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Cool Success

Every Level of Success is Cool

What’s Success Look Like

Growing up I heard John, go to school, do your homework, get good grades and get a good job in the city.  We lived outside of NYC in Jersey.  That’s what all my buddies heard from their parents.  But something didn’t settle with me about that plan.  It had a limit, I was limited by my time if my earnings were all about my work and my time.

Over the years I found that my definition of success wasn’t having a good job.  For me, I wanted time freedom,  for me I wanted to be able to do what I want here I want with whom I wanted.

See I never got that “Good Job”  I started my own business, I had a taste of entrepreneurship back in 78.  Yep I was only 10 but my mind was already working.  I remember hearing my dad say “Jesus Christ people are gonna have heart attacks shovling this shit!”   They were going to have a heart attack cause they were out of shape and older.  My dad’s buddy Maxxy said hey “Johnny, Shovel my driveway and Ill give 2 Sawbucks (aka $20)”

I’m 10 years old and I’m thinking $20 bucks hell yea!  In Today’s delicate fragile political correct world Maxxy and my old man probably would have went to jail making a little kid shovel sooo much snow.

snow

So as Im shoveling away, the neighbor spots me and says Johnny when you get done come do mine.  OK Mrs. G I replied,  another $20 and my first introduction to referral based marketing.  In one day I made $80 shoveling the neighbors snow.  I was friggin 10years old.  SUCCESS!!!!!!!

I tell you this because that is when I realized not knowing I realized it at the time.  I was responsible for my success, not some boss or board of directors.  ME, Johnny, John Cassidy.   So I went on to become an Serial Entrepreneur.  Now at 48 I realize success isnt the money,  its time and money.

The businesses I build now are for me to work less and have more.  More Time, More Money, More Friends, More Experiences.  That is what will make me Rich.

What is Success for you?

Until next time.  Keep being Cool Keep being successful.

 

John Cassidy

Featured post

The Communication of Change

Keys to Meaningful Change

The oil crises of the 1970s rocked many industry giants, including the transportation industry.

In 1981, British Airways was reeling from massive financial losses and a reputation for terrible service. Nearing meltdown, the airline brought on a new chairperson, Lord King, who quickly spotlighted three areas where the company was operating inefficiently: careless spending, disorganized staffing, and inadequate communication. King’s leadership quickly produced results. After only ten years, the company became the largest airline in the UK, reporting the highest profits in its industry ($284 million, to be exact!).

What was the key to this turnaround?

Large-scale organizational change. King made major structure changes, including a reduced workforce (from 59,000 to 39,000), elimination of unprofitable routes, modernization of the existing fleet, and marketing upgrades to revamp the airline’s image.

Did King make these massive changes by crossing his fingers and wishing for the best? Hardly. British Airlines combined accurate research with a clear strategy that informed their decisions and overcame resistance.

Discontentment: The Shadow Side of Success

One thing King had in his favor was discontentment, which was at an all-time high.

While many of us believe contentment is key to a happy life, sometimes pain (including frustration with “business as usual”), is a gateway to greater fulfillment. Experts find that a shadow side of successful people is this common personality trait: they struggle with perpetual discontentment. Forbes columnist Brianna Weist says this:

“There is a difference between people who are content and people who are successful, and it is because the latter push themselves whereas the former tries to sustain the status quo. Without a certain measure of growth or expansion, the human mind gets bored, or tired. This will, eventually, lead to a tipping point at which the content person becomes discontent… and then change is made.”

Change as a Formula

Pain moves us: to make radical shifts, to take risks we wouldn’t otherwise consider, and to get the full potential out of life.

Dissatisfaction, combined with a skill set and action plan, can be the most essential agent for change. But far-reaching change can be tricky to maneuver, requiring precise timing and a thoughtful strategy.

Organizational change experts David Gleicher and Kathie Dannemiller coached change strategists with a model that looks something like this:

  • If change were a formula, it is this: “D * V * PF > R” (Dissatisfaction * Vision * Preferred Future > Resistance)
  • Dissatisfaction paired with a vision for a preferred future motivates people to overcome resistance to change.
  • To catalyze change, an idea or product must possess a clear path for a breakthrough while fanning the flame of frustration with the current state of being. If the product of those three factors is greater than the existing resistance, change will occur.

