Each and every business needs profits in order to survive, this is not a secret.
Sometimes we get so caught up in the problems of the business that we lose focus of planning ahead.
And then when we do start getting busy implementing these plans; they’re not working exactly how we hoped for.
So how do we make sure that profits are in our future??
Well, I’d like to share something that’s helped my Marketing Agency grow itself to the Inc. 5000 list to spot No.438.
And yes it has to do with marketing. Why? Because Marketing get’s us attention!!
And attention turns into profits, so this tool I’m about to share with you isn’t for the “Click a button, Problem Solved” entrepreneur.
No, this one tool can make or break your marketing.
Anytime you embark on a new journey there is one thing you need for success.
And it’s not a new fancy piece of technology.
It’s not an endless supply of money.
It’s not a strategic partnership with other big-name businesses.
It’s much more strategic than all those things, and it will also let you have greater control over your future.
I will quickly walk you through the major components that make up this tool to help guide you, so are you ready to learn how to prepare yourself for a profitable future?
The 1 tool that will accelerate your business towards profits is a strategy!
But not just any simple strategy, a strategy that needs to be done from beginning to end, with the major components I’m about to share with you.
This only needs to be done once, by you or your team which will most likely need some tweaking along the way, but will lead to profits without a doubt.
So what makes a great strategy? For starters, clarity.
Clarity on who you’re trying to acquire, clarity on how you will do this, and clarity on if what you’re doing is profitable.
Finding out who your ideal customer or client is, is CRUCIAL.
If you don’t have a clear image of what they’re interests are, where they hang out on social media, what desires they have, how old they are, what they want out of life, etc. then your bank account is in for a rude awakening.
All of these things can easily be found out by surveying your current customers or asking people who you believe fits your customer base.
This is the ammunition to your messaging, targeting, branding, and more.
Otherwise you’re going to be spending boat loads of money on what I like to call “General Marketing” that is the same as putting up a sign on the side of the road, and crossing your fingers someone calls or comes in to buy something.
If you want to be No.1 on the Inc. 5000 for the quickest to lose your profits, do general marketing.
Once you have a solid foundation of knowing the WHO you’re trying to acquire, you put your focus on the HOW.
If you’ve really done your research on your ideal customer, you should know their age range, and which social media platforms they use.
If you don’t know that, go back to the WHO part, and find this out if you don’t want to send your money down the garbage chute.
Once you have their information, let’s say your ideal customer is on Instagram.
You have to target interests they’d be interested in, and you do this in Meta’s Ads Manager.
But you also have to remember, this is a social media platform so you have to provide something of value.
If your ad feels like an ad, it will quickly get swiped away!
Hire a professional to create your ads if you don’t know anything about this area, but don’t go cheap, you pay for what you get, and your profits depend on it!
If you can’t afford to spend the money, I suggest you record a tutorial video or get a family/friend to record a review or unboxing video, these feel more natural on the platform.
Now, you should have your ideal customer, and the ads to be targeting them.
This is where you measure whether you’re profitable or not…
A lot of people like to look at the front end profits, based on comparing how much they spent versus how much they made minus cost of their product which sounds smart right?
Well, this is actually a short sighted way of looking at the impact of your ads.
What you want to have in your back pocket is knowing your average CLV, otherwise known as your average Customer Lifetime Value.
Why? Because if you know the average of what a customer spends when they stick around, that tells you how much on average they’re really worth, and that then tells you how much you can actually spend to try and acquire someone.
Meanwhile you’re not only spending money to acquire people, but you’re also positioning yourself in peoples minds and BRANDING yourself for the long-term.
This is exactly what big businesses do, and why they’re willing to spend loads of money to acquire people because they know what their CLV is and then they work on increasing their average customer lifetime value every day.
Think of Netflix, their average customer lifetime value is over 2+ years, and memberships are around $12 so that tells you their customer is worth over $288.
So all they have to do is increase your average monthly bill to $12.25 and now they have $6 more dollars to spend to acquire you.
So profitability isn’t all in the front end “How much did we spend this month versus how much did we make?”
That is how you lose in the future because the truth is, the cost of advertising is naturally rising with inflation along with other factors.
So what you really need to measure is your average customer lifetime value to determine how much you can spend on acquiring a customer profitably.
Once you figure that out, then you can implement ways to increase your customer lifetime value by adding more products, subscriptions, personal programs, etc.
But none of this matters without first knowing exactly WHO you’re targeting, or HOW you’re going to effectively target them.
Only until you have and execute on these major components can you see your true potential for a profitable future.
Want to learn more about these kinds of ninja marketing strategies and implement them into your business?
Schedule a meeting with one our marketing strategists: https://www.freeninjamarketing.com/schedule-appointment1642112245283
Call Us Directly: (888) 280-3339