{"id":34362,"date":"2014-02-12T07:45:30","date_gmt":"2014-02-12T07:45:30","guid":{"rendered":"http:\/\/www.smartinsights.com\/?p=34362"},"modified":"2014-02-11T23:08:16","modified_gmt":"2014-02-11T23:08:16","slug":"increase-profit-identifying-marketing-profit-leaks","status":"publish","type":"post","link":"https:\/\/www.smartinsights.com\/traffic-building-strategy\/integrated-marketing-communications\/increase-profit-identifying-marketing-profit-leaks\/","title":{"rendered":"How to increase profit by identifying your marketing profit leaks"},"content":{"rendered":"<h2>A checklist of the 13 most common touchpoint leaks<\/h2>\n<p>Over nearly two decades in marketing, and across well over 200 businesses \u2013 from as large as Microsoft and as micro as the back bedroom \u2013 I have yet to find a single one that isn\u2019t leaking potential profit somewhere in their marketing operation. And, even those that have it pretty tight can usually notch it up with a few judicious tweaks.<\/p>\n<h3>Categorising marketing profit leaks<\/h3>\n<p>In pulling all this together, I found that profit leaks fall into two clear categories. The first, and most obvious, are those that relate to how you interact with the outside world. That is, the touchpoints with customers, potential customers, or anyone else who might encounter your business. Of these, I have defined thirteen typical ways that most businesses lose money in their marketing.<\/p>\n<p>The second category is what I call the Foundation Leaks, and they are far more to do with the business leader\u2019s commitment and attitude to marketing. These are a little harder to define. But, if your business is suffering from one or more of these, the fixes you make to the touchpoints rarely hold fast.<\/p>\n<h3>The Thirteen Touchpoint Leaks<\/h3>\n<p>In my article last month, I mapped the <a title=\"The Consumer Buying Decision Process\" href=\"http:\/\/www.smartinsights.com\/marketplace-analysis\/customer-analysis\/consumer-decision-buying-process\/\">consumer buying decision<\/a> against the sales funnel. Today, I want you turn your thinking about the sales funnel on its head. I want you, for the moment, to stop thinking about how to pour more into the top and look instead from the bottom up. This way, when you do come to spend time, money and energy telling the world about what you do, you\u2019ll get more back.<\/p>\n<div id=\"attachment_34369\" style=\"width: 560px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/thirteen-touchpoint-leaks-si.001.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34369\" class=\"size-medium wp-image-34369\" alt=\"Thirteen Touchpoint Leaks\" src=\"http:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/thirteen-touchpoint-leaks-si.001-550x733.jpg\" width=\"550\" height=\"733\" srcset=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/thirteen-touchpoint-leaks-si.001-550x733.jpg 550w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/thirteen-touchpoint-leaks-si.001-112x150.jpg 112w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/thirteen-touchpoint-leaks-si.001-250x333.jpg 250w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/thirteen-touchpoint-leaks-si.001.jpg 600w\" sizes=\"(max-width: 550px) 100vw, 550px\" \/><\/a><p id=\"caption-attachment-34369\" class=\"wp-caption-text\">The Thirteen Touchpoint Leaks<\/p><\/div>\n<blockquote><p>In fact, by addressing the Thirteen Touchpoint Leaks from the bottom up you won\u2019t need to pour as much in the top to get the same, or better, results.<\/p><\/blockquote>\n<p>So, starting at the bottom, here are the most common ways that people lose customers and profit, from their marketing operation:<\/p>\n<ul>\n<li><strong>Leak One \u2013 Forgotten Customers:<\/strong><\/li>\n<\/ul>\n<p>This is when you\u2019ve forgotten about them, so they forget about you. This either manifests in limited contact after you\u2019ve taken their cash, perhaps only getting back in touch when the next invoice is due. The best marketing operations have effective customer communications that maintain and strengthens the relationship over time.