Business Growth Masterclass 16 – How to Calculate and Lower the cost of your Customers

How to Calculate and Lower the Cost of Your Customers

 

Hello there and welcome to the 16th instalment of my Business Growth Masterclass. The step by step guide to building the business you always wished you could have.

 

Today, we’re going to look at how to calculate the cost of your customer and a few techniques you can use to lower that cost and increase the profitability of each of your customers, both old and new.

 

As ever though, before we get our teeth into today’s material, lets just check on actions from the last Business Growth Masterclass:

 

Did you do your homework?

  • You have a system in place for measuring your conversion rate on a daily, weekly, monthly and by-campaign basis.
  • You have chosen two new strategies to implement for an increase in conversions, and are measuring the results.

Great. Homework done. Now let’s get started with today’s Business Growth Masterclass.

When you buy a product, you want to receive the most for your money. The same is true for customer acquisition.

customers

Generating leads and converting those leads into paying customers is a process that costs you money. You can attribute a piece of your marketing and sales costs to each of the customers that you successfully attract and convert.

Essentially, you buy customers for your business.

Let me repeat that: essentially, you buy customers for your business.

Please read this again and understand it on a very basic level. If I sent you to the store with £40 to buy a white t-shirt, you would be successful. Well you can do the same thing with GOOD clients (ones that pay, stay and refer). Do not be scared to go into the business of buying good clients. This one distinction can completely change the way you do business and your level of success.

So when you think of your customer as your most valuable asset, you’re absolutely right. They’re an investment in your business that you expect to see a return from.

As with any investment, you not only want to see a return, but you want to see the greatest return possible. In this case, you could try to reduce your marketing budget, or boost your profit margins, but the easiest way to minimise the cost of a customer and maximise your return is to increase the number of times each customer buys from you.

In the five-step process, this is called increasing the number of transactions in your business. Instead of constantly chasing down leads and buying new customers, your work is to keep the customers you have bought coming back to spend more money.

In this Business Growth Masterclass we will cover:

  • The financial impact of repeat business
  • How to figure out the average number of transactions of your business
  • How to calculate your average customer acquisition cost
  • The lifetime value of your customers
  • The 80/20 rule and letting some customers go
  • How you can lower the cost of your customers to boost profits

Increasing your repeat business is one of the easiest and most cost-effective ways to boost your bottom line.

Turning a single transaction customer into a repeat or lifetime customer is one of the simplest ways to boost your bottom line. It costs very little and is largely based on the experience you can create for the people who buy from you.

With a little bit of time and thought, you can turn single-transaction customers into loyal patrons, or even big fans of your business. This not only translates into returning customers, but also earns customers that refer you to their friends.

Financially, the more times a customer buys from you, the lower their acquisition cost becomes. You only have to buy customers once, so when that figure is spread over several transactions it goes down.

Here’s a chart of how a 10% increase and 30% increase in average number of transactions can impact your bottom line.

Starting Point 10% Increase 30% Increase
Leads 4,500 4,500 4,500
Conversion Rate 30% 30% 30%
Customers 1350 1350 1350
Transactions 1.3 1.43 (10% increase) 1.69 (30% increase)
Average Sales Value £140 £140 £140
Revenue £245,700 270,270 319,410
Margins 24% 24% 24%
Profit £58,968 £64,864.80 £76,658.40

What is the average number of transactions for your business?

If you have a system for managing customer accounts and tracking purchases, this next step will be really straightforward. If you have a computer-based point of sale system, your reporting functions may even be able to calculate this figure for you.

To figure out the average number of times each customer buys from you, you need to choose a time period (the last 12 months is a good starting point) and a sample of customer accounts with the number of times each has purchased from you. Take 50 at random, or all the customers starting with the letter “T” as an example to illustrate the point.

Then, add up the total number of transactions for each of the customers in your sample, and divide the total by the number of customers in your sample. This is your average number of transactions. For example, if I have a sample of 10 customers, my calculation might look something like this:

4 + 5 + 2 + 8 + 5 + 1 + 2 + 2 + 2 + 6 = 32 32 / 10 = 3.2 average number of transactions

If you don’t have an existing data source for this information, survey your customers or start your own tracking system to use over the course of a week or month. Note on your customers’ accounts when they purchased and what they purchased, or keep a tally at the cash register. If you can’t survey your customers or create a viable database, then just estimate the figure based on your observations over a week or over the history of your business.

Remember that the average number of transactions is going to be different for every business. Grocery stores will have far different figures than furniture stores, computer stores will have dramatically different numbers than coffee shops based on the frequency that people need those products or services.

What is the average customer acquisition cost for your business?

Do you know how much do you spend – on average – on each customer you acquire? To calculate this, simply divide the amount of money you spend per month (or per campaign) on lead generation by the total number of sales in that month (or campaign duration).

For example, if you spend an average of £5,000 each month on advertising, and you generate about 250 unique sales per month, your average customer acquisition cost is £20. Or, if you spent £10,000 on an ad campaign over three months, and generated 400 campaign-specific sales, your customer acquisition cost would be £25.

To evaluate this figure, look at it as a percentage of your average sale. Of the 250 unique sales in first example from the paragraph above, and say the average purchase was £75, £40 of which was margin. Subtract the customer acquisition cost from your margin, and you’ll have the average profit of each sale, in this case it’s £20.

What is the lifetime value of your customers?

Now, assuming your average customer acquisition cost is £20, let’s take a look at what would happen if you turned that customer into a lifetime customer. What value does that customer have to your business?

First let’s look at the value of a single transaction customer:

Customer Acquisition Cost £20
Number of transactions 1
Average value of each transaction £75
Average profit margin £40
Margin minus acquisition cost £20
Total value of customer £20

Then, assume that an average customer ‘lifetime’ with your business is about five years. Calculate as you did above, spreading the customer acquisition cost over the total number of transactions.

Customer Acquisition Cost £20
Number of transactions 15 (assuming 3 per year)
Average value of each transaction £75
Average profit margin £40
Margin minus acquisition cost £38.67 (£40 – [£20/15])
Total value of customer £580

Here’s a more in-depth look at cost of a single transaction customer, in comparison to a tripe transaction customer or a lifetime customer:

One Time Year Lifetime
Customer Acquisition Cost £20 £20 £20
Number of Transactions 1 3 15
Average Value of Each Transaction £75 £75 £75
Average Profit Margin on Each Transaction (excluding acquisition cost) £40 £40 £40
Actual profit per Transaction (profit margin – [customer acquisition cost / # of transactions]) £20 (£40 – £20) £33.33 (£40 – (£20/3)) £38.67 (£40 – (£20/15))
Lifetime Value of Customer (in profit)(actual profit per transaction x # of transactions) £20 £100 £580

Based on the chart above, you can see that the lifetime customer who purchased from you 15 times over five years brought your business £580 in profit, in comparison to the single transaction customer who brought your business £20 in profit.

Both customers cost you the same amount – £20 – but there is a £560 difference in return on investment! Repeat business – the average number of transactions per customer – makes a huge difference on your bottom line.

Give yourself permission to fire some of your customers.

Everyone has a group of customers they enjoy doing business with and are pleased to continually serve (our A-list). Likewise, we all also have a group of customers (our C-list) who are a pain to deal with. They may consistently complain, only take advantage of special offers or never spend much money after a bunch of hassle.

Like a good business owner, I bet you treat every customer with respect, and give them the attention they need – even the C-list. Here is where the 80/20 rule applies: 80% of your revenue comes from 20% of your customers. That 20% of your customers is what we call your A-list.

The important point here is that while you’re busy trying to make your C-list customer happy, you’re missing the opportunity to give your A-list customer the level of service they deserve. Since the majority of your revenue comes from your A-list customers, that’s where you should be focusing your efforts.

So, give yourself permission to fire your C-list, and stop bending over backwards to address their concerns. Don’t let them rule your time. Spend your efforts making your A-list happy, and their purchases will more than make up the difference.

Let’s look at some strategies that will help you boost your repeat business, and your bottom line.

Customer Service

Everyone- even businesses with high customer service standards – can improve the service they provide to their customers. This phrase is used a lot, but it’s true: Under promise and over deliver.

If you’re looking for new ways to impress your customers with service, conduct a survey of your existing customers and ask them how you can enhance or streamline their experience dealing with your company.

When you establish standards of customer service, make sure they are:

Consistently implemented by everyone in your business. Every customer who walks through the door experiences the same level of service, and receive that same service every time they walk through the door.

