Our Marketing Philosophy
When working with a client, we use a proven approach to achieving better marketing results (more customers, more sales and more profits). First we figure out what your marketing equation looks like today. Your marketing equation is simply the key numbers in your business:
LEADS
x CONVERSIONS
x AVERAGE TRANSACTION $
x FREQUENCY
= SALES REVENUE
x GROSS MARGIN
= GROSS PROFIT
1. Leads: This is how many new prospects you are in contact with in a given time period that express interest in your products or services.
2. Conversions: This is the percentage of your leads that become clients.
3. Average Transaction $: This is the average sales revenue from each transaction.
4. Frequency: This is how many times each customer buys from you each year.
If you multiply the above 4 numbers you will calculate your annual sales revenue. Going one step further and multiplying by your gross margin (5), you arrive at your gross profit before your overhead and marketing expenses.
What does my Marketing Equation tell me?
The point of this exercise is to figure out your baseline. We have found that improving each of these numbers by just 10% can result in a 50% increase in profits! In other words, generate 10% more leads, convert 10% more into clients, sell each client 10% more stuff, give them reasons to buy 10% more often and increase your margins by 10% and your sales and profits will EXPLODE.
There are dozens of ways to improve ALL 5 of these key numbers in your business. When we sit down with you in a Marketing Audit, together we’ll identify the fastest and most cost-effective ways for you to increase your leads, conversions, average transaction size, frequency and margins. It’s a simple process… simple, but not easy. That’s where our experience comes in. We’ll recommend and show you how to implement the best marketing strategies for your business.
Contact Geoff Affleck today to book a risk-free Marketing Audit or attend one of our marketing seminars.