<\/p>\n<p>The other way this shows up is that your contact changes in tone\u2026 you start to take them for granted in a way you never would with a prospect. I had a prime example of this in January. Back at my desk for the first time in 2014 on 2nd January, I received an email from a professional services supplier. There was nothing personalised in the email. No \u2013 \u2018Happy New Year\u2019 or \u2018How was Christmas?\u2019 \u2013 just the signature block and an attached four-figure invoice.<\/p>\n<blockquote><p>Wow, I felt special!<\/p><\/blockquote>\n<ul>\n<li><strong>Leak Two \u2013 Poor on-boarding:<\/strong><\/li>\n<\/ul>\n<p>There\u2019s a key period between when someone decides to buy from you, and when they consider themselves a customer. I call this the Welcome Window. Many businesses make the mistake of thinking that the act of handing over cash makes someone a customer. And, whilst this might be true on paper, it certainly isn\u2019t psychologically. At least not a satisfied or loyal, or indeed profitable, customer.<\/p>\n<p>What they\u2019ve bought has to deliver on the promises you made during the sales process before they will know whether their need has been satisfied. Great marketing maps out the first few steps from purchase decision through to effective use of what they\u2019ve bought. Then seamlessly delivers effective tools and communication to make those steps easy and enjoyable. If you can do this, you\u2019re much more likely to keep that customer. And, their profit.<\/p>\n<ul>\n<li><strong>Leak Three \u2013 No Emotional Connection:<\/strong><\/li>\n<\/ul>\n<p>There\u2019s a little voice that chirps up just before you hand over your money, particularly if it\u2019s a lot of money or an ongoing financial commitment. It asks \u2013 \u2018are you sure?\u2019 It\u2019s a bit like an internal risk alarm. And, it\u2019s emotional\u2026 you\u2019re asking yourself: \u2018Does this feel right?\u2019 or \u2018Do I trust them?\u2019<\/p>\n<p>The very best marketing set-ups overcome this by making an emotional connection with their buyers. They have that human touch, that\u2019s friendly and approachable. And, their visual and written style is completely consistent, never sowing any seed of doubt by changing style or looking messy.<\/p>\n<blockquote><p>Making sure your business looks and sounds right, consistently, is one of the best ways to overcome this pre-purchase hurdle.<\/p><\/blockquote>\n<ul>\n<li><strong>Leak Four \u2013\u00a0<\/strong><strong>No Gateway:<\/strong><\/li>\n<\/ul>\n<p>How easy is it for people to buy from you? Many businesses make the mistake of giving people too much choice over what and how to buy from them. Particularly, but not only, consultants or knowledge businesses. This is like a restaurant that gives you no menu at all, instead asking you to choose your meal from a blank sheet of paper.<\/p>\n<p>Designing a set or packages, bundles or example services, particularly as part of a product ladder, helps buyers to understand and visualise how they might work with you. It whets their appetite. Again, like a restaurant, having a bit of a set menu as well as your a-la-carte, can help people choose something quickly. And, if you get it right, come back for more.<\/p>\n<ul>\n<li><strong>Leak Five \u2013 No Critical Approval:<\/strong><\/li>\n<\/ul>\n<p>Somewhere around here in a typical buying decision, particularly a high-risk one, a key third party will be consulted. In a consumer setting this might be a friend, or a partner. In a business context, it\u2019s often a colleague or boss. If that person says no, there is no sale. If your buyers are subject to veto by a third party, then your marketing operation needs to include something that gets that third party on side.<\/p>\n<ul>\n<li><strong>Leak Six \u2013 No Proof:<\/strong><\/li>\n<\/ul>\n<p>Somewhere along the way you are going to promise something. You are going to say that by choosing product x, your buyer will enjoy certain benefits. If, when you do this, there\u2019s no proof to back up your claim, you\u2019ll definitely lose a few potential buyers at this point.<\/p>\n<blockquote><p>The best marketing operations are systematic about signposting proof against every promise that they make.