Convenient for your customer. Make the purchase process seamless for your customer. Think of all the steps your customers has to take from driving or walking to the store until they leave with their purchase, and try to eliminate any inconvenient elements.

Driven by the needs and wants of the customer. Understand how your target market wants to be treated when they’re purchasing from you. What do they value most from the experience? High end linens, or fast service? One-on-one assistance, or ample space and time to browse?

Newsletters

Use newsletters to establish and maintain regular contact with your customers. This is an easy, time-effective and cost-effective customer retention strategy

You’ll spend an upcoming Business Growth Masterclass learning how to create and send effective newsletters, but the most important point to remember is that the newsletter (just like all other marketing materials) needs to be focused on the needs and interests of your target audience.

The most popular and environmentally friendly form of distribution is through email. This is highly cost effective, as some web-based programs start at just £10 per month, and can be customised to your business’ graphic standards.

Here is a list of the types of content you can include in your newsletter:

  • Expert advice or opinion
  • New product or service features
  • New offers or promotions
  • Company news
  • Customer surveys
  • “Missed you!” emails
  • Event or closed-door sale invitations

Added Value

Find ways to increase your customers’ perception of value so they feel that their money goes further at your business compared to the competition. Value added products or services not only add to your average Transaction value but create repeat customers by:

Making a great first impression. Providing a customer with more than they expected – something goes beyond meeting their needs – establishes a solid first impression of your business. They learn to associate the experience of shopping at your business with pleasant surprises, which is a huge draw for returning customers.

Giving them a reason to come back. The perception that your products or services have a higher value than the competition will convince your customers to purchase from you, and refer their friends. The addition of new value-added products or services will keep them coming back.

Here are some examples of added value:

  • Free shipping/delivery with minimum purchase
  • Premium product or service line
  • Bonus gift with minimum purchase
  • Complementary product packages
  • Guarantees or risk-free purchases

happy customer

Incentives and Customer Loyalty Programs

A common form of customer retention is to provide incentives to customers to entice them to come back and buy from you.

A systemised form of incentives is called a Customer Loyalty Programme – and I bet you’re part of several. Loyalty programs work because they provide a consistent visual reminder of your business through a card, key fob, rewards vouchers, or other such items, and give the customer a financial incentive to purchase from you instead of your competition.

These programs vary from simple cards to complex rewards structures, but they don’t have to be complicated or costly. Plus, once they’re in place, they’re super easy to maintain. Loyalty programs are also great market research tools because you can collect a wealth of information on the signup form, maintain a detailed database and monitor their purchase habits.

You’ll spend an entire Business Growth Masterclass learning how to set up a loyalty programme from start to finish, but here are the basic structures to give you an idea:

Loyalty Cards Provide a wallet size card and use a stamp or punch to track their purchases until they reach 10. When they reach the magic number, the next product or service is free.

Rewards Dollars Return a certain percentage of each purchase to the customer using coupons that can only be spent with you.

Rewards Points Award a certain percentage of each pound they spend to a points account. These points can be used to spend in-store, or on special items brought in for points-holders only.

Membership Amenities Produce membership cards, and give your members access to services, discounts or amenities that other customers do not have access to.

Remember, each of your customers is a valuable asset that you have purchased to grow your business.

Treat your customers like you would treat good friends, and offer them the perks and rewards they deserve for their loyalty. I find that this approach is also a lot more rewarding because I get to know my customers, and some of them actually become friends.

Of course, there will always be a few clients you’ll never please, so keep the 80/20 rule fresh in your mind. Don’t be afraid of firing the customers who drain your time and your resources. Your A-list will more than make up the difference in revenue.

In the next Business Masterclass, I’ll show you a ton of ways you can add value to your product or service, and boost the pound value of each and every sale.

As always, let me know if you have any questions.

You can  use the contact form below to discuss and get help with the topics covered in this, or any of the previous Business Growth Masterclasses.

Until next time, good luck!

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Business Growth Masterclass 13: Marketing Materials – Ads

Hello there, and welcome to the 13th instalment of my Business Growth Masterclass. The step by step guide to building the business you always wished you could have.

Today, we’re going to look at the importance of high quality advertisements in your overall marketing mix.

As ever though, before we get our teeth into today’s material, lets just check on actions from the last Business Growth Masterclass:

Checkpoint:

  • You have created a list of words to use in your marketing materials that will target your potential customer’s emotional motivators.
  • You have practiced writing headlines, and are working to strengthen the headlines you have been using.

For many small business owners, advertising is a confusing, expensive marketing strategy that delivers mediocre results.

We’re surrounded by advertising everywhere we look. From TV commercials and Google Adwords to local newspaper and radio spots, everyone is vying for your attention and the money in your wallet.

So, as a small business owner, how do you weed through the big corporate marketing campaigns and your competitors’ ads, flashy design and high budgets, and figure out what you should do for your own business?

In this Masterclass I want to show you how to create clear, cost-effective ads and placement campaigns that get results for your company.

I use a few hand picked templatesfor my coaching clients and I’m going to share some of this material with you today. They’re not going to win any advertising awards, but they don’t need to because they’ve generated hundreds of thousands of pounds for small business owners just like yourself! At the end of the day, do you want an advertising trophy, or thousands of pounds in the bank?

In this Business Growth Masterclass we will cover:

  • Types of advertising
  • Print advertising for lead generation
  • Steps to creating effective (and inexpensive!) print and classified ads
  • Testing and measuring your ads
  • Examples of effective ads

Successful advertisements are those that have been designed with a clear purpose, and for a specific target audience.

Successful ads are successful because they pay for themselves with the sales traffic they generate. They bring in leads, promote products and services, and maintain awareness of your business.

So, like all of the lead generation strategies you’ve been working on, effective advertising is rooted in a strong understanding of your target market and how to motivate them to do what you want them to do.

Successful advertising, no matter what its specific purpose is, always:

  • provides a benefit, meets a need, or solves a problem
  • targets an audience that wants or needs the benefit or solution
  • offers a product that is closely tied to the benefit or solution
  • clearly communicates the message (the benefit or solution) and is easy to understand
  • pays for itself by generating a high volume of sales traffic

Every business should have an overall strategy or purpose for their advertising over time. This will not only allow you to save money by making bulk ad purchases, but will keep you from advertising on an infrequent basis, or in an ad hoc fashion.

Align your advertising with your business growth or positioning goals, and map out a six month or year-long strategy. Do you want to position your business as the expert in the industry? Double your lead generation? Sell a specific product or service? Announce new products or services? Maintain awareness of your company?

Here are some forms of advertising that each have a separate purpose:

Information Advertising is a common form of advertising that features the company in question in a positive light. Be careful not to misuse this form, as no reader is going to be interested in an ad that is too “me”, “me”, “me” focused. Always provide something of interest or benefit to your reader.

Image Advertising is a type of advertising that reinforces your brand name and image. It’s a less aggressive strategy that aims to keep your business at the top of customers’ minds, even if you have no specific message to communicate. It might include running frequent small ads with just your business logo and phone number or email address.

Ads That Sell convince a prospect to make a purchase before they’ve even identified themselves as prospects. These are more rare forms of advertisements, and harder to create. Lead generation ads are a more effective way to generate traffic.

In this Masterclass, we’re going to focus on advertising for lead generation.

Ads that have been created for lead generation have a strong “call to action” and are focused on motivating readers to respond.

You may want prospects to pick up the phone, bring in a coupon, enter their contact information in a contest, call for free information, visit your website or visit your place of business. At that point, they enter the formal sales process and you can work to convert them into loyal repeat customers.

Use the emotional motivators you’ve been focusing on the previous Business Growth Masterclasses to speak to your target audience, and focus on getting your readers to do something that identifies themselves as potential buyers.

1. Design your advertising strategy. Advertise to your target market in the places they go to most often for information.

Using the information you gathered in your market research, determine the publications that your target market accesses most often.

  • Do they read the local newspaper? If so, which section?
  • Is there a community newsletter or neighbourhood publication that would also serve as an effective vehicle for your message?
  • Is there a local listing publication that would serve as an inexpensive way to test and measure your offer?
  • Can you create a YellowPages ad that generates leads?

Once you have determined the publication (or publications) that you wish to target, make contact with the sales representative at each. This person is a great resource for you to use to your advantage – ask questions about size, specs, deadlines, proofs, changes and other expectations. Newspapers often use their own systems for layout, and have their own requirements for file preparation.

This person will also have demographic information on the publication’s readership, so gain access to that data and use it to inform your campaign.

