Did you know the average business spends

Marketing Myths & Success Secrets
The inside scoop on how to be the biggest name around town!

Did you know the average business spends $100 to get a new customer to do business with them? This is with no guarantee of repeat business.

The average (successful) business spends 10-20% of it's budget on advertising & marketing. If they aren't spending cash.. they are dedicating 20% of their TIME.

It costs the average business $10 just to get a potential customer to make contact... whether by phone, email or in person.

Did you know that it is 8-12 times harder to get a NEW customer to do business with you... than to increase sales through current customers?

Yet we all need NEW customers to grow our business, don't we? And... we don't want just ANY customers. So... how can we get new, good QUALITY customers to try our products and services?

There are many avenues to "market," or advertise, our products or services.

~ We can do straight advertising.... but it's a myth that advertising will automatically bring results. Some will... some won't.... but none guarantees a result. In fact, thousands of dollars can be wasted with the wrong ad copy. A misplaced word, poor graphics, failure to present an attractive MOTIVATION... can mean money poured down the drain.

~ We can "discount." Surely giving a discount will work... will motivate people? Wrong. This is one of the biggest, and most dangerous, myths out there. Sure... discounting will attract some customers... but will it attract the "right" customers? The kind of customers you want? Probably not. Will it "devalue" our products or services... destroy "price integrity?" Probably.

What are the "wrong" customers? You'll probably agree... customers that quibble about cost... before even discussing quality and features. Isn't it true that it's always the customer that quibbles about your price upfront, that ends up being your "problem child" down the road? Isn't it always the ones we "bend over backward" for that complain about every little thing later and, that we have to chase around for the money they owe us?

This concept is how the...

Connections Groups

Program

works to connect YOU... the sponsors... with our members.

Connections Groups members are all upscale professionals... educated... with above average incomes and many are business OWNERS with a need for business to business services as well!

Connections Groups
+ "Gift Marketing"
= NEW customers GUARANTEED!

Click to see Sponsor Page

Click to Apply to be a Sponsor

What are "good" customers? Again, you'll probably agree... customers who have a realistic idea of the value of our products or services. Customers that expect quality, service, and don't mind paying for it. Customers that treat us right, because we treat them right. Isn't it true that our best customers also rarely question price? They're professionals too.. so they know "reasonable" when they see it.

How can we advertise and attract the "right" customers? How can we attract upscale professionals with discretionary income and the need for "business to business" services as well? How can we introduce ourselves to these new customers in a way that is "CLASSY" ...that impresses them... but, most importantly, in a way that allows us to maintain our price integrity? How can we do this in a way that ENHANCES our professional image and does not devalue our products and services? In a way that looks to developing a stable future... that's not just a "one hit wonder?"

GIFT Marketing!

We can make a "gift" of our products or services! ... a "no strings attached" offer. After all... the average business will spend 10-20% of it's budget on marketing and advertising... but what if you REPLACED that budget of money, with your actual products OR with time?

If you are in a "service" business this is the easiest concept in the world... after all.. if you aren't busy 24/7 already (and if you were, you wouldn't be reading this right?) ...why NOT fill some of that empty time with new customers that you are building a relationship with.

If you sell products... why not "spend" some of your inventory... instead of cash... for your marketing... giving those products as "samples" to "qualified" and desirable NEW customers?!

Here's the concept. Remember, this is all grounded in basic psychology.

Let's face it.... most successful professionals have a certain image of themselves. They want to be perceived as successful. Most of them wouldn't be caught dead crossing the street to save 10% or even 20 or 30%. Most professionals would be too embarrassed to use a "buy one, get one free" coupon, and they certainly wouldn't use it in front of a client, associate or date. When is the last time you saw an Armani or Mercedes advertised with a coupon?

Wouldn't we like all appreciate the opportunity to get gift certificates that we might even use with a client, friend or business associate?

As business owners... we can make a GIFT of our products or services in a way that achieves BETTER results and attracts a better QUALITY customer than "discounting" and yet ends up impacting our marketing budget the same. In fact, it may end up not costing us a dime... in fact, it could bring us an immediate profit... because we have the opportunity to UPSELL that new customer!

There are secrets we can use to insure results and control *costs (see below). But first... here's more of the concept...

Let's face it... the type of customers that use "discount coupons" regularly, are often ONLY doing business with places that offer discounts. In effect these businesses "train" the customers to expect, or wait for, a price cut (in marketing it's called the "pizza syndrome," because the pizza industry destroyed their price integrity by discounting regularly. When is the last time you expected to pay full price for a pizza?).

