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Creating a System
In my series of articles in this magazine I’ve been discussing strategic marketing and its importance in helping small business owners to generate more leads and close more sales.
Previously, I explained how any coach can employ “systems” to create a coaching business versus simply trading their time for money… which is nothing more than having a JOB!
Coaches today need a system for generating leads… a system for converting those leads into paying clients… a system for getting their clients quick results (especially financially)… and a system that provides the coach with ongoing support and resources.
Today, let me explain how a coach can create a system for generating all the leads they can possibly handle. Start by asking yourself a VERY simple question. What is it that your prospects want most? If you’re a business coach, your prospects want money… PERIOD! They desperately need revenue, so any coach that can PROVE to the prospect that they can produce revenue for the prospect’s business is going to get hired by them.
After all, if I ask you to pay me $1 and I will then hand you back $10… is ANYONE going to refuse that deal? Sounds simple, because it is! So question #2, can YOU as a coach walk into any small business and find them substantial additional revenue? If you can, and that revenue is at least double what you would charge to coach them, your odds of getting hired by that prospect just went up exponentially.
But you MUST have a system to do this! You MUST feel confident that you can do this for ANY business… in ANY industry… anywhere on the planet. I actually teach coaches exactly how to do this, and I’ll outline my process for you right now.
I focus on 5 areas only… leads, conversions, transactions, pricing and profits. To me, these 5 make up the 20% in the 80 / 20 rule that states that only 20% of what small business owners do daily produces 80% of their total revenue. These 5 areas represent that critical 20%.
Now, within those 5 areas I only focus on 8 specific strategies. To help a business generate more leads, I teach them how to reformat their marketing so it actually gets results. Then I put a process into place so they begin to build a base of profitable joint venture relationships where their JV’s drive prospects directly to them.
Now that they have leads coming in, I shift their focus to converting those leads into paying customers. I use 2 strategies to do this. First, I develop a “down sell” strategy for them. This simply means if a prospect can’t afford their original offer, let’s have a secondary offer at a lower price point. This helps clients monetize EVERY prospect they speak with.
The second strategy I use to increase conversions is a drip campaign. A drip campaign is simply staying in contact with those prospects that don’t buy initially. Business owners have NO clue that more than 80% of prospects don’t buy until they have been exposed to your messaging between 5 and 12 times. In fact, over 90% of businesses don’t stay in touch with their prospects at all. ZERO! NADA!
And since none of the business’s competitors are doing this either, the first one that implements a drip campaign can practically dominate their market.
By installing systems in place that increase both leads and conversions, I move on to the third area… increasing the number of transactions the business has with their prospects. In other words, getting their prospects to buy from them more often than they do now.
I use 2 strategies here. First, I implement an upsell / cross-sell strategy where we create additional offers that complement the initial purchase. Think about the last time you went to McDonald’s and they asked if you wanted your meal supersized – that’s an upsell. Then they asked if you would like an apple pie or perhaps a strawberry shake to go with your Big Mac. That’s a cross-sell. This strategy has a proven track record for generating an additional 34% in annual revenue for any business that implements this strategy. In essence, 1 out of every 3 customers will buy more from you if you just ask!
The second strategy I use to increase transactions is to create additional products and services my client can offer. Frequently, they themselves don’t have additional things to offer, so we look at JV’s and affiliates that sell products or services our clients want or need. For example, a landscaper makes their client’s lawns and homes into a showcase, but those homeowners may also need tree trimming, decking, fencing, stonework, a sprinkler system, outdoor lighting, a patio or outdoor kitchen installed… and perhaps a swimming pool.
The landscaper obviously doesn’t offer any of these services, but they are in a prime position to make professional recommendations, and most homeowners will go with their recommendations. The landscaper could then easily negotiate anywhere from a 10% to 25% affiliate fee from each of these various service providers, and in the process, double their annual revenue.
But consider what you could do here as a coach. Maybe right now you only offer one-to-one coaching. But you could easily begin to offer weekly group coaching webinars… weekly application workshops… a weekly Ask The Expert call… a monthly Mastermind as well as a monthly Lunch & Learn.
So now I have in place a third system to bring in a LOT more sales for my client. This is when it makes sense to look at their pricing which is the 4th component I implement. My favorite strategy to use here involves “bundling.” This is where I combine various products and / or services together to establish a MUCH higher perception of value.
Look at the number of new car dealers these days that when you buy a car from them they include your first 3 years of maintenance AND a complete roadside assistance package. Are you more likely to buy your new car from this dealer versus one that doesn’t offer this bundled package? Of course not.
If your client doesn’t have additional things to bundle together, look outside of their business and identify what additional items their prospects would value. We did this recently with a home builder who bundled an entire homes entertainment and security system into the construction of their new homes.
Obviously the builder doesn’t deal in electronics, but he was able to negotiate a lucrative deal where he could purchase everything at a deeply discounted price based on volume and include these systems with each of his homes for sale. Needless to say his sales shot through the roof.
Finally, the fifth component I use involves profit. I like to increase the overall profitability of my clients. One of the best ways to do this is to cut their labor costs. That’s a HUGE expense for any small business. Salary, benefits, social security taxes, unemployment insurance, worker’s comp., etc. really add up. And yet, what can business owners do? They MUST have the labor they need to operate their business!
This is where I like to use an “internship” strategy. Instead of hiring new personnel, consider offering an internship. Go to your local junior college, college or university and offer an internship for the semester or the year to those seeking degrees or experience in a similar field or area of expertise as your business… such as business administration.
The schools LOVE internships since it acts as a value-add to their educational offerings (real world experience). The kids LOVE them for several reasons… it gets them OUT of the classroom (16 years is enough!). They do obtain real world experience and that experience looks great on their resume. It gives them a jump start on their peers when they graduate… especially since the company providing the internship often hire them upon graduating (already trained and experienced in their processes).
The employer loves them for obvious reasons – they don’t have to pay these kids a salary because the kids receive college credit hours as their compensation. Internships can save small business owners tens of thousands of dollars each year.
These are the 8 strategies over 5 major business growth areas that will work for 95% of businesses you coach.
So until next time,
About Adrian Ulsh
Adrian Ulsh is the CEO for Leader Publishing Worldwide, the largest online provider of coaching services worldwide. Adrian currently works with more than 500 coaches in 24 countries advising them on building 6 and 7 figure coaching practices.
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