How To Be A Marketing Genuis...Even If You Aren't Half Way There

If you dont understand marketing after watching that video, you will never understand.

Superb.

Great video reinforcing the basics that sadly, most business owners don't have a clue about.

Thanks!

Smart guy. If only I knew what an adverdisment was.

I think the reason brad sugar is a marketing genius is that he manages to convince people to part with £60,000 ($100,000) to become an action coach, then charges them £1500 ($2000+) a month I think it is for the privillege of using his trademark in their geographical area.

I do wonder what the attrition rate, turnover and penalty fees of these wannabe action coaches is tho.

But you right ewen, it all good basic stuff.

I remember funning around with a client, and I asked "If 1.5 pieces of fish, costs £1.50, how many pieces would I get for £10", he didnt know how to work it out.

Some folk love the numbers, others don't - ask any life coach

regards


Fraser

I know it's a snippet of the presentation but there's no thought in it of the LTV (long term value) of bakers client.
Of course get acquistion costs down as much as possible, but remember the aim IRO such as a bakers is to get the customers returning daily/ weekly , telling people about the bakers they just discovered.
So while it may cost $30 to win a client who may come in and spend only $4.40 and initially that may seem crap, the LTV from each client should be into $000's if handled right.

What a simple message, yet so powerful. Much easier for our clients to understand than all the technical jarngon that we use to impress them. This simple math lesson is the essence of the science of marketing. Thanks for sharing!

This applies to the daily deals like groupon as well. There is much complaining about groupon not working for businesses. Well, yeah if you are giving away the ENTIRE product or svc at half off!! Do the groupon deals for some portion of your product/svc like an eclair, then upsell em. My friend is making a killing in a medspa doing daily deal sites for a 50% off discount on a couple shots of botox, well guess what, people need several more to get a full treatment, and they buy them at full price.

It's about customer acquisition cost, figure it as part of your marketing budget.

Additionally, when talking to business owners, if you don't talk about their customer acquisition cost or lifetime customer value increases from your services, you'll never generate big fees. They'll treat you like a commodity and you'll be discounting your services at near cost plus a little bit, when you should be talking in terms of how much value you are bringing their business.

The cost he is talking about is purely an "acquisition" cost, not the total cost of a customer. In marketing we must look at the acquisition cost in order to test and refine all our marketing activities in order to lower that cost as much as possible.

If we were going to figure out the total cost of each customer then we must figure in all of our costs including overhead and divide that by the total number of customers we have. Of course we want this number as low as possible too and the best ways to lower this number is by obtaining more customers to distribute our total overhead cost to and by cutting unnecessary expenses which would also lower our costs per customer.

Business consultants would look harder at the cutting costs part while marketing consultants want to grow business more and usually will attack the situation by getting them more customers. This is why we want to normally focus on "Acquisition Costs".

I know the $30 was the upfront acquistion cost (cost), what I am 'moaning' about is Brad used just one sale per customer at $4.40 (value) to show there was a massive gulf in cost to value, when in fact the value is much more than the one $4.40 sale, even before he came along and introduced the VIP system etc people would have been coming back for more purchases, they (bakers) just may not have been recording that fact.

So the $30 cost would have been bringing in more than JUST $4.40 per customer, but by saying it at JUST $4.40 per customer and pretending no new customer ever came back and made another purchase OR referred others to the bakers, and most of the audience being too dumb to figure out the BS factor, it makes the situation on behalf of the business owner (baker) look pathetically useless and the situation after Brad rides in on his steed as amazingly better, while it is better, it isn't as better as Brad would love us all to think, it's just recorded better .
He'd have us think the baker was stupidly spending $30 per client and only getting $4.40 return per client, so losing $25.40 per acquistion, that's what he clearly wanted us to think, and many did (do) , but the baker knew many were returning to spend again and bringing others in, he just couldnt prove it , the baker knew the $30 initial spend was likely bringing in well over the $30 in revenue (same clients returning 3 times a week for 3 months say) , but Brad would have us think this wasnt happening so that his own solutions would look far stronger than they maybe are in reality.

He presents it cleverly, twisting things around to suit his own requirements (as one would do) rather than actually being truly factual