Trend #1 Fighting for attention
The average consumer is bombarded with more than 4,000 commercial messages a day. And that number is even HIGHER for business owners.
Attention has become the scarce resource of the information economy. The advertising and information clutter only gets worse when it comes to your email inbox, with countless hours wasted with spam.
More and more are joining the “Do Not Call” registry and many consumers are purchasing ad blocking technologies. Consumers feel that they are constantly bombarded with too much advertising.
Trend #2 Clients Leaving You Due to Perceived Indifference
Why customers leave you…
1% Death 3% Moving 5% Buy from a friend 9% Sold by a competitor 14% Product price
68% Perceived Indifference
Major global corporations now lose, and must replace, HALF their customers every five years. A typical company’s customers leave at a rate of 10 to 30 percent per year, and this number GROWS annually.
“Most companies spend their hard-earned marketing and sales effort trying to attract elusive new customers when they probably have most of the business they’ll ever need in their database.” -Jay Abraham
A typical company listens to only about 5% of its dissatisfied customers. 95% just leave, most will never come back.
60%-70% of customers who complain to you will do business with you again if you resolve their issue. If they feel you acted quickly and with satisfaction, up to 96% will do business with you again and are likely to refer you to others.
If you do a great job, your customers will tell 2 people, while if you’re not happy with a customer, they’ll tell 22 people.
It costs five to six times more to get a new (first time) customer than it does to keep a current one, and it takes 12 positive service incidents to make up for one negative incident.
Trend #3 Rising Marketing Costs and Decreasing Effectiveness
Now it costs 3 times more in 2008 than in 1992 to reach potential buyers. In 1992, he took an average of 4 tries to reach his buyer.
In 2008, it now takes 8.4 attempts. Therefore, half of the results of the same previous efforts are common.
As the popularity of search engine marketing has increased, so have the costs of gambling. The costs of pay-per-click ads rise as the demand for online ad space increases. Organic search engine marketing is a long-term, uncertain, and often expensive endeavor.
The recent postage rate increase is imposing HIGHER COSTS on small publishers.
Newspaper advertising fees and yellow pages advertising costs are also increasing.
Plus Brand Loyalty continues to decline, going from 56% in 2002 to just 39% in 2007.
Trend #4 Lagging behind with Internet technology
Now, more than ever… businesses MUST actively use and adopt the latest technologies such as: RSS feeds, social media, blogs, streaming video, webinars, etc.
More than 50% of the Internet marketers surveyed now use or expect to test the following marketing channels due to recent changes in the market: – RSS – Podcasts – Interactive banners – Online video ads – User-generated content – Blogs – Social networks
Most Small Businesses are racing to catch up with companies that are thriving with Web applications that build deep interaction, dialogue, and connections with their Customers, Prospects, Employees, and Partners.
The internet has shifted the balance of power towards the customer, and companies that fail to empower customers risk losing them to competitors that are just a click away.
Trend #5 Increased Competition and Increased Business Bankruptcies
We are in the midst of the biggest corporate surge the world has ever seen.
Nearly 672,000 new businesses with employees were created in the US in 2005. That’s the highest rate of start-ups in US history!
30,000 more new companies than in 2004 and 12% more than at the height of the dotcom boom in 1996.
96% of ALL businesses Fail within the first 10 years… 80% of those Fail within the first 2 years.
Many reasons include: lack of planning, poor management skills, and failure to seek professional assistance.
The next step…
Visit The Business Commandos website listed below and claim your FREE copy of Aaron Parsons’ best new book: “How To Make A Million Dollars In Your Business In 3 Years Or Less” and while you’re there find out How to double your sales in the next 12 months with the Profit Acceleration Systems training program led by international award-winning business growth expert Aaron Parsons.