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How to Increase Profit Margins Using Commercial Cleaning Marketing

[fa icon="calendar"] May 03, 2015 - Fred Thompson

When we talk profit margins as related to marketing, most people are like, “Say what? I need to reduce expenses or increase workflow efficiency.” True. In fact, here are six key actionable items that can yield better margins. You might consider each of them:

  1. Reduce expenses; create better efficiency.
  2. Reduce payroll / restructure staffing.
  3. Build a better product.
  4. Create a niche market (similar to above; it’s related to your product).
  5. Get more top-of-the-funnel leads.
  6. Change your marketing methods.

You may no be used to #6 as a way to build profits. When it comes to marketing, many small to medium sized business marketers think: “I need to do more or spend more.” Sometimes that’s true, but what if changing the way you do things made a difference?

How to Increase Profit Margins Using Commercial Cleaning Marketing

We were privilaged to help consult with another agency recently. This other agency was trying to help a professional services company with increasing profit margins.

We were privileged to help consult with another agency recently. The other agency was trying to help a professional services company with (guess what) increasing profit margins.

Their client’s current marketing methods:

  • They were fond of advertising heavily on NPR.
  • They had little goals or plans to achieve the few goals they had.
  • They knew who their ideal customer was but had no idea of how to reach them.
  • Their current plan was not working.

We thought the client needed to take a good look at changing their base marketing strategy.

We didn’t argue about the effectiveness of their radio campaigns. Of course NPR has great marketing reach. The have millions and millions of listeners each week and millions more who visit their website to download podcasts.

It’s not about what kind of marketing is effective, it’s about the cost or, specifically, Customer Acquisition Cost (CAC).

If you lower your CAC, your margins will improve.

If you lower your CAC and attract better customers, your margins will improve even more.

Achieving Better CAC Requires Better Marketing Methodology

The old marketing playbook is broken.

Interrupt marketing: direct mail, radio, print, etc., still work, but are costly in terms of CAC. Old-school marketing methods that fail to target your idea customer mean you’re throwing money at an audience you’ll never reach.

Using the Internet, you can hit your primary target: your ideal customer.

You probably know who your ideal customer is. It’s important to develop that persona as much as possible, knowing their likes and dislikes, what motivates them, and what their shopping habits are. Once you have developed a persona, you can discover ways to reach them.

Targeting your most profitable persona enables you to use marketing to increase overall margins.

Publishing blog articles and social media content designed to attract your ideal persona is the fuel of Internet marketing. From there, you can develop conversion paths, call-to-actions, and landing pages that will turn your website into a 24/7 lead-generating machine – at a cost of 61% less than conventional marketing methods.

Does this sound like a good path for your commercial cleaning marketing? I can tell you, this is a lot more fun (and profitable) to simply generating a lot of hype or worrying how to spend more on what's not really working now!

I’m interested in what YOU think. Please feel free to share your thoughts in the comment form below!

Key take-a-ways from this blog post:
  • There are a lot of ways to increase profits. You should consider all of them.
  • Of all of the ways to build profit margins, the easiest transition (we know change can be stressful) you can make is changing your marketing methods.
  • Of all the metrics to look at, CAC is the one that will correlate to your bottom line.

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Topics: Commercial Cleaning

Fred Thompson

Written by Fred Thompson

Fred Thompson is the owner of New Destiny Media; Fred loves working side-by-side with business owners to create successful marketing campaigns that grown their business. When Fred is not working, he is spending time with his three very active children at home. He is an avid problem solver (MacGyver), Loves anything Martial Arts related and Social Media gets him excited about work.