What is Leverage?

Are you looking for ways to increase the frequency, volume, and profits from existing clients and customers?

That’s wise.
The best way to increase profits quickly is to leverage current marketing opportunities that already exist in your business.
What is marketing leverage? Marketing leverage is the ability to control and generate large profit increases from low-cost or no-cost marketing methods. This could be either offline marketing or through smart use of internet marketing. Or both.

For example, when a buyer has committed to spend money with you, it takes no extra expense to leverage a second or third purchase than it takes to make a single sale. Point of purchase incentives. “Super-sizing.” And continuity programs are just some of the examples of marketing leverage.

How NOT To Leverage A Business

The more frequently clients buy from you, the more money your company ultimately generates. That’s a good thing. One way NOT to attempt to increase buying frequency though is by offering frequent and regular discounted sales. These types of sales cheapen the overall perceived value of the product or service being offered.

Frequent discounted sales stymie growth because buyers are conditioned to wait to receive discount offers. So instead of buying whenever they are hot to purchase, they wait. And wait. And wait. This is a win/lose proposition.

There are more effective ways to increase buying frequency while maintaining credibility and keeping interest for offers high, year long. Not just when you scream ‘sale’.

One tool for leveraging existing marketing efforts is to implement an autoship or auto-renewal program into your current marketing and sales process.

One company generated over $100 million dollars in sales in less than three years by using this marketing tactic as their core company strategy.

This marketing strategy works for all direct sales businesses and most manufacturers as well. And it is especially powerful for retail sales. Unfortunately few companies use it.

A Real World Example

Usually I tune out ‘propaganda’ that plays on the audio systems in stores. But this time…something caught my ear.

The recorded voice blaring over the intercom system at my local pharmacy was making known that now my pharmacy offers a new ‘auto prescription renewal’ service. With this special program the pharmacy will kindly auto-fill all of your prescriptions for you and call you every month to remind you to pick up your prescription.

And the ‘nice’ thing is…you don’t even have to remember to schedule your renewal. The pharmacy handles everything for you.

How nice of them to go through all this work for thousands of customers, right?

Wrong. Actually, there’s a profit-center motive behind this scheme. Think about it. The pharmacy doesn’t earn a penny on prescription refills that go unfilled. So this really is a method to stop client attrition and boost prescription renewal frequency — without dropping prices.

The win to the customer is less hassles with remembering to call in, and less hassle having to stand in line to refill prescriptions. The win to the pharmacy is increased renewal frequency from what could be otherwise disloyal or forgetful pharmacy clients.

Though increased profits is the motive here, everyone wins from this arrangement. Win/win is the only way to make this type of leverage work.

Is Marketing Leverage Right For You?

Probably. But maybe not.

We offer 48 marketing leverage programs. Perhaps one or more of these programs will fit the bill for you. There’s only one way to find out though.

Contact us online to find out.

This is not a sales pitch call. We simply want to learn about your situation and objectives. And if we feel there might be a match between us, we’ll propose a specific way in writing for us to prove these capabilities to you. What you decide to do after that is your choice.