It's a myth that you can reduce price consistently and "make it up in volume." Once you've destroyed price integrity and profit margin it's hard, if not impossible, to recover. Once your customers are used to getting discounts... it's hard to get them to pay full price. Discounting is a "slippery slope."

The best customers, the ones we want, the ones that make buying decisions based on quality, service and relationships... won't respond to a discount... but they will respond to a simple, straightforward GIFT.

A Gift Certificate has a much higher perceived value. Let's face it... it's just "CLASSIER" ...which means it WILL get used by the good quality customers you want... giving you the opportunity to "up-sell" that customer, or to establish the beginning of a long term relationship with them! Additionally, a gift certificate doesn't create embarrassment on the part of the user, so these upscale customers won't think twice about using it in the presence of business associates (meaning they have brought you yet another new customer!). In fact, some folks may "re-gift" with the certificate... actually give it away to yet another potential new customer... giving it the same impact as a gift PLUS a referral!

The best part is... a gift certificate, or gift offer, is seen as a "one time" thing... not a price cut... but a special, unique offer, that does not hurt the price integrity of your products and services.

They know this offer is given to them because you value them... and want their business. A "Gift Certificate" makes us feel "special" ... a coupon makes us feel cheap.

But how can a Gift Certificate or Gift Offer work for you?

Simple... figure out an attractive dollar amount (or gift offer) that you know would motivate someone to do business with you. In general, you take your average sale... and make your "Gift Certificate" about 50-75% of that amount. If you know your average customers **LTV - Lifetime Value... take this into account.

If you are a restaurant... the Gift Certificate should be the amount of an average lunch, or dinner, for two, without drinks. Do a "Lunch for Two" or "Dinner for Two" with a dollar "cap/limit."

If you are general retail... you want a Gift Certificate with a value that is impressive enough to get that new customer in your door. Yet we all know that a good percentage of those folks will spend more, or even walk in the door with other people. It doesn't take much effort on your part, to increase (up-sell) that first sale enough to cover the "hard cost" of the value of the certificate. In fact, let's face it, if you can't up-sell the majority, than you've got more problems than just the need for new customers, right?

It's difficult to get new customers to do business with us the first time... BUT... because of the high perceived value of a "no strings attached" Gift Certificate or Gift Offer... they DO get used... which means you have a NEW CUSTOMER doing business with you for what could be the first of many times (and it's costing you way less than than the $100/new customer market average).

And, best of all each time a Gift Certificate or Gift Offer is redeemed... you have the spotlight. You've succeeded in getting that new customer in your door thanks to your sponsorship of The Connections Groups... now... the rest is up to you! Treat them well, make them feel special, and have a strategy to get them to return. And remember it's 8-12 times easier to do that now the you've already established a relationship!

Most of the time, you will find that the new customer ends up spending more than the value of the Gift Certificate or offer.. which means you got a new customer AND you made a profit too! If a customer uses a $20 Gift Certificate, but ends up spending $60, (and you have the traditional 100% markup) you made a profit of $20. Of course a few folks will spend just the value of the gift... (so what? It's still the cheapest marketing cost you could have for a new customer.) But let's face it... even if all these Gift Certificates and Offers, averaged together, resulted in you just "breaking even" ...you are way ahead of the game aren't you? Because you got exposed to all these potential new clients on a one-on-one basis! What IS the value of a new customer to you? What IS their **LTV? Overall, this is one of the easiest, and most effective strategies for getting new customers.

Most businesses are not selling a product, or service. You are really selling TIME.

If you are a restaurant with 50 seats... and half of them are empty today... you cannot fill them twice tomorrow to make it up. Even with the sale of products... if you don't move products this week... it's unlikely you'll move twice the amount the next. And, if you are staffed for low traffic… but get hit with high, your people don’t have the TIME to maximize the sales potential of the higher traffic! Success depends on momentum. The illusion of success, breeds success. If you have room/time for new customers.. then fill it... invest 10-20% of your time, or your products into your marketing... you'll LOOK more successful right away because you'll instantly have more customers!

We can help you plan
a strategy.

"Gifting" is a long term marketing approach that looks to the future... does not affect price integrity... and which has a "classy" image for your business.