When you are establishing a relationship with the publication, make sure to spread your advertising budget out to maximise your investment. Publications will often give you discounted rates when you buy in bulk, or commit to a certain budget over the year. Keep in mind that you will need to test and measure which ads are effective, and which aren’t, so try to structure your contract in a way that allows for flexibility.

While you are looking for a good advertising rate, remember that advertising is an investment that you make into the growth of your business. That money is used to ‘buy’ customers, whose purchases become your return on investment.

Ad placement is also an important consideration, but you will have varying degrees of influence over the final placement. Always request placement that is well forward and in the top right-hand corner, preferably in the section of the paper that best relates to your industry.

Advertise frequently – or at least regularly – to see the highest return on investment. There are a number of reasons for this:

  1. People need to be reminded constantly of your business (even big household names like CocaCola advertise regularly)
  2. There are always new customers to market to
  3. The people who are actually looking to purchase your offering are a percentage of your target market that rotates regularly
  4. People need to see your advertisement regularly to build trust and belief in credibility

Make a plan for regular advertising that suits your budget. You may want to alternate between large and small ads, or between display and classified ads.

2. Write copy for your ad that speaks to the emotional motivators of your target audience.

Use the writing and persuasion skills you’ve been learning in the past two Masterclasses, and apply the same principles to writing your ad copy. The next Masterclass will take an in-depth look at copywriting; so more help is on the way!

Like you learned in the headlines Masterclass, the most important part of your copy is your headline. You need to start with a headline that catches their attention with emotional triggers, and then gives them a reason to keep reading and care about what you have to say.

In advertisements it’s especially useful to follow your headline with a subheadline that is equally interesting and engaging. The remainder of your copy should focus on communicating the benefits or solutions that your product will provide, and deliver on any promises you made in your headline. Tell your prospects why they should take action, and what they’ll get when they do. Use the emotional trigger words to hit their ‘hot buttons’ and keep them reading.

A final tip in writing ads for lead generation is about weeding out unqualified leads. Make sure you include enough information in your ad to deter unlikely customers from making contact with you. For example, be up front about price and you’ll avoid dozens of phone calls from people who can’t afford to purchase your offering.

3. Ask your customers to take action.

Since the purpose of your ad is to generate qualified leads, your call to action has to be prominently featured so your readers know what to do and how to do it.

  1. Ensure the way you want them to contact you is a larger font size than the rest of your contact details, or the only contact method.
  2. Tell them how to receive what you’ve promised – free information, a special offer, preferred status. For example – Call 0845 6669997 right now and ask for Ted; Visit www.newco.com and sign-up to start receiving your bonus guide; or come to the store and ask for your membership card.
  3. Link your call to action to copy that mentions customer benefits and rewards. Phrases like, Call now and start receiving: lists of benefits are particularly strong motivators.

4. Layout your ad using these guidelines.

Remember that it is the strength of your message and the clarity of the layout that will determine how effective your ad will be. Resist the urge to get really creative and stick to a clean and simple design.

Layout should be kept simple and allow the message to come through clearly, not the formatting. Keep all type horizontal, and avoid the urge to get too creative.

Headlines are absolutely essential to successful ads. Create a powerful headline that draws in readers, and make it stand out from the rest of the ad.

White Space gives your reader’s eyes a place to rest and will keep their attention on your ad longer. If you cram too much copy or too many images into a small space, your readers will move on.

Type needs to be easy to read, but also stand out from neighbouring newspaper copy. Stick to a maximum of two types of font, and avoid font sizes below 9pt. ALL CAPS and reversed type (white on black) should also be avoided.

Images need to be professionally taken in order to be reproduced in newspapers. Take care that black and white images are not too dark, or too light, and choose photos the will clearly communicate your message.

Color can boost the response rate to your ad by almost 40% over a black and white one, so use it if you can fit it into your budget.

5. Make sure to be aware of and set yourself apart from the competition

Pay attention to what your competitors are doing so you are aware of what they are doing well, doing poorly, or not doing at all. With this awareness, you can make choices to set yourself apart, or improve on your own strategies.

Without copying their strategies (you don’t want to be a “me too” business), look at their messages, layout, placement choices and offers. What can you do to give your offer or your ad an edge? Is there something they haven’t thought of?

You may want to get into the habit of clipping their ads out of the newspaper, and making observations about the messaging or design. Use this information to improve your ads and distinguish your business, but stay focused on your own purpose and messages.

6. Test and measure each and every ad, every time you run it.

Like I said above, successful advertising is advertising that pays for itself.

It is helpful to think of advertising as an investment, rather than an expense. You are investing money in your business and using it to ‘buy’ customers. Ideally, those customers will offer you a favorable return on your investment by purchasing from you on a repeat basis (we’ll look in detail at customer acquisition costs and lifetime value in an upcoming Masterclass).

The only way you will know if an ad is paying for itself is if you track and measure the results it generates. You need to know where your customers are coming from, how they found out about your business, and why they decided to take action.

You can use your lead tracking system to do this, and then assess the results at the end of a fixed time period. You can also put codes or “keys” on your ads to indicate where your customers came from. This includes actual codes on coupons that tell you which publication the ad was placed in and in which week, as well as different offers and bonuses: Buy 2 get 1 free vs. Free gift with purchase, or Guide to Home Energy Savings vs. 25 Ways to Save Money on Energy Costs.

Remember, effective print and classified advertising rarely needs to be flashy or clever.

Get into the habit of always asking yourself, “what am I trying to accomplish with this ad?” You can even write your purpose on a sticky note and put it on your computer screen to keep you focused. Then, make sure that your headline, message and unique offer all cater to that purpose.

Effective advertising doesn’t have to be complicated, expensive, or even cleverly designed. Like all aspects of lead generation, it really comes down to a strong understanding of your target audience, and knowing how to communicate with them.

So, in the next Business Growth Masterclass I’m going to help you become a better copywriter. You’ll build on the skills you cultivated creating strong offers and writing effective headlines, and learn how to craft persuasive text.

Oh, by the way, if you would like some help with the ideas discussed in this, or any of the previous Business Growth Masterclasses, or to get expert help with any other aspect of growing your business, use the following form to get in touch: (Listen, I know some of you don’t like filling in forms like this, but I promise you it will be worth your while. Go ahead!)

Thanks for tuning in!

Business Growth Masterclass 12 – How to Write Headlines That Stop Them in Their Tracks

Hello there, and welcome to the 12th instalment of my Business Growth Masterclass blog. The step by step guide to building the business you always wished you could have.

Today, we’re going to look at how to write headlines for your marketing material which will stop your target customers and clients in their tracks.

As ever though, before we get our teeth into today’s material, lets just check on actions from the last Business Growth Masterclass:

  • You have created at least two offers that you can use as lead generation tools .
  • You have begun to test and measure the strength of your two strong offers to evaluate which is more effective.

Everybody done that? OK. Let’s get on with finding out how to write attention grabbing headlines.

This may sound obvious and may also sound simple, but all your headline needs to do is convince your reader to keep reading. But simple is not always that easy…..

Just like your lead generating offer, your headline has one job. It doesn’t need to close sales, or win copywriting awards, it just needs to grab and hold your reader’s attention long enough to keep them reading.

Studies have shown that around 80% of people read headlines when they’re looking through the newspaper, but only about 20% actually read the ad or article.

Your headline is the only tool you have to get the rest of your copy read, so you’ll need to focus the majority of your copywriting efforts on catching and holding your readers’ attention. The rest of your copy only matters if you can get them to read it!

In this Business Growth Masterclass we will cover:

  • The role of strong headlines in all of your marketing materials
  • Headlines as emotional motivators
  • How to create strong headlines for your audience
  • Examples of strong headlines
  • Headline templates
  • Testing and measuring headlines

Headlines shouldn’t be limited to advertising alone – they’re essential elements of sales letters, direct mail cards, websites, newsletters and brochures.

Headlines are used to grab and hold reader’s attention in ALL marketing materials – not just advertisements in newspapers. Most readers take only a few seconds to decide if they want to spend any time reading what you have to say, in an email, website, sales letter or direct mail postcard. Just like you, your audience is bombarded by information every minute of the day, so if you haven’t convinced them to care in a few seconds or less, they’ve already moved on.

Your subheadline is almost as important, because it’s your second chance to tell the reader why they should care and keep their attention. It also creates a transition between your headline and the body of your letter or advertisement, and acts as a teaser.

Every headline should:

  • Grab the reader’s attention
  • Be something the reader cares about
  • Offer your reader something
  • Trigger emotional reactions
  • Incite curiosity

Headlines need to trigger an emotional response and motivate your reader to keep reading.

