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View Full Version : Do marketing needs change based on your size?


Steve
01-17-2008, 02:47 AM
I was reading this great book on Guerrilla Marketing and in it the book was talking about how marketing is similar to dating in the sense that you meet a person, talk with them, take them out, date them, propose, marry and live with them for the rest of your life.

I liked the analogy and I think it applies. If you want a customer to stick with you for life, there is a lot of energy that has to be put towards keeping the relationship strong.

Then I was thinking how none of this seems to help the new start up business that is trying to make money and needs to get paid today.

This would be similar to not knowing how to swim and jumping off a ship. While you screamed for help, what if the help you received was the ship's captain giving you the previous marketing advice?

It would do you no good.

When you start all to often you need money today and can't wait to build up a long term relationship with a customer. You need what things you can do to get business today and get paid today.

What's your view on this?

FourSeasons
01-17-2008, 12:10 PM
Quote[/b] ]When you start all to often you need money today and can't wait to build up a long term relationship with a customer. You need what things you can do to get business today and get paid today.

I agree with the analogy in the book, but I disagree with you Steve.
Unless they are talking about getting "married" as when you actually aquire the customer and start doing business with them.

If they aren't then wouldn't this whole process that is listed be the start of a relationship with a customer?
When you first start doing business with them is the beginning stages of the relationship. Taking them out and dating them.

This is the way i interpert it.

Needing money today is how you build up the relationship with them as they are a customer along the way.

realhuntin
01-17-2008, 12:58 PM
Rob it sounds as if you may have misunderstood some in a way.

Being married to a customer means Long Trem Commitment with that customer and this is the goal for each and every customer to become "Married" to them.

Repeat customers are the backbone of our business. Money now should be from the one timers or the "one night stands" and with the right influences they too can be converted to repeat customers and "Married".

This is a slow process for the first year and becomes easier as your business grows with the married customers, this becoming reoccuring revenue on stady terms.

KEYWORD; reoccuring, this is what we all are shooting for, a balanced monthly income from each customer on a yearly (12 month) basis.

$1200 now sounds good and looks good at the current time but 1200 accounts sending $100 per month is better.

When I started Security I was apart to the free give away home alarms. What I did to build my business is for every 4 accounts I truned over to the Corp Co. I kept one for myself. After a year of this I then was able to have a good customer base about 75 accounts, a large referal base, and many many contacts.
In the 1st yr 75 accounts x avg. $21 per month = $17,640 of revenue and after the install, the only thing I had to do was send out monthly invoinces. More than 80% of my customers where "married" from start to finish. 15% moved, 5% cancelled for unknown reasons. with numbers like this it made my company very attractive for acquisitions. When I sold the accounts I have over 70% customer base of 15 years of services, making it even more valuable. Honeywell purchased my business at over prime rates.

My ideal plan is to build this business for 10 years, this would put the last of my children out of college giving them the oppertunity to take over and continue on or me the ability to sell the contracts and business off. I would only be 52 and retired fully again.

"Always do what you say you are going to do. It is the glue and fiber that binds successful relationships."
-Jeffry A. Timmons

Steve
01-17-2008, 04:32 PM
Good insights!

Rob,

In my analogy, the selling to the customer doesn't occur until you are married to them. The dating part is like when you say, visit my website for more information. Or call me for a free estimate. Those parts are part of the courting phase.

Tim,

At a certain point did you stop offering the "free give away home alarms" and if so, how do you feel your marketing changed after that?

FourSeasons
01-17-2008, 04:57 PM
Quote[/b] ]Rob,

In my analogy, the selling to the customer doesn't occur until you are married to them. The dating part is like when you say, visit my website for more information. Or call me for a free estimate. Those parts are part of the courting phase

Okay. So then the fast cash business when we first start to get cash flow into the business is like one night stands... lol
Using the analogy.

Steve
01-17-2008, 05:05 PM
Yea exactly. But see here is the thing, when you want long term growth. it can't be based on one night stands or in other words one time customers.

Does this analogy at all help you reflect on your business and the direction you want to go? Do you find that your marketing will change over time or what's your view?

FourSeasons
01-17-2008, 05:13 PM
Quote[/b] ]Does this analogy at all help you reflect on your business and the direction you want to go? Do you find that your marketing will change over time or what's your view?


Yes, I am already trying to take my business that direction. I don't want a promiscuous business. lol.
And yes my marketing will be more aimed at getting contracted customers to this year. Now that I have a better understanding of what to do. Compared to last year; my first year.

Steve
01-17-2008, 05:17 PM
I think this is a sign of a change to you feeling more secure with what you are doing and that you are here and you are here for the long haul.

Have you found your mental attitude towards your business has changed? Are you finding yourself more comfortable with the business and your role as the business owner?

Along with the marketing change is there also a psychological change that occurs too?

FourSeasons
01-18-2008, 12:12 AM
Quote[/b] ]Have you found your mental attitude towards your business has changed? Are you finding yourself more comfortable with the business and your role as the business owner?

Along with the marketing change is there also a psychological change that occurs too?

Yes there is a change. I have more confidence in myself and my business.

Steve
01-18-2008, 12:56 AM
Good! I think there is a point many entrepreneurs get to when they feel 'this' is real. This business is real. I am really doing it. Then you can hunker down and push forwards with more confidence.