What This Means For Your Business

It means you can relax, even when people are unhappy!

Intentionally listen to your employees and customers and consider rising frustration as the first step to positive change. Use the change model to evaluate whether the time is right to communicate early steps towards meaningful shifts. Find healthy networks or professional development opportunities where you can reflect on industry trends, process leadership ideas, and analyze competitors to identify areas of opportunity.

Finally, cut yourself some slack if you feel irritated with your own areas of personal frustration. Great futures can come from great pain, so allow your dissatisfaction to chart a course toward exciting new destinations. You’ve got this!

Stay in the Game

Finding the Off Switch

Do you ever lay awake at night feeling restless about work? Do you take projects home each evening or over the weekend? When the day is over, is it difficult for you to quiet your racing thoughts?

You work hard. And you enjoy it. But in this mobile generation, devices meant to create freedom have tethered us to the desk as we toe the line between productivity and workaholism. A study of 3,000 UK workers showed that 69 percent regularly work outside their office hours, and the average worker fails to use six days of paid leave each year. In the midst of an overwork epidemic, are you preserving your own well-being?

Digging Your Own Grave

While our parents said “hard work never killed anyone,” research says otherwise. Men who are unable to mentally relax after work nearly triple their risk of heart disease and psychologist Mark Cropley, studying health and stress at the University of Surrey, says an inability to detach brings disastrous consequences:

“Inadequate psychological recovery, or poor disengagement from work, is associated with a range of health problems including cardiovascular disease, fatigue, negative mood and sleep disturbance,” Cropley said.

What is the difference between an industrious person and a workaholic? Experts say the industrious can push past typical office hours but remain emotionally present for others, enjoying fulfilling relationships and intentionally scheduling time for things they love. Hard workers experience short bursts of stress for a deadline but follow this with a purposeful schedule reduction (like comp days or shortened office hours) to restore depleted energy.

Workaholics struggle to find this off switch. The troubling feelings or facts accompanying their lifestyle stress fails to curb their unrealistic performance ideals. Workaholics are obsessed with work and the adrenaline rush it brings; often they walk fast, talk fast, eat fast, and struggle to delegate for fear others will not do “as good a job.” While appearing externally healthy, their internal overdrive brings physical distress: panic attacks, claustrophobia, depression, decreased immune function, sleep disturbances, or an inability to enjoy life’s pleasures. Workaholics have an increased risk for metabolic syndrome, a higher need for recovery, and struggle with cynicism and emotional fatigue; when your biological systems keep working around elevated set points, you have a greater risk of cardiovascular disease (CVD), diabetes, and even death.

Worried you may be digging an early grave? Here are a few checks to flag your workaholic tendencies:

  • Your work eats into meal times
  • You are often first to arrive and last to leave
  • You are always on your phone or computer
  • You appear relationally distracted and find little time for leisure activities
  • You experience anxiety or irritation when interrupted or kept from work
  • You feel guilty when you’re not working and find it difficult to relax at night

Quality Trumps Quantity

Beyond improved health, accounting firm Ernst & Young found that for every additional 10 hours of time off taken, employees’ annual performance ratings improved by eight percent. How can you make productive changes if you are stretched too thin?

  • Reflect on reasons for compulsive work
  • Ask for help from your team and intentionally delegate
  • Set clear rules for how many hours you will work each day, quitting several hours before bed
  • Replace workaholic tendencies with positive habits: cultivating hobbies, building a skill you don’t use at work, and pro-actively scheduling time with friends
  • Resolve to save 25 percent of your energy to bring home at night. Put a fence around weekends to avoid temptation

Self-care keeps you on top of your game and ensures you STAY in the game. And that’s a win for us all!

Growing up the teacher said I was a class disruptor, Now in Business thats a GOOD thing.

Break the Rules; It’s Okay as a Market Disruptor

Who are the folks who really define a market these days? It’s definitely not those companies who follow the market rules and play nice with everyone. More often than not, the key players and new leaders of the pack are the ones who are writing their own rules on how to operate, sell, and grow – the market disruptors.

