Archive for the ‘The Dan Kennedy Toolbox’ Category

The Dan Kennedy Toolbox

September 7, 2008

Marketing Is Situational By Nature Via The Interaction Among The Following Parts With Each Other…
Different Message
Different Media
Different Market
Different Competition
Different Objectives
Different Budget
Different Values

The Only 4 ways to increase CUSTOMER VALUE:

1.Frequency
Measure and Monitor
How to offer more products and services
How to utilize event-driven marketing to stimulate more activity
How to increase REPEAT purchases
How to CROSS SELL
How to create RENEWABLE income
Plug in some form of continuity = automatic frequency

2. Size of Transaction
Raise prices / fees
How to bundle (cafeteria selling vs. bundle selling – selling one book to someone VERSUS not letting them buy one book and bundling the book with audio set and video set or whatever…thus you have a higher size of transaction (price/value) and often people will buy as many ‘bundles’ as they would single books)
How to up sell (surcharge for speed etc…)
Options (can choose and add on…)
Easy payment terms (sometimes no difference between $39.95 vs. 2 payments of $39.95 / Prepays)

3. Longevity (best way: membership concept selling)
How to design and use customer loyalty – frequent buyer programs
How to create and use “membership” for your customers
How to create a loss for the customer who leaves (make it painful, inconvenient, or costly for the customer to leave you i.e. utility company / create loss)
How to remain interesting, entertaining, attractive to customers (marketing sin: being boring.)
In-house credit (Mail Order and Retail teach that a proprietary credit program increase purchase frequency and customer longevity)

4. Referrals
“WOW”-ed customers
Frequent communication
How to convey expectations
How to use RECOGNITION as motivation
How to REWARD as motivation
Formal referral marketing programs (continuous)
Referral “Surge” Campaigns, periodic
Endorsed Mailings
“Forced” referrals

7 Ways To Maximize Value
1. Increase FREQUENCY of purchasing
2. Increase FREQUENCY OF REPEAT purchasing
3. Increase SEQUENTIAL purchasing (every purchase should in some way shape or form set up the next
one-Every product, should sell the next product-I.e. Volume one suggest a Volume two. Every product
should cross sell other products. Every purchase should have an answer to “WHAT’S NEXT?” “If they buy this, what’s the NEXT LOGICAL THING FOR THEM TO BUY?” then, of course “what’s the strategy
I’m going to use to sell to them?” So that every purchase triggers a sequence of purchases.)
4. Increase average TRANSACTION SIZE
5. Increase RETENTION
6. Increase CATAGORIES OF PRODUCTS/SERVICES purchased
7. Increase DIVERSITY OF MARKETING METHODS

The Key Business Competencies

SALES/REVENUE: Ability to provide appealing products, services and offers
1. Collect Relevant Information, Market Research (maybe most important step)
2. Organize, process ideas
3. Positioning
4. Find, identify, create USP’s, “hooks”, themes
5. Innovate
6. Search

SALES/REVENUE: Ability to affordably acquire customers
1. Understand direct response advertising (‘direct’ meaning dealing directly with the customer)
2. Understand direct marketing (‘direct’ meaning dealing directly with the customer…i.e. If you’re going to sponsor soccer teams because your target market is parents who want better kids for whatever (i.e. karate) then you may sponsor a soccer team and put your logo on the shirts, but do it for getting access to the list of the soccer kids addresses/phone number etc. as now you can do DIRECT MARKETING/DIRECT ADVERTISING to the parents as well as to the kids. Now you could run an event for em’ with a soccer star etc. So you use the willingness to sponsor as a means of buying the list which they wouldn’t rent to him under any circumstance. ANYTHING THAT IS NOT DIRECT IS PROBABLY NOT WORTH WASTING YOUR TIME OR MONEY)
3. Develop profitable economic models
4. Test…Test…Test
5. Understand target marketing
6. Master “message to market match” (the power of a tight match, whether you do it or bring on a niche individual who connects with them)
7. Utilize broad array of media and tools

PROFITS AND STABILITY: Ability to manage for maximum profit
1. Get and accurately evaluate your numbers
2. Constantly re-allocate resources and attention
3. Monitor and control costs, prevent losses
4. Manage vendors effectively (pay attention to them on a day to day basis since today’s vendor could be tomorrows nightmare…and you ought to spread it around so that when one screws up or can’t deliver, another is set up. Also pay attention to price hikes. Spot check everything.)
5. Delegate to, manage staff effectively
6. Insist on direct return from each investment
7. Resist temptations to violate number 6
8. Massively exploit what works

PROFITS AND STABILITY: Ability to retain customers and maximize value (Be long term oriented ‘customer for life’ because a buyer is a buyer is a buyer, and all the cost is on the first sale, not the 4th. All the wealth is in the backend. “What’s next?” That is the most important question you should be thinking all the time-especially when someone buys. What’s the next chunk of money I’m going to get out of them and How am I going to do it and When am I going to do it and When am I going to ask for it…the most important question is “what’s next?” The customer is always ready, willing and able to respond to a ‘what’s next’. Look at every single thing in your business (every sales letter, product, service, transaction…everything you do and ask WHAT’S NEXT.))
1. A comprehensive back-end business strategy
2. Understanding TCV or LVC
3. Measure short and long-term CV
4. Continuous, frequent, interesting contact with customers
5. Effective complaint/problem resolution
6. Awareness of, re-capturing lost or inactive customers (Systems / Follow up…the list of the ones who are being lost and who have been lost is at least as good as any list you’re going to go get anywhere else, if not better. You don’t need another list…you already got a list. And it is more productive a lot of times than anything else you do to get more leads!)
7. View retention as marketing (Systems / Follow up)
8. Awareness of competition, pre-emptive response

