5.15.80: MARKETING PENETRATION & POSITIONING - GROW SHARE OF WALLET PART 2 - WILLIAM EASTMAN

PROFIT RADIO - "A Network of Entrepreneurs for Entrepreneurs"

Introduction
​We introduced the 5.15.80 Model at the beginning of the Season. It was a combination of research into small business performance and our practical experience from the last 2 decades. You could go to any area around the global with a market based economy and randomly select 1,000 companies, here is the distribution you would find: 5% or 50 companies that own their markets, 15% or 150 companies that are making money, and 80% or 800 companies that are barely surviving.

This series is about how to move from one level up and our concern in this series is the 15%, not how you get here which is covered in the 80% series; the focus now is how to ACHIEVE market leadership.

LISTEN > ENGAGE > APPLY

Show Objectives
Today we finish Disciple #4 of the 9 Disciplines of Success: These are the intermittent disciplines that will move a successful business to a market dominator.

Disciple 4 is the first in the sequence and starts with ways to improve market and sales performance. 
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Key Issues - Owner Perspective:

1. What should I do to compete against my major competitors who dominate my market?

What You Need to Know

• Find promising accounts/customers - Your first step is to find your happy, satisfied customers - both existing & new. This is your upgraded loyal base and the real foundation for market domination.
• Find struggling accounts - Face it – you probably have a few customers who are considering jumping ship for a competitor right now. This is especially true of new accounts as you moved into adjacent markets. - FIX THIS NOW!
• Start cross selling and up selling at the transaction level - Now that you have sold an entry level offer it’s time to start expanding their accounts.
• Expand at the portfolio level - Your goal is to prove your value and become the preferred provider for products or product groups where you have minimal traction now.
• Leverage the power of pricing - The key to increasing your share of wallet by customer is to make the transactional pricing (buying a bundle reduces the cost of individual purchases) so tempting that they can’t pass up the deal. An attractively-priced product mix strategy makes all the difference

What You Need to Do
Market Penetration & Positioning

1. Focus on primary factors to identify our best customers -  customer lifetime, average spend and volatility resistance - Loyal customer accounts are the best place for your share of wallet growth campaign to start
2. Review your sales transactions to identify red flags that indicate danger of churn - decline in spend, decline in purchases of specific products, decline in communication, increase in eCommerce abandonment.
3. Identify the add on opportunities and create a process to ensure the question is always asked - Simple sales analytics uncover commonly-purchased combinations of products to suggest complementary additions to a transaction. Time to get the sales involved back involve especially if they are receiving annuity commissions.
4. Health-check your portfolio against your market - Your goal is to prove your value and become the preferred provider for products or product groups where you have minimal traction now. Define purchasing profiles across customer segments. Uncover customers who fit the profile for specific products but aren’t purchasing them
5. Health check your bundles and your pricing - An attractively-priced product mix strategy makes all the difference.

​Next week we start on the 3 Elements of Discipline 5: Narrowcasting Your Offer

How to build or improve your business with IBGR

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Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.