Profit Loops with Mark Imperial
Have you ever wondered what your life would be like if you had a fully maximized and automated client-monetizing system? A system so predictable, that you knew there was no prospect left behind; no transaction not ‘biggie-sized’; no customer not a raving fan; and no referral left to chance. What would this look like in your business? Let’s explore.
Most Businesses Only Focus On 1/5th Of The Picture
Just about every business has marketing assets that are either under-promoted or invisible to the owner right now.
Whether you are winning or struggling right now, how would squeezing more from what you are already get impact your lifestyle? Could it take your business from ordinary to extraordinary?
Shortsighted professionals only focus on getting new clients; however, this is only one tiny piece of the marketing puzzle. What’s worse is that solely focusing on new clients also happens to be the most expensive piece due to what the late Chet Holmes refers to as “the clutter factor”.
According to Chet:
- In 1993, it took 4 attempts to grab the attention of a buyer
- Today, it takes 8.4 attempts to get engagement
- Advertising costs 3 times more today to get less than half the result
The 5 Profit Loops To Maximize In Your Business
Today, it’s more important than ever to optimize every part of your consulting practice in order to thrive. Here’s a handy reference of the five core areas you should focus on optimizing. I call these five areas “Profit Loops”.
Profit Loop #1: Lead Attraction Loop
As the late Gary Halbert recommended, you should have not just one, but a family of ads that you can pull from and rotate to feed your pipeline. You must determine the top three or four “Appeals” that your market would be most responsive to. Of course, each appeal must make a specific, irresistible offer of a lead magnet. This can be a physical product, a sample, or information. You must test according to the Market – Message – Media matrix.
Profit Loop #2: Conversion Loop
There are many ways to be right. Some of the talking heads advocate for entering the market at a low price point with the intention of nurturing and up selling later. Others prefer to lead with the big-ticket, knowing they can create a cash surge with periodic discounts to the pent-up demand.
At a conference in Dallas, Dan Kennedy reminded us of the story of Dean F. Duvall, who in the 1970s led with a mail-order course for $5,995. Dean fully expected a low conversion to that offer. However, through nurturing over time, the value set up a cash surge when he offered periodic deep discount specials. What matters is that you test to see which yields you the most juice in your bottom line.
Profit Loop #3: Ascension Loop
Let the nurturing begin. Once you get buyers, how are you managing their expectations so that you can preempt any known bumps they may experience, and turn them into fans?
With a fitness club I advise, there was a failure in new member indoctrination. Throwing a new member into a class creates tremendous pressure and anxiety if you don’t fully prepare them.
A simple and fun new member orientation fixes that. The orientation allows you to bring up all the unfamiliar things a new member will encounter, thus turning these potentially anxiety inducing conditions into positive ones. If you don’t address the unknowns, the new member will come up with their own conclusion when they experience them, which will likely be less favorable to you.
When a new customer becomes fully immersed in a positive way, you will be set up to sell them more of what you’ve got to offer.
Profit Loop #4: Retention Frequency Loop
What systems do you have in place to keep your fans engaged? What communication touch points do you deploy to maximize their consumption of your stuff?
This is the Profit Loop where community and culture wins over everything. A recent Forbes magazine article stated that a mere 5% boost in Retention creates a 75% bump in profit.
Profit Loop #5: The Referral Loop
This is where you install a culture of referral into your practice. This is not just about offering a bribe in exchange for a referral. In fact, there are 9 more effective tactics in this strategy; I’ll mention a few. “Top-of-mind communication” is one. Pass along resources, customer appreciation events, and recognition are others. A customer newsletter should be the hub of this Loop because it is the media that you control which carries these touch points.
How many profit loops do you already have going strong in your practice? Make copies of this handy reference, share it with other business owners you respect, and tape it to your desk as a constant reminder of areas of opportunity to maximize your business.
About Mark Imperial
Mark Imperial is a client acquisition specialist and Founder of Imperial Action, an agency that helps professionals profitably acquire clients and maximize revenues through scientific marketing methods including Direct Response, Online, and Facebook Advertising. He shares his marketing addiction through his Chicago radio and iHeart Radio show. Learn more at: markimperial.com
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