How to outsmart — “Ultimately, the business that can spend the most to acquire a customer wins.”
Dan Kennedy- is one of the most revered marketing advisors to entrepreneurs and business owners in the world. But what did he mean by this statement? My answer, in short, money is made at the backend, not much in the front end.
Let’s break it down because it is crucial for lead generation and sales.
Rain or shine, some people make money and they do not have skin in your business outcome
Prominent publications, media houses and platforms like Google and FB make money irrespective of the business that advertises on them (that is both you and me).
Controlling what you can and recognizing what you cannot
As a business, you need to understand that the advertising rate is usually not in your control. If it is old school media, the tariff is fixed, and if it is online, it is based on the objective, audience and competition bidding for that audience set etc.
But what is within your control are three things:
- Clicks/Conversion (the messaging)
- The audience & demand pool you target
- How you design your business system to make money from the clicks and conversion
Here I will focus on the 3rd point, which mostly no one talks about because these media giants, publications, digital platforms and even expensive consultants and agencies who feeds off these platforms want you to rely on them month on month. There is nothing wrong with that because they give ‘reach’ to your business. But it is only one part. You and I, as business owners, have to be even smarter because it is our hard-earned money.
Controlling what you can- Your business backend
If you cannot control the ad rates, you have to design your business system to squeeze out every value from the traffic, clicks and sales calls that are made. But how do you do it?
- Increase clicks by offering value upfront.
- Once the click happens, collect their e-mail id/contact so that you can reach out to the customer directly without relying on expensive ads (remember most customers will not buy in the 1st contact, money is in the follow-up)
- Have a simple e-mail/CRM system that can do the automated follow-up without spending money on ads
- Sometimes you will have to acquire customers at a high cost, but how you cross-sell and upsell will determine at what price you can reach/acquire customers.
- Use your existing customers and create customer get customer programs.
In sum, there is a limit to which you can pay to acquire customers, but how you design your back end makes all the difference. Focus on what happens after the click or the initial offline customer call by your sales associate.
If you don’t design your business backend the right way, your business will always be like a hamster going around in circles to acquire customers and losing money with every acquisition. Remember, you don't control the ad rates and even the fixed sales cost.
If you would like a free 30 mins consult on how to scale your sales operations, pls use this link to pick a date and time https://calendly.com/subashfranklin/30min
Want to see a 30 mins video of how to ‘Do More Sales With Less’ — Click this link — https://stratsprint.ck.page/56353ec10e