GBA LLP Blog

The 27 Common Business Mistakes costing you Money Right Now - Part 3

Posted by Trevor Buttle on Jun 12, 2019 8:56:00 AM

FATAL MISTAKES’ You Must Absolutely, Positively Eliminate From Your Business Right NOW!

Here is part 3 of our 5 part series. If you have not read parts 1 and 2, please read those blogs first.

Marketing Mistake #2

Not Having A Unique Selling Proposition (USP)

This will knock your socks off.....

This is by far the most common Marketing Mistake people make. Let us explain…USP is the one thing that differentiates your business from your competitors in the minds of your customers and prospects.

The USP is what makes the difference between having a truly outstanding business or merely a good one, or worse still, a poor one.

Occasionally the USP already exists in your business – you just need to discover it and then articulate it in a way that makes you stand out from the crowd. However, in most cases the USP has to be created, often out of ‘thin air’. We can’t stress enough how important this is to you. How can you expect your customers to be able to choose you, over and above any of your competitors, if the customers can’t quickly see what it is you do that is so unique and beneficial to them?

Outstanding businesses have been founded on a USP alone. For example, here's a very well known USP…

"Red hot pizza delivered to your door in 30 minutes or less - guaranteed."

Tom Monahan of Domino’s Pizza created one of the most successful fast-food franchises in the world from the strength of this USP. So did Fred Smith of FedEx (“When it absolutely positively has to be there overnight – FedEx”).

Please don't dismiss the importance of USP. We guarantee your competitors are unlikely to have one. This will make a massive difference to the growth and profitability of your business.

Plus, there are other factors to consider…

If you are viewed by your customers and prospects as being the same as your competitors, what do you think becomes the important criterion when customers want your product or service?

That’s right – price.

There’s no hiding the fact that as soon as you create the USP, you automatically take your business out of the ‘price war’ and into the nirvana of higher prices/fees – and less competition!

And that, my friend, is the power of USP.

We’ve actually used the term ‘USP’ here because most people have heard of it. In actual fact we prefer to use the term – ‘Unique Perceived Benefit’ (UPB). That’s because most business owners are so poor at promoting their uniqueness, that if you’re the only one promoting the benefit – even if it isn’t unique – it is of course perceived to be unique.

In other words, let’s say your ‘Midas Touch’ gadget has this big benefit – you point it at any wooden object and it turns it into gold. This big benefit, although amazing, isn’t unique – three of your other competitors have the same benefit on their gadgets.

However, these three competitors don’t communicate this benefit (even though it’s a major one). On the other hand, you do communicate it. So in the minds of your prospects, only YOU offer this fabulous benefit, making it unique. That’s what Unique Perceived Benefit is all about.

 

Marketing Mistake #3

Not Using All 3 ‘Business Multipliers’

How many ways do you think there are to grow a business? You may be surprised to learn there are just three ways. Each one of these is what we call a ‘Business Multiplier’.

You must use all three Multipliers to successfully grow your business. If you do, we guarantee your business will quickly reach, or at least get very close to, its potential.

It is our estimation that no matter how young or old or successful (or not) your business is, you will be only using one or possibly two of these Business Multipliers (and the ones you’re using could be improved significantly). Here they are…

The 3 Ways To Grow A Business - ‘The Business Multipliers’

  • MULTIPLIER 1: Lead Generation – Getting More Qualified Leads
  • MULTIPLIER 2: Sales Conversion – Generating More Customers From Your Leads
  • MULTIPLIER 3: Customer Maximization, which includes:

     - Increasing the Average Sales Value

     - Increasing the Number of Purchases

     - More Referrals from Customers    

     - Increasing Buying Lifetime

     - Reducing Customer Losses

There are numerous proven strategies you can apply to massively improve each of these three Business Multipliers and by combining the power of each Multiplier you have the ability to grow your business to heights you never thought possible.

Applying the Business Multipliers is perhaps one of the easiest ways to grow any business.

It’s just a matter of choosing the most appropriate media piece (letter, website, etc.) for each media and for each Multiplier (depending on your business), executing them correctly and then optimizing each one so you get the greatest return for the least amount of money spent.

Of course, once again the skill is choosing the correct media pieces and then creating them so they generate windfalls of cash for your business.

 

 

Marketing Mistake #4

Only Using A Small Number Of Marketing Strategies Across The 3 Business Multipliers

More often than not people come to us and say, “I’m just not able to grow my business. I’ve tried lots of things, but nothing seems to work.”

The first question we ask is this, “How many media channels (such as Printed Media (newspapers, directories, magazines, etc.), E-Media (internet, Google, etc.), Direct Mail (letters, postcards, etc.) and media pieces (the physical marketing piece used in each media channel to communicate your message – such as an advert in a local newspaper) are you using at the moment?”

I think you can see where we’re going with this. The reply often goes something like this…

“Well we do some local advertising and send some emails out.”

Despite your success, you’ll probably find you only use one or two or a handful of media channels and media pieces.

