4 Essential Steps to a More Profitable Business

Mike Kotsis Uncategorized Leave a Comment

 

4 Essential Steps to a More Profitable Business

Recently a client who has been in the service industry for over 69 years reported that they’re having a record year in both revenue and profit. It wasn’t always this good.

Just a short time ago, their team was frustrated with too many clients who didn’t pay their bills on time, always seemed to be looking for discounts, and never seemed to be fully happy with the service. As a result, my client wasn’t making very much profit on these engagements. Frustrated? You bet!

So how did they make the breakthrough to get where they are today?

All we did was get the leadership team fully on the same page with four vital components of their marketing strategy. This was the foundation for them to make all of their prospect- and client-related decisions going forward.

Your Vital Marketing Components

Want to boost your profit and revenue? Implement these components to your marketing strategy.

Target Market

Define your ideal customer by thinking of your best customer and identifying the following characteristics:

  1. Demographic. This is who they are. What type of company are they, and what’s their size (revenue dollars or number of employees)? Who is your contact within the company? List as many of the relevant characteristics that come to mind.
  2. Geographic. This is where they are. What geographic area are you willing to market to and do business with? Define and agree upon the boundary.
  3. Psychographic. This is what they are—in other words, how they think. What do they value and appreciate? What are their pain points? What is their attitude like?

Once you have clarity on these three parts of your Target Market, direct all of your sales efforts towards finding and meeting with prospects who meet this profile—and commit to not doing business with anyone who isn’t a match.

Three Uniques

What sets your company apart from the competition? These are your three differentiators that make your company unique and valuable to your ideal customer. You may have one or two uniques in common with your competition, but it’s really a combination of all three that make your company unique and valuable to your ideal customer.

Stop saying yes to every single opportunity that’s out there. You don’t need them all, you shouldn’t want them all, and you can’t please them all. And frankly, when you try to be all things to all people, your customers aren’t going to be fully happy, and you won’t be fully happy—because you’ll be spending extra time and resources, eroding your profits.

Proven Process

On one page, map out the life of a customer relationship. Think of this not as a brochure of what you do, but how you engage. What are the systematic 3-7 steps you take when engaging with a great client? Keep it simple. This page shows the EOS Proven Process (at the bottom).

Your proven process shows your prospect how you’ll do business with them, as opposed to merely telling them. Most companies don’t do this, which means you’ll stand out from the competition. Being able to see your process also helps put your prospect’s mind at ease because they’ll know you have an established system that works.

Guarantee

Having a compelling guarantee in place reduces your prospect’s perceived risk of starting a relationship with you—and helps make the sale with your Target Market. Think about it this way: if your team executes in your company’s sweet spot (where you already do great work), you should never have to make good on your guarantee.

My client’s leadership team was in complete alignment on the four parts of the marketing strategy and they had ample time to execute on it, which was instrumental for their success this year. As a result, they are now working with fewer clients at a higher margin, and they’re creating raving fans who refer them to everyone they know. And these are the clients who all pay within payment terms—no chasing them down!

Next Steps

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