In the case of some businesses you might have a particular service that you would give away. For instance a cosmetic / plastic surgery center might give away a derm-abrasion treatment, or another minor service. A hairdresser might give away a style, cut and blow-dry. An auto mechanic might give away an oil change, radiator flush, or minor tune up. You get the picture! Pretty much any product or service can work with this concept.

Almost any business can think of an attractive Gift Certificate amount... or specific Gift offer. The idea is... you get the customer to do business with you once... you then have the opportunity to create a solid business relationship that will bring them back again. And, because you didn't "discount" ...your new customer hasn't been trained to look for, or wait for, cheaper prices.

Call us if you would like to consult on your unique strategy and a solid "follow-up" plan to utilize with it!

Sue Copening:
407-275-2956

The "Get Connected" Sponsor program for The Connections Groups is just such a marketing opportunity.

If your business is accepted, you can become a Connections Groups sponsor in a unique program that GUARANTEES you new customers and costs you no money (except for a one time set-up fee).

Connections Groups has launched a new, "premium" level of membership, called the "Inner-Circle."

As you can imagine, those members will be the "cream of the crop" of our 12,000 members as they will be the folks that get out there more... that are decision makers... the "movers and shakers."

When an "Inner-Circle" member joins they will be given a package of benefits as well as a CHOICE of gifts from our "Get Connected" Corporate Sponsors - this means you!

The "KEY" here is that they get their CHOICE of Sponsor Gifts... meaning that if they choose yours... they are already pre-disposed to your products or services... call it our "double-qualification" system.

When you participate in the "Get Connected" program you are guaranteed new customers... PLUS:

1) Advertising on the Connections Groups web site.

2) A sponsor announcement in the Connections Groups email newsletter.

3) Two 1/2 phone consultations with ***Sue Copening regarding your marketing plan and assistance with your marketing strategy.

3) CUSTOMERS! And not just "any" customers. Connections members are upscale professionals... educated and middle to upper-class in income level. You don't have to work too hard to establish a long term relationship... we deliver the customers to your door... you just need to give them the VIP treatment and have a back up plan for how to motivate them to return (Sue can help you with this).

You can be a Connections Groups sponsor with an initial gift certificate commitment of as low as $500 retail value, though you can also choose to start at the $1000 or $1500 level as well, which include additional "perks."

There is a one-time set up fee of $75.
which you pay only upon acceptance.
No fee to renew your sponsorship.

To apply to be a "Get Connected" Sponsor
or just to get more info... CLICK HERE

*Costs
To control your gift certificate program... have a reasonable expiration date...say 6 months. Have a small disclaimer on the certificate such as... "One gift certificate, per customer, per visit, tax, tip and gratuity not included. No cash returned." One strategy is to give change back... in the form of another gift certificate.... to encourage a return visit of course!

**LTV
Lifetime Value. Every customer has a lifetime value. To find yours... take your average sale, multiplied by the average number of transactions per year, multiplied by the average number of years a customer will do business with you. That is LTV. When you know your customers LTV, you know how much you are willing to spend to get a new customer. For instance... A restaurant has an average lunch check of $25. and an average dinner check of $65. for two. The restaurant has a regular clientele that has lunch with them 3 times a month, and dinner once per month. That's $1680. a year in business, assuming the customer always dines with at least one other person. Assuming that their average customer will be a customer for 5 years... that means the LTV of that restaurants average customer is $8,400. Restaurants have an even better situation than many businesses also, as it's more common than not, that their regular customers will continually invite NEW customers to dine with them. So if the LTV is over $8000. How much would be reasonable to use as a dollar amount for a Gift Certificate or Gift Offer program? Let's say that you can hope to convert just 1 in 10 (that could be conservative, depending on how smart you are) of your new customers into an average, "repeat" customer, and you are willing to invest 10% to do it. That means your GC offer would be $84. But of course it doesn't need to be... a Gift Certificate of $60 (for dinner for two) would be plenty... and for lunch for two... just $25 would do the trick. This same LTV formula can be applied to any business.

***Sue Copening.
If you would like to consult... give Sue Copening a call at 407-275-2956. Ms Copening consulted on, and helped design, the initial marketing plan for "Hooter's" and produced the radio show that later became the "Home Shopping Channel." She has 25 years of experience in business, sales, and marketing consulting. In 1995 Sue founded the Connections Groups... now Central Florida's largest business networking and social organization. She is a marketing consultant and a public speakers in the areas of marketing, as well as taxes, for small business owners, professionals, & independent contractors. Consulting fees are $100 hour - 2 hour minimum per appointment.