So would a 400% increase in your revenues help your business or practice?

Today I’m providing a special report.  The details of this came to me unsolicited last week from one of my clients.

The results may well shock you but they are real.

While I’m not going to divulge everything because of a pending NDA this content should open your eyes to the possibilities.

The business that I received this from is actually a medical practice that has been around for over 10 years so they have an ongoing thriving business that has now exploded.

“Ron, I love your marketing emails!  And know they work”

“Since I came on board (using the stuff you are teaching) I have brought his revenues up by more 400% – incredible”

“Changing the profile of the office and the doctor – Prada & Gucci for the doctor instead of scrubs, creating a warm and friendly inviting front desk and throughout the office environment by training the staff to always smile, ask if anyone cared for coffee, tea of something to drink, no more paper cups (elegant glass and silverware) French pastries delivered every Monday and served on a silver tray in reception. This made a huge impact on bringing in referrals because patients ‘talked’ about us!”

“After sitting in on all the Doctor’s consults learning, I started talking to the consults before showing them our video and actually closed them before they even met the doctor. Meeting the doctor was the clincher.”

“Great follow-ups helped a great deal and having an open warm personality allowed patients to trust me so when I asked questions, I found the true objections – price was a huge part of ‘I can’t afford it in this economy’.”

“So I went and shopped our competition and found some were charging double our price with no patients in the waiting room and others were so low they had built bad reputations for horrible aftercare and too many enhancements.”

“Preparing a professional ‘graph’ of the tiers of the xxx doctors (top was the best leading to the worst and why) and showing the pricing structure of each one. Patients understood and appreciated this but still money was the problem. We offered zero interest financing to help the situation and it improved slightly but many, who had said they couldn’t afford it, couldn’t qualify for credit. So then I decided to go after the ‘deals’ and see what would happen.”

“I built relationships with xxx, xxx, xxx, xxx and many others. Bingo!  Because we lowered our price on a special offer and made it appear outrageous for a doctor of the doctor’s skills and reputation, our revenues jumped through the roof (remember we have the fastest, newest and most accurate equipment in the world and doctor can do more procedures than any other surgeon because of his speed) so it became a numbers game.”

“But the ‘deals’ work so well and since the doctor can only do so many surgeries the revenues are jumping up when they run.”

“Of course, when I’m going for the close I mention that the deal was my idea and the doctor was hesitant since he’s the best surgeon in town and doesn’t want to be considered anything less because of the deal but I explain he’s so consumed with correcting so many other surgeons mistakes that are difficult to do, I had the idea to help people by offering the best surgeon, the best equipment and now an affordable price. The deal patients are bringing in referrals and if they’re not deal people, we raised our rates.”

So there you have an actual case study from a client using the exact strategy and tactics that I’m teaching you.

“You see Ron, our patients are only one time doing it but they can send referrals forever but because of the medical ‘Hippa’ law we can’t offer anything for a referral. But what I do to keep in front of them is send out newsletters, copies of articles I write in magazines, special offer flyers for friends and relatives and now we’re doing gift certificates for Valentine’s Day but to make it more attractive, I’ve made an intangible, tangible by putting the certificate into beautiful gift boxes wrapped with red ribbons with pink and red hearts all over them and A rose in the center – Give the Gift of xxx! We’ve already started selling them.”

As you can now well tell this is working great and will only continue to flourish.  Our goal is to take the 400% increase from last year and double that in 2013.

Who else do you know that has done this with a 10 year old practice in a super competitive niche?  Over the next ten guidance emails I will be providing you with ideas you can start to use immediately.  At the end of the training I will be selecting only 5 companies to work with…will you be one of the five?

Cheers!

Now that you have figured out what a windfall increasing the three ways to grow your business might provide you…let’s look at actual ways that you can increase the bottom line number.

Growing your business using the methods listed below are some of the quickest, easiest and simplest ways to exponentially increase your revenues.

Not only will I list the ways but I will also identify certain industries or niches that these will work in based off actual clients.

