Generating Cash Flow
for Marketing in Lean
Times….and Using It
Wisely
Coach Thom Finn

Coach Thom Finn: Owner/Partner Harrisburg/LancasterCoach Thom Finn: Owner/Partner Harrisburg/Lancaster
OfficeOffice
 Named “Global Coach of the Year/Client Results” in Sydney forNamed “Global Coach of the Year/Client Results” in Sydney for
2009. Coach of the Year/Client Results for2009. Coach of the Year/Client Results for all of North & Southall of North & South
AmericaAmerica 2009 & 2008, finalist Global Coach of the Year in 2007.2009 & 2008, finalist Global Coach of the Year in 2007.
Average increase in client net income increase :31%Average increase in client net income increase :31%
 Strong back ground in revenue creation/marketing & salesStrong back ground in revenue creation/marketing & sales
strategies, sales person coaching, certified copywriter, residentstrategies, sales person coaching, certified copywriter, resident
expert on web-based copyexpert on web-based copy
 Practitioner of Theory of Constraints Consulting in organizationsPractitioner of Theory of Constraints Consulting in organizations
with faster results to profitability than standard approacheswith faster results to profitability than standard approaches
 Specializing in leadership/management coaching with those whoSpecializing in leadership/management coaching with those who
have focus/ADD ADHD challengeshave focus/ADD ADHD challenges
 In addition to a full-time Coaching schedule ThomIn addition to a full-time Coaching schedule Thom
also owns and runs a turn-key business thatalso owns and runs a turn-key business that
generates overgenerates over $2 Million/year and 28% net profit$2 Million/year and 28% net profit
with virtually no investment of time.with virtually no investment of time.

Learnings….
Blinding Flashes of the Obvious
BFO’s
Write Them Down
A Poorly Written Note is Better Than..
A Great Thought Forgotten

And your Commitments to Do
 BFO’s  To Do’s

To Make Sure You Get the
Most Out of Your Learning ...
I
KNOW

7.5 Tools to Get the Most Out of Your
Marketing Dollars…
1. Know “Your” Math
2. Ideal Customers - Get Your Target Right
3. “Differentiation/USP”
4. “Test & Measure”
5. “10 by 10”
6. “5-Ways”
7. Marketing Campaign “Break-Even”
8. Writing Ads that Work7.5.

KNOW your Math….The “Math” of
Discounting and of Price Increases....
40% gross margin
10% price change = 25%
profit change
With a 10% Discount, what increase in
customers do you need to break even?
60 60 60
40
30
50
0
20
40
60
80
100
120
Base 10% Discount 10% Increase
Profit
Variable/Direct Costs
33%
1

Know Your Price Increase
Math…
Margin
Price
Increase
Profit
Increase
Decrease
in
Customers
to Break
Even
20% 10% 50% 33%
40% 10% 25% 20%
40% 20% 50% 33%
60% 10% 17% 14%
80% 10% 13% 11%
1

2
Here’s
your
target!

Differentiation…Unique
Selling Position
3

*List 10 Ways Your
Business is Unique
Friendly staff
√
√
√
√
√
If your competitors can
say it, then it's not
unique!
Shop is clean and tidy
We have a 24 hour money-back guarantee
Stock in a range of sizes
We have a unique 8-step fitting program to
ensure that our staff fit you correctly
All of our staff attend an intensive 2 day
color co-ordination training program
We are well established
We care about you
We have a pick-up and delivery alteration
service to and from your home
We have 28 different brands of coffee and tea just so
you and your friend can enjoy your time with us
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

With Proper Differentiation….

Four Steps to Make Your Business Stand Out
1. Survey your best & most loyal customers
a) Know what makes you valued from their point of view
b) What separates you from competition in their eyes
c) Is this what you thought made you different?
2. Narrow their insights into a 1 -2 sentence value
statement
3. Use that statement to drive all communications
4. Test to stay on-track and at the top
Family Owned, Honest, Friendly, XX Years in Bus.

