Can a simple family game really reveal a secret to making your business more profitable?
It can - and the way I discovered it was quite interesting. It all started one day when I sat down to play something I only ever heard about but never played in my life before...
One night I played a new game with my family.
It was one my wife used to play as a kid but one I never even knew about until I grew up.
It was called Payday.
A lot of people had this board game as a kid and it’s gone through a few changes over the years.
Not just cosmetic changes but changes in the rules too.
One of the biggest complaints I read on-line about it was you are no longer being paid interest on your savings.
That to me was very intriguing.
Its almost as if the makers of the game made a conscious decision to create a generation of spenders rather than teach people the value of saving.
Anyhow, I played this game with my wife and two boys.
It was interesting to see what excited my 8 and 6 year old boys when they played the game.
It was landing on the lottery (which we hit at least 5 times during one round of the game).
The board is setup exactly like a month you see on a calendar.
Where you roll the dice and work your way through the days of the month.
And Saturday was always a Lottery.
Like I said, my boys couldn’t wait for someone to land on that.
I on the other hand couldn’t care less.
The money you get there really didn’t amount to much considering how much you can make on the deals.
The deals are where its at when it comes to making money.
In fact that is really the ONLY way to make any real money in this game.
Yet my boys were both fixated on the lottery.
Attracted to the idea of putting a small amount of money in and getting a lot of money out.
Exactly how tons of small business owners are fixated on advertising.
Where they put a small amount of money in and hope to get a lot of business out.
It’s not that I think there is anything wrong with advertising.
When done right it has the power to pull in a lot of new customers.
However I’ve noticed two things about small business owners.
- Most do not know how to write compelling, customer pulling ads.
- And more importantly, very few, if any, ever track their results.
Consequently they have no idea if the money they are spending on ads are actually making them money.
To me it’s not any different than my kids playing the lottery in Payday.
These business owners pay their money and take a chance their ad will win some new business.
And just like my boys playing the lottery the business owners do get some wins.
In the form of a couple of customers coming in and mentioning they saw an ad.
Which gives the owner a “hit”.
One that makes them feel good and convinces them that advertising is a great way to make money.
But, like my boys, the owner is missing where the real money can be found.
In Payday the money is in the deals and not the lottery.
In your company the real money is in your existing customer list and not in advertising for new ones.
You need to remember every customer whoever buys from you is worth more than just that one sale.
They can purchase from you multiple times over the lifetime of their relationship with your company.
Now how long that relationship lasts between you and your customer is totally up to you.
The more you put into it, the more you will get out of it.
And the longer it will last.
If you ignore your customer and never do anything to contact them again after the sale, what compelling reason are you giving them to want to come back again?
How are you differentiating yourself from your competition?
Once a customer buys from you, you have their attention.
All you need to do now is keep it.
That's just one of the things I coach small business owners on everyday.