Tuesday, January 5th, 2016

The True Power Of Your Advertising


Squeeze out the frustration of not being a millionaire today!

Squeeze out more revenue with effective Advertising


Let’s talk numbers for a while and the proper way you should be thinking about your advertising.

As far as your business is concerned, there are only three processes you should have your beady-eye on.


1. Customer Attraction (Your advertising)
2. Sales (Exchange of your products and services for money)
3. Delivering to the customer what you promised them cost effectively.


Processes 2 and 3 are beyond the scope of this article, however I will be touching on process 2 to explain to you why your advertising (Process 1) is crucial, and why this is the process where most of your business horse-power is.

Ok, did you notice I used the term ‘customer attraction’ to describe advertising? There is a good reason for this and most business owners fail to recognise it to their own detriment.

Let me make things clearer for you.

You have to start moving away from the frame of mind of having to ‘get customers’, and start thinking in terms of ‘attracting customers’ to your business. This may sound like just words, but the implication behind them is huge.

In the simplest terms getting customers for your business requires WORK. Attracting customers implies that the customers COME TO YOU, like a moth to the flame.

You want to get to the point with your marketing where most of the work from day-to-day is done in the process 3 section of your business. In other words concentrating on delivering quality products and valuable service.

Anyway lets talk numbers, and the power of attracting customer to your business.
Great, so now we know that every business has 3 main processes that affect its bottom line for overall profitability.

Let me take process 2 for a spell – Selling your customer your products and services

This process is essentially the process that results in your customer reaching in their pocket and giving you their hard-earned money in exchange of what your business has to offer them.

Move your attention to your business for a while and think about the steps involved in your business for this process.

A process 2 for a pub could be a simple as;


1. Person enters pub and sits down at the bar or at a table if they are with friends
2. Gets comfortable at the bar/ watches television while propped up at the bar
3. Bar person approaches them and asks them what they will have
4. Person requests what they want
5. After a drink, person either pays and leaves or orders another drink


Now I’ve simplified it here but the process is essentially the same in any establishment you go to, from the Local Watering Hole to the Exclusive Gentleman’s Club.

Still with me? Good. Let’s assume that you are the bar man of this establishment, and for a whole day you resisted the temptation to have a drink and you simply watched the comings and goings of this process in your bar for a full day.

Assuming there were 100 people that came in on this particular day, you noticed that not everyone who came into your pub actually bought a drink or spent money. These were either moochers that wanted a drink off their mates and were not lucky that day, or people who just did not fancy a tipple. Fair enough.

But these were the numbers you found


1. Of the people that came on for a drink the average sale was £10
2. Only 20 people out of the 100 did not get a drink or buy anything
3. Therefore 8 out of 10 people entering the pub spend about £10
4. On a typical day you will make approximately £10 x 80 customers = £800


Now come closer, here is the really important bit;

What if we could get a 20% increase in the number of people who buy drinks? Maybe by providing free peanuts with every second pint or something to that effect.

All other things being equal our takings for that day become £10 x 96 = £960. This is a 20% increase in takings.

This is the effect of improving process 2

Let’s see what happens if we improve process 1 – Customer Attraction

We already know that 100 customers come into the pub on a typical day. This means whatever advertising we already do…brings in 100 people a day who spend on average a tenner.

If we increase the effectiveness of our advertising by 20%, and remember, this does not require any more expense on our part, just an advert that has a better message.

We will bring in 120 customers out of which 8 in every 10 spend £10. Bringing in a total of; £960…but remember this has involved no extra effort for this increase in revenue, the advertising still costs the same and it still allows you to make more money. That is powerful! And that’s why you have to get the advertising right, because it makes everything else (process 2 and process 3) a lot more effective.

Posted by Mikkis on January 5th, 2016 | Filed in advertising, Branding, business advice, marketing, new business, Promotional | Comment now »

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