More than 20 Years of industry experience

Leverage Point 1

There are just 4 ways to grow any business

1. Increase the number of customers of the type you want to have
2. Increase the number of times customers come back
3. Increase the average value of each sale
4. Increase effectiveness of each process in the business

Examples

– Use a structured referral system to bring more quality customers to your business

– Create offers to fill those seasonal voids

– Create packages. A cane basket becomes a Picnic Parcel complete with basket, utensils, wine cooler, blanket & voucher

– Systematise everything you do! Eg A quoting system that ensures speed, accuracy and low costs.

Leverage Point 2

What you can measure you can manage

1. Measure and compare everything that moves
2. We do not have the right or the power to predetermine what the market place wants – to do so would be arrogant in the extreme
3. But don’t stop! Keep measuring and testing to find out ‘how high is high’

Examples

– What is the conversion rate from inbound phone calls into sales?

– What percentage of business comes from Yellow Pages? Radio? Referral?

– What are the fluctuations of sales by day? By month? By season?

– What is the best price to charge for services? Has it been tested recently?

Leverage Point 3

The true purpose of any advertisement

1. The true purpose of any advertisement is to get a RESPONSE
2. There must be a mechanism for potential customers to respond. That is phone number, fax back form, PO Box etc.
3. Have a system to receive and convert responses

Examples

– Call now for your copy of the FREE booklet…

– Detachable coupons/forms that encourage readers to send in for more information

– Toll FREE telephone and fax numbers, Reply Paid address etc

– Create an offer for the first say ‘20′ people who respond to an advertisement offering a gift, value added service or some other incentive

Leverage Point 4

Build a Unique Core Differentiator

1. People buy the differences that they perceive
2. Create your UCD, then focus on it and articulate it constantly
3. You must differentiate, or at least give the perception that you are different to entice and retain clients
4. That difference must be CORE of the business and flow through into everything you do

Examples

– Woolworths = “The Fresh Food People”

– Federal Express = “Absolutely, Positively, Overnight”

– Canon Printers = “You can, on a Canon” – user friendly but flash looking copiers

– Hungry Jacks = “The flame grilled Burger – The burgers are better at Hungry Jacks”

Leverage Point 5

Learn to look for a 2nd Dimension

1. Use the Back-end. Use the first sale as a lead into subsequent sales of products and services
2. Approach your existing clients with a new service/product
3. Don’t focus on the up-front costs

Examples

– The Bungy Jump – Customer pays well for the jump, then has the option of buying a T-Shirt, Photos, Video Footage etc

– Caddies Coffee – “Bodum” give away.Profit is made in the subsequent orders of coffee

– ‘Til Further Notice systems (TFN)

– Focus on the lifetime value – not the up-front profit margin

Leverage Point 6

Learning to really listen

1. Prescription without diagnosis is Malpractice
2. Ask “WHY” a lot
3. Run Client Advisory Boards for you and your clients
4. Remember the ‘Titanic’ Principle. Beneath the water line two thirds of the issue is hidden (your customers emotions) just like an iceberg

Examples

– A customer that is asks for weed-killer is really looking for the perfect lawn

– You should ask questions like:-

– Could you elaborate on…

– Why is that important to you?

– What would be the effect of…

– You client should ask questions like:

– Is the jacket for for business or casual?

– Is that for inside or outdoors?

Leverage Point 7

Cutting the price is an easy option – there’s usually a better way

1. Value-add to products rather than offering discounts
2. Create packages to add value to ‘less popular’ items, or to move end of season stock
3. Remember to make good use of your Increase/Decrease charts. Use them to demonstrate the negative effects of discounting and the possibilities of increasing prices

Examples

– Closed Door Sales can clear a lot of old or dead stock without discounting

– Send cheques made out to your own business as a bonus gift

– Create packages to effectively cross sell and move old or less popular stock

– Offer a discount for subsequent purchases eg One for $25 or two for $40 and so on

Leverage Point 8

Lowering the barriers to doing business

1. Some of the barriers customers come up against include:
   1. Limited payment options available: not everyone carries ample cash
   2. Need delivery of goods, don’t have access to a truck hire, hire is expensive
   3. Distance to your premises for out-lying customers
   4. Opening hours can be restrictive
   5. You’re not easy to contact – Mobile Phone / Fax / Email / Voice mail etc

Examples

– Have easy payment systems for example EFTPOS, Credit Cards, Layby, Payment Systems

– FREE or affordable delivery options

– Opening hours to cater best for your clients working hours, for instance Weekend Trading

– Toll Free numbers for STD/ISD callers

– Mail order options available

Leverage Point 9

The More you tell (specifics) – the more you sell

1. “Tell me the reasons WHY” I should deal with you, buy from you
2. The more factual, honest, believable the reasons you can demonstrate to me to deal with your business the more compelled I am to do so
3. “Tell it like it is” people respond well to the truth particularly if you can demonstrate to them why they can benefit from the situation – remember WII-FM

Example

– Offering Price Reductions because:

– Need to clear stock for new shipmets

– Exclusive first time offer…

– Prices are higher than the competitors because:

– You use best quality inputs

– Use a guarantee to articulate your point of difference

– Added value packages/after sales backup and support

– Best trained team in the market

Leverage Point 10

Avoid changing horses mid-stream

1. If you indiscriminately change campaigns you may:
   1. lose the cumulative effectof a winning concept
   2. make a patchwork quilt of the company’s image
2. Just because you are sick of a campaign does not mean the market is bored
3. Testing is the only way to decide to change a campaign

