Every week, I receive emails from business owners about
coaching to grow their revenue, and many of those requests
focus on marketing. It seems most professionals, from
Accountants to Veterinarians, want more customers.
I've developed a formula that helps my clients strategize
their marketing campaigns and it works like this:
R = (N x I) – C
The amount of new Revenue (R) created by a marketing program
is a product of the Number of people (N) in your audience,
multiplied by the Impact (I) of your presentation, minus the
Cost (C) of the campaign. It’s very simple. To increase
revenue, you must either reach more people, increase the
impact of your presentation, or reduce the cost. Here are
three examples.
A radio ad in a major market might reach a million listeners
(N), but the impact (I) will be very small and the cost (C)
may be too high. Changing the ad to a radio talk-show might
still reach the same number of listeners, but by increasing
the Impact, you'll attract more business and perhaps reduce
the cost.
Similarly, a speech to a local service club might have an
audience (N) of only 100 people, but if your presentation
creates enough Impact (I) and the cost of doing it is very
low (an hour of your time, and they'll even buy your lunch),
you may attract several new clients at minimal cost.
If you mail 1000 brochures, and the Impact (I) or "response
rate" is 1%, and the cost of printing and postage is seventy
cents per brochure, then the formula of [R = (N x I) - C]
works out to be: Ten Clients = (1000 x 1%) - $700.
You can attract more business and increase profits by
increasing the Number of prospects, by increasing the Impact
you have on each of them, or by reducing your Costs. Some
people prefer contacting lots of people via the Internet,
while others prefer the personal contact of doing workshops.
Any method can work, but the formula remains the same:
[R = (N x I) – C].
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