When you’re writing, you have to put yourself in the mindset of your audience. People are pressed for time, so your headline has to offer something to them that is going to solve their problem, make their life easier, or give them information that they know they need. Otherwise, they’ve already turned the page.

For example, if I were to write a headline like this – Give me three hours of your time and I’ll show you how to double your annual income by creating a passive income stream – I’m probably targeting overworked, overwhelmed, underpaid professionals who are struggling to provide for their families. I’ve tapped into their emotional motivators and caught their attention.

There are a few categories of basic human needs that most purchase motivations come from. When you are aware of these, you will be able to incorporate them into your writing and appeal to your target market’s emotions.

By identifying your target market’s needs, wants, and desires, you’ll be able to identify the words and phrases that will effectively trigger emotional reactions, which will motivate them to take action.

Using the list of basic human needs below, identify which apply to your target market and create a list of words that will trigger the emotions related to these needs, wants and desires.

  • Personal, financial and emotional security for self and family
  • Convenience and time management
  • Freedom from worry, including peace of mind, comfort
  • Self-improvement, including spiritual, intellectual, physical
  • Acceptance and recognition from others, including self esteem, achievement, attention, respect, companionship
  • Basic needs, including food, shelter, clothing, love, personal maintenance

When you begin writing your headlines, you will discover that certain word combinations are also very powerful. You can combine your list of emotional trigger words with these power words in all of your copywriting.

According to a Yale University study, the top two rows of words are the most powerful words in the English language.

Love Money Health Discovery Proven Save
Safety You Easy Results New Guaranteed
Breakthrough Profits Discover Incredible Shocking Shocked
Ultimate Free Master Uncovered Hidden Secret
Revealed Scientific Your Powerful Suddenly Miracle
Now Magic Announcing Offer Introducing Quick
Improvement Amazing Wanted Sensational Challenge Remarkable
Compare Startling Bargain Hurry

Here’s how you can write effective headlines for your business in a few easy steps.

1. Identify who you are trying to target.

You need a clear understanding of who you’re writing for and what their motivators are before you can attempt to reach them. This is the target market you identified for yourself in Business Growth Masterclass Instalment 7, published in  April 2013.

If you are trying to target a more specific group within your target market, you can chose to segment your market into sub-markets by demographic or behavioural characteristics. For example, you might choose to focus on only men, or only women with children under five years of age.

The more specific you can be with your market, the easier time you will have identifying and reaching their emotional ‘hot buttons.’

2. Identify what you are trying to communicate.

Once you know who you’re speaking to, clearly define what message you want to communicate to them. Be specific, and even write it down in plain language before you start drafting your headlines.

To clearly articulate your message, ask yourself questions like:

  • Do you have a solution to their problem?
  • Do you offer a new product or service that they need?
  • Can you provide the information they’re looking for?
  • Do you have a better option for them?

3. Identify the motivators or “hot buttons” that will elicit an emotional response from your audience.

Take the list you drafted above, and highlight or write down the words that will pique your target market’s interest, or trigger their ‘hot buttons’.

If you’re selling vacuum cleaners to young mothers, you’re going to want to identify words that would appeal to her desire to keep her home germ free for toddlers, and make her cleaning efforts easier and less time consuming.

When you’re writing for sales and marketing, always try to paint a picture for your audience. Carefully select descriptive words they will relate to and resonate with, and strong power words like the ones listed above. For example, phrases like “challenging outdoor experiences” would appeal to physically fit readers, but not those who don’t like to exercise.

4. Choose a type of headline that will work best based on the emotional motivators you have identified.

Direct Headlines clearly and simply state the offer or message, without any attempt at humor or cleverness. Pure Silk Scarves – 40% This Weekend Only | Brand New Security System Just £99 Per Month

Indirect Headlines are subtle, and often use curiosity to pique a reader’s interest before providing an explanation in the body copy. Clever puns, figures of speech and double meanings are often used. The key to weight loss success lies in your backyard.

News Headlines mimic a headline you would read in the newspaper and are a great option for a new product announcement or industry scoop. These work best when you actually have news, and can stay focused on benefits, not features. Newco launches the ultimate timesaver for new moms

Question Headlines ask the reader something they can closely relate to or would need to continue reading to discover the answer. Questions are easy to read, and can immediately tap into your reader’s emotions.Are you tired of worrying about your children’s education fund? | Do you know what’s in your fruits and vegetables?

‘How to’ Headlines indicate that the rest of the copy or the offer itself will describe a step-by-step process of interest or use to the reader. These two words create headlines that work wonders. How to find a job in a recession | How to start a profitable internet business from scratch.

Command Headlines are similar to direct headlines, but always start with a strong verb or command for action. It usually focuses on the most important benefit you offer your reader. Triple your energy in just three days | Stop wasting money when you travel.

‘Reasons Why’ or ‘Ways to’ Headlines precede lists of tips, suggestions, product benefits or even mistakes of interest to your target audience. Keep the list to a reasonable length or you’ll run the risk of losing your reader. Eight ways to save money around the house | 25 mistakes you could be making at the grocery store.

Testimonial Headlines use other people’s opinions and expertise to persuade a reader to keep reading and begin to build trust. Quotation marks are used to indicate that the words are a testimonial, not the words of your business, and they can increase readership by almost 30%. “ToneYou Bootcamp completely changed the way I look at my body” – Miley Cirrus | “I never thought I’d get out of debt before I discovered Money Saver Inc!” – Grace LePage

5. Draft at least ten different headlines using the templates below, and pick your best three to test and measure.

I often get asked how long a headline should be. This is something that is debated in the marketing community quite a bit, but I always tell my clients not to worry too much about it. Use the number of words you need to get your point across, without writing a paragraph. Remember that your headline needs to do one thing: get the reader to keep reading.

Don’t be afraid to draft pages of headlines or sift through the pages of a thesaurus before you get yours just right. Sometimes you’re only a word or two away from transforming a boring headline into a really effective one. If you’re having trouble, you can rely on the headline templates I’ve included in this Business Growth Masterclass.

Headline Templates

  • How to become the smartest _____ in _____
  • How to end ______
  • How I improved my _____
  • How to develop _____
  • Seven ways to add to your _____ without cleaning out your bank account
  • How to begin _____
  • 12 innovations in _____ design
  • How to enjoy _____
  • Introducing the four key rules for _____
  • How I _____
  • Six things to check when buying a new _____
  • How to conquer _____
  • Complete these three simple steps for a _____
  • How to start_____
  • Five hints to make your _____ rise above the rest
  • How to have______
  • How to become _____
  • Announcing eight powerful answers to your “what _____ to buy” dilemma
  • Which _____ do the experts use?
  • Powerful ways to update your _____ for free
  • How to keep _____
  • The four components that make up a successful _____
  • How to improve your _____
  • Six essential questions to ask before you buy a _____
  • How to get ______
  • Three clever ways to impress _____ without breaking the bank
  • The six warning signs you don’t want to miss in _____
  • How to get the most out of ______
  • Nine tips from the _____ experts
  • How to avoid _____
  • How to stay ahead of business _____ trends in _____
  • How to get rid of _____
  • Five proven advantages that _____ enjoys over the competition
  • How you can _____
  • Finally! The latest _____ secrets revealed!
  • Learn how xxx has improved since you bought your last _____

6. Always test and measure the effectiveness of your headlines. Try two at a time and compare which generates the best results.

As always, you will need to test and measure the strength of your headlines. Try to test at least two “hot buttons” in different media to determine where your target audience’s reaction is the strongest.

You can leverage off of the information gathered from testing and measuring your powerful offer as well. For example, if the offer geared to safety and security concerns was a roaring success, headlines that tap into those motivators will also be successful.

You can apply these headline writing techniques to all your marketing materials, as well as your copywriting.

In our fast-paced society, nearly everyone has become a skimmer instead of a reader. Strong, well-written headlines are the only way you can lure a browser into reading your message – so use them on every piece of marketing material you have.

In future Business Growth Masterclasses, you’ll work on creating brochures, newsletters, direct mail pieces, sales letters and sales scripts – all of which need strong headlines to get noticed.

In the next Business Growth Masterclass we’re going to work on a really popular lead generation tool that also relies on effective headlines for success – ads. You’ll focus on how to use print advertising to bring in qualified leads, as well as how you might benefit from trying some inexpensive forms like classifieds ads and Yellow Pages.

See you in the next one!

