What’s the Most Expensive Way to Grow Your Business?

If you think about your business or practice, there are really only a handful of ways to grow – get more leads, sell more services, increase your average client value, add new services, and although not growth oriented, cutting costs. Lead generation is the most expensive of the group, but it doesn’t have to be. Make 2010 the year you refine your message and stop targeting the masses. Do this, and you’ll attract better quality inbound leads. Then, focus on improving lead conversion with a systematic method of contact, presentation, follow-up and service. You’ll likely sell more, even if lead count remains the same!

3 Step Marketing Plan

When it comes to successful marketing, most consultants tell you to put it in writing. But who has time to write 20, 30, or more pages? Instead, try this simple, yet powerful, 3 step plan, which answers these questions about you and your business:

• Who are you?
• Who do you help, and why?
• What should you spend?

Who are you?
Every business has something that makes it unique, which becomes the basis for your unique selling proposition (“USP”). Most consultants will have you examine your business, looking for ideas, but that takes away time from earning money. Here’s a trick — instead of trying to figure it out yourself, simply survey your currents clients asking them why they bought from you. You’re bound to find some gems from which to build your USP on. Once you’ve got your USP, integrate it in all your marketing efforts. You’ve got to stand for something in today’s marketplace.

Who do you help?
Begin by crafting a service description similar to this: I help (people, business owners, etc.) who have this problem (legal issues, leaky pipes, etc.) in this location (Dallas, Orange County, Utah, etc.). Show them how you serve their needs and their needs alone. The most important element of your business is your service description — not your signs, storefronts or office space. Add demographic questions to your business survey, and find out where your clients live, work, play, eat, what kind of car they drive, musical tastes — anything and everything to help you uncover patterns, which you’ll then use to laser-focus your marketing. Why do you get up each morning to help your clients? The answer to “why” helps your clients connect to you emotionally, which is on a much deeper level than price. Get the advantage and answer why!

What should you spend?
Marketing budgets are easier to express as a percentage of sales, but take the extra time and figure exactly what you should spend to acquire a new client. Three to five percent of gross annual sales is a rough starting point. Let’s say you have a law firm in Texas, and clients bringing in uncontested matters spend an average of $700 each time they see you. This client hires you twice a year for about five years. Simply put, the lifetime value of this client is $7000. If you only take 5% of this amount and apply it to your marketing efforts, you’d need to invest $350 to attract one new client. Then multiply this number times the number of clients you want to attract to create your budget.

Plan for success by drafting and documenting this simple, yet powerful, marketing plan. Writing it down forces you to think about your business and serves as a constant reminder. Refer to your plan often, and make minor course adjustments along the way. With plan in hand, set a timeline and begin implementing. As the saying goes, “most people don’t plan to fail, they fail to plan.”

Strategy to Get More Business Testimonials

Every business owner knows testimonials are a powerful form of social proof. Frankly, every single one of us who shop online rely on social proof. hen was the last time you bought something on Amazon, or anywhere else, without reading what others had to say about the item? Unless you have no concerns about getting value for your dollars, you instinctively rely on social proof.

But how do you get more testimonials for your service business? Instead of shackling your best clients to a desk, locking them in a room, giving them pen and paper, and coercing them to write (and write well!), try this strategy instead.

First, come up with a short list of questions your potential clients should ask of yours or similar services (make sure the questions emphasize benefits). For example:

• Is your service exclusive my industry or company?
• How often will you call or visit my team with updates?
• What type of guarantee do I get?
• What time commitments do I need to make?

And so on. Then, present this list along with a handful of current clients for your prospect to contact.

When your current clients are contacted for information — and let’s face it, it will be via email — they’ll be compelled to write back what looks like a well-written testimonial. The glicken (*) is when your current clients copy (‘cc’) you on this message. Voila! Instant testimonial.

This approach even helps your active clients further remember why they did business with you in the first place, and may spawn more referrals.

How would this strategy work for your business?

