Marketing leverage is the ability to control and generate large profit increases from low-cost or no-cost marketing methods.
How NOT To Leverage A Business
What I’m about to share flies in the face of conventional wisdom.
Obviously the more frequently clients and customers buy from you the more money your company ultimately generates. One way NOT to attempt to increase buyer frequency though is by regularly offering discount ‘sales’.
Here’s why. We are living in an age of skepticism. Regular sales desensitize buyers to future sales messages. In time the discounts are no longer believed as true sales events. The messages are ignored. Viewed as fabricated claims.
Frequent discounts cheapen the perceived value of products and services. After all, if the product is regulary discounted the inflated price is perceived as false pricing and the discounted amount is considered the ‘real’ price.
Frequent sales stymie growth. In that situation buyers know if they just wait long enough they will eventually receive discounts and sales offers. And they won’t buy until those offers arrive. This is a win/lose proposition because the client could purchase more frequently but have been conditioned to wait.
Discounts are NOT the best way to increase income.
There are dozens of much more effective ways to increase buyer frequency while maintaining credibility and keeping interest for offers high.
A Real World Example
Usually I tune out propaganda that plays on the audio systems in stores. But this time something caught my ear.
The recorded voice blaring over the intercom system at my local general store & pharmacy was explaining that now their pharmacy offers a new auto prescription renewal service. With this special program the pharmacy will call you every month to remind you to pick up your prescription, which they kindly auto-filled for you in advance. And the nice thing is you don’t even have to remember to schedule your renewal. The pharmacy handles everything for you.
How nice of them to go through all this work for thousands of customers, right?
Actually, there’s a motive behind this madness. The pharmacy doesn’t earn a penny on prescription refills that go unfilled. The win to the pharmacy is increased renewal frequency from what could be otherwise disloyal or forgetful pharmacy clients. The pharmacy is able to stop client attrition and boost prescription renewal frequency — without dropping prices.
Here’s another example. One small-time operator grew his company to over $100 million dollars in sales in less than three years by using this marketing tactic as the core company strategy. Obviously the process works.
Implementing an auto-renewal program is just one way to apply marketing leverage. There are nearly 50 approaches I’ve identified.
Is Marketing Leverage Right For You?
Though I do not work with everyone who contacts me if you are seeking to leverage your marketing opportunities and increase buyer frequency, boost sales revenues, and make more money with less efforts perhaps I can help.
As I said, I have identified and outlined 48 specific and unique marketing leverage programs. Perhaps one of the 48 approaches is right for you. Perhaps not.
Click here to contact me to find out if we can boost your sales and increase your income without dropping a single penny off the price of your services or products. If we both feel there may be a match between us I will let you know the likely next best step.