Dave

Oh, by the way, if you would like some help with the ideas discussed in this, or any of the previous Business Growth Masterclasses, or to get expert help with any other aspect of growing your business, use the following form to get in touch: (Listen, I know some of you don’t like filling in forms like this, but I promise you it will be worth your while. Go ahead!)

Business Growth Masterclass 10: How to Create Marketing Materials that Work

Hello again everyone, and welcome to the 10th instalment in my series “Business Growth Masterclass”

As ever, before we begin, lets recap on the main points fromthe last Masterclass.

Checkpoint:

  • You have established which of your three draft marketing messages is the strongest, and incorporated it into all of your existing marketing materials
  • You have implemented a lead tracking and management system and trained your staff to use it effectively

Your marketing materials are an extension of you and your company.
How are yours working?

You can have a lot of fun creating marketing materials for your business. It’s an opportunity to work on a project that isn’t a spreadsheet, or a graph or an order form. You can really get creative!

Your materials get distributed in the world to send out a particular message (or messages) about your company and what you sell. They’re ambassadors for your business because they speak to your potential customers when you’re not there.

As you probably know, it’s easy to get carried away with marketing collateral. You’re surrounded by flashy, clever advertising everywhere you look, and when the time comes to create your own, you can’t help but feel that you have to keep up with the joneses.

Most of the time this doesn’t work. You spend more money, and see less impressive results. In this Masterclass, I’m going to show you some proven strategies for simplifying and strengthening your marketing materials, and focusing on the materials you need not the materials you think you think you should have.

In this Masterclass we will cover:

  • The marketing materials you really need – and the ones you don’t
  • The mistakes you might be making now
  • The elements each piece of marketing collateral should have
  • What you need to know about the design of your materials
  • What you need to know about testing, measuring and making mistakes

It’s easy to want to match your competition piece by piece – but when you’re trying to stretch your marketing budget, focus on the materials you actually need.

Just because your competition has an eight page, glossy colour brochure, doesn’t mean you need one to run a successful business.

When one brochure has the ability to eat your entire budget for marketing materials, you have to prioritise what’s essential and what’s just a “wish” or want. You need to make sure you’re spending on the items that are going to bring in the most return on investment.

Your marketing materials need to communicate your message to your target and motivate them to act. Do you really need a glossy brochure when black and white flyers will be just as effective? Think about this when making decisions about your marketing items.

Make choices based on how your target audience prefers to receive information. Do they prefer paper newsletters, or electronic ones? Are they environmentally conscious, or technology savvy? Do they appreciate personal contact, or just need to see information in a newspaper? Remember that how you communicate is often just as or more important that what you communicate.

Make green choices – your customers will appreciate it. Choose recycled paper and envelopes when you can, and print double-sided. Produce marketing materials in electronic format (like newsletters), and print limited runs of hard copy materials (like brochures).

What are the marketing materials that your business needs, wants and would like to have?

  • Logo
  • Business Cards
  • Brochure
  • Website
  • Newsletter
  • Catalogue
  • Advertisements
  • Flyers
  • Fridge Magnet
  • Branded Items (pens, memory sticks, etc.)
  • Employee Clothing
  • Cloth Bags
  • Product Labels
  • Signage
  • Email Signature
  • Blog
  • Letterhead + Envelopes
  • Thank You Cards
  • Notepads
  • Seasonal Gifts
  • Company Profile
  • Internal Templates (Fax Cover, Memo, etc.)

Create a list of your essential marketing materials then, below it, create a list of your “wish” marketing materials. You can use your “wish list” when you have a little extra budget, or are looking to create a “wow” piece. The list above is for you to use as a guideline – you may not need all of these items, or want to add your own ideas to the list.

Take your existing marketing materials through this audit, and look for opportunities to improve and strengthen.

Are you fighting for their attention with a powerful headline?
You have about four seconds to grab the attention of your reader with your headline. If you do, you have a few more seconds to convince them to read your subheadline. If you’re successful in doing that, you have a few more seconds to get them to read further. See what I’m saying?

Make sure your headlines:

  • Offer to take away pain or give pleasure
  • Hit your target market’s hot buttons
  • Bring up emotion
  • Are bold, dramatic, shocking or unbelievable
  • Answer the questions – what’s in it for the customer? why should the customer care?

Are you triggering an emotional response to a problem, fear, need or want?
Once you have their attention, you need to continue to keep it. Shake up their confidence in what they’re doing now, or the urgency with which they need to solve their problem. Put their fears, concerns and desires in black and white text in front of their eyes:

Ask them if they:

  • Are doing enough?
  • Can wait any longer?
  • Can sacrifice any more?
  • Are paying too much?
  • Are getting the best product or service for their money?

Are you building their trust or confidence in your ability to meet their needs?
You’ve got their attention, and tapped into their emotions, now you need to build their confidence in you ability to solve their problems and meet their needs. You’ll need to show them your solution, and prove that you can be trusted to do what you promise.

Tell them how:

  • You’re different from the competition
  • You’re highly qualified
  • You have documented results
  • You have a high number of happy customers
  • You get recognised from others in your field

Are you wowing them with your competitive edge?
You may be the best at what you do or have the best product but if your customers can’t get a hold of you when they need you, how valuable are you? Here are some examples:

Tell them how you do more than the competition:

  • 24-hour hotline
  • Housecalls, or free delivery
  • Customer rewards program
  • Other convenience services

Are you overcoming their objections before they’ve raised them?
It makes no difference what business you are in; there will always be objections to buying what you are selling. Most often the biggest objection is the price. You should confront them head-on by explaining why it’s worth paying your price. You need to put their fears to rest before they will be ready to buy.

Are you providing an element of risk reversal with a strong guarantee?
Stand behind what you’re claiming about the quality of your product or service, and offer a guarantee in your marketing materials. Typically, the strength and length of the guarantee indicate the quality of the product in most customer’s eyes, so create a strong one.

You can guarantee:

  • Performance
  • Benefits
  • Longevity
  • Satisfaction

Are you showing them what other people have said about your product or service?
Use testimonials to speak to your credibility and merit. Let the testimonials show your potential clients how trustworthy you are, and how much benefit they’ve received from your product or service. Make sure the testimonial addresses the problem that your customer had before they used your product.

Are you giving them an easy way to contact you?
Make it easy for customers to be in touch with you, or get more information. Clearly display your phone number and website address on everything you produce, and consider including a map of your store location so you’re easy to find.

Each piece should provide the following contact information:

  • Location (with map)
  • Phone / Fax / |Mobile Phone Number
  • Website
  • Free phone number
  • Email address

Are you giving them a reason to act NOW?
The last job your marketing piece has to do is motivate your viewer to take action. You need to make them want to call for more information, visit your website, or just come into your store. Invite them to take action on every page.

To motivate customers to act, you can:

  • Offer special “bonus” offers to quick responders
  • Make a time-sensitive offer
  • Tell them how rare your product is, or what limited quantity you have
  • Offer limited-time added value

Are you telling them what your product or service will give them?
Your customer doesn’t care about the features of your product or service, they only care about the benefit that feature will provide them. Customers buy benefits, not products or services. A client is looking to buy some more confidence from a new hairstyle, not a haircut.

Are you telling viewers the story of your product or service?
Remember that you are painting a story to tap into the emotions of your viewers. Detailed technical descriptions should be replaced with descriptions of how the customer may enjoy the benefit, and how they might feel.

The story will help the reader picture:

  • How they’ll feel after using your product or service
  • What they’ll look like using your product or service
  • What they’ll have time to do once they buy your product or service
  • The relief they’ll experience after purchasing your product or service

Are you giving them a reason to keep your marketing piece?
Give your customers a reason to keep your business card, brochure, newsletter or direct mail piece, refer to it, and pass it on to others to see. If you are selling hair care products, you can give your readers tips on how to combat split ends, frizz, unruly curls and heat damage. If you sell kitchen products, you can provide recipes that use your cookware or tools.

Some ideas for keep-able marketing pieces are:

  • Top 10 lists
  • Tips for product caretaking and longevity
  • Recipes
  • How-to’s

Flashy design is not important to your marketing campaign – but clear and professional looking materials are absolutely essential.

When it comes to the visual presentation of your marketing materials, you need to strike a balance. On one hand, you don’t want to spend all of your budget on design and production. On the other hand, the cost of sending out materials that don’t look and feel professional is usually much higher.

Going back to our discussion on time management, you’ll want to check in with yourself and see if your time is best spent designing your brochures, ads, flyers and direct mail, or if you should hire other resources.