WEALTH: Ability to develop value and equity
1. Develop and protect Positioning
2. Develop and protect Intellectual Properties
3. Develop and protect Customer Lists
4. Develop unique (complex) Marketing Processes
5. Develop key Strategic Relationships
6. Measure and work to improve benchmark numbers
7. Be a premium price / premium margin business
8. Develop renewable or automatically renewing sources of income (Some businesses although rare, have such a high transaction cost…but for everything else, not doing this, is an incredible mistake. The reason you want this type of income is simple: when you re-engineer your relationship with your customer, so they must take initiative to stop, rather than take initiative to buy again, you are going to get more money from them because they don’t take initiative. So if you can charge them automatically every year/week/quarter, whatever the deal, you will get more money from them than if periodically you must try and get them to take action to give you money. Sell them more product…lock them in. You get months and months before someone actually takes initiative to stop any continuity. You must find a way to incorporate this into your business.Which would you rather have, a business that sells a million dollars worth of stuff a year and it is repeat business but you got to sell all of it, it’s all sold every single time…or a business that does 3 quarters of a million a year but almost all the revenue is on auto-charged every month and you ship every month. Can do monthly/yearly/quarterly etc. Maintenance program for chiropractics…i.e. Maintenance program, 2 visits and a massage every month we hit your card on the first of each month – it’s like a health club.)

WEALTH: Ability to meet personal and lifestyle goals
1. Time management
2. Emotional / attitude management
3. Clarity of objectives
4. Avoid being enslaved by the business
5. Develop AUTO-PILOT MARKETING for your business
6. Extract cash
7. Exit strategies

Everything you sell is a lead generator for services/products that come before/during/after

Dan Kennedy On RETENTION
Retention Mistakes: Imposing what you find valuable and your values on others, one way vs cafeteria, teaching too much, being boring, delivering overly sophisticated or complex content, delivering too much content
Retention is based less on everything else and mostly on FEELING*
*Correct ways to get retention via making people feel happy:
getting lots of stuff
taking home stuff
surprises
getting stuff in packages
new and interesting things to do
new toys
being sent on goose chases and treasure hunts
activity that feels like accomplishment
good food and desserts
Positive Feelings
*How to create Positive Feelings and why clients remain clients [how to retain clients]:
GOLD STARS -> Ego Stroking (recognition, opportunities to show off and teach, teachers pet status)
ACCEPTANCE -> Leader and Peer Support (recognition, encouragement, a creative environment)
FRATERNITY -> Being an Insider [and superior to others] (being your client needs to be a status symbol somewhere, getting preferential treatment, being confided in/knowing secrets/knowing things first)
WOMB -> Security/Optimism (protecting against unknown dangers, part of a group that triumphs no matter what, attachment to a person who will be there for them and cares about them)
FUTURISM -> Anticipation (something(s) to look forward to, unpredictability [‘what will he/we/they come up with next?’], left wanting more, goals/ascension)
*DEPENDENCY – Make people dependent on you or Feel dependent on you
Dependency Strategies
– Frequency, so you are an addiction
– Multiple Roles: adviser, confidante, therapist
– Fulfill emotional needs – recognition, validation
Ego/self esteem damage…person will be thought less of by exist
– Cannot just be about you…
You as conduit, as access to…
You as convenience, efficiency, shortcuts…
– Must be pain of exit or disconnect, not just value of connection
Fraternity, society…cut off from, in exile
Exclusive services
You need interdependencies and relationships to unravel

Dan Kennedy On PRICE
Price Guidelines
Never deal with underlings
Deal only with check writers and decision makers
Sell TOP DOWN not bottom up or middle up
If a committee is involved refuse to participate. Move on.
As soon as you detect the decision-maker is unreasonably cheap, move on.
Fee Presentation Mistakes
Talking about it too soon
Switching to sell mode
Fear
How To Get Paid
Per hour
Per term project / to an outcome
Per project
Per month/year (retainer)
Automatically renewing terms
In perpetuity / til forbid / continuity
From individuals for one on one delivery
From multiple individuals for group delivery
For delivery by you
For delivery by others
How To Get Paid MORE
Charge more
Selection of clientele
Pent-up or Continually ‘pipelined’ demand
Supply v demand
Bundled goods and services
Levels
Ascension ladder
Easy payment arrangements
Exclusivity / Area exclusivity / Industry exclusivity
Coaching to consulting / Other services
Never accept predetermined assignments
EXPAND assignments
Provide strategy
Deliver work product
Bundled services, deliverables (so evaluation by item or hour is impossible)
Find a way(s) for your services to be “free”
Create a series of “what’s nexts”
How To Escape ‘Billable Hours’
Sell projects, not time
Fees+other compensations*
Work product dollars
Materials in quantity dollars
Subcontracting/Outsourcing
Staff
Recycling
Retained ownership, Multiple use
Money from referred vendors
Re-sale of good/services
Other Compensations
Performance Dollars -> Royalties / Percentage above base / “Per” something
Use Fees -> “Per” something / License fees / Renewable s
Equity
Perk

7-Figure Academy (Seven Steps To Seven Figures)
1. Extreme Status
2. Extreme Value
3. Extreme Visibility
4. Extreme Leverage
5. Extreme Productivity
6. Overcoming Resistance
7. Personal Philosophy

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