We’ve all made some (or all) of these mistakes at some point. Try not to be a repeat offender and learn from past mistakes. These 3 common mistakes will degrade brand equity quickly and you’ll find more struggle than success.
EVERYONE is a prospect: Customer targeting is too broad
Many businesses sell services that truly everyone and anyone could benefit from. Being too broad in your marketing communication will waste time and money. Many will mark it as spam and hit “unsubscribe”.
Marketing your services should resonate with a specific target audience and should move those prospects closer to making a purchase. If you have a well-defined target audience and specifically targeted communication, you will have a greater conversion rate. Your customers won’t feel like you are being pushy or “salesy”, since you are offering solutions tailored to them. They will feel that you truly understand their needs and become loyal clients.
Marketing your services should resonate with a specific target audience and should move those prospects closer to making a purchase. If you have a well-defined target audience and specifically targeted communication, you will have a greater conversion rate. Your customers won’t feel like you are being pushy or “salesy”, since you are offering solutions tailored to them. They will feel that you truly understand their needs and become loyal clients.
Price war: Cutting your price to match (or beat your competition)
If you are finding yourself discounting your service for the sole reason of matching your competition, stop immediately. By competing on price, you are essentially telling your prospects that you and your competitor are comparable. When you lower the price below your competition, you are telling your prospects that you are of lower value than your competitor. Your profit margins will be thinner and your client base will be volatile.
You’ll spend more time and money obtaining new clients to replace your client turnover. When you brand your business as a higher-quality option, you’ll have more loyal customers. Instead of cutting your price, find ways to increase the value of your service.
You’ll spend more time and money obtaining new clients to replace your client turnover. When you brand your business as a higher-quality option, you’ll have more loyal customers. Instead of cutting your price, find ways to increase the value of your service.
Overpaying, or underpaying staff
Getting your staff compensation right is key to retention. Some business owners pay generously just because it’s easier to overpay and assume you’ll attract better talent. Unfortunately, they usually pay at a fixed rate that does not correlate with their performance (good or bad).
When you overpay staff independent of their performance, it may result in a lack of motivation. They lack accountability because their work results are not tied to their compensation. When you pay too little, you create an environment of resentment and they will feel less committed.
Having a variable pay scale tied to staff performance or tenure, will better motivate them to work smarter and be rewarded for such results. When compensation is done correctly, they will have aligned financial incentives to keep showing up and exceeding expectations.
When you overpay staff independent of their performance, it may result in a lack of motivation. They lack accountability because their work results are not tied to their compensation. When you pay too little, you create an environment of resentment and they will feel less committed.
Having a variable pay scale tied to staff performance or tenure, will better motivate them to work smarter and be rewarded for such results. When compensation is done correctly, they will have aligned financial incentives to keep showing up and exceeding expectations.
Here’s what our past mistakes have taught us
- Marketing to a well-defined target audience will increase your conversion rate and marketing will be more efficient.
- Increase the perceived value of your service (and price) and you won’t feel threatened by competition Motivate staff with the right compensation model and enjoy higher staff retention and engagement.
- Marketing your business is a lot of fun and can be made easier when you learn from past mistakes. Revenue will become predictable and you’ll enjoy being a business owner.
