Small Business Digital CoachGROW REVENUES BY 25 TO 100% OR MORE IN 90 DAYS OR LESS while reducing advertising cost and effort

Have you ever seen those “Fave 5 commercials” by T-Mobile?

Or the segment at half-time of every NBA basketball game where prominent players announce their favorite 5 players of all time?

It occurred to me that every small business owner should be asking themselves, “Who’s my fave 5?”

It continually appears, in a dizzying variety of instances, that 80% or results, derive from 20% of inputs.
This Pareto Principle (or 80/20 rule), as it is often referred to, is a statistical rule of thumb that shows up in a freaky amount of places, and most likely applies in your business as well.

In your business, the chances are good that roughly 20% of your clients (or less) account for about 80% or more of your revenues/profits. Now it may vary along the lines of “90/10″ or even “70/30″, but nonetheless it generally holds that the majority of business is done for a minority of clients.

One of the most effective ways for your small business to generate rapid growth in sales and profits is through knowing your “fave 5″ or your “valuable few”, and creating product/service offerings and marketing systems directed at cultivating a special relationship with this group and offering them more ways to do even more business with you.

Database marketing is a big sounding term for all the activities, systems and tools businesses like yours can use to plan for, target and communicate with a select group of prospect and clients.
Your customer or client database is simply an information storage system that contains as much information as possible about the your clients.

The more you know about your client base (or even about prospective clients), the better you can create segments of common demographics (age, gender, ethnic background, zip codes, income/wealth levels) and psychographics (interests, passions, hobbies, group affiliations, habits, likely concerns), the more you can craft your product and service offerings to their tastes.

Of course it goes without saying that you’ll also be able to align your marketing communications to their needs. Powerful and affordable database software now allows you to slice and dice your prospect and customer lists to personalize your marketing.

Nothing boosts response rates and conversions than personalization backed by solid business intelligence…

And just in case you think this is all stuff for the fortune 500 companies, customer relationship management software products such as ACT!, Goldmine and SAAS (Software as a Service) providers such as Salesforce.com allow small businesses to reap the benefits of managing customer lists and communicating consistently with their clients.

Many small and micro-businesses have successfully boosted sales and profits with addition of simple programs like frequent renter card clubs, premium client newsletter subscription packages and “Valued Customer Clubs”.

As soon as you Know your Fave 5, you’ll be on your way to increased profits with just a bit of creativity.