Now we’re not saying you can’t have success just from using the likes of the local newspaper or magazine advertising and sales emails, but just think what you could do if you applied an extra 5, 10, 15, 20 or more proven media pieces across each Business Multiplier to grow your business. What effect would this have if each media piece was working and returning a profit for you?

This is how you create multiple streams of income. How many media pieces are you using right now?

You may have read that there are hundreds of media pieces (commonly – but incorrectly – called ‘marketing strategies’) that any business can use. There’s a big problem with this – which ones do you use for YOUR business?

Our philosophy is simple – use as many proven media pieces as possible, but launch them gradually into the business, so the business can cope with the increase in sales.

 

Marketing Mistake #5

Using ‘Institutional’ Advertising

We would say 99% of people still use this technique. Institutional advertising is advertising that doesn’t ask for a direct and instant response. It is characterized by ads that have… 

  • The company name as the headline at the top of the ad…
  • Very little copy on the ad…
  • A list of products or services provided by the company…
  • Lots of white space…
  • Lovely pictures or images with no direct relationship to the product or service sold…
  • No incentive to call now… etc.

Pick up your Yellow Pages directory and go to any page. You’ll see this type of ad all over the place. We urge you to stop advertising like this right now. Your ads may be working okay, but in reality you are losing thousands (you should be making much more money).

Institutional or image advertising is fine if all you want to do is promote the image of your company, your products, or the services you offer. But let us tell you – the image itself doesn’t generate sales!

And when you consider the fact that people really don’t care about a business, or what the business sells – image or institutional advertising is a complete waste of money.

Always remember this… People don’t buy products or services – they buy the result. They buy ‘What’s in it for me?’ They buy a solution to their problem(s).

It’s true that institutional or image advertising can help build ‘brand awareness’. And that’s okay for large corporations such as Coca-Cola. They have multi-million-dollar advertising budgets (having said that, these companies would prosper even more if they used direct response advertising).

But most small or medium-sized businesses simply cannot afford to spend their hard-earned money like this.

What would you prefer?

Advertising that generates sales almost immediately (direct response), or advertising that builds name awareness or the ‘brand’ (institutionalised advertising) – in the hope that sometime in the future someone who wants the product or service remembers the ad and may or may not decide to buy from you?

Do you really have any option?

Consider the two ads on the following pages. Both ads are promoting the same product. Both ads cost the same amount of money to place in each trade magazine. Compare the two ads. One ad is a ‘traditional’ institutionalized ad and the other is a direct response ad.

Which ad do you think generated $1,500 worth of sales and lost money, and which ad is still working today – six years after its first placement, having so far generated several million dollars in over 18 different countries!

As you can see, the direct response ad shows the reader the benefits of the product and explains the steps he or she must take to get the ‘Information Kit’. It’s written to give enough information to elicit an immediate response, to send in the coupon, or to pick up the phone and call for the information. Each ad is accountable, measurable, and tracked to ensure the ad is running at a profit!

And this is just one example! We could show you hundreds more that have generated millions of dollars for the advertisers. Every one of these ads are direct response ads. NONE are institutionalized ads! Hopefully, that’s enough to make the point!

We guarantee as soon as you start writing direct response adverts (i.e. those characterized by powerful headlines, large amounts of copy written in a very personal style, a reason to call now, a free bonus for calling – special report, etc., etc…) you’ll increase your responses and sales many times over. And your profits will skyrocket!

Break from tradition. Start writing ads that give you a fast and immediate response that you can monitor and assess in terms of cost and return. You’ll not only save money – but make much more by following this advice!

 

 ‘Classic Institutionalized Ad’

 Institutional ad

 

‘Classic Direct Response Ad’

 direct ad

 

Most people fall into two categories…

  1. We don’t advertise because it doesn’t work
  1. We advertise but we use institutionalized ads (or brand-building ads)

 Which category are you in? If you’re in the first one this is likely to be for one of four reasons…

  •  You chose the wrong publication(s) (i.e. the target market was wrong), 
  • The ad you used was in all probability an institutionalized ad, 
  • If it was an institutionalized ad, you realized you couldn’t keep advertising long-term because of the cost for little or no return, or 
  • If it was a direct response ad, it wasn’t put together by a direct response expert

If any of these reasons apply to you then your advertising could and should be generating you significantly more than it’s doing at the moment.

If you fall into the second category, simply transforming your ad into a direct response ad will give you a lift in inquiries or sales (depending on the objective of your ad) that you never thought would be possible!

 

Stay tuned for next week's part 4 of this 5 part series.  Or click the link below to receive our free e-book with all 27 Mistakes in one publication.

  

 Download our e-book 27 Common Mistakes Businesses Make

 

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If you would like to talk to GBA about your business and how we can help you address some of these common mistakes or other business concerns that you may have, please register with the link at the top of the page for our Free No Obligation Meeting and see why we have a 98.9% customer satisfaction rating.

 

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