Resources for marketing collateral design and layout include:

Graphic Design Agency This is generally the most expensive option. However, if you can find a small to medium sized agency you’ll typically be able to work within a reasonable budget. This can also be a resource to use for “wow” pieces, or design projects that require a little extra flair.
Freelance Designer Freelance designers don’t carry the overhead that agencies do, so typically their prices are a little cheaper. Try to find a designer you work well with and build a long-term relationship. Ask your network for referrals, or try listings like Craigslist.
In-House Designer If you don’t have the time to design your own collateral, but have heaps of marketing collateral and signage to design on a regular basis, hiring a dedicated employee may be your most cost effective option.

If you’re designing your materials in-house, here are some guidelines.

Consistency Your materials need to be cohesive and look like they come from the same company. Be consistent in your colour choices, font, headline styles and logo placement.
Simplicity Keep your materials simple and easy to read. This will save you money, as little details like full-bleed printing and die-cut edges are more expensive.
Information Hierarchy Think about the information that you need your customers to receive, and the information that is less important. Structure your page so that the most important messages jump off the page, and less pertinent details are at the bottom.
Colour Choice Colors give a visual message to your readers, and have many meanings including cultural connotations. Choose your business colors carefully, and stick to two or three.
White Space Every piece needs enough white space to give viewers’ eyes a place to rest when taking in information. The point here is not to crowd your piece with text and copy.
Photo Choice Put some thought into the photo you select, if you choose to include photos in your marketing materials. Details in the photo can unintentionally communicate messages about your business, so make sure they’re the right ones.

If you’re going to try something new – test, measure and make mistakes in small batches, or online.

You will need to constantly be monitoring the success of each piece of marketing material and looking for opportunities to strengthen and improve it. Since you already have your lead tracking and management system in place, this is a matter of sitting down on a regular basis and reviewing the leads each piece generated, and how many turned into sales (we’ll review this when we get to conversion rates).

Remember, always test, measure and then make choices.
If you’re not sure about a new strategy, do a test run to a limited distribution area, or test the message out online. Do small production runs of brochures or flyers you’re not sure about, so you don’t end up with heaps of flyers that didn’t work.

In the end, the strength of your marketing piece is in what you say and how you say it.

Too often, flashy design gets in the way of the message and you miss an opportunity to attract a customer. Simple, clear marketing materials deliver an easy-to-understand message to your target audience, and result.

If you would like some help with the ideas idiscussed in this Masterclass, or to discuss any other aspect of your business growth strategy, use the following form to get in touch:

In the next Masterclass, we will look at the role of your offer in motivating your audience to take action. A powerful – even irresistible – offer can act as an ace in the hole for your lead generation efforts. I’ll show you how to put one together.

Business Growth Masterclass 9 – How to Generate More Leads with Less Effort

Hello again everyone, and welcome to the 9th instalment in my series “Business Growth Masterclass”

As ever, before we begin, lets recap on the main points fromthe last Masterclass.

  • You have created three marketing messages using the step-by-step process
  • You have tested your marketing messages internally – with your staff, management and colleagues
  • You have started or are about to start testing your message externally – using advertising, direct mail or another lead generation strategy.

Has everybody done all that? Good. Ok, lets get started with this month’s masterclass.

What is the current picture of lead generation and management in your business?

Here’s the deal: in order to start generating more leads with less time and financial investment, you first have to spend time setting up systems and making some changes. Your goal after this Masterclass is to establish a solid lead tracking and lead management system, and make small tweaks to your existing lead generation strategies based on the work you completed in the target market and marketing message Masterclass. We’re going to look at many different lead generation strategies in upcoming MAsterclasses, but I want you to see the impact that the work you have already done will have on your existing strategies. I want you to start seeing results more or less straight away.

In this Masterclass we will cover:

  • The current status of lead generation in your company
  • The purpose of lead tracking and management systems
  • Types of lead tracking and lead management systems
  • How to set up a lead tracking and or management system
  • Qualified lead generation
  • How to get more results from your existing strategies

Do you know where your current leads are coming from, or how many you get on a daily, weekly, or by-campaign basis?

If I asked you to tell me right now what your top lead generation strategies are, what would you say? A big part of step-one is gaining a solid understanding of where your business stands right now in terms of lead generation. Otherwise, how are you going to know when your lead generation strategies are working? Or which strategies are working? In a few minutes, I’m going to show you how to set up a lead tracking and lead management system that works with your business. But first, I’d like you to write down what you think your top three lead generation strategies are right now.

Every business needs a lead tracking and management system. Do you have one in place?

A lead tracking and management system is absolutely essential to your business for a number of reasons. One, it is the only way to know which marketing strategies are working, and which ones aren’t. The information your system gathers will allow you to make educated decisions about marketing campaigns and investments. Two, it organises your sales and marketing efforts and manages contact information in a user-friendly way. It’s clear who you called, when, what you said, and when you said you’d follow up. Three, it enables you to manage your sales staff by tracking their progress on several leads at once. You’ll have access to an at-a-glance picture of their sales figures and productivity.

Your lead tracking system needs to:

  • record the leads that arrive by phone, in-store visit, and website visit
  • track the source of each lead over specific time periods
  • record pertinent customer information
  • be simple enough to be used by all staff members

Your lead management system needs to:

  • track your leads through the sales plan or process
  • increase customer communications or contact
  • keep track of correspondences and follow-up requirements
  • make it easier for you and your staff to close more sales

Here is a list of information you will want to gather from your leads.

Depending on the needs of your business and the lead tracking and management system you choose (i.e., do you need a mailing address, or just email address?) some of these items may be optional fields.

  • Company Name
  • Name of Contact
  • Alternate Contact Person
  • Mailing Address
  • Phone Number
  • Fax Number
  • Cell Phone
  • Email Address
  • Website Address
  • Product of Interest
  • Source of Lead (i.e., How did you hear from us?)
  • Reason for Enquiry

If it is appropriate for your business, you also may wish to gather demographic information from your leads – but keep this voluntary. This information would be ideally used in your market research analysis.

Keep in mind that your lead tracking and management systems need to be simple enough for everyone in your company to use.

Unless you are the only person in your company who manages incoming phone calls, greets customers and chases down leads, the systems you implement will need to be used consistently by everyone in your organization. Once you have decided on a system, schedule enough time to train your staff thoroughly and be open to feedback. Since you’re not the sole user, you’ll need to consider their thoughts on the usability of the systems.

Pick a lead tracking and management system that suits your budget, and offers the features your business needs.

Each business will have different requirements when it comes to lead tracking and management. A retail store will have different needs than an estate agents office, for example. The retail store may only need to record leads based on lead generation strategies, and keep lead information for their direct mail or newsletter databases. On the other hand, the estate agent will need to make contact with their leads on several occasions, and need a system that will record and remind them of those correspondences. Software for lead management ranges from simple to highly sophisticated, and can be a great investment depending on the needs of your business. Some CRM (Customer Relationship Management) tools are available online as a web-based system you can subscribe to and have access to on the road. I’ve listed the features and advantages to a number of different systems below – ranging from low-tech to high-tech, paper-based to web-savvy.

Index Cards Variety of sizes: 3×5, 4X6 or 5X8. Basic contact information on one side, notes on the other Easy to organise and sort This is a basic system used to manage leads by those who may be less comfortable with computers. This system will be effective at tracking low volumes of leads.
Rolodex More contacts than index card system Easily organised and compact Basic contact information on one side, notes on the other side Another basic system that will effectively manage leads without the use of a computer. While this system can store a higher number of cards, it is also only effective for tracking low volumes of leads.
Excel Spreadsheets Electronic system that is highly customizable by date, name, source or other variables Easily organised and analyzed Several worksheets in a single file allow leads to be tracked and contact managed Accessible for those with basic computer skills This is a slightly more sophisticated system that will allow you to track higher volumes of leads, and effectively organise the information that you collect into charts that can be analyzed. In Excel, you are able to work with a number of tracking sheets in a single file, and create hard copy tracking sheets for staff to use at point of sale and reception. Excel also has the capability of importing data from Outlook and Maximiser.
Database Management Programs High level of organization Unlimited space for notes and record-keeping Data-entry required Examples include: MS Outlook, MS Excel, Maximiser A more sophisticated system that will interface with Excel and manage high volumes of leads and customer details. Manages distribution lists for newsletters and direct mail campaigns. Primarily manages contact information, and provides space for notes, follow-ups and reminders. Tracking high volumes of leads without recording and inputting customer information is best done in Excel.
Customer Relationship Management (CRM) Software Web-based, and accessible from anywhere with internet access Organises leads and customers by name, company, date, or status Ability to attach documents (like proposals and contracts) to leads Ability to write notes and log correspondence by date View contact history and status Interfaces with e-mail marketing programs Example is SalesForce A highly sophisticated system with advanced features. Tracks a high volume of relationship-based leads, and provides a detailed, feature-heavy system for lead management. Not ideal for retail businesses, or businesses that need to track a high volume of leads with minimal customer information attached.
Website Analytics Monitors and analyzes website traffic and online advertising Tracks number of people who visit your site, where they came from (search engines, online advertisement, website link etc.), how long they stayed, the pages they visited, and which page they left the site from. Google Analytics is an easy-to-use example An ideal way to track and analyze website traffic to complement your overall lead tracking system. This is not a complete system on its own. Requires the insertion of a specific code into each of your webpages, or each of your online advertisements. Monitors usage statistics, and generates reports, charts, graphs, etc.