Increase your leads or prospects using these methods

1.  A referral system that has multiple approaches (works in any industry or niche)

2. Breaking even on new customers, clients or patients up-front and making a profit on the back-end or subsequent sales (works in any industry or niche)

3. Using a little known tactic of using risk reversal (explained in great detail in a later email)

4.  Here’s another little known tactic called host/beneficiary relationships (works in any industry or niche)

5. Advertising (one of my least favorite because of the uncertainty and upfront cost)

6.  Direct Mail but with a twist (direct mail is a high risk gamble unless you have a very targeted market…especially knowing that 97.3 off all direct mail gets tossed without ever being opened)

7. Telemarketing (it’s on the list but my least favorite…who wants to get bothered by a high pressured sales person)

8. Running special events or information only nights (this can be very effective, fun and cost effective)

9. Develop your USP and market it (works well in very tight niches if you understand what customers, clients and patients want)

10. Increasing perceived value through information and education (the cheapest service is not always the best…make your product stand out or be different)

11. Use public relations or press release (this is time and money intensive and for our purposes is one of the last things we will be doing if at all) unless you have a really great story to share

Increase your customer retention

1. Under promising and over delivering (this should be something you do naturally but not all companies do…change this and change your business)

2. Communication, Communication, Communication (nurture your customers, clients and patients by providing value and benefits)

Increase conversions

1. Retrain your sales people if necessary by increasing their selling and closing skills

2. Do more front end qualifying?

3. Create and market irresistible offers

4. Give “reasons why” through education and information

5. Add more perceived value

Acquire more customers, clients and patients

1. Market things you don’t normally sell

2. Develop a strategy for re-activating old customers, clients and patients

3. Look for underutilized company assets (not only in your company but in other companies as well)

4. Look at under or non performing assets and make them viable and profitable

Increase your average sale

1. Use up-selling and cross- selling to increase average sales number

2. Package complementary products

3. Increase your prices by adding value and benefits

4. Paint an up-market product or service profile

5. Offer greater or larger unit sales

Increase frequency of sales

1. Create a backend product or service that allows you to go back to all customers, clients and patients

2. Communicate on a personal one on one basis

3. Endorse and sell other companies products to your list

4. Run special events “large discount sales” to your list and partners lists

5. Price breaks for frequency purchases

Enjoy and start thinking about how you might use these in your business or practice today.

There are only three ways to grow Your Business

That’s it just three ways to grow your business and most people have no idea what they are.

• The first way is to increase the number of customers, clients or patients
• The second way is to increase the average dollars for each sale you make
• The third and final way is to increase the repurchase frequency

By just increasing one of the three you will see a notable difference in revenue.  What if you increase two or even three all at the same time?  Well then you would have exponential growth in revenues.

But the real question is how or what can accomplish that?

But before we get ahead of ourselves let’s look at an example of how this works.

Let’s assume the following:

Increase the number of customers – Starting point is 100

Increase the average dollars per sale – Starting point is 200

Increase the repurchase frequency – Starting point is 2 (or twice during the lifecycle of a customer)

This all equals a total in sales of $40,000

So in our first example we will use a 10% increase in each of three ways

Increase the number of customers by 10% – We now have 110 customers

Increase the averagedollars per sale by 10% – We now have $220 per sale

Increase the repurchase frequency by 10% – we now have 2.2 sales

So 110 x $220 x 2.2 = $53,240 or almost a 33% increase in revenue

In our second example let’s assume we can increase all three ways by 33% each

Increase the number of customers by 33% = 133 customers

Increase the averagedollars per sale by 33% = $266 per sale

Increase the repurchase frequency by 33% = 2.66 sales

So 133 x $266 x 2.66 = $94,105 or a whopping total increase of 236%

Now you can fully see how small incremental increases in each of the three areas can translate into massive revenue gains.

Go ahead and play around with the same numbers and your own business.  If the numbers seem to lofty scale them back to more realistic.  The bottom line from this exercise is that even very small increases to all three can result in a massive overall revenue increase to your bottom line.

And speaking of bottom line keep in mind that most of this can be accomplished without adding additional expenses as most businesses are not running near 100% of capacity.

This is the added bonus (more money same expenses)

Tomorrow we will explore 30+ ways that you can personally take advantage of this in your own business.

Winning back old customers, clients or patients even if you don’t have anything you can sell them.

So why in the world would you try and reactivate a customer, client or patient that hasn’t done business with you in some time?  Simple if you help them they may feel obligated to return the favor.

Most businesses have some percent of customers, client or patients that just stop doing business with them each year.  But unless you probe, engage and ask questions you’ll never understand why.  Understanding the reason(s) is how you can address the needs.

Some of you may be in a business where you only provide them a service or product once or at least think that is the way it should be when in fact there are multiple opportunities to stay connected.

