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Marketing Profit Hunt Series
Economic Uncertainty – A Sales Opportunity for the Taking
We are being bombarded with uncertain news
about the economy; some experts say we are going into a recession
and other say we are not. We all know about the problems in the
sub-prime lend market and the repercussions that are driving some
key indicators into the negative, while not affecting others.
We have faced uncertain times before. We have seen growth of
outsourcing, overseas competitors’ penetration of our markets,
commodity pricing and our customers changing their purchasing
process. Successful manufacturers have always adapted to these
changes and prospered – the current situation is no different. Take
the time to analyze your marketing and sales strategies and adjust
them to stay on the right track.
So, what are the steps you should be taking to address this
challenge?
1.
Audit your marketing plan to ensure that it is appropriate for today’s market. A marketing audit will focus your efforts and get rid of unproductive activities, thus reducing your marketing expenses and giving you “more bang for your buck”. An audit will answer the following questions:
a. Is your Marketing Strategy appropriate for
today’s conditions?
b. Are your Marketing Tactics cost effective?
c. Is your Marketing Mix optimized?
d. Is your company positioned properly in the
market?
e. Is your Marketing Message targeted to the right
market?
2. Audit your sales
strategy to ensure that your sales force is focused on developing
new business and not just order-taking.
a. Are they focusing on
prospects that match the profile of customers who give you 80% of
your profits?
b. Are they paying
attention to your current customers? Research has shown that 2/3 of
your lost customers leave because they did not feel valued as your
customer.
c. Are they calling on
lost customers? These buyers are 5 times more likely to buy
from you than a new prospect. Studies show 2-10% of these inactive
customers will buy if you only contact them.
d. Are your sales
representatives tenacious? Research by the National Sales Executive
Association shows that 80% of all sales occur between the fifth
trough twelfth contact and only 20% of sales occur between the first
through the fourth contact.
3. Audit your Customer Service.. Is it responsive and effective? Since you spend thousands of dollars to attract your customers, you must ensure that they are being treated well. If they are, they will recommend your company to others, resulting in more sales. If they are not: not only will they will not buy, and not return, they will also tell at least 10 other people of their negative experience.
a. Are they being treated well?
This article is the second of the Marketing Profit Hunt
series –
About the Author: Ken Wilson: Strategist, marketing guru, educator, facilitator, author, university lecturer and consultant, he can be reached at ken@wmg-mn.com or 763-476-2216