Being a disruptor is not to be confused with being an anarchist. Unlike the political zealot, the disruptor is not fixated on tearing things down. Instead, this is a company that wants to redesign the stage to work in its favor, not the existing market.

More Than Traditional

Take the example of Growup Urban Farms. In the food business, the idea is to produce food or distribute food products from producers. This assumes that one is either a traditional manufacturer as a grower or making a profit on someone else’s work either growing plants in soil or raising animals on a farm. But what happens when someone decides to create food in an unorthodox method that doesn’t require the traditional resources of soil and land? That’s the case with Growup Urban Farms.

A Company Redefined

The company has found a way to mass market food production of vegetables and fish without the large land outlay or ocean harvesting. While the traditional model requires a rural setting, the disruptive aspect of Growup is that it can literally be operated in the most urban of settings, using physical stacking and space efficiency inside artificial walls and city streets. Their product is natural but created in warehouses. It uses natural methods of growth but there is no soil, ocean or land consumption involved.

The founders of the company, Kate Hudson and Tom Webster, have redefined what it is to be a modern farmer. And that has the potential to redefine how food is produced and where. The old rules don’t apply anymore that farms must be rural and need soil, or that fish can only be harvested from ocean stock. Growup disrupts the food market and not just with its cost model. The company also redefines placement of farm fresh food, eliminating the need for long-distance transportation into cities. Instead, the farm is literally in the city just blocks from the businesses it feeds with the product.

Go Where No One Else Does

The idea of being a market disruptor is not some trendy new 21st-century concept; every major market inventor or new breakout leader was essentially following the path of a disruptor by going down a path nobody else was considering at the time. Whether it was Nikola Tesla or Google’s founders, every breakout has been driven by a unique prospect that seemed rogue or maverick to the mainstream.

So if you want your company to get beyond just surviving and breaking even, then you have to find that spot that differentiates everything about you. Don’t follow existing models, create a new one that has its own rules for success.

6 ways to be the Leader people want to follow.

How to Lead by Example

As a leader, the people you supervise watch your every move. To gain their confidence and trust you must provide an example they will want to follow. You could lead via a system of punishments and coercion, of course, if accelerating turnover is your hobby. But motivating them positively is a much better way to go.

To that end, here are 6 examples you can use to become the type of leader that people want to follow.

1. Do not think of them as workers only.

It’s important to keep in mind that the people working under you have bills to pay, troubles to cope with, and possibly a personal tragedy or two in their lives. Approach them with respect and be kind, knowing that they may be going through hard times.

2. Take the time to make them feel special.

It may seem corny, but try keeping notes on the people working under you, just one fact about each of them. It could be something you overhear in the hallway- perhaps a hobby, a favorite musician, a peculiar interest. You can use this information at opportune times to let them you take a real interest in them.

3. Listen to emotions.

This can be hard for some, but with effort, even the most stoic of us can discern emotions. Listen to what employees say and take a moment to mentally tag their statements with an emotion. Just say to yourself, ‘Mark feels frustrated,’ or ‘Sally is disappointed.’ Even if the emotion is irrelevant to the situation, just take a moment to recognize it without judgment. Make a habit of this and in a short amount of time you will begin to behave in a more empathetic way, and they are certain to pick up on that.

4. Don’t fight every battle.

For diligent, hardworking, and logical people, it’s easy to fall into the trap of trying to right every wrong. But there’s a fine line between being a problem solver, and being belligerent. Remember, your internal resources are limited, as are those of the people around you. Trying to squash every small discrepancy will drain your resolve, and it will squash morale.

5. Always let them save face.

‘Praise in public and censure in private’ is the golden rule of leadership. When someone has made a mistake and you must have a word with them, help them avoid the scrutiny of their coworkers. Don’t force them to take the walk of shame into your office after announcing over the P.A. that they are being summoned. They will appreciate it immensely.

6. Display solidarity

Your job is important, and no one would expect you to get into the trenches every day- however, there’s no better way to establish respect and to understand the day-to-day realities of the work your employees do than to occasionally step into their role. It’s not enough to have done it before. You must demonstrate the willingness to do it again. Remember, this isn’t your chance to show them up by outdoing them. It’s a way to develop solidarity and to understand the challenges they face each and every day.

