Paul Avins / Igniting Business Results

How £1,000 can generate you 5 or 35 new customers - you choose!

I'm just sitting here reviewing the day with a coffee in hand and I thought I would share with you the true power of knowing your numbers when it comes to the marketing of your business.

Let me do this by telling you a short story..........

I had a coaching session with a client today and we were looking at investing £1,000 in some new video marketing with a major on-line portal. She was excited! In fact, she had been sold on the power of video, which I agree with, and was ready to go.

Then I asked her how many customers she's got right now from this lead source - her answer......"5 new ones a year".....which was good and delivered her a 150% Return On Investment.

"OK...... but what else could we invest your hard earned £1,000 in that might generate positive results based on past experience?" I asked.

Her response was instant - "Leaflets! We got over 35 new customers when we did this in January she started very excitedly. "So why would you spend your £1,000 on a video that even if it doubled your new customer level would only deliver you 5 new clients Vs 35 with leaflets?" was my question...

This hit home and she picked up her phone to cancel the video appointment right there and then!

So remember....when you're looking at investing in marketing look at where you'll get the best ROI for your money and watch out for sales people who get you all excited about trying new ideas when you still have potential in your past winners to harness.

The Homebase Sales Prevention System ...

I often tell clients to look at their businesses and to eliminate systems or procedures that kill potential sales - often referred to as the Sales Prevention Department!

In the last few days Homebase have given me a great example of how some businesses try really hard NOT to take your money which in the current climate seems crazy to me!!

No, I am a fan of Homebase, especially more recently where they have clearly invested in Customer Service training for their teams and it shows in how helpful they are.  However if you want to purchase a product that's on sale on the web and in store there seems to be a few "kinks" in the system.

Here's what I mean:

Last week Sue and I popped into the Bicester store as snow had stopped a lot else happening and found the perfect home office desk we wanted. GREAT NEWS - it was also in a sale so we asked the assistant for it.

We were told that it was the only one in stock so we said no problem we'll take it off the floor - we were very politely told 'no' they had a "Company Policy" that there must be at least 1 sale item on the floor at all times.

I DON'T care! I had money, they had a great product - what's the issue? To make matters worse they were having one delivered that week, snow depending, so it would only be off the floor for a day or two at the most.

Sue and I then ask if we can get it online - Yes, it's on their site - NO they don't home deliver that item. OK what about picking it from another store with stock? Yes Northampton has it. Great, as Sue's Mum and Dad live there - except when we get there they only have one on the floor as well and as we know "Company Policy" applies and they can't sell it.

No, the assistant was helpful and suggested I could reserve the next one but to be honest by now this was all just getting too hard and we headed home.

I am sure we'll find one, and still buy it as it's the perfect solution but they are making this a real test of endurance and patience for a customer to say the least.

If you own a business go back and see if you have any "Sales Prevention" systems in your business that could be driving customers away without you even realising.