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Strictly Business: The Formula for Marketing Success…

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This is a guest post by Dr Phil Humbert. I read his ezine weekly because it’s full of solid business advice. The following article is from one of his ezines. Read on to get one of his best tips …II

“Every week, I receive emails from business owners about coaching to grow their revenue, and many of those requests focus on marketing. It seems most professionals, from Accountants to Veterinarians, want more customers.

I’ve developed a formula that helps my clients strategize their marketing campaigns and it works like this: R = (N x I) – C

The amount of new Revenue (R) created by a marketing program is a product of the Number of people (N) in your audience, multiplied by the Impact (I) of your presentation, minus the Cost (C) of the campaign. It’s very simple. To increase revenue, you must either reach more people, increase the impact of your presentation, or reduce the cost.

Here are three examples.

A radio ad in a major market might reach a million listeners (N), but the impact (I) will be very small and the cost (C) may be too high. Changing the ad to a radio talk-show might still reach the same number of listeners, but by increasing the Impact, you’ll attract more business and perhaps reduce the cost.

Similarly, a speech to a local service club might have an audience (N) of only 100 people, but if your presentation creates enough Impact (I) and the cost of doing it is very low (an hour of your time, and they’ll even buy your lunch), you may attract several new clients at minimal cost.

If you mail 1000 brochures, and the Impact (I) or “response rate” is 1%, and the cost of printing and postage is seventycents per brochure, then the formula of [R = (N x I) - C] works out to be:  Ten Clients = (1000 x 1%) – $700.

You can attract more business and increase profits by increasing the Number of prospects, by increasing the Impact you have on each of them, or by reducing your Costs. Some people prefer contacting lots of people via the Internet, while others prefer the personal contact of doing workshops.

Any method can work, but the formula remains the same: [R = (N x I) – C].”

“Written by Dr Philip E. Humbert, author, speaker and personal success coach.  Dr Humbert has hundreds of tips, tools and articles on his website that you can use for YOUR success!  It’s a great resource!  And, be sure to sign up for his FREE newsletter!  Visit him on the web at:  http://www.philiphumbert.com