Resist using 1-time "tools" to get at low hanging fruit solutions that are temporary. Build long term "systems" that deliver consistent results over time.
 

A few months ago I took a call from the owner of a fitness center with a low-sales problem in a nearby city.

Sales were down and traffic slower than expected (the 1st quarter is usually a busy time for health clubs).  Membership at the club had peaked and was already on the decline after a year and a half in business.

He said needed "A BUMP IN SALES" or some low-hanging-fruit to increase his membership.  His thinking was to send out some direct mail (a tool) to 400+ local business owners and offer them a bulk employee membership to his health club.

Flashback to 1 year earlier.

Over a year earlier I had met with this same fitness club owner.  I'd describe him as a great guy, dynamic personality & fun to talk to even when he was selling you on his club.  His challenge then was he had decent traffic into the club but was converting a lower than expected number of the walk-ins into members (less than half).

So his advertising was working.  His selling or converting them to paying members needed improving.  In short it was a quick tour of the weights, machines, lockers and then an explanation of 3 different membership payment types.

After some research I suggested creating a "system" to build a case for someone to join.  I suggested another "system" to help people consume their club membership or in other words use the club to their greatest advantage whenever they were working out.

Lastly I outlined another "system" for building and maintaining a relationship with the members (when they weren't in the club) so when it was renewal time they felt connected to the club and along with the benefits of use, would renew without exploring other alternatives.  (More on these systems next week.)

Here's what he did...and why he's where he's at now.

Unfortunately the owner did nothing.  No systems were ever put into place.  He's still thinking in terms of "tools" hence the comment about wanting to send out a mailer.  And that's why the business is SHRINKING and not GROWING.

Even IF his direct mail letter (an Advertising tool) had generated more traffic into the gym, he still had no Conversion System to increase the percentage of people who bought memberships.  The same problem from 1 year ago still existed.

What is a SYSTEM??       ?

Most businesses have 3 MODES of interacting with customers.  They ADVERTISE to first find or attract potential customers.   They SELL some percentage of these potential customers their product or service (the initial sale) and a customer is born.   Then they SERVICE the customer after the initial sale, providing support, service or additional products and services.

To grow your business you need to build SYSTEMS within each of the 3 modes (Advertising, Selling, Servicing) of your customer interaction that OPTIMIZE the results within each mode.

If you're great at generating leads (Advertising) but can't close them, it's time wasted.

SYSTEMS are built using TOOLS (click here for a list).  And systems require STRATEGY or strategic thinking for the system to be effective.  More on this in future newsletters but the planning, structuring, the building of systems and having them all integrate and work together within your business is my definition of MARKETING.

The first step to building systems is to make the distinction between the TOOLS that you use to build them and what a SYSTEM is.

Often I hear a certain language a business owner or company will use that thinks in "tools" when they struggle with growing their business.

"I tried running magazine ads and they didn't work."

"Those Val Pak mailers didn't generate many calls."

"Only my current customers said they heard my radio ads but it didn't generate any new walk-ins or calls."

They BLAME the TOOLS on their lack of results.  Their blame is misplaced.  It's not the tools that are to blame, it's how they are being used that's the problem.

It's like me dragging you over to Home Depot, pointing at the tools section and complaining the reason I can't build a wooden picnic table is because the TOOLS ARE BAD AND DON'T WORK.

If you dig a little deeper you'd find I'm trying to use a crescent wrench to cut the wood, a ruler to drill my holes, pliers to drive in the screws and a saw to paint the wood.

The tools work.  I'm just using them incorrectly, for the wrong purpose or at the wrong sequence in the picnic-table-construction-process.  If I used the saw to cut the wood, at the very beginning, instead of using it to paint the wood, at the end, I'd get better results.

Most Advertising, Selling and Servicing TOOLS don't come with instructions.  That's why they are misused and blamed for poor results.

Even a picnic table "kit" you might buy at a hardware or lumber store has building and assembly instructions (a SYSTEM) with what to buy, the tools to use and the steps to go through to complete the project.

Next week I'll show you some examples of companies using simple SYSTEMS to service customers and generate sales, and the TOOLS they used to build these systems.

One company I know spends $1.00 (one dollar) every 3 months on a window sticker and a postcard for me so I'll come back to them and spend $30.00.  Any guess on who they are?

For now just remember if YOU BLAME TOOLS for your lack of results or think about using a TOOL (instead of a SYSTEM) to increase your sales, you're probably using the wrong tool or using the tool the wrong way or at the wrong time.

Now here's the language of someone that's thinking & using "systems" to grow their business.

"I have 4 lead generation programs using direct mail letters and postcards ranging from $5 to $25 Cost Per Leads."

"My Close Rate on my $25 leads averages 20% or 5 points higher when I use a Free Gift as an incentive to sign up today."

"I'm testing 2 new headlines on my magazine advertising campaign to see which one pulls better."

"My follow up email series on my sales is reducing product returns by 10 customers per month."

Does this sound like you?  It will be after a few more issues of GROWING-YOUR-BUSINESS.

If your company is not growing it's either a function of poor advertising (generating leads), poor selling (converting leads into sales/customers) or poor servicing (the ongoing delivery of your product or service after the initial sale).

Whether it's advertising, selling or servicing, you need to build systems to increase the effectiveness of that areas output. Simple effectiveness ratios are Cost Per Lead, Close Rate & Cost Per Sale.

Systems are built using several tools like print ads, radio ads, direct mail, email, websites, trade shows, etc. in a sequence to build the case for you, your product or service.

Tools work when you use them correctly.  THERE ARE NO BAD TOOLS!  If they don't work you're (A) not using them correctly, (B) not using them for the right purpose or (C) in the wrong sequence in your system.  Don't blame tools for bad or no marketing systems.

More on tools and systems next week.

Until then keep Growing Your Business!

Jeff Bell, www.Growing-Your-Business.com

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Jeff Bell

Sales and Marketing RESULTS

PO Box 267

Noblesville, IN 46061

317-774-3787

www.Growing-Your-Business.com