Let’s look at the painter.  Most painters would probably think that once they have painted the inside and outside of the house nothing much is left that they could offer that person.  How big of a mistake is that?

Very big.  Since the painter has already established him or herself as a trusted and reliable painter don’t you think there might be more opportunity for the painter?  You bet.  So now the same customer wants a new kitchen.  Raise your hand as you have an established relationship with a kitchen modeling firm that pays a 10% referral fee.  Any light bulbs go off?

Just because you think you are a one and done service or product you are more than likely missing a huge opportunity.  You first need to have the customer, client or patient get to know, like and trust you and once you do it is an open door policy for more opportunity.

So let’s put a formal process of contacting all dormant past customers, clients and patients in place.  You can do this any number of ways but one of the most effective ways is to start by sending out a personal note getting back in touch them.  This is not just any note but needs to be carefully crafted.  I can help if this is something you decide to do this for your business or practice.

If you can enrich that person’s life then there is an excellent chance you’ll be adding back a benefit that they lost when they stopped doing business with you.  If you can do this there is a clear gain and advantage that you have just handed back to them.  You’ll also benefit as you have rekindled an old friendship or relationship.

Everyone needs and wants acknowledgment.  By contacting someone from the past you have done that and because it is random it makes them feel good not only as totheir own value but also as to your value to them.

By simply reconnecting you are opening up closed doors.  You have nothing to lose and everything to gain.

Keep in mind this is not about you but about them.  So communicate, communicate and communicate a little more.

If you move from ordinary to extraordinary you’re tweaking people’s emotional needs and in turn providing the ground work for reciprocity.

Since we are now talking about communicating with customers, clients and patients (don’t ever forget prospects) let’s talk about exactly how you might go about reactivating them or turning them into your silent sales force for mutual benefit.

It has been proven many times over that it is 8 or 9 times easier to foster a relationship with an old or existing customer, client or patient.  More than likely you just need some tools, ideas or a kick start to make it work for your business.

Reactivation works with any niche or business.  Some niches may require being a little more creative but overall the process is the same no matter the business.

Before going after new customers, clients or patients go after the ones that you had a prior relationship with.  Find out why they no longer do business with you.  The time, effort and cost of reactivating old customers, clients or patients is a fraction of the cost of getting new ones.

People stop doing business with businesses for a number of reasons.  Most of the time the reason is lack of follow-upwhich prevents you from determining the real reason.

In this email we want you to reach out and just test a few things and see what the reaction might be from past customers, clients or patients.

By opening up communication with old customers, clients or patients you once again have the opportunity to provide value.  In fact you have an obligation or even responsibility to communicate, get them back, do the right thing, make it happen so just extend your sinceregratitude and see what happens.  You will be amazed.

This may seem counter-intuitive because you are not making a penny from them but it shows good will and a commitmentfrom you to be there.

If you do this correctly you could see a massive regeneration from lost customers, clients, patients and there referrals.

The first thing you need to do is reestablish contact with old customers, clients and patients.

In the next email we will be giving you some specific ideas and examples of how to open up the old lines of communication.

Change your language and change your business

You can no longer think of your product or service as a commodity.  Commodity is just another name for a price war.

You need to think strategically.  Below are a few before (commodity) and after (strategically) differences between the two.

The before:

I put braces on kid’s teeth

I sell heavy equipment at auctions

I provide moving services

I sell IT services

I give people better eyesight

I work on kids teeth

I get rid of the water in your house after it floods

If you have your product or service positioned like this you are going to be in a losing battle.  A battle where the only way you can compete is to drop your price.

Take a look (below) at how the same products or services can bepositioned so that you separate yourself from your competition.

I provide you with the perfect smile that will last a lifetime and help you get a better job, earn more money and be more confident

We showcase your heavy equipment for the maximum online and offline exposure which means more people see your item and you end up with more money in your pocket

We insure that every item we move gets the same attention we would give to that item if it was from our own home guaranteeing it arrives safe and in perfect condition every time

Rather than an expense, our IT services is an investment as we create value by building a custom system that lets you grow long term worry free

We bring your vision back to when you were a child making it perfect so that you see things crystal clear without having to worry about annoying contacts or glasses all of which make you more confident, vibrant and sure of yourself

We provide your child with a lifetime of smiles, straight teeth, good health, confidence and an overall good feeling

Yes we get rid of the water but more than that we provide a safe environment free of mold so you whole family can live disease free

By having a more strategic conversation your customers, clients and patients feel better and no longer treat you like someone trying to just sell something.  You are now a trusted advisor that can address their problems and provide viable strategic solutions.  You are now considered part of their knowledge base and team of expert advisors.

