3 R's to a Healthy Sales Funnel

It's a given that you will move your business to the next level with a healthy sales funnel.

So how do you keep a sales funnel healthy? Simple. Focus on the the R's: recommendations, referrals and repeat business.

Recommendations: offline and online platforms demonstrate that recommendations influence buying decisions. Ratings, testimonials and comments are powerful marketing messages. Get recommendations by simply asking: provide a forum to rate your product/service online or request quotes from satisfied clients to include in your marketing.

Referrals: the ultimate goal of cruise control marketing is referrals. Getting referrals requires three things: outstanding service, asking for them and giving them.

1) Outstanding Service:
Your business should deliver such a special experience that customers would want to spread the word for you. Wow your customers with excellent follow up like thank you cards or personal calls to just check in on them.
2) Ask for Referrals:
The best referrals are free ones but paid referrals are also viable. At a minimum, develop a consistent and simple referral system. Give out extra business cards, donate to a charity in the referrer's name or have a payout plan. Consistent and simple is easy to manage and the return on investment is very powerful.
3) Give Referrals:
The Golden Chain of Referrals starts with you. Give, give, give and you will get. Note that you will need to give at least three times to get.

Repeat Business: every business relies on repeat customers. The shortsighted business owner sees one transaction. The wise business owner understands the lifetime value of a customer. Customer acquisition is always more costly than customer retention.

Recommendations, referrals and repeat business will keep your sales funnel healthy. Focus your marketing efforts on these three R's. Ensure that all marketing messages enable more recommendations, referrals and repeat business.

Sweepstakes? Great List Builder, But…

Your marketing is only as good as your audience. In other words, the better your list, the better your marketing.

But “better” is a subjective definition of a list. Does better mean quantity or quality?

Quantity is for businesses that sell products/services for the masses. These businesses generally offer a commoditized and price sensitive product in a market with many competitors. For them, a “better” list means a longer list of prospects. Think soft drinks or pizzas.

Quality is for businesses that sell products/services for a niche market. These businesses usually sell a unique and differentiated product in a market with only a few direct competitors. For them, a “better” list means more qualified prospects. Think luxury cars or swimming pools.

Small businesses should fall into the latter category where quality of a list is paramount to quantity. A small business with a strong Marketing DNA will know that a targeted niche is more attractive than a mass list. More qualified prospects is always better than more prospects.

So should a small business build its list with a sweepstakes?

A sweepstakes can be a great way to build a list. Give away your product for free for those that sign up on your website, at a conference or in your store. If you gather these names and add them to your database, you are growing your list.

But the names you gather aren’t necessarily the most qualified. They are only people that have signed up for your contest. This doesn’t make them high-quality leads. In fact, they might just be freeloaders looking for a handout that would never purchase from you in the first place.

Sweepstakes responders are a skewed list towards those interested in the free prize.

You can still do a lot with your sweepstakes. If you are considering a contest to build your list, be sure that your procedure gathers actionable data. Think of ways to further qualify leads. For example, ask when the prospect would be in the market for your product or service. Or invite entrants to subscribe to your e-newsletter. Maybe include a multiple choice question about the best way to follow up.

Leads are great, but qualified leads are better. Move your business to the next level with quality not quantity.

3-Second Test You Must Take

For any printed marketing--and even some electronic marketing--be sure you take the Three Second Test. Place the piece at a distance a potential viewer would see the material and count for three seconds.

Now, ask yourself: what message is communicated?

If the primary marketing message can be communicated within three seconds, your piece is solid. If more than one message is coming through during the timeframe, you may be trying to do too much.

The worst result of the Three Second Test is if you cannot articulate any message from your piece. In this case, you should probably start over and refocus on the primary message.

Now this test doesn't work for everything. A sales letter, for example, requires a bit more. The test is best for print ads, flyers and direct mail. It can also work for banner ads and e-mail blasts.

Regardless, the idea is clear: any marketing piece needs to get to the point clearly and quickly. Boil down your communcation to one clear and concise primary message.

Move your business to the next level with the Three Second Test. You will be challenged but you will achieve results.

Marketing is a Steak

If marketing is a steak, it needs to be either rare or well done.

The well done part goes without saying: market your business well and your brand will grow. Marketing well means understanding your Marketing DNA, following a S.M.A.R.T. plan and repeating your message consistently.

The rare part is a bit harder to grasp but equally as effective. Being rare means being unique and special. Marketing that cuts through clutter is new and different. It creates buzz and conversations. Rare marketing fosters cruise control marketing.

If your marketing is neither rare nor well done it's just...um...medium.

Medium is the worst kind of marketing. It's bland, commoditized and fails to create action.

So move your business to the next level with rare marketing or marketing that is well done. Don't settle for anything medium.

Opinions are Like (BLANK)?

Fill in your own blank. I'll go with "data" as in "opinions are like data."

You see, opinions are like data because everyone has some. Demographic statistics, sales forecasts, budget variances and more. In fact, many businesses are drowning in data.

Too much data means too many opinions. Paralysis by analysis, as the saying goes.

Even worse, small businesses owners are always subject to other's opinions. It seems that everyone who walks into your store thinks they know the best way to run your business.

So whose opinions matter? What data are important?

It can't all be important. Especially with respect to marketing. Try and please all opinions and your marketing will fail. Miserably.

Remember, successful marketing focuses on a narrow but deep market. So pay attention to the opinions and the data about your niche. This is where you'll find actionable information.

Still struggling to find out what data and what opinions are most useful? Do an 80/20 analysis: undertand the 20% of your market that gives you 80% of your revenue. Find data and opinions that represent the 20% and act on that.

Data and opinions alone cannot move your business to the next level. Instead, move your business to the next level with actionable data and opinions that directly reflect your narrow target market.