<\/p><\/blockquote>\n<ul>\n<li><strong>Leak Seven \u2013 Information Overload:<\/strong><\/li>\n<\/ul>\n<p>In the early stages of a buying decision, most people will be considering more than one option. Or, they may not actually have decided to buy anything, they\u2019re just curious. If you wade in at this point with heavy sales information, you\u2019ll almost always put people off.<\/p>\n<p>Instead, try to provide a steady stream of invitation information \u2013 the kind of thing that they can read on their Smartphone on the journey to work, that piques their interest and draws them into actively wanting to find out more.<\/p>\n<ul>\n<li><strong>Leak Eight \u2013 Not represented for <em>how<\/em> they\u2019re looking:<\/strong><\/li>\n<\/ul>\n<p>This is about the format of that information. If a CEO has asked for a pack of info on a given subject to read on a plane or train, you can be pretty sure it will get printed out on paper. So, a video would be no good. But, if your researcher is the type to pop in their headphones and browse YouTube in their lunch break, not having a video is a missed opportunity. You need to research not only what people want from you, but also how they want it.<\/p>\n<blockquote><p>Having the right information, in the wrong format, is a complete waste of money.<\/p><\/blockquote>\n<ul>\n<li><strong>Leak Nine \u2013 Not showing up <em>where<\/em> they\u2019re looking:<\/strong><\/li>\n<\/ul>\n<p>This is about channel selection. What media do your buyers consume? What social platforms do they use? What events do they attend? By carefully researching this from your buyers\u2019 perspective, you can make great decisions about where you put your best stuff.<\/p>\n<ul>\n<li><strong>Leak Ten \u2013 Not showing up <em>when<\/em> they\u2019re looking:<\/strong><\/li>\n<\/ul>\n<p>Let\u2019s imagine you have great invitation information, in exactly the right format put out on the right channels, but it just doesn\u2019t come to hand at the right time. Yep, another potential leak.<\/p>\n<p>Do some research on how your buyers structure a typical week and their day. Marry this with a good understanding of the seasonality in your market, and you can plan a marketing activity plan that means you show up when they are most likely to be looking.<\/p>\n<ul>\n<li><strong>Leak Eleven \u2013 Not mentioned by <em>who<\/em> they ask:<\/strong><\/li>\n<\/ul>\n<p>When you\u2019re thinking of buying something, do you ask your friends or colleagues? I certainly do. And, in a socially-connected world, those \u2018friends\u2019 might be hundreds of miles away, only pictured as an Avatar. By mapping the people your buyers turn to at the early stages of their research, you know where you could be working to generate that all-important word of mouth.<\/p>\n<ul>\n<li><strong>Leak Twelve \u2013 Not known for <em>what<\/em> you do:<\/strong><\/li>\n<\/ul>\n<p>This is possibly the most galling of all the leaks. It\u2019s when people know you and your business, but they have you filed wrong in their minds. They don\u2019t really know what you do, or they have you pegged for something you used to do years ago.<\/p>\n<p>You can usually track this sort of mis-filing to what you talk loudly about. If you\u2019re constantly moaning about the work you don\u2019t want to be doing, rather then talking up the stuff you want more of, what do you think people are going to have in their minds about you? The best marketing set-ups make sure that a good 80% of the noise out there about their company is at least broadly on-message. Leaving a bit of room for the kind of banter that oils personal relationships.<\/p>\n<ul>\n<li><strong>Leak Thirteen \u2013 Not Emotional Impact:<\/strong><\/li>\n<\/ul>\n<p>Here, at the top of the process, it\u2019s about impact. If something is dull, you won\u2019t notice it. If something makes you feel something, you can\u2019t help but notice it. Your products and services might logically be the best in the world. But, if you present yourself in a boring or lifeless way, you can be sure that a good few potentially profitable customers will not have noticed.