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Marketing Tips Issue 66

3 Elements Critical To Growing Your Business

 

For many businesses a successful marketing strategy consists mainly of getting new customers. Of course bringing in new customers is important for every business but it is only a small part of the overall OPTIMIZATION equation. And each requires a different strategy. In order for a business to realize exponential growth, you must do the following three things:

 

  1. Increase your customer base.
  2. Increase the frequency of purchase of each and every customer.
  3. Increase the average amount of each customer's purchase Marketing must address all three of these areas in order optimize business. However, most businesses spend almost 95% of their marketing dollars just on gaining new customers.

 

What they don’t realize is that if they fail to increase their current customers' frequency and amount of purchase, they may be wasting valuable resources.

 

Not Everyone is Ready to Purchase at the Same Time

 

While direct mail's first role is to generate response, in certain categories, it is considered a viable brand supporter, regardless of response. Non-responders are reading your mail, so take the time to refresh your copy, look and offer. While they may not be buying, recipients are still assessing and aligning your brand and value. You want to consider FUTURE buyers as well.

 

Where Have All the Flowers Gone?

 

Forensic analysis on lost customers is a worthwhile pursuit. They didn't just depart-- something took them away. You need to re-create the scene of their demise. Possible causes: lack of pursuit, competitive offer, out of market, service issues, moved, and yes, deceased.

 

Canvass your lost customers to know what went wrong. These were folks who were once your customers. A lot of intelligence can be learned by talking to them.

 

Marketing Tips is authored by Leslie Goldstein of the USPS.