What Is Marketing Leverage

Marketing leverage is the ability to control and generate large profit increases from low-cost or no-cost marketing methods.

Point of purchase incentives and one-time offers are two examples of leverage. It takes no extra expense to leverage a second or third purchase than it takes to make a single sale. Another example of leverage is increasing the frequency of client purchases.

How NOT To Leverage A Business

The more frequently clients buy from you, the more money your company ultimately generates. One way NOT to attempt to increase buyer frequency is by offering regular ‘sales’. Sales cheapen the product or service you offer. And they desensitize buyers to future sales messages.

Frequent sales actually stymie growth. Buyers know if they just wait long enough they will receive discounts and sales offers. And they won’t buy until those offers arrive. This is a win/lose proposition.

There are literally dozens of much more effective ways to increase buyer frequency while maintaining your credibility and keeping interest for your offers high.

Another tool for leveraging your existing marketing efforts is to implement an autoship or auto-renewal program into your current marketing and sales process. One company generated over $100 million dollars in sales in less than three years by using this marketing tactic as their core company strategy.

A Real World Example

This marketing strategy works for all direct sales businesses and most manufacturers as well. And it is especially powerful for retail sales.

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 pharmacy was explaining that now my 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.

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. This really is a method to stop client attrition and boost prescription renewal frequency — without dropping prices.

The win to the customer is less hassles with remembering to call in, less hassle having to stand in line to refill prescriptions. The win to the pharmacy is increased renewal frequency from what could be otherwise disloyal or forgetful pharmacy clients.

Is Marketing Leverage Right For You?

We have 48 unique marketing leverage programs. Perhaps one is right for you.

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