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How to increase sales on a budget

Posted 6 years ago in Small business by Beeny Atherton
Posted by Beeny Atherton

When looking to increase sales, you want to invest the least amount of money upfront to get the biggest yield. You also want something that doesn’t cost a lot of your time to run and manage.

We caught up with Debbie Mayo-Smith to hear about an idea that yielded thousands in net profits, all for just $45 upfront.

How to make $451,955 from a $45 investment

By Debbie Mayo-Smith


Debbie Mayo-Smith, small business speaker, trainer and author

Would you like to significantly increase sales and create a lot of new customers? Well you have the ingredients at hand to do just that.

Let me explain. An Auckland hair salon came up with a marketing idea, which is relevant for any business. Your business. The salon owners combined clever thinking with two business ingredients to their advantage (which so many others ignore).

  1. A customer database
  2. Everyday technology


The campaign breakdown

Like many other businesses, the salon had different services. Hair, beauty therapy and makeup. This creates three separate services to cross market to customers. Their software system has built in bulk SMS messaging. They went to their database and selected 500 of their ‘hair’ customers. They sent each a text (SMS) message saying in effect “as a valued customer if you come in and use a make-up or beauty therapy service, you’ll receive a gift voucher of equal value for yourself or a friend.” The SMS messages cost them $45 to send.

This was a targeted, inexpensive, easy and value-add marketing campaign to their clients. They didn’t cannibalize their sales. No offering a percentage off of hair services to hair clients. They cross-marketed additional services not being used by this category of client.

The success by the numbers

A full 60 percent (300 of the 500 text messages sent) took up the offer. That represents 300 non-discounted new pieces of business. Let’s do some math and see what the results of this campaign were.

  • Average voucher spend was $80. Three hundred clients in at $80 is $24,000 in revenue.
  • When the free vouchers were used, the real out of pocket cost for the salon 50 percent or $40.
  • The net gain was then $11,955 (don’t forget the $45 for text messages).

But it doesn’t stop here.

They also gained roughly $440,000 in additional, long term revenue.

I know what you’re thinking. WHAT???

Let’s do some more math. First, we know that 240 of those free vouchers were given to friends, which became a fabulous – and inexpensive – source of new customers.

  • Of the 240 that came in to use the voucher, 110 people returned, becoming new customers.
  • The average spend in a salon is $800 per year.
  • With 110 new clients, a year is worth $88,000 (110 x $800).
  • Long term, let’s say 5 years, those clients are worth $440,000 ($88,000 x 5).

One clever marketing campaign! Net long term revenue $451,955 ($11955 + $440,000).

So how can you do it?

  1. You can create a targeted list of your customers with Xero Smart lists. If you haven’t created your own Smart list yet, watch this 1 min, 40 second how-to video:
  2. This list can be saved as a Microsoft Excel file.
  3. If you have Microsoft Word, and use Outlook, you can do a personalized email merge with your Smart List. You might be familiar with merging documents. You remember, the way you used to create invoices or receipts before you joined Xero. Instead of merging to individual letters, you can merge to email. This means if you have a Smart list of 500 of your contacts, you could, with one push of a button, send 500 individual, personalized emails.
    I’ve created a video to show you how you do a personalized email merge 1 min 39 sec.
  4. If you want to do an SMS message, there are many services online that enable you to merge to SMS rather than to email, and most are very inexpensive.

All you need is a database accessible through Smart Lists, the ability to send emails and an idea on what to communicate with your customers. That’s everything you need to increase sales on a budget.

Written by Debbie Mayo-Smith, one of New Zealand’s most in-demand speakers, trainers and bestselling authors. Debbie works with companies that want more effective staff. For more tips and business ideas sign up for her free monthly newsletter.

One comment

July 3, 2018 at 11.43 pm

You need not to search further if what you are looking for is how to advertise your business. The answer is just on this post. The best way to advertise your business online is by harnessing the effective marketing tools available. Social media marketing, image marketing and content marketing ar among the few marketing strategy you need to know about.

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