The importance of strength multipliers
The importance of strength multipliers in marketing strategy
Last week I spoke about how goals are not plans, they are just ideas.
To follow that up - we need to look at the question of HOW we actually start making a plan that makes sense for OUR businesses.
It starts with taking stock of what is already working, and understanding our opportunities for leverage.
I can’t count how many times I’ve had introductory meetings with people that want to talk about paid advertising, automation, and building a greater marketing ecosystem to grow their business…
...but then proceed to list off a bunch of tools or platforms that ‘we need to be on ____’ because ‘that’s where everyone is’
Yes, these help - but without an aligned marketing process and strategy this is typically the quickest way to run in the wrong direction, and engage in marketing activities that you don’t need.
To avoid this common pitfall, we need to start by leveraging strength multipliers.
To summarise this further, I’ll defer to one of my favourite quotes by Abraham Lincoln;
“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”
The axe is the strength multiplier - and you need a plan to leverage your strengths to increase your chances at better outcomes.
To simplify this even more, we break it down to the fact that there are only three ways to grow a client based business…
Increase Conversions. We can increase the number of clients by converting more prospects into paying customers.
Increase Average Order Value. We can increase the average size of the transaction per client.
Increase Lifetime Value. We can increase the frequency of transaction per client.
From there, we run through a list of questions to identify gaps and opportunities in each pillar.
Increasing Conversions
Are we tracking and documenting our opportunities?
How are we categorising our Leads, Enquiries, Meetings, Quotes, and Sales
What is our conversion rate at each step?
Where are our current prospects coming from?
How can we increase our opportunities from each channel?
What are the key factors in converting them?
What are the most common objections?
How long is a typical sales cycle?
Where can we improve?
How can we continue to add value, and increase by even 5-10%?
Increasing Average Order Value
Has our pricing strategy been reviewed recently?
Is it dialled into how profitable we need to be to deliver the product or service?
OR, are we charging ‘market rates’ based on competitor or market information
How much of each sale are we allocating to the product or service itself, how much are allocating to the client experience, and marketing.
Are we perceived as a commodity (i.e. - they are only engaging for the product, or service - not the solution, or the brand).
Or, are we positioned as an Authority (expert in our field)
Where can we improve?
How can we continue to add value, and increase by even 5-10%?
Increasing Lifetime Value
How is our client engagement structured? (single sale, hourly, project based, vs. monthly retainer)
Are there opportunities to be cross-sold, or up-sold (from a place of value, not greed).
Are there any additional products or services that they need, that aren’t currently being offered?
How can we continue the relationship so they reach the desired outcome, and beyond?
Where can we improve?
How can we continue to add value, and increase by even 5-10%?
While this might seem a lot to consider - by frontloading the effort, and sitting down and putting pen to paper and actually mapping this out, there is so much of our future resources saved in chasing wasted opportunities and succumbing to shiny object syndrome.
This all comes back to the axe and chopping the tree - you can have arms and back muscles bigger than Arnie, but ultimately if you are banging against a tree with a dull axe - you’re not going to get the desired result.
Work backwards from your existing sales process and successes, improve the process, and achieve the results.
THEN look to take the increased profits and engage in bigger marketing campaigns, the pay off is much bigger, much more predictable, and ultimately more consistent.
Zac
Ps. if the above seems overwhelming - start here;
If you haven’t already - input every client you’ve had in the last three-six months, into an Excel or Google Sheet (if you’re not using a CRM)/
Write down the value of each project
Record how you came into contact with them, how many meetings you had with them, and how long it took them to convert to a paying customer.
What was the consistent theme with your converted opportunities? Go deeper than - they wanted our service. What outcome and experience did they really seek?
What was the consistent theme with the opportunities that didn’t go ahead? Were you steadfast with your solution, or did you explore some different options with them? Have you followed them up?
That alone should give you some key insights into how to improve your conversion rate, but if you have any more questions - just reach out - zac@tenasu.com