Surviving COVID-19 … Cash is King and 6 Activities to Consider!
Wow, who would have thought that this “lockdown” would last this long and affect so many business owners? The new economy may look very different as things open up and we walk out the doors of our homes and into a different version of our world.
Until then…please know that your community needs you to survive! I’ve said it before and believe to my core that business owners are the heroes of our economy. YOU ARE NEEDED!
The economy is never consistent for very long. Some business owners are prepared for the slow times, seasonal adjustments and have been profitable enough to endure an extended crisis…even like the one we all face today. However, most business owners are simply unable to survive times like these due to lack of funds.
It is said, often in the business coaching space, that all businesses should have at least 45 days of cash reserves to endure a crisis. My guess is that we won’t be saying that any longer. Most likely, it will be changed to 90 days cash reserves or maybe even 180 days!
So, if you are struggling or know someone who is, what adjustments and or pivots should you be implementing NOW?
1. Cut ALL non-essential expenses!
This can be an easy process. Simply download your last 6 months/1 year bank transactions into Excel. Sort by Debits/Credits. Then sort debits (ascending or descending). Now you can see all of your outflow. Pay close attention to the monthly debits for subscriptions, software charges, online tools and so on. Then highlight ALL debits that you could do without for now. Be purposeful and eliminate as much as you can. Add it all up and see how much cash it would free up for you. THE SURVIVAL OF YOUR BUSINESS MAY DEPEND ON IT! You must be vigilant about cost cutting.
2. Call your creditors to see if they are offering any relief.
Some financial institutions are offering delayed principle payments. Take advantage of that.
Some of your vendors may be in a position to help you out by delaying payment and allowing you to maintain your supply or goods and services. They need you to survive too!
3. Don’t give up on the government assistance programs!
Keep applying regardless of what you read on Facebook! Other people have different circumstances than you and may not qualify for lots of reasons they don’t mention.
Offer guidance for your laid off employees to help them file for the programs they may be eligible for. Show them you care and when this is over, they will want to return to work for you.
4. Use this time to plan a short term and long-term strategy
While it is important to be sensitive to what your prospects and customers may be feeling, you must continue with marketing. Develop a short-term strategy with an offer that is needed during this time. Make sure you have a message with an offer and not just a reminder that you still exist!
Your long-term strategy should be based on what you believe your market will need or want in 6-18 months from now. Let folks know what new and exciting products and services you are working on that will provide value to them.
5. If you can go virtual then DO IT NOW!
If you have anything that can deliver value in a digital format, then get busy! Online engagements are way up during this crisis. Folks are adapting to online meetings, webinars, digital live events, and so on. What can you offer to your market online?
Create some online resources that you can direct people to for downloads, education, instruction and differentiation.
Provide value and a great experience.
6. Retention – “Our rallying cry right now is this: Retention is the new acquisition and helping is the new selling!” Sangram Vajre, Co-Founder of Terminus via HubSpot.
The retention of customers has a much lower cost than (new) customer acquisition. Ask yourself, “What am I able to offer my existing customers even though I am unable to provide normal products and services?”
Is there a way that you can offer assistance to your clients now that will keep them engaged with your business?
We can help! If you would like to chat about how to position your business during this time, please reach out to me. No sales, no pressure, just a nice chat.
If you would like to join one of our Facebook Groups so that you can see and hear from other business owners, then visit:
All the best,
CEO / Business and Marketing Strategist / Author
214.471.5490 | firstname.lastname@example.org | adelphoicoaching.com
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#COVID19 #Surviveandthrive #cashisking
Today I’d like to talk about how to turn prospects into customers and retain them for future marketing to. While, your marketing is doing its job, you need to be working on turning those prospects into customers. There are a few key ways to draw them in and seal the deal. You need to be:
The biggest fear of most new customers is the dread buyer’s remorse. You want to avoid this at all costs and this should be mitigated if you’ve provided a quality product/service that delivers on the marketing claims you’ve made.
However, this can still occur. There are two ways to deal with this:
• Offer to refund money-no questions asked
• Offer a bonus they can keep even if they return the product
These offers alone will also mitigate buyer’s remorse because the customer will trust you more, just for offering these things.
There are number of other ways to turn a prospect into a customer:
1. Offer a special price as an opportunity for you to test the market.
2. Offer a lower price with the reason of pushing inventory to pay a tax bill, for your kid’s’ braces, or another tangible reason. Customers love that this makes you feel so much more human.