My USP
 Free- No Strings- Restraining Order
Ready- Coaching Session
 Coaching Programs from $280 to $1700
a month
 Every Session Guaranteed or $ Back
 Cancel at any time

So, why do you track your checkbook better
than your key business metrics?
4

4…..HOW to Test and Measure
 How Did You Hear About Us
 Point of Sales
 ACT!, Salesforce, CRM
 Interview customers
 Track in excel
 Peak time periods only

The Rule of “10 by 10” ...5

Who wants more…..
Number of Leads
x
Conversion Rate
=
Customers
x
# of Transactions
x
Avg. $$$ Sale
=
Revenue
X
Margin
=
$ Profit $
6

With just a 10% increase...
Number of Leads
X
Conversion Rate
=
Customers
X
No of Transactions
X
Avg. $$$ Sale
=
Revenue
X
Profit Margins
=
$ Profits $
4,000
X
25%
=
1,000
X
2
X
$100
=
$200,000
X
25%
=
$50,000
4,400
X
27.5%
=
1,210
X
2.2
X
$110
=
$292,820
X
27.5%
=
$80,525

A 10% increase in each of the 5 areas will
result in a 61% increase in Profits?
Do it 2 years in a row and your profits will
increase by 159% compared to baseline?
Number of Leads
x
Conversion Rate
=
Customers
x
# of Transactions
x
Avg. $$$ Sale
=
Revenue
x
Profit Margins
=
$ Profits $
Did You Know That...

Number of Leads
x
Conversion Rate
=
Customers
x
# of Transactions
x
Avg. $$$ Sale
=
Revenue
x
Profit Margins
=
$ Profits $
How We Will Apply the Rule of “10 by 10”
to Grow Your Business...
Work on 5 LG Strategies
Work on 5 CR Strategies
Work on 5 #T Strategies
Work on 5 Avg. $$ Sale Strategies
Work on 5 PM Strategies

Marketing Campaign Break-Even
Analysis
Total Cost $ ______
divided by
Average Profit ($) per Customer $ ______
equals
Number of Customers Required ______
divided by
Measured Conversion Rate ______
equals
Number of Leads Required ______
What is the probability that the campaign will
generate the required number of Leads?
7

Test AdvertisementTest Advertisement AA BB
Advertisement CostAdvertisement Cost $1,000$1,000 $1,000$1,000
No. Of LeadsNo. Of Leads 1,0001,000 100100
Conversion/SalesConversion/Sales 100100 5050
Ave $$$ SaleAve $$$ Sale $500$500 $1,000$1,000
Ave $$$ ProfitAve $$$ Profit $200$200 $200$200
Lifetime ValueLifetime Value $5,000$5,000 $10,000$10,000
ReferralsReferrals 1010 22

Calculate Your Campaign
Break-Even Point
$2500 Direct Mail Campaign
Start with 5-Ways Data
 Average $ Sale
 Average Profit
 Conversion Rate
Use prior Test & Measure Data
 Response rate from targeted DM = 1.5%

Calculate Your Campaign
Break-Even Point
Cost = $2500
Avg. $ Profit = $25
# Customers Req’d = Cost/Avg. Profit Per Customer
= $2500/$25 = 100
Conversion Rate 20% (Measured – not guessed)
# Leads Req’d = # Customers Req’d./Conv. Rate
= 100/0.20 = 500
# Leads Expected = # Pcs. X Response Rate
= 10,000 x .015 = 150

1. Using your company name as the headline…
2. Not using the word “You” or some
connotation in the headline…
3. Not opening a “loop”… Where the prospect
has to continue reading to get the answer…
4. Not having a clear “Call To Action”…
5. Trying to do/say too much…
Writing Ads that Work… 7.5

 The Headline is the ad for your ad…
 Does it select the right readership?
 Does it invoke curiosity? A promise of meaningful
benefit?
 Will it stop the target market in their tracks?
 20 - 25% of the size of the ad
Writing Ads that Work ….

Headline
Target(s)
Call to
Action
Testimonial
Benefits
Offer
Loop ..”Who do
they want???”
“You”

Seen this lately?
 “Family Owned & Operated”
 28 Years in Business
 “Friendly” or “Professional”
 Fully Insured
 Caring, Trained Staff
 On-Time Service

Benefits
USP
Call to Action
Scarcity

Applied to Websites: Before

Applied to Websites: After

Putting the Puzzle Together
“USP”
“Test &
Measure”
“10 by 10”
“5-Ways”
“Ads that
Work”
“B-E
Analysis”
“Ideal
Target”

“I look around for 1-foot bars that I can step over.”
~Warren Buffet
“I don't look to jump over 7-foot bars:

From Your BFO Sheet….

And your Commitments to Do
 BFO’s  To Do’s

Do you REALLY want to get
this stuff done?
No….I just wrote stuff to get you off my back
√
√
What would it be like if
you
EXECUTED what you
wrote down….
Yes…but it’s really not that important
Yes! I do…I really do…
Take the information on Group Coaching
This Presentation avialable…take a blue
sheet

Marketing is…
______.