<\/p>\n<h2>Create a Traffic Light report for your business<\/h2>\n<p>The best way to use this list to step up your marketing is to do a Touchpoint Leaks Traffic Light Audit. This is often best used as a three-year, or three-phase action plan.<\/p>\n<div id=\"attachment_34373\" style=\"width: 460px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/3-yr-plan.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34373\" class=\"size-full wp-image-34373\" alt=\"Three year improvement plan\" src=\"http:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/3-yr-plan.jpg\" width=\"450\" height=\"194\" srcset=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/3-yr-plan.jpg 450w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/3-yr-plan-150x64.jpg 150w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/3-yr-plan-250x107.jpg 250w\" sizes=\"(max-width: 450px) 100vw, 450px\" \/><\/a><p id=\"caption-attachment-34373\" class=\"wp-caption-text\">Use your audit to create a three year action plan<\/p><\/div>\n<p>Go through the list setting a Red, Amber, Green flag for your business against each leak. Then, go to the bottom and address each Red item in turn up the funnel. Then, go back to the bottom and address each Amber leak in turn. Then, back to the bottom to review and tweak anything on Green \u2013 because, nothing is perfect!<\/p>\n<p>Oh, and those Foundation Leaks? I\u2019ll be exploring those right here in a few months\u2019 time.<\/p>\n<blockquote><p><a href=\"http:\/\/watertightmarketing.com\/about-the-book\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-thumbnail wp-image-34383\" alt=\"Watertight Marketing\" src=\"http:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/WMbook-148x150.jpg\" width=\"148\" height=\"150\" srcset=\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/WMbook-148x150.jpg 148w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/WMbook-550x556.jpg 550w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/WMbook-600x607.jpg 600w, https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/02\/WMbook-250x252.jpg 250w\" sizes=\"(max-width: 148px) 100vw, 148px\" \/><\/a>Thanks to\u00a0Bryony Thomas for sharing her thoughts and opinions in this blog post. She is Author and Founder of\u00a0<a title=\"watertightmarketing.com\" href=\"http:\/\/www.watertightmarketing.com\/\" target=\"_blank\">Watertight Marketing<\/a>, and a no-nonsense marketer and business speaker, specialising in helping ambitious small businesses set things up. Her blog post is adapted from her 5-star book, Watertight Marketing, described as an entrepreneur\u2019s step-by-step guide to putting a marketing operation in place that delivers long-term sales results. You can download a <a title=\"Watertight Marketing - Free sample chapter\" href=\"http:\/\/watertightmarketing.com\/about-the-book\/free-sample-chapter\/\" target=\"_blank\">free sample chapter<\/a>\u00a0or\u00a0connect with her on<br \/>\n<a title=\"Watertight Marketing company page\" href=\"http:\/\/www.linkedin.com\/company\/3339969\" target=\"_blank\">LinkedIn<\/a>,\u00a0<a title=\"Twitter bryony thomas\" href=\"https:\/\/twitter.com\/bryonythomas\" target=\"_blank\">Twitter<\/a>,\u00a0<a title=\"google+ bryony thomas\" href=\"https:\/\/plus.google.com\/u\/0\/+BryonyThomas\" target=\"_blank\">Google+<\/a>\u00a0or\u00a0<a title=\"Facebook Watertight marketing\" href=\"https:\/\/www.facebook.com\/WatertightMarketing\" target=\"_blank\">Facebook<\/a>.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>A checklist of the 13 most common touchpoint leaks Over nearly two decades in marketing, and across well over 200 businesses \u2013 from as large as Microsoft and as micro as the back bedroom \u2013 I have yet to find &hellip;..<\/p>\n","protected":false},"author":32391,"featured_media":34369,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_glsr_average":0,"_glsr_ranking":0,"_glsr_reviews":0,"footnotes":""},"categories":[838,412],"tags":[736,834,1151],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to increase profit by identifying your marketing profit leaks | Smart Insights<\/title>\n<meta name=\"description\" content=\"A guide to audited your end-to-end marketing operation to identify and prioritise the most common profit leaks. 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