Some of these tips may sound overly soft-handed. But if you apply a little imagination and find a way to maintain your proper station and dignity while following these guidelines, you can transform yourself from a competent manager into an inspiring leader.

Happy Leading

John Cassidy

Direct Mail vs. Email…… Which works best the numbers don’t lie

 

Direct Mail Still Gets the Best Response

  1. Direct mail household response rate is 5.1% (compared to .6% email, .6% paid search, .2 online display, .4% social media). This is the highest response rate the DMA has ever reported, since coming out with the Response Rate Report in 2003.1
  2. Direct mail median household return on investment is 29% (compared to 124% email, 23% paid search, 16% online display, 30% social media).1
  3. At 6.6%, oversized envelopes have the greatest household response rates over other mediums (followed by postcards at 5.7% and letter-sized envelopes at 4.3%).1
  4. At 37%, oversized envelopes have the greatest household return on investment over other mediums (followed by postcards and letter-sized envelopes at 29%).1
  5. The response rate for direct mail among people aged 18-21 years old is 12.4%.1
  6. The top response rate tracking methods are online tracking such as PURLs (61%), call center or telephone (53%), and code or coupon (42%).1
  7. For every $167 spent of direct mail in the US, marketers sell $2095 in goods.2

The Bottom Line – Direct mail has the greatest impact because it offers a tangible experience for the customer. Oversized pieces stand out the most.

Personalization Boosts the Response Even Further

  1. Adding a person’s name and full color in the direct mail can increase response by 135%.3
  2. Adding a person’s name, full color and more sophisticated database information can increase the response rate by up to 500% vs not doing any of these things.3
  3. Targeting customers on a 1:1 level increases response rates up to 50% or more.4

The Bottom Line – People are even more likely to respond to a marketing message when it feels like it was written just for them.

 

It’s a Multi-Channel World Out There

  1. The average person receives more than 2900 marketing messages a day.5
  2. It can take up to 18-20 touchpoints to reach a customer for the first time.6
  3. The average number of mediums used by marketers is 3.4% (up from 2.7% in last year’s study).1
  4. Only 11% of marketers are just using one medium.1
  5. Single media users are most likely to use email (54%) or direct mail (22%).1

The Bottom Line – Your customers are on multiple platforms. Are your messages clear and consistent across all of them?

Omnichannel Marketing Icons

 

Direct Mail and Digital Work Together

  1. 90% visit website first before calling.7
  2. 96% leave without making a purchase.8
  3. Direct mail with digital ads yield 28% higher conversion rate.9
  4. Marketing campaigns that used direct mail and 1 or more digital media experienced 118% lift in response rate compared to using direct mail only.10
  5. Website visitors who are retargeted are 70% more likely to convert.11
  6. 26% of customers will return to a site through retargeting.12

The Bottom Line – Direct mail response rate can be difficult to track, because not everyone calls in right away. Most customers head straight to the web to learn more about the product online, rather than calling to speak to a sales representative about the product directly.

 

It’s Easier to Nurture Existing Interest than Create New Interest

  1. It is 10X harder to create new interest than nurture existing interest.13
  2. It can cost as much as 5-12X more to acquire a new customer than retain an existing customer.13
  3. The probability of selling to an existing customer is 60-70%, vs. the probability to sell to a new customer at 5-20%.13
  4. A 5% increase in retention yields profit increases of 25-95%.14
  5. The average response rate for direct mail pieces sent to former customers of a given brand is 18.4 percent.15
  6. The household cost per acquisition for direct mail is $26.40 (compared to $10.32 email, $20.32 social media, $16.22 paid search, $24.75 internet display).1

The Bottom Line – Use direct mail to nurture existing interest, keeping current customers and prospects engaged and delighted. While the cost per acquisition is higher for direct mail, average response rate and median return on investment is competitive enough to make up the difference.