Texas Marketing Seminars

I spoke before 40 attorneys in Fort Worth on using the Internet to find and attract new clients. This was the third time I presented to the Bar this year, and their membership continues to have an ever increasing appetite for marketing content. From there, I drove to Austin, and spoke at a networking event (and cocktail hour!) before a more intimate crowd.

Being lawyers, they focused on gathering facts, asking technical questions and taking notes. But the real discussion happened after the presentation, as I went from table to table. Discussions ranged from helping to control a tarnished online reputation to starting a new law firm. My advice to both: get a new website or blog up and running first, before doing anything else (your best defense is a good offense!). Create local profiles, engage in social marketing. Be part of the conversation instead of the topic.

These two events complete a successful 2009, where I presented search engine marketing seminars to a cumulative audience of more than 1,000 attorneys. I want to thank both the Tarrant County Bar Association in Fort Worth and Perry’s Steakhouse in Austin for their gracious hospitality.

Marketing Your Service Business During a Recession

Times are tough for our economy, and even if your company hasn’t experienced a decline in business, you certainly know others either suffering or closing altogether. It’s time to take a look at the budget and decide what stays and what goes. Often, the marketing budget is first to get cut. But cutting your overall marketing budget couldn’t be a bigger mistake! Studies have shown time and again this is a wrong move. Recessions offer new opportunities and decreased competition. Instead of cutting (if you must cut something, jettison all outbound marketing, like traditional advertising and trade shows), make it more efficient through inbound marketing.

Why Spend Money Now?
Obviously, marketing when others aren’t gives you an advantage. Your clients still have leaky pipes, need legal assistance or accounting services regardless of the state of the economy (remember, service providers are problem solvers in nearly all cases). Some businesses are even recession-resistant, e.g. accident and injury lawyers, auditing services, food services, etc. Not to mention the incredible deals you’ll get from other businesses! Your marketing dollars will go much further during bad times, so take advantage of it and gain market share.

Document and look at your current marketing plan. It’s important to examine each item in terms of value so you can focus and hone in on low-risk, high-reward campaigns. This is also the time to test new things, such as inbound marketing (and if you’re doing this, time to refine and get even better results).

Consider These Inbound Marketing Activities
First, a definition: inbound marketing is an online strategy which places information about your business in front of people already looking for what it is you sell. It simply means creating content and talking about it. Inbound marketing turns strangers into friends, friends into clients and clients into salespeople. Hard to beat this positioning!

Here are some inbound marketing tasks you can do to gain more market share:

• Get listed on business directories and Internet yellow pages. Each provides implied credibility and can deliver leads fast. There are too many to list, but identify those appropriate for your industry. For example, Lawyers.com is a directory of lawyers and law firms, OutFishing.com is a directory of fishing guides, and the SuperPages is an Internet yellow pages directory.
• Optimize your website (you have one, right??). Since most professional service businesses are not ‘bought’ online, make sure your content and information is designed to generate leads. Continue to add new and relevant content and information to your website on a regular basis.
• Leverage social marketing. Consider launching a blog or using a service like Twitter to stay in front of potential clients. And don’t ignore social networking sites like Facebook and LinkedIn. The profiles and pages are free and deliver very qualified leads. The key with social marketing, and social networking in particular, is to remember that everyone knows why you’re there, so don’t be too obvious or overly promotional with your sales pitches.
• For the creative side in you, grab your video camera or buy an inexpensive Flip HD camera, and record short, informational movies and clips about your business. The quality of the production isn’t nearly as important as the quality of the content. So show off your office, your staff, a how-to video, or even something as simple as a 30-60 second recording explaining why you’re in the business you’re in. Be genuine!

It’s easy to list these items and never take action, so consider working with a specialist or a marketing consultant who “gets” inbound marketing; one who understands the challenges professional services providers face. New clients are already online and looking for someone like you to solve a problem they have. Regardless of where you market, help them find you with inbound marketing.