3. Offer a referral incentive.
4. Offer a smaller, more inexpensive product first to build trust.
5. Offer package deals.
6. Offer to charge less for their first purchase if they become a repeat customer.
7. Offer extra incentives-longer warranties, free bonuses if ordered by a set date.
8. Offer financing options, if applicable.
9. Offer a bonus if they pay in full.
10. Offer special packaging or delivery.
11. Offer “name your own price” incentives.
12. Offer comparative data or other comparison tools.
13. Offer a trade-up or upgrade to something they already have.
14. Offer additional, educational information to help them make the decision.
The options really are as limitless as you make it. You can use these or other ideas to find what works the best for your business, products/service and target market. Remember this…
“By making it inviting, easy, informative, non-threatening, educational, inspiring and fun to do business with you, you’ll loft your company above the competition.” Jay Abraham
Need help with figuring out the best strategy for converting prospects into customers? Our GUIDED TOUR gives you exclusive access to the mountain of resources and tools, along with information from some of the greatest marketing minds on Earth.
Direct response marketing is a marketing that demands a direct response from your potential customers. This type of marketing is used to answer questions, present your branding, products and the reason you do what you do. Customers love this, as they are offered the opportunity to response, whether that be in the way of signing up for a newsletter, posting a comment on your site or blog, or purchasing a product from you.
So, what does direct response marketing look like? Well, it comes in many forms, including:
• Direct mail
• Print ads
• Radio and TV ads
• Coupons or other incentives
Some of the advantages of direct marketing are:
• A great way to use free time during lulls in business
• Productive way to communicate and empower you to create more relationships
• Great way to up- and cross-sell to current customers
• Low cost way to rustle up new business
• Used as leverage to turn small sales into large sales
• Supplement your current marketing program
• Cost-effective way to reach target markets
• Offers measurable results
• Reach outside your local area for new business
• Increase the effectiveness of your sales force
These are all great things that can come from just taking a few simple steps to putting together a direct response marketing plan and executing it.
“I honestly don’t think you’ll ever find a safer, lower-risk, higher-profit method of increasing your business or profession than direct-response marketing.” Jay Abraham
Direct response marketing is one of the best ways to launch your business on a large scale and reach out to everyone in your target market whether they are in your local area or not. Our GUIDED TOUR can help you put together a great direct response marketing plan and get you on your way to heightened success.
Today I’d like to teach you about the three most important start up marketing tools you need to get and keep new customers.
- In person: It’s essential you meet with customers/clients in person whenever possible. This shows you respect them and take the time to work with your clients to give personal attention to each of them.
- Follow up letter: Always take a moment to send a follow up letter about what you talked about, new agreements or partnerships made and to thank them for taking the time to meet with you. Likewise, you should always send thank you letters or small gifts to partners you find success with.
- Phone call: Use a telephone call to follow up with them to talk again about the matters you talked about in your meeting and offer any assistance you can to help their business run smoothly and more successfully.
None of these will work if you don’t have a quality product/service to back you up!
Here are the key steps for putting together your start-up marketing tools:
- Research potential customers, buyers, competitors and their preferred methods of distribution.
- Talk to potential customers. Take a hard look at your product from a customer’s perspective and see what it needs to be successful.
- Follow up with your 3-step process from above.
- Develop systems for contact follow through, quality control standards and customer service.
- Develop post-sale follow up system to keep lines of communication open is customers and build on your current relationship which increases future purchases.
“Marketing and innovation produce results; all the rest are costs” Peter Drucker, management consultant
Here’s another one I love from an icon:
“If there is any one secret of success, it lies in the ability to get the other person’s point of view and see things from that person’s angle as well as from your own.” Henry Ford, Founder of Ford Motor Company
This lesson has offered you the tools to put together a start-up marketing plan that can be used over and over again to help your customer base and business grow in a manageable way. The tools offered in our FREE test drive offer these very same things.
Today you’re going to learn how to find a target market of potential customers so you aren’t wasting precious resources on blitz marketing. So, the two questions you have to ask yourself are:
- What do people really want to buy from me?
- What related products are they already buying?
Once you figure this out you will know who is more predisposed to purchase your products/services. Then, you find other businesses with the same customer base who you can customer share with. Come up with an incentive and great arrangement to encourage both of your customer bases to shop at both of your stores.
The basic concept is this:
You want to find existing businesses who have the customer profile that you are looking for to market your products/services to.
Then strike up a relationship with those business owners to work out an incentive for customers to purchase from both businesses.
As a result, you have an audience to market to and they generate an added value from their current base.
So, how do you figure this out? There is a great formula from Jay Abraham you can follow with great success.
LV = (P x F) x N – MC
Here’s what it all means:
- LV is the life time value of a customer
- P is the average profit margin from each sale
- F is the number of times a customer buys each year
- N is the number of years customers stay with you
- MC is the marketing cost per customer (total costs/number of customers)
Once you know how much you need to spend to attract a new customer, you will know how much of an incentive you can offer to a business to help attract new customers.
So, here’s your step-by-step process:
- Find companies who already have the customer base you are looking for.
- Negotiate an incentive for them to share that customer base with you.
- Focus your marketing resources to this group of predisposed customers.
If you need help working through this process, check out our FREE test drive for the most comprehensive system of marketing tools and resources.