Bringing qualified leads into your business will save you and your sales team time, and result in higher revenues.

Qualified leads are simply the potential customers who are the most likely to buy your your product or service. They’re not just in your store taking at look at the latest features in refrigerators, they’re in the market to purchase a refrigerator. They’re not wandering in to see what a £500 handbag looks like, they are the kind of person who can actually spend £500 on a handbag. Some of the people who will call you or visit your business will never buy from you no matter how good your sales scripts are or how much time you spend overcoming their objectives. There are a variety of reasons for this – and you’ll never eliminate all of these people – but you will need to focus on bringing in more of the people who are ready to buy. The good news is you have spent so much time and energy cultivating a comprehensive knowledge of your target market, that you’re in a great position to increase the number of qualified leads you bring into your business.

How do You Get Qualified Leads?

The crux of qualified lead generation is making decisions based on the market research you completed on your target market. You basically need to know where to reach your market, and how to speak to them. When you are designing, executing and making choices about your lead generation strategies, always consider these questions.

Who is my target market? Write down your target market description to keep you focused on the specifics of this group of people.
DISTRIBUTION IS EVERYTHING: How does my target market like to receive information? Do they read the newspaper? Pick up the family mail? Spend hours on Facebook? Subscribe to Reader’s Digest? Listen to newsradio on long commutes to work?
What motivates my target market to take action, and how can I tap into that motivation? How will you tap into your target market’s emotional response? What issues or needs will mean something to them, and drive them to your business to solve them.
Where can I place my marketing message so my target market will see it? Look at what you found out in your market research about your target market’s hobbies, activities and interests. How can you place your message or your product or service in their path?
What can I offer my target market to entice them to purchase from me? Can you offer your target market something special, rare, or time specific that will appeal only to them?

I’m going to show you how some little changes will generate big results for your company in short order.

Once you’re set up with a testing and measuring system (your lead tracking and management systems) to evaluate the success of your lead generation strategies, you need to start by looking for opportunities to beef up the strategies you’re currently working with.

Use your new marketing message. Make sure that you have put your new marketing message on all of your marketing materials, where new and existing customers can see it. Revise your standard advertisements to feature the strengthened copy.
Strengthen your offer. Create an offer that’s too good to refuse – not for your entire target market, but for your ideal customer. How can you cater to their unique needs and wants? What will be irresistible for them?
Refocus your direct mail campaign. If you’re sending your direct mail to entire postal code areas, stop and refocus. If your distribution area is that broad, chances are the copy on your postcard or letter is too broad as well. Brainstorm ways to narrow your distribution and only hit your target audience. Purchase consumer lists based on demographics, not just location, or limit distribution to specific housing types. Of course, make sure you rework the direct mail piece to feature your marketing message.
Let your target market’s behaviours dictate your distribution plans. As I discussed above, the more you can tailor your strategy to the needs and habits of your target market, the strong your results will be. Look for opportunities in your existing direct mail, advertising, flyer drop and other strategies to get specific. Narrow the demographics of your list, or place an ad in a niche publication. Brainstorm new ways to target your market’s emotional reactions.
Tap into low-cost advertising. Advertising in places like the YellowPages, classifieds sections, e-mail newsletters and Google Adwords can be a great place to test your marketing message for minimal investment. In an upcoming Masterclass you’ll learn how to place ads in the YellowPages and other listings that stand out from the competition.
Look for some referral business. Referral business is desirable because it usually brings qualified leads into your business. Someone has referred them to you based on a current need or desire. > Provide your customers with an incentive to bring business to you. Reward successful referrals with discounts or gifts. > Create a referral chain by giving each new customer three free coupons for products or services that they can give to their friends. When their friends come into your business, do the same. > Create complementary alliances with non-competitor businesses with the same target market. Cross-promotion or cross-referral strategies will benefit both businesses.
Website sign-up Add a feature on your website that encourages visitors to sign-up for newsletters or other communications. You can also set up your website so that potential customers need to fill out a simple form before they have access to “free” information.
How to Create Marketing Materials That Work The next Business Growth Masterlass will walk you through some tips and helpful suggestions for improving your marketing materials. Revise your existing materials based on these suggestions, and watch your leads multiply.

Stop using strategies that don’t work.

Now that you have a comprehensive lead tracking system in place, you’ll be able to track the leads that each strategy is responsible for generating. When you complete your first few campaigns with the lead tracking system and analyse the numbers, compare the results to the initial predictions you made. Were you correct in your assumptions, or were you surprised by how things shook out. The purpose of testing and measuring using a lead tracking system is to figure out which strategies work, and which don’t, as well as which strategies work best, and which generate mediocre results. This not only will save you money but is incredibly useful information to have when developing marketing budgets and, of course, trying to drive sales.

READ THIS: A quick cautionary note on conversions.

While the focus of  recent Masterclasses has been lead generation, remember the first part of the formula: No. of leads x %age conversion rate = No. of customers. You’ll be working on conversion rates in just a few Masterclasses from now, but my point is don’t lose sight of the relationship between leads and conversions in the overall formula. Remember that when more leads start flowing through your door, you’ll need to have the resources and systems in place to give a high level of customer service and to convert them into loyal customers. You’ve put effort into generating these qualified leads, but if you don’t have the resources in place to give them the attention required, you’ll lose them.

Once established, your lead tracking and lead management system should require minimal time investment…if you keep it up to date.

If you would like some help with the ideas introduced in this Masterclass, or to discuss any other aspect of your business growth strategy, use the following form to get in touch:

One last reminder before I sign-off – keep your systems up to date. The biggest pain (and drain on time) is having to go back and enter heaps of data into your database or management system because someone has let it pile up. It’s also a huge missed opportunity! If you fall behind on your lead tracking system, because you won’t be able to effectively evaluate your campaign or strategy. Or, you may have missed a lead because you didn’t follow-up soon enough. Be diligent, and set a strong example for your staff members. Good luck!

Hello, again, and welcome to the 8th instalment in my series “Business Growth Masterclass”

As ever, before we begin, lets recap on the main points from last months discussion. You should by now,

  • know who your target market is, what their needs are, what their purchase behaviours are and how to reach them.
  • know how to use market research to find out more information about your market on a regular basis.

This month’s masterclass is about writing targeted messages for your target market.

In the last masterclass, I shared with you how to isolate your target market, and then how to use market research to gather information about that group of people to use in your marketing strategies.

Today we’re going to take your market research and use it to create a powerful marketing message. The strength of your marketing message lies in its ability to speak to the specific wants and desires of your target market, and tap into their emotional reactions, or hot buttons.

When you push those hot buttons, you motivate your audience to take action. The more people you can motivate to take action, the more leads you’ll have in store and on the other end of the phone line.

In this Business Growth Masterclass we will cover:

  • How a strong marketing message will supercharge your lead generation
  • Examples of strong marketing messages
  • A step-by-step process for developing your unique marketing message
  • Strategies that will strengthen your existing marketing message
  • How to test and measure the strength of your message.
  • How to be consistent with your strong marketing message

A strong marketing message will make a huge difference in your lead generation strategies.

A marketing message is simply a statement or phrase that you use to communicate information about your business to others. A strong marketing message will do four things:

  • Speak to the reader’s needs, wants or problems (hot buttons)
  • Offer a solution, advantage or benefit
  • Describe a point of difference
  • Motivate the reader to take action

As I said earlier, the key here is to motivate your target audience to do something after they read or hear the message. It needs to be strong enough to entice the audience to ask for more information, visit the website, pick up the phone or walk in the store.