Supercharge With Data

Success is in the Data

  1. 40% of a direct marketing campaign’s success is in the data.16
  2. In general, purchased lists have a margin of error as high as 20-30% for various reasons (people move, change jobs, get married/divorced).
  3. 73% of firms aspire to be data-driven but only 29% of firms succeed at turning data into action.17

The Bottom Line – It’s critical to keep an accurate, updated customer database list.

Sources

  1. DMA Response Rate Report https://thedma.org/
  2. Print Is Big http://www.printisbig.com/
  3. Canon Solutions America https://csa.canon.com/
  4. Data & Marketing Association https://thedma.org/
  5. FireSnap https://www.firesnap.net/blog/why-inbound-marketing-has-become-so-popular
  6. How to Kickstart Your Next Omnichannel Marketing Campaign https://compu-mail.com/blog/2017/03/06/kickstart-omnichannel-marketing-campaign/
  7. How to Transform Your Website Into a Marketing Powerhouse for a Mobile World http://www.huffingtonpost.com/ernesto-sosa/how-to-transform-your-website-into-a-marketing-powerhouse-for-a-mobile-world_b_9141792.html
  8. Google Analytics https://analytics.google.com/
  9. Non Profit Pro http://www.nonprofitpro.com/article/doctors-without-borders-uses-remarketing-retargeting-extend-reach/all/
  10. Merkle https://www.merkleinc.com/
  11. Criteo http://www.criteo.com/
  12. Retargeting: The 10 Stats you Probably Didnt Know http://blog.wishpond.com/post/85825723836/retargeting-the-10-stats-you-probably-didnt-know
  13. Invesp https://www.invespcro.com/
  14. Small Business Trends https://smallbiztrends.com/
  15. USPS Household Diary Study https://www.usps.com/
  16. Above the Fold Magazine http://www.abovethefoldmag.com/?q=article/40-40-20-rule-marketing
  17. Forrester Global State Of Strategic Planning https://go.forrester.com/

This post supplements 25 Direct Marketing Statistics Prove Direct Mail Works15 for ’15: More Direct Mail Statistics, and 25 Direct Mail Statistics for 2016.

 

Sticky & Sour: The Next Step After a Bad First Impression

Sticky & Sour: The Next Step After a Bad First Impression

What are some of your most awkward professional blunders? In a recent social psychology article, Heidi Grant Halvorson shared the story of her friend Gordon and his job interview at a prestigious university:

During his campus visit, Gordon was dining with a senior faculty member named Bob. As they ate, Bob commented on the quality of his lunch. “You know, this is great,” Bob said. “You should try this!” Wary of offending, Gordon cautiously complied, reaching over for a bite. While the interview seemed successful, the job was given to another person. Years later, Gordon found the real reason for the rebuff was this: When Bob said, “You should try this,” he meant, “You should try this sometime,” not, “you should eat off my plate.” Bad manners left a sour taste of lasting consequence.

Knee Jerk Reaction or “Real Jerk” Response?

Humans naturally make snap judgments, and impressions are much harder to undo than to create. “First impressions are very sticky,” says Grant Halvorson, author of “No One Understands You and What To Do About It.”

First impressions are rooted in us and continue growing stronger, influencing future interpretations and causing “confirmation bias” to sway us in the initial direction. Grant gives this example:

“Once we have an understanding of something, we interpret everything that comes after from the vantage point of the knowledge we already have. Let’s say I think you’re a jerk, and the next day you realize ‘Hey, I acted like a jerk,’ so you bring me coffee. That seems unambiguously nice, but that action can be interpreted in a number of ways, and if I think you’re a jerk, I’m most likely to see it as an attempt to manipulate me.”