By changing your approach you no longer have to work with people who just “don’t get it.”  When you do this you can actually turn the tables and make them prove they are worthy of your services because they “get it.”

You can start to talk about long term values and how you are there to help all along the way.  You are not a quick fix solution but rather a long term resource.

The result is you get customers, clients and patients who…

• Appreciate your approach
• Appreciate your services
• Customers, clients and patients who will gladly pay you whatyou are really worth
• Eagerly tell there friends about what a great job you are doing and recommend your services
• Not care about the money but rather the outcome

The A-HA moment should be that by making simple changes to what your business offers you can and will attract a different set of customers, clients and patients.

People who are broke are looking for the best deal.  People who are successful are looking for long term solutions to their problems not quick fixes.  Change your language and change your business.

Everyone is in the business of selling something.  So if you sell value versus a commodity you will attract a totally different clientele.   By approaching things strategically you will attract a whole different person who values your worth and is willing to pay top dollar for it.

You need to establish a system that allows you to speak strategically, position yourself as the local market expert, and provide your prospects with massive confidence in your expertise.

Here is a quick diagram of how this works:

Your reputation is the foundation and everything cycles back to the reputation once it has gone through the reach, resell and referral process.  This is your simple magic formula that you need to deploy.

It’s never been easier for a prospect to find out what your reputation is so it better be 5 Star’s if you want to attract the kind of customer, client or patient you what.

By changing your language and more specifically by having more strategic conversations, you’ve given yourself the flexibility to NOT pitch a specific product or service.  Bur rather, you’re working with the prospect to determine the right product or service based on what the prospect actually needs not what they need to be sold.

Start communicating on a different level and you will see a complete change in the people you serve.

Communicating with your Customer, Clients and Patients

When was the last time you personally picked up the phone, wrote a personal email, sent a thank you card or did any form of personal communication with your customers, clients, patients or prospects?

All too often the answer in never.  That needs to change.

If you don’t establish some type of ongoing communication do you really think you’ll get the call when there is a need?

Change your language and thinking and you will change your business.  Your goal is affinity.  If you establish your value and benefits with your customers, clients, patients and prospects you are more than half way home before any transaction has every occurred.

If you create a bond prior to a transaction the customer, client, patient or prospect will know, like and trust you prior to doing business.  They will consider you a friend who can deliver a solution to a problem.

So when was the last time you personally communicated with every one of your customers, clients and patients?  What you don’t have time?  Make it.  If you simply can’t find the time have your most highly trained professional assistant or staff member do it for you. Say how much you appreciate them and that you look forward to servicing there needs for a long time.

The more times you communicate from your heart about their interests, problems and solutions -not yours – the greater and long lasting the connection and relationship.

Important to note is that when you communicate it is not about you but about them at all times.  Stop talking long enough to listen.  You are there to provide value and greater benefits but can only do so when you know and understand the issues.

Before you check in with your customer, client or prospect you need to check your own attitude.  If you are nervous or reluctant to communicate then you had better check what business you are really in – and while checking in – make sure you have a friendly, open, honest and supportive ongoing relationship with your customers, clients and patients.

People on average are looking for mentors, leaders or to be led so do just that.  If you are the local expert in your field portray it by providing greater value and greater benefits.

Communicate regularly and frequently as it pays massive long term dividends.

If you nail your USP it will be locked in place with your customers, clients or patients.  It will be like they are dialed in on the same wave length and it will be a powerful association.

Here are a few ideas that you might base your USP around:

• Price (A lower price may not be the answer)
• Value (do you have the best valued product in the marketplace)
• Design (Does your design set you apart)
• Service (Do you have a 5 Star service that no one else offers)
• Convenience (Is it easier to buy from you because you have more favorable terms)
• Uniqueness (What is different about your product or service)
• Reliability (Has your product or service been proven to be more reliable)
• Performance (Does your product or service perform better)
• Buying Hot Buttons (Are there certain words, phrases or concepts that are hot buttons)
• Steal Ethically from the Competition (Use other businesses materials with a tweak)
• What might a competitor be doing right that has been successful that could make you successful

What about identifying needs that are going unfilled in your industry? Identify what is unfilled and then fill it.

