The 80/20 Rule…Make Way More Money for LESS Effort

Posted: May 27th, 2015 under Motivation & Acceleration.

Have you heard of the 80/20 rule?  It’s a concept that is rooted in economics, but you don’t have to be an economics major to “get this”.  You see, it’s been proven that in business, 80% of your income comes from 20% of your clients.

Wow.  That’s major.  Because that means if you focus your efforts on really engaging and nurturing your business relationships with that 20% group, your results will be exponential.

Identifying the 20%

Now you can try to actually create a 20% list, by doing a little detective work.  If you are an ace at tracking your marketing sources, then you should be able to pull a list together of the people in your database who use you the most frequently, who refer to you most often, and who invest in the most services.

But even if you can’t quite dial in this 20% of your clients by filtering a list, then you can still communicate with them by keeping in great communication with all of your clients.  And guess what?  By default, your top 20% of your clients will start to emerge as they buy more frequently, refer more often, and invest more money in more of your services.

Are You Engaging?

Let’s face it, today your clients, even your top 20% are living in what some marketers refer to as a “marketing fog”.

What does that mean?

Your clients are bombarded by marketing and sales messages 24/7.  Online and offline, billboards, snail mail, email, TV, movies, streaming, apps, computers, tablets, cellphones all hurling marketing messages at you and your clients.

Everywhere you turn there is a message saying “buy” and people are getting better and better at tuning it out.

So if you want to be successful at your marketing, you have to get really good at cutting through this haze and grabbing their attention.

Rules Of Engagement

But don’t worry.  There are ways that you can successfully reach out to your marketplace and engage them.  Here are a few ideas:

Rule #1:  Keep it personal.  Whether it’s your email or your snail mail which ones ALWAYS get opened?  The personal ones right?

So the classic hand written envelope with a live stamp trumps a bulk mail piece every time.  But what about your email?  Think about this, you might have hundreds of emails in your inbox but you always scan through and find the ones from your friends and those are the ones that get 100% open rate.

So when you communicate with your prospects and clients via email, keep it personal looking, send it from your personal account.  (Unless they are expecting correspondence from your company.)

Think about the subject line of your email.  What do your friends write in the subject line when they email you?  Sometimes it’s a simple “hey :)” or it might be a lead in like “dinner this week end”.  And rarely do your friends capitalize their subject lines…it’s all in the details when you’re trying to cut through “marketing fog.”

Rule#2:  Create A Dialogue.  Maybe your clients and prospects are tuning out as many advertising and sales messages as they can…but you know what they are doing?  Engaging in dialogues.  Through Facebook, Instagram, Pinterest, Twitter, Flickr and more people are engaging with each other.

So engage your clients and do it in a way that follows the classic advice of copywriting great Robert Collier, “Always enter the conversation already taking place in the customer’s mind.”

You can create this engagement through social media, just remember using social media to promote your business is a delicate dance because people don’t want to be “sold” through social media.

So you have to have restraint and only use social media as a tool, a “hook” to engage someone to take the next step and contact you.  Example, use your Facebook page to post a picture of your happy client (with his/her permission of course), then post, “Just cleaned for another awesome client!  If you’re friends with (client’s name) and are a homeowner that’s never tried my service you get a free room of carpet cleaning worth $XX”  You can put your number in there too.  Then “tag” the client in the photo so all his/her friends see the post in their news feed.  Engagement.

Or you can try Dean Jackson’s “Magic 9 Word Email” for stellar results.  You simply put the clients name in the subject line and the body of the email says “Are you still interested in getting your carpets cleaned?”  Don’t even sign it, just send it as described and you will create engagement.

Another way to engage people is through surveys.  Create simple surveys using  a tool like Survey Monkey to get your clients and prospects in a dialogue with you.  Through carefully crafted surveys you can find out all your prospects fears, wants and desires, you can even find out who your top 20% really are.  And then  you can answer those by creating valuable solutions for those fears, wants and desires.

But one of the best ways to create engagement, is through a monthly newsletter.  A well crafted monthly newsletter, like the done-for-you newsletter we provide through Piranha, is a surefire way to engage with your top 20% month after month.  In fact, when you implement this tool consistently you will be surprised at how much your repeat and referral business will grow as the 80/20 rule proves itself through this tool of massive engagement.

Rule #3:  Stop Trying To Convince Your Clients To Call You…Instead Compel Them To Call You…

If you “pay attention” to the dialogue from your clients will know how to compel them.  If you’re a professional cleaner, the Rich Cleaner Systems Free Room Offer is the most compelling offer you can make to your clients.  And when done right, and with stellar service and ethics it can make you a ton of money.

What else can you do to compel instead of convince?  Look at areas in your business where you can deliver a powerful, valuable result to your client before you even ask for a sale, and you’ll be a stand out in your market.

Another way to compel your top 20% to respond to your marketing efforts is by creating wow experiences for them and really taking the time to give them recognition for their loyalty and referrals.  This can be as simple as leaving behind an thank you gift, sending hand written thank you notes in the mail, or mailing Starbucks gift cards to thank them when they refer a new client. Or you can take it to the next level and host a client appreciation event at the venue of your choice once per year.  There have been many of our members who have seen HUGE returns on their investment into a client appreciation event done right.

The bottom line is this, if you approach your marketing knowing about the 80/20 rule, and if you work on engaging your clients by being that person that really wants to help people out and not just a company out to sell something and be on your way, then that’s when you’ll cut through that marketing fog, and engage your top 20% again and again, in turn 80% of your income will flourish.  You can’t argue with the laws of economics.

Joel Cohen
Piranha Marketing

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