How to Restart and Rebuild

So what happens if you get off on the wrong foot? Is there any way to overcome awkward introductions? The answering is a conditional yes. We all have graceless moments, but not everyone knows how to repair the damage. Here are a few tips to help you rebuild after a clumsy misstep:

  1. Talk to people individually. Show genuine interest and seek to find common interests. Look for informal opportunities to build facetime, ask questions, and encourage others.
  2. Restart and rebuild. Apologize and move forward by offering evidence of your sincerity. If you’ve been rude, show extra kindness in the next ten conversations. If you’ve been sloppy, make your next twenty projects immaculate. Follow up immediately and consistently, in the opposite spirit of your initial mistake.
  3. Poke fun at your own blunder. Call attention to the big elephant so you can say sorry and laugh! Transparency gives people a chance to empathize and relate rather than judge or criticize.
  4. Offer to help. Figure out what is important to people and use your skills to collaborate or lighten their load. Halvorson says sometimes this takes strategic positioning:”The best way is to try to create a circumstance in which they need to deal with you, ideally where they need you in order to get what they want . . . It’s not the most awesome sounding advice because what it means is that, if you have a colleague who doesn’t think that highly of you, what you need to do is get your boss to assign you to work together on something, which is not what people want to hear, (but) when you can help them achieve their goals, then suddenly you are worth paying attention to.”

Ready to leap ahead with a fabulous first impression?

 

Why You Should Try to Incorporate the Holidays Into Your Marketing Efforts

Why You Should Try to Incorporate the Holidays Into Your Marketing Efforts

If it seems like more and more marketers are incorporating holiday-themed elements into their campaigns, you’re absolutely right. Though some may think this is a symptom of the commercialization of events like Thanksgiving or Christmas, it really isn’t – at least, not if you approach it from the right angle. In truth, incorporating the holidays into your larger marketing efforts is and will always be a good idea for a number of compelling reasons.

It’s All About Timeliness

Most marketing campaigns live and die by their timeliness. After all, what is a piece of marketing collateral if not a sure-fire way to get the right message in front of the right people at the right time? But this idea can take on a far greater meaning, particularly as far as the holidays are concerned.

Consider the fact that according to one recent study, about one-third of all shoppers reported that one or more holiday weekend purchases (think: Black Friday) were driven specifically by promotions. Likewise, another study revealed that in 2017 alone the average per person holiday spending will reach a new high of $805.65.

The ability to say “I’m having a one day sale for the holidays and here are all the details you need to know” is a great way to light a fire and motivate someone to make a purchase. But the reason why you should always try to incorporate the holidays into your marketing efforts runs far deeper than that.

In many ways, it plays directly into another one of the strengths of thoughtfully designed marketing collateral: emotion. You’re not just trying to establish a connection with someone – you’re trying to do so in the most emotional way possible. Connections based on emotions are the ones that instill a great sense of customer and brand loyalty.

What, then, could possibly be more emotional than the holiday season?

Capitalizing on Emotion

Think about it from the perspective of your average consumer. The holidays are something that they spend a huge portion of the year thinking about. They’re devoting a large amount of their day at this point to getting ready for Christmas. They’re looking forward to reconnecting with friends and family members that they may have lost touch with throughout the course of their busy year.

Emotions are already running incredibly high. So why on Earth would you NOT want to take advantage of that?

Making an effort to incorporate the holidays into your marketing efforts – even in some small way – taps directly into what people are already feeling all across this season. Even if you’re not running a holiday promotion, making an effort to use holiday-themed visuals – or even just wishing your audience a heartfelt “Happy Holidays” – goes a long way towards connecting YOUR brand with what THEY are experiencing in the moment.

It’s also something that you can never begin too early – particularly considering that 49% of marketers now say that they begin their holiday campaigns BEFORE Halloween. Make no mistake about it: if you’re able to successfully connect with your audience via a holiday-themed campaign at the end of the year, you’ll be building the type of emotional bridge directly to your audience that will serve you both well.

What Your Customers are Worth (and Why it Matters)

What Your Customers are Worth (and Why it Matters)

What is the value of a customer? What profit can they bring this week? This year? Over a lifetime? It may seem like a simple concept, but many small businesses have no idea what a regular customer is worth to their business. This creates two problems:

  • Uncertainty about effective marketing. What is the number of new customers you’d like to attract and what is an appropriate budget to do that? Defining a customer value will guide your marketing strategies!
  • Ambivalence regarding customer retention. With a metric for measuring customer values, you can navigate appropriate parameters for retaining them or expanding their business. Research shows that increasing customer retention rates by merely 5% increases profits by 25% to 95%!

