Thursday, November 25, 2021

Can you fight for survival?

If you are a small brand or a small business, there are a few crucial things you must do.

One, define your ultimate customer. You have heard of the term – your target market. Do not be afraid to make this a well-defined small market. You can worry about the mass later. For now, you need the right footing, and a well-defined market means you can focus on delivering value to them wholeheartedly.

Two, create a differentiation. That differentiation should not be on low pricing of your service or product because it’s a differentiation that is easily copied and it eats into your profitability.

Three, look to price higher so you can make a decent profit. Think about the value you are delivering and price it from there. Don’t just look at direct competitors but look at similar products that delivers the same benefits. How do they price?

Does it scare you?

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Wednesday, November 24, 2021

Are you paying a heavy price?

If you set your advertising budget based on a percentage of sales, then the next question to ask is – will this budget generate optimum sales and maximum profit?

Set your budget according to your objective. If you want to generate optimum sales, then ask yourself how much you should spend to get there.

What is it costing you now?

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Tuesday, November 23, 2021

Why would they come back more often?

Increasingly the data is revealing that most of your buyers are non-loyalists. For example Byron Sharp’s 60:40 rule i.e., 60% of your sales are coming from the top 40% of your consumers which means nearly half your sales (40%) is coming from the 60% switchers and non-loyalists. McKinsey’s data reveals similar findings i.e., 42% will stick with you and 58% are tempted away.

Perhaps it’s time to convince the switchers.

Where are the additional sales coming from?

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Monday, November 22, 2021

What should you change?

Whenever things do not work, some business owners tend to change things very quickly. They change so often that each implementation does not have the time to work. In order not to change too often, one way is to ensure that you get your strategy right.

Once your strategy is right, stand firm. Hold the line. If things do not work, chances are it is the tactics that are wrong. Let the tactics play out for awhile before you decide that it is not working. If it is not working, change the tactics and not the strategy.

Are you changing too often?

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Friday, November 19, 2021

Have you bred enough?

Growing brands are always exciting. Giving you the expected profit and growth. When you grow too many, that’s when some will grow and some will not. That’s when too few resources are being shared by too many brands. You can’t focus. Eventually you will have to cut. Pruning a tree allows the tree to grow better and healthier. It is painful. But necessary.

When should you cull them?

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Thursday, November 18, 2021

Can you program loyalty?

People who buy you aren't necessarily your loyalists. That you probably already know. But you hold on to the idea that there are loyalists and probably quite a few of them. Hence you developed your loyalty program.

But people who buy from you often may not be your loyalists. They could be shaky customers. They shopped around, compared and came back to you. If you were told 69% of your customers are always looking around instead of being die-hard fans. And if you were told that your true loyalists are only 13% of your consumers, would you still think there is a great ROI behind your loyalty program?

Would you change the way you market?

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Wednesday, November 17, 2021

Who did you miss?

Explore all your consumer segmentation again. Are there people you can add as your target this year? Start considering people who may not have engaged with your brand or have any experience with your brand. They may be category users who are switchers. Get them to consider your brand. The idea is to widen and diversify your consumer segment for brand growth.

Who can you add?

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