How To Get Maximum ROI on Your Marketing Spend

Originally published in Kochie’s Business Builders July 28, 2015, 1:50 pm by Luke Faccini 

Three easy steps to identify which customers to focus on.

Who are your juicy red customers?

 

In most businesses there are customers who buy your most profitable product or service repeatedly and over a long time span. These are your juicy red customers, because like ripe fruit, they hold the sweetest juice for your business and they’re beneficial in more ways than just profit.

These customers are your raving fans, meaning they actively generate new business for you. They cost you less to acquire as you aren’t continually replacing them, and with the right customer experience strategy, require minimal resources to keep.

On the flip side, many business have customers who are far less profitable or cost the business money. This can be the result of costly acquisition; one time purchase; buying products or services that are your least profitable, or cost more to deliver, implement, or support; are draining on resources; or simply do not align with your brand values.

Juicy red customers include those who want to connect to a brand with a purpose they can align with, or values they share. This kind of emotional connection enables a business to command its own price (we will cover this in detail in a future post), and leave the competition to battle it out over price.

Think about Apple and the iPhone. Their market share in the mobile world is at 19 per cent. Yet that 19 per cent represented 89 per cent of the profitability of the entire industry. There is no haggling over the price of an iPhone!

Defining your juicy red customers will enable you to know exactly “who” you need to be addressing in your marketing, giving you context for your content. It gives you and your marketing team a means of evaluating all your communications and campaigns. So here’s how to define them: Thinking like Apple, you need to approach this with a willingness to upset the 81 per cent of the market which is not profitable. In a simple waterfall chart like this example below, follow the three steps.


Step one: On the horizontal axis list out all your revenue generating activities (products/services), or use numbers to identify each like in the example.

Step two: Chart the profit for each as a percentage or a dollar amount on the vertical axis. Be honest and use profit as the indicator, not revenue.

Step three: Circle those revenue generating activities that are most profitable AND truly align with your purpose.

The customers who purchase these products and align with your purpose are your juicy red customers. This is where your marketing needs to focus as this is what your business needs more of. Imagine replacing those that aren’t, with these juicy red customers. How sweet would your business life be?

Do this three step exercise now, it doesn’t need to be perfect, it just needs to be done.

Once you have brought your focus to these customers, pay attention to the interactions you have with them as it will be helpful for next week’s instalment where we will be focusing on buying motivations and how to leverage those for your marketing.

That’s all for this week. If you want to know more, we have a 4 Point Targeting Checklist which you can download for free. It will give you a bit more insight into the grand scheme of precision marketing.

Luke Faccini is the Director of Creativity at The Sponge, a Sydney based branding and marketing firm that assists businesses worldwide realign their branding for growth and profitability.

Apple pics: We Heart It

Originally published in Kochie’s Business Builders

_______________________________________________________


I am Luke Faccini, the Co-Founder and Managing Director of The Sponge, a branding firm in Sydney Australia.

I work with entrepreneurial minded business people across the globe to develop Story Rich Branding that is strategically designed to resonate in the hearts and minds of your ideal customers. Why? To make it easier for your business to succeed.

To find out what drives me, take a look at this post where I bare my soul and share my true purpose. If you would like your brand to tell a richer story, I would love to talk to you. +612 8586 0001 or info@thesponge.com.au
_______________________________________________________

Teaching my heart out…

Want to get more from your brand? I am hosting a free webinar on Thursday where you will learn how to Target, Storytell and Captivate like a megabrand. Here is the link: Free Online Workshop

Related Posts

Leave a Comment

Humbling Words From Awesome People

  • The Sponge’s perceptive sensibility guarantees a perfect match between your business and its presentation to the world. They makes your values, ethics, goals, and the 'feel' of your business shine through every aspect of your brand.

    Geoff Walker Sydney Massage Time Pty Ltd
  • I recommend The Sponge’s services to new and established organizations who are looking to differentiate themselves from the “ordinary” and stand out from the crowd.

    Annette Wright InfoGenesis Pty Limited
  • One of Luke’s talents is his ability to move people and organizations from the creative to the innovative, commercializing ideas and inventions.

    Rodney Marks Hoax Speaker
  • I have had The Sponge involved in several IT based projects over my years working as a Software Developer. Each project has seen results that have exceeded expectations and I highly recommend them.

    Shane Wisniewski Wesfarmers Industrial and Safety
  • I usually don’t believe in one stop shops, because of the inability to be great across many areas, but The Sponge truly are the one stop shop for brand creation, innovation and lead generation.

    Mark Capelin Tribe Social Fitness
  • Luke and the crew at the Sponge helped set up our Corporate image as it stands today. They were extremely helpful and patient. They took the time to understand our business and brainstormed with us some of the essential elements and came up with various images until we were happy with the final one. Can't recommend Luke and his team enough. Thanks again Luke.

    Kim Lie Jom Complete Health Chiropractic
  • The Sponge team are great to work with. They translate your ideas and vision into something real and tangible and they truly want to make an impact to your business strategy with their valuable insights. We have been using them for over 10 years and would highly recommend their expertise.

    M Levonian William, Thyme & Prophet / Report Factory
  • A great vibe and energy brought to every project that The Sponge have led for me. Easy to work with, quick on the uptake of direction and prompt service. Will definitely be using The Sponge again and highly recommend.

    Lucette King NSW Department of Education
  • High level strategic thinking and their creativity makes them stand out. Quick turn around time and reasonable price make them the winner every single time.

    Syed Mujtuba Crescent Wealth
  • Awesome company with awesome creativity. After working with them over 2 years, The Sponge has successfully turned me from a happy customer into a raving fan!

    Jeremy Chen Claytan Australia
  • Great creative proactive company. Could not be happier with the works they both provided and suggested. Now our go to company for branding.

    Ross Thompson JHA Engineers
  • Awesome design. Easy to work with. Jobs are completed quickly. Highly recommended.

    Alexander Bont BONT
  • Luke and the team at the Sponge are truly artisans of their craft. They're AWARE, they DARE and DELIVER.

    Claude Di Ciano Richardson & Wrench Willoughby
  • Love their vision, love their work and mostly love the team!

    C. S. Chen Claytan Australia
  • The Sponge truly immersed themselves into our business, our team and our culture to develop a brand that not only captured our essence but more importantly; expressed it to the world.

    Mende Seljanovski Enth° Projects
  • The Sponge have been outstanding to work with. Their expertise, dedication and outstanding quality of work is second to none. I am grateful for their input into the design of our brand and website.

    Matt Malouf The Fortune Institute
  • Our brand looks better than we could have dreamed and The Sponge team managed to squeeze so much meaning into it that our prospects really get a sense of how we can help them.

    Darren Vardy Insolvency Options

We Love Helping Good People Grow Their Brands

We’re ready to help make your brand something to rave about.

Working with us is super easy.

Step 1:

Step 1:

Book a free consultation

Step 2:

Step 2:

Allow us to craft a plan for you

Step 3:

Step 3:

We’ll implement it together