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Home / Business / Small Business

Graham McGregor: A costly (yet easy to fix) marketing problem

Graham McGregor
By Graham McGregor
Columnist·Herald online·
3 Mar, 2014 08:30 PM4 mins to read

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Photo / Thinkstock

Photo / Thinkstock

Graham McGregor
Opinion by Graham McGregor
Graham McGregor is a marketing columnist for the NZ Herald
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I talk to a number of different businesses every month and 83 per cent of them have a costly marketing problem.

Let me explain by asking you three questions:

Question 1: Which group of people is it easier to make sales to?
A: People who remember you positively?
B: People who don't
remember you positively?

Question 2: Which group of people are more likely to provide regular referrals?
A: People who remember you positively?
B: People who don't remember you positively?

The answer to both questions is very obvious.

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People who remember you positively are easier to sell to and they are also more likely to give you regular referrals.

Now let me ask you the last question: What is your 'system' to get people to positively remember your business?

By 'people' I mean:
1: Existing clients and customers who have spent money
2: Key centres of influence that can regularly refer new clients
3: Potential prospects who know you but haven't yet bought

The answer from 83 per cent of the businesses I talk to is this...

They don't have a system to get people to positively remember them.

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And because of that, many businesses are throwing away a fortune in repeat and referral sales every month.

Let me give you a simple example so you can see how costly this problem is.

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About a year ago I had a problem with my lounge furniture.

I had two lounge suites that were looking tired and old. I thought that they would probably need to be replaced. However a friend referred a business that cleaned lounge suites.

They explained that their tired and old looking lounge suites came up looking brand new after using this firm.

That sounded pretty good so I used their services myself. Well the results were amazing. My tired looking lounge suites suddenly looked fresh and brand new again. And I didn't have to spend a lot more money buying new furniture.

I was a very happy customer.

The problem is I never heard back from this cleaning business. (They did a nice job, got paid and basically disappeared.)

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So for the last 12 months I've forgotten about them. In this time I could easily have given them a number of good referrals.

Let's say my referrals could have produced $500 of new sales in a year for this business and let's say that 50 other customers could have done the same thing.

That's $25,000 of easy sales this cleaning business didn't get. Ouch!!

I'm embarrassed to say I've forgotten the name of this firm as well. I could probably find it if I searched my records. But if you asked me who they are I couldn't tell you quickly.

The big problem is I don't remember this business regularly.

A lot of businesses have the same problem. They do a good job and their customers like them. But their customers don't remember the business regularly. So the business loses a fortune in repeat and referral sales.

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So how do you solve this problem?

I have a simple solution for Herald readers.

Send me an email using the email link at the start or end of this column.
In your email tell me three things...
1: What type of business you have and who do you sell to?
2: What does a typical customer spend with you?
3: What were your total sales for 2013?

In return I'll email you a helpful guide called 'The lost sales marketing solution.'

This guide covers helpful strategies on...
1: How to get people to positively remember your business
2: How to get easy sales
3: How to get regular referrals

If that's of interest just contact me and I'll email you this guide. (With my compliments.)

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In the meantime, think about the importance of being positively remembered regularly by your customers and clients.

'Profit in business comes from repeat customers; customers that boast about your product and service, and that bring friends with them' - W. Edwards Deming

Action Exercise:
What can you do this week to get people positively remembering your business?

Graham McGregor is a consultant specialising in memorable marketing. You can download his 396 page 'Unfair Business Advantage' Ebook at no charge from www.theunfairbusinessadvantage.com
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