What if I told you that there is a particular function within your business that once focused on and made effective will generate exponential growth and prosperity. I believe this is possible. Its called a leverage point.
When used as a verb, the word lev·er·age is defined as “to use something to maximum advantage”. It was the Greek Mathematician Archimedes who said, “Give me a place to stand, and I shall move the Earth with it”. That place to stand is the point of leverage or leverage point.
In the context of building a business, a leverage point is a place within a business where a small shift in one thing can produce a substantial result. In other words, it’s the “something” that you are leveraging. Some of the things you might leverage in your business are your brand, your contacts, or perhaps your proprietary technology. I believe that there is one thing that you can and should leverage that will bring you the most return on investment. That one thing is marketing.
I believe that marketing is the ultimate point of leverage for producing big results and exponential growth. Here’s why. There is no other function within your small business that can generate growth and prosperity like a well-executed strategic marketing plan.
Here’s one example of how this is possible.
Let’s start with a few hypothetical numbers.
- If you spend $5000 to generate 100 leads (calls, walk-in, website visitors, mailing list opt-ins, etc.), which means that each lead costs $50, right?
- If 20% of the leads you generate turn into appointments or presentations, each of the 20 appointments costs $250.
- If 25% of those appointments result in sales, the 5 sales you get cost $1000 each.
- If your average sale is worth $4000, your marketing cost equated to 25% of sales.
What if by implementing a more effective marketing strategy, you improve results by just 20%:
- What if you spend the same $5000 but get 120 leads? That means that each lead costs $42.
- What if 24% of the leads turn into appointments? That means that each of the 29 appointments costs $172.
- What if 30% of those appointments result in sales? That means that the 9 sales you get cost $555 each.
- If your average sale remains at $4000, your marketing cost per sale will now be 13.8%.
A 20% improvement in the results you get from the same marketing dollars spent, generates just 20 more leads, 9 more appointments, and 4 more sales. But, your cost of marketing decreases by $445 per sale to just 13.8%. A much more profitable scenario, wouldn’t you agree? And, a much better scenario for growing your business.
Ok, ok, I know what you’re thinking. Sounds good, buy how and why would this be possible? The short answer is that its possible because a strategic marketing plan focuses your marketing dollars on getting the right message to the right prospective customers at the right time. It also educates your prospects and guides them on their journey of discovering you, liking you, trusting you and trying your products and services. As a result, you will generate more leads, convert more of them to appointments, and close more sales.
Would you like to learn more about how to make this happen for your business? I would be happy to give you a full explanation. Please contact me at 518-290-8506 or firstname.lastname@example.org for a complimentary consultation.