1. large Discounts
2. Broad Selection
3. Assistance and advice
4. Convenience
5. Fast service
6. Service beyond the basics
7. High quality products or services
8. Longer warranty or guarantee

Points to ponder when you are finalizing your unique USP

• Focus on your niche
• Keep the promises you make
• Clearly state your USP in your headline
• Attract customers, clients and patients by being unique
• Without a USP you are simply just another company providing a product or service
• Make sure your words are not empty or meaningless
• Ask yourself “can you tell me in 30 seconds or less what it is about your business that is more advantageous for the customer than dealing with your competitors?”

So in the next few days I would like to hear your thoughts on what your unique USP is and how you determined it.

Today we are going to look at your Unique Selling Proposition (USP) and help you enhance or maybe even create one if it is missing from your business or practice.

You’re USP is that single, unique benefit, big promise that you hold out to your prospect that none of your competitors offer.  Most business owners don’t have a USP and more times than not can’t articulate a USP.  Most businesses are trying to be all things to all people.  We want you to change your thinking and concentrate on just one sole benefit that stands above the rest.

You’re USP should be the one unique, attractive, distinctive selling advantage that your business is best suited to deliver.  Depending on your market strength or market niche your USP might be one of the following:

• You sell your service or product for less (also state an exact amount in the USP) than any of your competitors
• You serve a specific age group, industry, type of person, etc.
• You offer a trade in program that no one else offers
• You have more choices, options or selections than any one of your competitors
• Your service department is larger than any of the competitors so you wait time is hours instead of days
• Your guaranteeor level of assurance, protection or warranty is far superior to the competition (explain exactly how and why)
• You provide more customer service, education or information before, during and after the sale at a lower price
• You sell higher quality products or services at less than the competition

As you can see the list endless.  Before doing anything you should determine what your USP is, has been or if you even have one.  Once you have done that then you can construct or reconstruct your very own unique UPS that will provide you with a competitive advantage over your competition.

Ideally your USP is just one statement.   No matter what business you are in, first and foremostyou area a sales company.  Make it unique.  By creating a unique and personalized USP you will be able to distinguish yourself and your company in a competitive market.

Your USP needs to be unique.  Every company promotes or shouldpromote quality, service, price and dependability.  That may or may not be true but most companies hang their hat on the same qualities.  Stand up and out from the crowd with your uniqueness.

Here are a few examples:

• Van Arpel Moving – We’re Movers, Not Shakers
• Federal Express – On Time Every Time
• Dominos Pizza – We Deliver

Whatever you’re USP it needs to be short, concise and right to the point.  Not long paragraphs just something short and sweet that separates you from the rest of the competition.

Add your USP in all your communications and ads as it will pay off.  Instead of answering the phone “Van Arpel Moving – How can I help you?” answer it “Van Arpel Moving – We’re Movers, Not Shakers – How can I help you?”

So for today just think about your USP and tomorrow I will follow up with more thoughts and how you actually go about creating your very own USP.

Greetings…

This email is a follow-up to the first email.  In this email I will layout in more detail all the actual components of the MNW calculation.

Here is the step-by-step way to calculate the MNW:

1. First compute your average sale and your profit on each sale
2. Compute how much additional profit a customer is worth to you by determining how many times he or she comes back and buys again.  (this number could be anything from 1 to 100)
3. Compute precisely what a customer costs by dividing the marketing budget by the number of customers it produces
4. Compute those same costs for a prospect (someone who has not purchased yet)
5. Compute how many sales you get for so many prospects (the percent of prospects who actually make a purchase)
6. Compute the MNW of a customer by subtracting the cost to produce or convert him or her from the profit you expect to earn from him or her over the lifetime of them doing business with you

One thing to remember is that you need to consider the marginal cost associated with getting that additional business.  We base our assumptions on it being the full cost as determined before.

The main takeaway is that most businesses can handle an increase in business without increasing costs.  If you are only operating at 70% of capacity then that leaves a ton of room to increase revenues without increasing costs meaning all those new sales are adding incrementally more to the bottom line and are much more profitable.

At some point this may become less profitable but until then you are going to be more profitable until you reach the tipping point.

So the MNW is what a new customer, client or patient is worth to you, worst case, just to get them in the door.