Customer Lifetime Value

While there are many complex formulas for calculating a Customer Lifetime Value (CLV), a basic approach is to break calculations into five digestible portions, like this:

  1. Average Order Value (AOV). On the most basic level, AOV is calculated by how much money is spent per customer in a year, divided by how many orders are placed by that customer in that timeframe.
  2. Purchase Frequency (f). Take the number of orders/visits/transactions from the past year and divide it by the number of unique customers you had. The total equals frequency, or how often an average customer purchased from you.
  3. Customer Value (cv). The base value of a customer can be calculated by multiplying the AOV by the purchase frequency (cv = AOV * f). In this instance, the customer value is being calculated for one year.
  4. Average Lifespan/Time (t). A customer’s lifespan is how long they actively connect with your business before they move on or go dormant. This can be a complex calculation, but to keep things simple you can either give a broad estimate (an educated guess) or you can calculate an average based on a select number of known customers (adding the length of each of their commitments and dividing by the number of customers). For example: Total Length of Commitment/Number of Individual Customers = Average Customer Lifespan (t).
  5. Customer Lifetime Value (CLV). Now that you’ve got a general idea of a customer’s value for a year and the average customer lifespan, you can use these variables for a lifetime value: Customer value (cv) * Average Lifespan (t) = Customer Lifetime Value (CLV)

While this is a very simplified equation, even a ballpark CLV can give you a more accurate idea of how valuable each client is to your business. What should you look to spend in order to gain a customer? How much should you spend to extend their loyalty? A benchmark CLV will give you a helpful base for marketing, loyalty programs, and sales goals for the upcoming year. Take a look at a more complex approach Starbucks has taken to determine their CLV as a whopping $14,099!1

Your Customers Are Your Future

A customer represents the future of your success and your livelihood, and it will be difficult to thrive if you aren’t willing to risk or invest to attract new business. What are your obstacles to expanding your reach or enlarging your advertising? Has the uncertainty of direct mail marketing kept your business from growing? Why not rely on our expertise? We offer sophisticated, simple ways to reach a mass audience for an amount that works within your budget. Need a creative concept or help to carry it to completion? We offer prompt, knowledgeable service for every custom design mailing. Give us a call today!

What you need to know about Cash Flow and Marketing

Cash Flow and Marketing: What You Need to Know

Cash flow is important in the lifespan of any business, but one of the key things to understand is that it’s about more than just “money in versus money out.” It’s a valuable look into the bigger picture of what you’re doing, and by having a handle on this aspect of your finances, you can take advantage of business opportunities when they arise.

First, you need to understand how every element of your business relates to this cash flow concept, including marketing. To that point, marketing has a very specific relationship with cash flow that you’re going to need to be aware of moving forward.

Hone Your Budget

Yes, it’s true that marketing costs can often seem unpredictable. However, working hard to hone your marketing budget can make these unexpected situations easier to deal with.

To get started, sit down and think about your upcoming marketing efforts in relation to your other expected cash inflows and outflows. You can’t afford to throw just anything at the wall to see what sticks;  you have to be more precise than that. Create a realistic marketing budget (that includes room for experimentation if needed) that is proportional to the rest of your expected business expenses and revenue streams.

It’s All About That Return

What matters most? Return on investment. For this, focus on the metrics that provide you the context necessary to understand your marketing efforts.

Essentially, stop thinking about marketing ROI as just “how many sales did that last campaign bring in?” and don’t be afraid to break things down on a more granular level. Start looking at metrics like your customer acquisition cost. If one of your campaigns was aimed at increasing more traffic to your website, start breaking things down based on metrics like “time spent on site” and “conversion rate.”

It’s important to know how your marketing collateral is performing in terms of overall sales and revenues, but in terms of your cash flow you need to dive deeper than that. As long as you’re able to A) show that your marketing is giving you something in return, and B) you can identify exactly what that something is and when it occurs, you know where the value of every marketing dollar rests.

This, in turn, will give you the context necessary to understand marketing’s affect on cash flow and vice versa. When you know that “X action will pay off in Y way after Z amount of time,” you suddenly know the impact that every marketing decision you make actually has and when that impact is going to occur. This makes long-term cash flow projections not only easier to make but more accurate as well.

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