Explosion Theory: How to Make Your Profits Blow Up

rontowns25 — Fri, 18 Jul 2008 18:45:53 GMT

Tips from a billionaire CEO... www.readtheanswer.com/index.php?RTA=web2

*Find
out where people find out about you.* Every time you are
approached by a prospect or customer, find out how they found your in the first
place. One way to do this is to code every offer you send out and request that
code when people sign up, call in, or take whatever action you are requesting.
Also, when someone contacts you to request information about your products or
services, make a point of asking where they heard about you.

*Collect
statistics on a regular basis.* Set up a reporting
system that will tell you where your customers are coming from and how much
revenue is coming in from each of your marketing programs and channels. Also,
get history report of 45 or 60 days to see what is happening in terms of
returns or complaints. It's best to do this weekly.

*Keep
track of the long term value of your customers relative to how they first found
you.* Keep a history of your customers so that you
can gauge the success of different marketing campaigns over time. What forms of
advertising or marketing are generating the most repeat customers? Are there
any types of marketing that results in only one-time buyers? This kind of
knowledge will drive how you implement different marketing strategies and what
messages you use in each. If you know, for example, that when you do direct
mail to a particular kind of list, you will end up with customers who will
spend a significant amount of money over a two-year period, you may be willing
to spend more money or be more aggressive in your messaging.

*Use the
information you collect to determine your marketing spend.* When you know how much revenue you realize for each marketing
dollar spent, you can determine what percent of revenue to allocate to
marketing. You can also determine this percentage according to customer long
term value; in the direct mail example above, you might allow a higher market
spend because of the higher revenue you will realize over time.

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Explosion Theory: How to Make Your Profits Blow Up