The goal of any business is a pretty common one – improving net profit.
However, although everybody (myself included) always wants to make more money…. one thing I’ve noticed is that sometimes direct response marketers will only do activities that show them specifically how much money they’ve made because of that activity.
… and that’s a recipe for disaster.
If you’re only focused on a single thing – increasing net profit – and nothing else… it’s almost guaranteed that you’re going to do things that are going to piss your customers off.
Or at least, you won’t be doing the things that your competitors are doing.
Here are 3 ways to increase your net profit – even though you won’t be able to track them.
Using Social Media Campaigns To Improve Net Profit
It’s pretty hard to determine the actual value of social media campaigns. It CAN be done, but it’s pretty difficult and probably not even worth the effort. The problem with social media for a large portion of direct response marketers is that since you can’t track a specific net profit value from it – you shouldn’t even do it.
And while that’s true and maybe you shouldn’t spend a ton of money in it… I think you still need to do it.
Because things such as social media (and others like great customer service, etc.) doing show a measurable net profit improvement immediately… but will show it in long-term profits. They do things like increase brand awareness, increasing the level of loyalty from your customers and followers, and generate buzz about your business.
Here’s another example.
Let’s say you have an employee or are hiring a copywriter or any other “service provider” to do a job for you. Should you try to nickel and dime them to get the absolute lowest price?
And just to be clear… yes I realize it’s in my self-interest to tell people not to try and nickel and dime me. However, I hire people myself so I can say it from a business owners perspective.
Why Improving Net Profit Is Harder If You Nickel And Dime Employees And Freelancers
For every dollar less that you give someone you hire that’s less than they WANT to get… it makes it harder and harder for that person to truly care about doing the best job they can for you. Now if you’re hiring an ethical person, they will try to do the best job… however, subconsciously it’s literally impossible.
Trust me – it’s much, much more profitable long term to be generous to the people you hire, because they’ll bend over backwards for you instead of treating you like “just another job”.
I personally do this in my business when outsourcing jobs, and they love working for me. I give them bonuses for doing great jobs, surprises, and praise them constantly.
Plus… it’s fun to simply be cool to people 🙂
Increasing Net Profit By Spending More Money
Here’s yet another example – this time we’ll use customer service.
Let’s say you sell a physical information product. Right now, you outsource the shipment process to somewhere like Kunaki or Corporate Disc Company.
Therefore, when the customer receives your product… they get the product.
… and that’s it.
But what if, instead, you send them a small bonus surprise… or a simple letter just simply being COOL to them and helping them with any questions they have? What if you hired a customer service employee who had a single job – help people go through the course and answer any questions they may have.
My guess is – you’d drastically explode your net profit because of the increased customer loyalty, increased buzz about your company, and probably (from what I’ve seen)… increased customer lifetime value.
So what are YOU doing for your customers that’s out of the ordinary and cool?
Let me know in the comments below…