Sustainable Business Growth What are we going to talk about How Team GB managed to get sustainable business growth at the Olympics Why the Customer Lifetime Value is the secret to your business growth The 5 key principles to sustainable business growth Team GB and Sustainable Growth Team GB Olympic Medals Since 1948 This is what we call sustainable growth Medal Table history Remember this number 65 67 47 37 28 24 23 11 6 3 1948 8 11 7 6 2 1 1952 1956 29 24 20 14 30 12 21 18 12 13 2 4 2 1960 1964 5 4 1968 1972 5 3 1976 gold 19 15 13 5 3 23 20 18 9 6 21 9 7 5 1980 silver 11 10 9 5 5 1984 1988 bronze 27 12 5 3 1992 total 8 6 11 10 7 12 15 13 19 17 17 2012 2016 9 1 1996 2000 2004 2008 Athletics Total Medals This means that 29 medals out of 37 were just athletics And team GB wasnt able to keep that up so a new strategy was needed 29 20 16 16 15 14 13 12 10 10 12 10 8 7 7 7 5 2 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 Team GB 2016 Team GB thought hard on what niche sports they could be most successful in and what would give them more value for the investment in the long term their Lifetime Value As a results of this it only focused on 33 sports putting all the resources Team GB 2016 Sports Archery Athletics Badminton Basketball Beach Volleyball Boxing Canoeing Cycling Diving Equestrian Football Golf Gymnastics Handball Hockey Judo Marathon Swimming Modern Pentathlon Rhythmic Gymnastics Rowing Rugby Sevens Sailing Shooting Swimming Synchronised Swimming Table Tennis Taekwondo Tennis Triathlon Volleyball Water polo Weightlifting Wresting And this resulted in the best Olympics ever Customer Lifetime Value for Business How Can You Calculate It Average income from a sale x Number of transactions per year x Average customer retention time in years Average Customer Lifetime Value eg lets say you own a B2B telecommunications business and that the average sale of one of your systems is 2000 Your average client tends to buy one system from you every year and stay with you for an average of 10 years 2000 x 1 x 10 the lifetime value that each customer brings into your business is 20000 Why is it important It is what your income generation strategy should be based on In fact new business development should always be delivering 3x the customer lifetime value than what it costs in acquiring it Therefore for every pound you spend you should get 3 back Lets say that you have a target of getting 10 new clients by the end of the year each with an average lifetime value of 50000 That means that the total target lifetime value you are aiming for is 500000 If we use the 13 rule mentioned above your cost of acquiring these new clients including the salaries of your marketing and sales team any software that you use the printing of marketing material hosting of the website etc should not be higher than 166666 This enables you to have a hefty return on your sales and marketing investment and grow your business sustainably Once you have calculated that what next The 4 pillars of sustainable business growth 1 2 3 4 Goals Strategy Niche Personas 1 Goals Focus on revenue goals When developing a B2B marketing budget the smart money is on revenue goals and related lead generation rather than past budgets or competitors The best way to do this is by bringing sales and marketing together by making them focused on the same 5years revenue goals and getting them to collaborate in achieving them Your sales team will know the issues that customers have from talking to them every day and if they can communicate that to the marketing team the latter can then build campaigns around them In this way the marketing team will be able to generate more qualified leads that your sales team will then turn into customers 2 Strategy Have a flexible strategy Dont get stuck in a rut Your marketing strategy should never be set in stone but continually improved on and updated as new solutions and methods come out It should be a continuous circle of plan implement measure revise repeat The way you can assess your marketing success is to always measure it together with your sales success and compare it against your goals The two should never be measured separately If you set goals that are based on revenue for your marketing team identify how many customers you should be acquiring each year in order to meet that target and how many leads they need to generate in order you can measure the success of your marketing spend on whether you have met or not those goals A simple and linear method but one that will require your marketing team to think about things in a slightly different way and collaborate with the sales team more closely 3 Niche Find your niche and really go for it If you try and sell everything to everybody you successfully sell nothing to anybody People are only really interested in you solving their specific problem when they are ready to have it solved for them so when they have a compelling need You want to get people to think they really understand MY problem and know how to solve it and this is something you cant achieve if you are trying to solve everyones problems If you focus on a niche then you have got far more chances of being successful in selling Lets see how Team GB did it Team GB Niche Sports These accounted for 38 of the total medals won Without them Britain wouldnt have had such amazing results overall in the past 2 Olympics 25 24 21 14 12 12 9 8 8 7 7 6 5 5 4 3 0 1948 3 1 0 1952 0 1956 0 1960 1 0 1964 0 1968 1 0 1972 3 2 1 0 1976 Cycling 3 2 0 1980 Gymnastics 1 0 1984 0 1988 Rowing 3 2 1 0 1992 Total 4 3 4 0 2000 0 2004 4 2 1 0 1996 2008 2012 2016 Build niches where the Competition is least your resources are best used you are an expert 4 Personas What are Buyer Personas Buyer personas are semifictional representations of your ideal customer based on real data and some select educated speculation about customer demographics behaviour patterns motivations and goals You should really take the time to create your personas building their story and treating them as actual people rather than abstract entities This will help understanding their needs and challenges connect with them and target them in a much more focussed way Why are they fundamental You shouldnt be spending a single pound on anything that cannot guarantee you a return and that wont really resonate with as many potential customers as possible Just because an advertising plan is guaranteed to show your product or brand to a large amount of people you always have to ask yourself are they the right people Will they actually become customers after seeing it Can I prove or measure that If you just start splashing advertising left and right hoping to somehow pick up some business along the way we can guarantee that you will be throwing a lot of money to the wind How Your Business Growth Looks Like Millions Company A Only relying on referrals and work from existing customers 3 25 2 15 1 05 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Millions Company B Only relying on new business from strangers who find your company eg through your website 8 7 6 5 4 3 2 1 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Millions Combined view from Company A Current Customers and their Networks and Company B Strangers 8 7 6 5 4 3 2 1 0 Year 1 Year 2 Year 3 Year 4 Year 5 Current Customers Year 6 Strangers Year 7 Year 8 Year 9 Year 10 Millions The Result 12 10 This is what we call sustainable growth 8 6 4 2 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 So there are 2 lessons to be learned from all of this 1 Annual Budgeting is bad for your health You should focus instead on your customer lifetime value and longterm revenue goals then invest 13 of that on sales and marketing 2 Delight your existing customers Dont just focus all your efforts on getting new customers but make sure you are also keeping your customers satisfied This is the path for sustainable growth Did you find these slides helpful Sign up now to our next Business Income Generator event for more RESERVE MY SEAT AT bitly2cBGjg3 Get a free sales and marketing assessment What you will get An assessment about the state of your companys sales and marketing activity Tips and recommendation on how to improve your current marketing strategy and generate more leads No risk and no obligation SCHEDULE IT NOW bitly2cKqt3b Thank you