PDF MyNoteTakingNerd’s Marketing Notes On Small Business Marketing Strategies
Growth Session #1
“Profit Now INTRO”
· This is about making more from your existing customer base
· This is all about implementation
· Business challenge is finding the time to implement anything
· You must implement tracking and measuring strategies to ensure long term success
· You must prioritize your opportunities
· Only work on one at a time
· The power of incremental profits is understanding the cumulative effect of small improvements
· The increases are in your pocket profits
Growth Session #2
“How to Effortlessly Get 30% of Your Customers to Dramatically
Increase their Average Purchase (and your profits as well)”
· An up-sell is offering them more of what they bought at the point of purchase
· A cross-sell is offering them a related and complementary item to their purchase at the point of purchase
· This is an upgrade to the original purchase
· The person is in a purchase state so are more receptive at the point of purchase
· Example: Garden center
- Buy a plant
- If you buy 3 for the price of 2 is an up-sell
- If you buy 2 plants them get compost half price is a cross-sell
· MacDonald’s do you want fries and a coke with that?
- They don’t say do you want anything else with that
· Offering people a discount at the point of purchase increases the average transaction
4 Ways To Up-sell & Cross-sell
1) Additional quantity
- Offer a better deal for the purchase of a bigger quantity
- It’s introducing the option at the point of the sale
2) Complementary products and service
- hair salon that also offers supplies
- Have a special offer at the point of purchase
3) On related products & services
- Oil change and transmission maintenance
- Offer a deal on the transmissions service while they are there
4) Offer them a premium product/service
- Educate the on the advantages of the higher quality item
- Offer a better suit for example
Three Categories of Business
1) Repeat nature business
- Accountants
- Grocery stores
- Insurance
- Cleaners
- Example: hair salon offering to give a discount to family members if they sign up that day
- Example: A landscape can add extra services such as weeding or snow plowing or seasonal flowers
2) Random repeat businesses
- Physicians
- Hobby shops
- Realtors
- Restaurant
- Lawyers
- Example: Video shop offer 3rd movie at half price or add popcorn
- Example: Doctor offers discounted flu shots
- Example: Restaurant offer discounts o desserts
3) Single purchase business
- Carpet
- Furniture
- Swimming Pools
- Office equipment
- Cars
- Example: Car seller offers financing and insurance as well as car accessories which can get wrapped into the contract
- Example: swimming pool also offers pool cleaning and supplies. They can also offer lighting landscaping, ornaments. They can offer the services even if they don’t offer them. Offer a discount for cleaning or closing the pool
How Do You Implement It
STEP 1: Upsell and Cross Sell Opportunities.
· List 2 products or services that you currently provide, in which you can offer your customer a logical additional product or service, or a greater quantity, or higher level product or service at the point of purchase (ie: men’s suit).
- Greater quantity
· List 2 specific additional products or services (upsell or cross sell) that you can offer at the point of purchase, which would be appealing to your customers. (ie: shirt or belt)
- What do they buy before, during or after they buy from you?
- Make them high ticket items
STEP 2: Why Should Customers Purchase?
· Under each of the items you have listed to upsell or cross sell list 2-3 benefits your customers would derive from purchasing these additional items.
STEP 3: Lifetime Value (Profit) of Upsell/Cross-Sell Items
1) Profit Per Transaction $ Per Year $ Per Business Life $
2) Profit Per Transaction $ Per Year $ Per Business Life $
· Average suit is $550 and after expenses the baseline profit is $150
· If they offer a $750 for $625 they now make an additional profit of $25
· Cross sell a short, tie or belt for half price – $15 profit
· Increase profit of $40 which is a 27% increase
STEP 4: Crunch down to ONE.
· Decide which primary product you will use to trigger your upsell or cross-sell offer.
- Example is the suit
· Which product or service will be your upsell or cross-sell item?
- The belt or tie
STEP 5: Design the Offer.
· Write down what your offer will be for your customers to purchase your upsell/cross-sell item.
· At what price will you provide the product or service?
- Charge full price or discount to make it irresistible such as hair salon products
· Will you also provide a bonus or additional incentive (If so, what will it be)?
- If they purchase the oil change and give a discount in the next one
· Will you eliminate risk, if appropriate (If so, how specifically will you do so)?
- Guarantee it
STEP 6: Design Your Script
· Using the offer you just designed, what question are you going to ask the customer to stimulate the purchase of your offer?
- Sign by the register
- The McDonalds question
- Stimulate the purchase verbally
- “By the way, since you purchased a shirt today, you get a second shirt for half price”
- Or “I know the European suit you really liked was too expensive. If I could get it to you for just another $125, would you like it instead?”
- Or “Would you like some socks to go with the suit?”
- Or “Do you have a will or living trust for your family? As part of my tax preparation and planning service we also provide estate planning. If you care to have this done while I am working with your file I can save you $100”. Without at least a “basic will” your property will go to probate and your kids may be big losers. Without a living trust, you could pay over $125,000 in taxes that are totally unnecessary.
STEP 7: Determining Your Timing
· Based on your customers and the item you have selected for your upsell/cross-sell, what is the appropriate time to ask your question?
- In retail it may be point of purchase
· Are there any situations where asking would be inappropriate?
· What qualifying questions could you ask to determine if the upsell/cross-sell item is appropriate for the customer and to determine whether they have an interest?
- In the sales process to ensure that you match their needs
STEP 8: Decide on Your Specific Test and Roll Out Program
· Write down how you will ask the upsell/cross sell question and who is going to be responsible for testing your offer.
· How will you ask? Who will you ask?
· Write down your measurement system and how you will track results.
- Build this from your responses
· Design an incentive program that motivates your employees to ask the question consistently.
- Review this constantly because of you don’t they will stop doing it
· How will you motivate your staff?
- Pay a commission
END OF NOTES
Ok, marketing school is out for the day. Take this ninja’s action steps if you’re serious about reigning supreme in your business world.
Dexter Abraham
PS. If you want even more Scott Hallman small business marketing strategies go see these marketing notes here. And if you’re looking for how Tony Robbins tied in the head trip stuff that gets in your way from implementing all these strategies and tactics, you definitely want to go here and put your hands all over these mynotetakingnerd notes . . .
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