#JTInTheRaw Show 17: Up Your Customer Communication & Key Tips To Marketing

Show 17 coming to you LIVE from BrisVegas this morning! What a thriving metropolis this place is!

Thanks for tuning in this morning to my musing on business and life.

Congrats to the Aussie Netball Diamonds on winning the Constellation Cup last night after defeating the Kiwi’s.  Well done girls!

If you hang around for all of today’s show then I guarantee you will learn a profound marketing concept that COULD change how you promote your business!

But first a rant . . .

#JTRant

At the end of my rant, I promise there is a customer service message for you in your business!

Ok I need to unload and you guys and girls are going to hear it . . .

We are currently getting some renovations done.  Well actually that’s not quite correct we have paid our deposit and we are 4 now weeks past the original start date, so I guess using the word ‘getting’ may not be quite correct.

Now I am not going to bore you with the details of the challenges we have had with our builders but my rant is this . . . if you are dealing with customers that have NFI then you MUST up your communication! In fact, even if they have an idea then up your communication!

As virgin renovators we don’t know the in’s and the out’s.  We are not aware of timelines of previous jobs, staffing levels, and any other bull shit variable that has been given to us over the past 4 weeks.

The result of poor communication:

• Before the renovation has begun, we already are not feeling the love;
• We distrust our project manager as we feel he has stretched the truth with us;
• The likability rating of our project manager is negative because he is not attempting to connect with his customer;
• It is obvious the business owner promises one thing to get the business and the foot soldiers can’t meet those expectations resulting in: over promising and under delivering!

In the last 4 weeks we have experienced first hand how NOT to do business! And to be honest we are suffering massive buyers remorse but a signed contract and a huge deposit means it is too hard to change.

Rant over . . .

Now I know many of you thinking “Wow JT! That’s a first world problem!”  It is not a major thing for you but for us it is a big expense and a major decision for us.  So don’t judge.

So what are the lessons for all of us in business:

1. Communication with new clients. I talked about onboarding new customers back in show 14, if you haven’t watched that show put 14 in the comments below & I’ll share the link with you. Don’t assume your new customers know anything. Help them, coach them and communicate with them.
2. Ensure people in your business don’t operate in silos. If you are unaware of what each other are doing, you may well promise something that cannot be delivered by your team and that breeds distrust between you and your customer.
3. Employ people who smile! A smile boosts the likeability rating of your staff and when you have people representing your brand who don’t smile, it makes connecting difficult – if not impossible.

#AskJT

If you have questions for me, tweet them using #AskJT, Facebook me or email me!

And I have two questions to answer this week on marketing!

The first question from Donna all the way from the US of A who asked me “What should my marketing budget be?”

This would be one of the most common questions I receive and the answer is possibly simpler than you think: as much as it takes Donna to get the customer you want!

There is some background work we need to do first Donna.  Let me explain . . .

Firstly, you need to know the life time value of your customers.  That is how much is a customer worth in their life as a customer with you.

For example, on average your customer stays 20 months and pays you $100 a month.  The average life time value of a customer is $2000.

• Step 1 in your business – no matter the business you are in – know the life time value of your customer.
• Step 2 is know the profit margin in that life time value. So following the same example, let’s assume that the cost to service that customer is $800 – so you make $1200 profit!

Now Donna let me answer your question this way . . . if I said to you I can guarantee you a new customer who will meet your $2000 life time value and therefore produce you $1200 profit with an advertising piece that will cost you $200 would you do it?

Absolutely.

What about 400 bucks? That would mean your profit drops from 1200 to 800 bucks. I think you’d be tempted.

So how much should your marketing budget be?

Your budget then: what ever you are prepared to spend to get a customer who will reach or exceed your life time value of a customer.

Give me a thumbs up if you like that answer?

My second question this week comes from Dave from New Zealand.  Thanks Dave for reaching out and asking “What should I put in an advertising piece?”

Well Dave, the answer to that is HUGE! But I am going to simplify it as much as possible . . .

You should put in your advertising piece – whether that be a printed flyer, an email, a video, a Facebook ad (ie any type of marketing piece) – the advantage to them for using your product or service.

You should put in your advertising piece the advantage to them for using your product or service.

The consumer when deciding to purchase something is self-centred.  They’re buying a result for themselves.  They’re not buying the product they are buying what benefit they will get from you.  It is a selfish and self serving decision.

The only reason this customer is going to deal with you moving forward is because you are going to help them.  Acknowledge that Dave and in your marketing piece show, tell, prove, articulate, explain, educate or convince them that you can help them.

Does this help Dave?

Give me thumbs up if you like my answer.

Remember send your questions to me for show 18 by using #AskJT on Twitter or the comments below or email me directly.

Next Week

After 2 weeks of heavy travel, next week is just a day trip to Melbourne for the Personal Trainers Industry Leaders Roundtable next Thursday.  So that gives me 3 days to work on my business.

I am getting my butt kicked by Alicia for a long list of items on my to do list NOT done.  So I plan next week to tick off some of those items.  This includes working on the Fitness Business Podcast, writing Active Management’s Green n Growing enews, and excitingly prep’ing for clients I’m working with in Perth in 2 weeks.  Can’t wait to get over there!

I will be following up on my to do’s from my Roundtable meetings over the past 2 weeks.

Next Friday is the NSW Personal Trainers Industry Leaders Roundtable.  We are visiting a brand new studio and I can’t wait to see it!  So I’ll sneak in #JTInTheRaw show 18 just before we kick off the Roundtable.

Remember please share the show if you think there is someone who should go to war for talent, should join the Industry Leaders Roundtable to enhance their business or come to FitnessBiz Brunch.

Quote of the Week . . .

“In your marketing show, tell, prove, articulate, explain, educate or convince your customer that you can help them..”

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