20% of Your Businesses Are Probably Responsible for 80% of Your Turnover …. and Fractals Dictate There Are Huge Profit Opportunities With The 20%
Definition of a Fractal: a graphical curve or geometric figure, each part of which has the same statistical character as the whole.
Businesses and people are predictable, far more predictable than many people think. Economist Vilfredo Pareto was aware of this and described the Pareto Principal with regards income distribution.
But it applies to other situations as well. The Pareto Principle is actually a fractal in that the same relationship exists as you drill down through your business. 20% of your customers will either buy 80% of your goods or contribute 80% of your profits. And if that 20% you’ll find that 20% of them are super customers and contribute 80% of the 80% ….. well you get the idea.
It takes some doing getting your head around this but it is important that you do because when it comes to profit not all customers are equal.
In business fractals are all around you. Take football, a huge number of people watch the game in the pub. It cost s them a glass of beer. Of these people 20% can be persuaded to buy a ticket to go to a game. 20% of them will buy a season ticket. 20% of them will take a box. And a few of them will buy a club!
Of course 20% doesn’t hold true in every single case but you get the idea I’m sure. There is a,ways a percentage that can be unsold to the next level.
Keeping In Contact With Customers & Prospects Without Email
In this post I want to share a recording I did with my colleague Ian Brodie. Ian is Mr Email and wrote the definitive book on the subject. So me saying I don’t use email is an interesting proposition for an interview.
Did sparks fly? Of course not.
But you might find a few thoughts that create flames for you and your business.
We read a lot about SEO and ensuring that we use the right keywords in our content to ensure we come high up on the Search Engine Results Pages. But to do this, and get highly ranked, we need to know what the online searcher intent is.
Are they just merely curious, doing actual research, want to buy, want to recommend to a friend or something altogether different? People’s intentions are not always obvious, so, when writing content, we need to make some assumptions if our webpage is to match their actual needs. Continue reading →
Value Based Pricing is an Alternative Pricing Strategy Few FE Providers Use
Most FE Providers ignore Value Based Pricing Strategies and go for Flat Pricing with a single option. For example, a course is charged at £195 per person. There are no other options.
This is a quick and easy way to quote but it means you are going to be compared with your competitors on price. And that means someone will always try to do it cheaper and, even if you get the work, the margins are very slim.
College Restaurants are about to hit the news. Some providers are about to announce expansion plans with city centre commercial premises .. and others are quietly closing their restauarants.
Neither route is necessarily the one other providers should follow. But we all should ensure our commercial activites are there for the right reason. And that has to be to provide our students with the very best training and education we can provide. They deserve no less.
Sadly many providers close over the summer period and, whilst i agee that staff need a break, I’m not convinced college restaurants should close over the summer.
Frequently I’m Told Employers Will NOT Pay a Premium .. or sometimes anything at all.
That’s NOT True
Employers will pay much more than most people think when buying courses for themselves or highly valued staff.
The trick is to tap into what they value or need most.
Employers are people and people value the little extras in life .. such as
Luxury (the feeling of)
Process (if it’s unique)
Passing Responsibility (the transfer of it…to you)
Think about the businesses that YOU pay a premium to…
What do they give you that makes you happy to pay extra?
Coffee shops; most charge a high premium on coffee fees. In return you get a distinct ambiance, great coffee, comfortable seating and (usually) good music.
Apple, Their computers and phones are really expensive. You can pay 100% – 400% premium on their computers. But in return, you get a Apple shops which provide a much better experience, a great feeling when opening the box plus good customer service.
Even the simpler, more innovative design implies clarity.
What Employers Will Pay For
Employers will pay extra if you provide some, or all, of the above.
The first step is to answer the phone correctly. These people are responsible adults that run businesses. Far too often when I speak to providers on the phone I feel like they are treating me like a school leaver. There is no need to be abrupt or appear superior!
I’m sure staff don’t set out to appear like this .. but sadly some definitely come over like this.
So start by thinking about the people you are dealing with and what they expect. Provide this as a minimum and then try to exceed their expectations. You can then base your prices on this level of service and see significant income improvements.
You will also stand out from the crowd when bidding against other providers.
Knowing Our Customers Social Media Profile is Essential for Cost-Effective Marketing
I’ve talked about profiling our customers social media responses before, And you probably realise I have concerns about the volume of poorly used social media being used by providers. Customer profiles are a vital marketing tool.
It isn’t that I’m totally against social media. It is that far too often the wrong platforms are often used, messages sent tend to be a bit vanilla and there are far too few calls to action for my liking. Certainly social media is meant to engage. But it should never bore. And every marketing campaign should have some measurable outcome; preferably a sale of some sort.
Major costs are incurred in aggregating the course and other information required. More costs are incurred in designing the hard copy publication. Printing is a huge cost. And distribution, especially via the post, can add another huge bill to the total cost.
As Principal I employed very few consultants but did employ Stefan on the basis of a clear ROI.
I would recommend him to any college, university, business or Government agency as a reliable consultant who will become indispensable.
Ioan Morgan CBE Latterly FE College Principal & CEO
He certainly does what he says on the tin...... I've worked with Stefan for many years and he has an uncanny knack of cutting through the ****, focussing on the essentials and coming up with creative and inexpensive marketing ideas that work.
Stefan isn't called the 'Marketing Magician' for nothing you know !
His ability to see marketing solutions that really work is second to none, without spending a fortune.
I think Stefan's great strength is taking problems and solving them, in a clear and positive way, without a whole lot of jargon.
I recently had the pleasure on working with Stefan on publishing a new marketing book. "Creating Business Growth" quickly became a Bestseller in several countries around the world. This project came together and was guided from concept to successful completion by a true leader. That leader is Stefan Drew. Stefan is an experienced marketer and I highly recommend him.
Stefan is very thorough in his research and understanding of a clients requirements. He has a proven record of delivering comprehensive strategic marketing plans that address education / FE issues critical to the ongoing success of a ...MoreStefan is very thorough in his research and understanding of a clients requirements. He has a proven record of delivering comprehensive strategic marketing plans that address education / FE issues critical to the ongoing success of a college. I would recommend considering Stefan for any project that involves strategic planning, communication or digital marketing.
I have worked with Stefan and have learnt a lot from him. He has extensive knowledge in digital marketing and he is keen to share his passion for the kind of deep audience insights that digital marketing can offer. ...MoreI have worked with Stefan and have learnt a lot from him. He has extensive knowledge in digital marketing and he is keen to share his passion for the kind of deep audience insights that digital marketing can offer.
His enthusiasm for marketing is infectious and he is a joy to work with.
Stefan is a valuable and regular source of sage advice and counterintuitive thinking. His tips on media and visibility have benefited my both clients and me and he always has an insightful perspective to share. If you get the chance to work with him, take it!
Stefan drew from a wealth of marketing and educational sector knowledge to provide suggestions, solutions and ideas which proved to be effective and beneficial to the organisation. I would have no hesitation in seeking his expertise in the future.
Stefan has a wealth of practical ideas to solve your ,marketing problems, based on a lifetime of experience in the real world. His down to earth approach is easy to implement and he's very adept at saving money, helping you focus on marketing that will get you new clients or more business
Having experienced a wide range of corporate marketing "experts" over the years, Stefan offers a very different cool and pragmatic approach. Without looking to simply throw money at the problem, he finds different ways and I've seen some great results.....