Examples

– The Coca-Cola ‘New Coke’ experience. The market rejectedit in favor of the original

– Coles ‘New World’ and their 25 hour shopping ideas

– Market responses of 1%-5% means that saturation is a long way off

– Products that are steady sellers should not necessarily be removed in preference of ‘Fad’ items

Leverage Point 11

The power of one

1. Attract the attention of your targetaudience in your headline or opening remarks
2. The rest of the ad develops and supports the offer and reasons to buy
3. Finally, tell the prospect HOW to act
4. Humorous and or Abstract ads are often a waste of time and money

Examples

– “Want to have awesome abs for the beach this summer?”

– “Guaranteed retirement income of $33,000 pa forjust $45 per week”

– “Just call the toll free number below and mention this special offer”

– “If your home is plagued by insects we can eliminate the problem in 4 hours and keep them away with our …”

Leverage Point 12

Learn value in discovering Key Frustrations

1. Client Advisory Boards are a great way to uncover Key Frustrations
2. Just ASK! People are happy to give feedback (Test surveys)
3. Some good examples of Key Frustrations are:
   1. Time. Arriving late. Taking too long
   2. Communication issues. Not returning calls etc
   3. Mistakes. General mix ups

Examples

– “We will return your call in 24 hours or send you a cheque to the value of $25″

– “If you are kept waiting more than 10 minutes for a scheduled appointment, it’s on us”

– “We’ll agree the fee for work upfront. If additional work is necessary we’ll clear it with you in advance.

– Delivered hot in 30 minutes or it’s FREE

Leverage Point 13

Systematise

1. Working ON your business means developing systems
2. Begin with the End in Mind – Covey
3. Create systems as if to Franchise your business even if you don’t plan to – Gerber
4. Develop real VALUE in the business – sustainable without you as an individual

Examples

– Develop systems for

– Greeting clients when they arrive for a haircut

– Interviewing New Clients, Referral collection

– Hiring & Firing

– Ordering Stock

– Answering the phone well

– Approving time off/leave etc

– Handling customer complains

– Debtors systems

– Dispatch and receipt of goods

– Handling customer enquiries

Leverage Point 14

Invert your pyramid and empower your team

1. Traditional structure sees the BOSS at the top with “power” commensurate with position on the ladder
2. Invert the pyramid and see the positions as “supporting” those in the “front line”
3. Look at the management role as one of Frustration Removal not one of giving orders
4. Adopt the use of “Team” instead of “Staff”

Examples

– Sharing the responsibility for chairing meetings

– Create an environment where ideas are welcomed and encouraged from any source

– Encourage Team to develop their own Performance Standards

– Look out for positive behaviour to reward – don’t become centred on finding and punishing negative behaviour

Leverage Point 15

Don’t reverse the risk, remove it

1. Take on the purchasing risk for the customer when making a sales proposition
2. Time limit – 30 days money back guarantee
3. Pay only if it validates (makes a certain amount of money etc)
4. Consider these words in your system – Guaranteed Simple, Unique, Unconditional , Quick & Easy

Examples

– A tradesman’s guarantee on the work performed

– Sidchome tools – lifetime replacement guarantee

– Paddi Lund’s “No Pain” dental work or you will not be charged

– Red Rooster – guaranteed waiting time of less than 1min 15 secs

– Help line support – guarantee on hold for no longer than 2 mins

Leverage Point 16

Give people a clear & detailed action plan

1. Clients and customers need to be told explicitly how to act in order to obtain a business product or service
2. If businesses do not get proactive in asking for orders, they are denying themselves perhaps 2/3rds of their potential business
3. Many businesses BELIEVE they are doing this but it is still left to the customer to act (and maybe forget)

Examples

– “How would Friday a month away suit you for your next appointment?” – Hairdresser

– “I’ll be calling you in a few days to discuss the options for working on these FFR priorities with you” – Accountant

– “How about we send one of our qualified consultants around to give you an obligation free quote for that repair work?” – Tradesperson

Leverage Point 17

Create offers to add value & to encourage quicker responses

1. Offers to recent purchasers to tap their delight by – “Bounceback” offers
2. Offers to clear “Dead” stock
3. Offers to reactivate “old” clients
4. Offers that send you mail order items until you notify them NOT to – “til Further Notice Offers”
5. Offers to create an awareness of a new product of service

Examples

– Test – 50% off / Half Price / 2 for price of 1

– Dummy cheque for $250 to put towards a Journey, FFR or Planning Session

– Cheaper Pizza on Tuesday & Wednesday nights

– Cheap movie tickets on Tuesday nights

– Early Bird offer for those bookings by a certain date

Leverage Point 18

Adding the 3rd dimension

1. Affiliation / Hosting / Alliances / Partnering / Co-opetition (Cooperative Competition)
2. Ask youself – “Who else is currently dealing with my target customers?”
3. Determine links with potential hosts
4. Develop a relationship that is Win-Win with the host

Examples

– A small winery may approach restaurants to gain access to their clients through meal offers

– “Piggyback”mailing – a business sends out a letter on their letterhead endorsing another firm’s products or services

– Develop “Spheres of influence”