“We need a systematic plan for attacking our marketing,” Matt M., a floor covering dealer from Arizona, told me. Steve N., a dealer from California, added, “Foot traffic is bad. We just want at least seven customers a day. We get two to three customers and it becomes difficult to stay motivated.”
Both of these challenges were posed during a Marketing Mastery webinar, called ‘Your Biggest Marketing Questions Answered,’ that was hosted by myself and FCNews associate publisher, Dustin Aaronson. I was able to personally coach these gentlemen through their challenges on our live webinar. As it turns out, the solution for both was not only the

I was able to personally coach these gentlemen through their challenges on that live webinar. As it turns out, the solution for both was not only the same but very simple: Implement the three tiers of marketing, which are as follows:

Tier 1: Warm Market

  • Referral marketing system
  • Sales closer system
  • Market to past customers (monthly direct-response newsletter)

Tier 2: Targeted Marketing to Cold Prospects

  • Website (including pay-per-click advertising and search engine optimization)
  • Social media
  • Newspaper
  • Display ads
  • Direct mail to targeted list
  • Home and garden shows

Tier 3: Broadcast Advertising

  • Billboards
  • Radio
  • Television

You should implement all the Tier 1 strategies first. Once these strategies are up and running, begin implementing Tier 2 strategies and then Tier 3 using luxury marketing dollars. Your biggest profits are in Tier 1 and then, in descending order, Tier 2 followed by Tier 3.

The strategies in Tier 1 are dirt cheap to execute and it is relatively easy to measure their results, but Tiers 2 and 3 get progressively more expensive and challenging. Tier 1 strategies also dramatically increase the profitability of Tiers 2 and 3.

Let’s say you invest $5,000 in a direct mail campaign, which drives 10 prospects to your store. If you have a Sales Closer System in place, instead of converting four of the prospects, you convert six. If you have a Referral Marketing System in place, you can turn those six sales into eight. Finally, if you have a Past Customer Marketing System in place, you can stay in front of those eight customers and farm them for repeat and referral business.

You should never move on to Tiers 2 or 3 until your Tier 1 is fully executed. Tier 1 is so effective that many of the dealers that I coach build their businesses without ever needing Tiers 2 and 3.

Prior to the webinar, Matt and Steve were implementing both Tiers 2 and 3 but not Tier 1. I polled the rest of the attendees, and nearly 100% were doing the same. This is common throughout the flooring industry. Ninety-eight percent of dealers spend the lion’s share of their time, energy and money on Tiers 2 and 3 but totally ignore Tier 1. It’s time to stop the madness.

On a happy note, since the webinar both Matt and Steve have implemented the Tier 1 strategies. I know they will do well; dealers all across the U.S. and Canada have made this same switch, and I’ve seen many dramatic turnarounds.

 

To Tons Of Customers!
Jim Augustus Armstrong is The “Coach”

Jim Augustus Armstrong is the President of Flooring Success Systems, a program that equips dealers to double their profits, cut their work hours in half and beat the boxes! Many dealers have totally transformed their businesses and their lives for the better after joining Flooring Success Systems.
See what real, live dealers are saying!