Helping Small Businesses Grow

The 3 Biggest Marketing Mistakes And How To Avoid Them

Posted by admin | On: Aug 28 2012

All entrepreneurs know just how hard it is to run your own business.

In today’s highly competitive marketplace, you are faced with the daily challenges that threaten to steal your customers and squeeze your profits.

Practically every business I have ever consulted is guilty of making one of the three biggest marketing mistakes. While there are a number of critical marketing strategies that every successful business owner can use to insure success, there are several that are the most important.

If you are making any of these three mistakes you must know that are very serious and must be corrected immediately or will cause dangerous consequences for your business.

By eliminating these errors from your business, you can literally leapfrog your competitors and dramatically impact your sales and profits.

Mistake 1. Not Having a “Strategic Marketing Position” (SMP) and Articulating it Clearly.

A SMP is the critical sales and branding message (think tagline) that you project to your customers and prospective customers that tells them very concisely:

1) Who you are and what it is that makes your business special and unique.

2) What benefit or result they will get if they do business with you over one of your competitors.

3) What your guarantee or customer satisfaction policy is.

Its purpose is to clearly distinguish you from your competitors and to open the door for prospective customers to feel it is safe to try your products or services. Failure to create the right message or to integrate it successfully into all your marketing, sales and advertising efforts is a key reason many companies become failure statistics.

Mistake 2. Not Understanding And Utilizing All Three Ways To Grow Your Business Or Professional Practice.

There are three ways and only three ways to grow your business or professional practice and all marketing strategies fall under the heading of one of these three principles.

1. Increase Your Number of Customers or Clients. Most business owners focus their time, attention and marketing dollars on this strategy and never really understand it is the most difficult and costly way to expand sales and profits.

2. Increase Your Average Transaction Value. Basically stated this means increasing the amount of the sale or the amount of the profit that each sale produces for you.

3. Increase Your Frequency of Purchase. There are numerous ways to create residual value from each customer or client. Your objective should be to get them to come back more often to buy more products or services from you.

A common mistake most companies make is when they don’t realize that the cost of acquiring a new customer is substantially higher than the cost of selling a current customer or client more and selling them more often.

Mistake 3. Not Capitalizing On The Lifetime Value of a Customer.

Many business owners never think in terms of the lifetime value of a customer to their business.

It is an important marketing principle and one you must know and optimize if you want your company to reach it’s highest sales and profit potential.

The most successful businesses generate over seventy percent of their revenue from strategies aimed at cultivating their existing customers.

We know this as a “Win-Win” situation. Your customer or client receives valuable services from a company they know and trust, and you get continuing revenue and profit with minimal expense.

A wise business owner will keep this in mind when beginning a new customer relationship to make sure you are investing the time, energy and quality that will insure you can market to them time and time again.

Kevin M. Clark is a past Entrepreneur Of The Year Award Winner and is the author of “Kevin M. Clark’s Guide to Marketing Your Business Online. Go to http://MarketingHotWire.com and claim your Free copy of this highly acclaimed new book and unleash some of Kevin’s most powerful marketing strategies. But hurry, this offer is available for a limited time.

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Have a profitable day!

Kevin M. Clark

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