% increase in sales, too.
And so on …
Here’s The Point(s)
There are two points I want to make:
(1) When they want to increase sales, the majority of businesses focus on just one of these five areas … and they almost always choose the most difficult, dangerous and expensive area (trying to increase leads/website visitors).
(2) If you work on all 5 areas at the same time, you get compound growth.
For example, improving each by 10%, gives you a 61% increase in sales.
(1.1 x 1.1 x 1.1 x 1.1 x 1.1 = 1.61)
And, if you really focus on your marketing hire a pro to do that for you … hint, hint) and improve each step by 20%, that’s a 149% increase.
PS A 61% increase in sales isn’t a 61% increase in profits, it’s probably 200% or 300%. To find out why, read this: Small changes = big profits.