You will put your marketing message on every piece of marketing material your business uses for lead generation, so it has to be powerful and consistent and speak to the group of people that you have identified as your ideal customers. Strengthening your marketing message has the potential to dramatically increase your lead generation before you even change your existing strategies.

Here are some examples of strong marketing messages that are used by successful businesses today.

Domino’s Pizza You get fresh, hot pizza delivered to your door in 30 minutes or less — or it’s free!
M&Ms The milk chocolate melts in your mouth, not in your hand.
Enterprise Rent-A-Car We’ll pick you up.
Nyquil The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest medicine.
FedEx When it absolutely, positively has to be there overnight.
Dentist We guarantee that you will have a comfortable experience and never have to wait more than 15 minutes or you will receive a free exam.
Estate Agent Our 20 Step Marketing System Will Sell Your House In Less Than 45 Days At Full Market Value.

Let’s get started with the process you can use to create a new marketing message for your business, or refine the marketing message you already have.

Work through the following questions to brainstorm and record the aspects of your business that you will communicate in your marketing message. Take your time, and be as detailed as possible.

1. Use all the information you gathered about your target market to figure out what your customer’s hot buttons are.

Write down who your customers are, and what their problems, desires and needs are.

Take some time to revisit the behavioural and psychographic information you gathered when researching your target market. This will give you an idea of what kind of emotional hot buttons you should focus on when creating your marketing message.

Hot buttons are emotional triggers that motivate your potential customers to take action. Some common hot buttons are: price, location, exclusivity, results, safety, timeliness, convenience and atmosphere.

2. Describe the value or benefit that your product or service offers your customers.

This is what your customers get when they spend money at your business – the answer to “what’s in it for me?” How do you solve their problems? How do you meet their needs, or fulfill their desires?

For example, maybe you’re a grocery store in the neighbourhood, and you offer the convenience of being just a short stroll away instead of a car ride.

When you’re thinking about this question, think about your product or service in the context of the benefits, results, or advantages customers receive, instead of the features you offer.

3. Think about the outcome of the value or solution that you provide.

Brainstorm what happens when your customers receive the value or benefit from your product or service, what happens? Are they thrilled? Relieved of worry? Do they have more time to spend with their families, or do they put dinner on the table faster?

This is kind of like the storytelling aspect of creating your marketing message. Paint a picture of how you will improve the lives of your customers, in one way or another.

4. What is your company’s point of difference? What makes you stand out from the competition?

Your point of difference – or uniqueness – is something you will want to strongly feature in your marketing message. It is the reason that the reader should choose your business instead of your competition.

For this step, do some research on your competition and see what kinds of marketing messages they are using. How strong are those messages? What benefits and results do they promise?

If you are having trouble figuring out what sets you apart from your competition, think about including an irresistible offer, or a strong guarantee to give yourself an edge. (We’ll spend some time on powerful offers and risk reversal strategies like guarantees later on in the Masterclass series.)

5. What is the perception you would like others to have about your business?

How you wish your customers to perceive you will impact how you describe your offering in your marketing message, and the kind of language you will use. Revisit the vision you created, and write down some ideas about the image you want your business to project to the outside world.

For example, if your business is completely transforming its operations to become more environmentally sustainable, you will need to use different language and emphasise different features and benefits than you did before.

6. Based on the notes you wrote in response to the above questions, summarise the information into a paragraph of 4 to 5 sentences.

If you’ve got pages of notes, this may be a challenging part of the process, but that’s okay because it means you have a lot to work with. Take your time, and wade through your notes bit by bit.

You may want to start by writing 10 to 15 sentences, and then narrow those down to 4 to 5 sentences when you have a better idea of what specifically you want to focus on. Or, you could try writing three sentences for each question, and then working to consolidate from that point.

Keep in mind that the most effective marketing messages use strong, descriptive language that triggers emotional responses. Think about how you would describe your point of difference, or value-added service to a close friend, and write with that in mind.

7. Using descriptive language, consolidate your paragraph into a single sentence of 15 words or less.

This sentence will become your unique marketing message!

I know how challenging this part of the process can be, so to make it easier, I usually write a few different sentences that emphasise different things to give myself choices. For example, if you don’t know whether to feature your company’s commitment to unbelievable prices, or its guarantee of customer satisfaction, write one sentence each and compare which is stronger.

Aim to have two or three sentences that you’re happy with, and then test them out to see which is the most effective.

The only way to find out the strength of your marketing message is to test it. Don’t be afraid of making some mistakes – you need to get feedback!

Test your three draft marketing messages internally first.

Before you go out to the public with your drafts, test them on your friends, family, staff and colleagues first. Use their feedback constructively, but don’t be afraid to stand up for elements that you believe are effective or important.

Once you have gathered enough feedback, rework your draft messages and incorporate the suggestions you believe are valuable.

Incorporate feedback, and then test a few draft messages externally.

When you have refined your draft messages and incorporated staff and colleague feedback, you can start to test the messages out on your audience.

This doesn’t have to be complicated, or cost a lot of money. Simple tests using small-scale distributions will give you the information you need to choose which message is the most effective.

For example, place two or three ads in the local newspaper or on your social media accounts – one a week with a different message each time – and compare the number of leads each ad generates. Or, send out a small direct mail campaign, with the materials split into three groups – one for each message.

The message that generates the most leads is the strongest, and will be the one you choose to be your business’ unique marketing message.

Now that you’ve got a killer message, use it consistently on all of your marketing materials and in all of your campaigns.

Consistency and repetition are powerful persuasive tools to use to reinforce your message over time. Ensuring your marketing message appears on all documents related to your business will build your brand image and your company’s reputation.

Make a list of all marketing materials, stationery, signage and internal and external documentation that your customers and clients come in contact with. Then, incorporate your marketing message onto each of them.

Here’s a suggested list of materials to include:

  • Website
  • Advertisements
  • Direct Mail
  • Listings
  • Phone Messages
  • Email Signature
  • Business Cards
  • Letterhead

Now that you know what you’re going to say, and who you’re going to say it to, let’s dive into some lead generation strategies.

If you would like some help with the ideas introduced in this Masterclass, or to discuss any other aspect of your business growth strategy, use the following form to get in touch:

The next Business Growth Masterclass focuses on advanced strategies for lead generation that you can start implementing into your business right away. Our focus is to set up lead generation strategies that either immediately or over time will run themselves, so you can generate more leads with less time investment.

Business Skills Masterclass 8 – How to Strengthen Your Marketing Message

Do You Know How Your Client’s Make The Decision To Buy What You Sell?

Have you ever given any thought as to how your clients make that all important decision as to whether or not they will buy your product or service? What is it EXACTLY that triggers their buy / don’t buy button? Is it really price that controls their decision, or are other factors involved?

What you need to know…

Believe it or not, price is actually one of your prospects last considerations. Human nature says that no matter who buys what you sell, they will always want “the best deal.” That doesn’t mean the lowest price, but it does mean they want the most “VALUE” for the price they pay. The perception that your product or service offers extraordinary value controls their final decision.

Why you need to know this…

The key is to create “extraordinary value” as it relates to what you sell. In fact, if you do this, you can even charge a much higher price, providing the perception of value justifies that price. Unfortunately, most business owners don’t have a clue how to create “extraordinary value,” and therefore don’t offer it to their prospects, costing themselves massive market share and a boatload of lost revenue.

To create value, a business must “innovate.” You must understand the things your clients want from your product or service, and then use innovative ideas and solutions to either remove the pain and frustration they normally associate with what you sell, or enhance the benefits they receive from using it.

For example, the working mum who feels frustrated and worried when she drops off her child at daycare because she doesn’t know how the child is being cared for finds tremendous relief and peace of mind (extraordinary value) when the daycare installs Web Watch… a 24 camera surveillance system that allows parents to view their child online, anytime.

The cost to you if you fail to act…

If you fail to create “extraordinary value,” then you look like, feel like and smell like your competition. You will be forever doomed to compete with them on price, and when you’re forced to compete on price, you have just lost the battle. There will always be someone willing to undercut your price… ALWAYS!

By innovating your business, you begin to separate your business from your competition. You begin to eliminate your competition from the minds of your prospects… and you will have your prospects literally saying to themselves that “I would be an absolute fool if I bought this from anyone else.”

Innovation attracts your “ideal” clients to your business. These are the clients that will buy more from you at premium prices. They will spend more money and buy from you over longer periods of time. Your revenue and profits begin to skyrocket as you begin to add unprecedented market share.

Look for ways to “innovate” your business and do so in such a way that you create extraordinary value in the minds of your prospects.