Summary: In today’s podcast episode, Michael Buzinski from Buzzworthy and Stephen Halasnik from Financing Solutions discuss how to add value to a business using the rule of twenty-six. These solutions are helping service-centric businesses double their website revenue by improving key performance indicators.
Summary
The Rule of twenty-six in business
The Rule of twenty-six is a fifteen-second marketing strategy that businesses can use to create one-hundred percent more revenue. The rule states that if you increase website traffic, conversion rate, and average lifetime value per client by twenty-six percent, revenue generated by your website will double. These figures are considered key performance indicators (KPIs) or statistics that impact a business’s return on investment (ROI). The rule of twenty-six treats marketing as an investment rather than an expense.
The rule of twenty-six focuses on attracting qualified prospects to a business’s website. Not all website traffic is good traffic. Underqualified prospects that visit the business’s website drive conversion rates down. The rule of twenty-six helps business owners define and track good website traffic and turn visitors into customers. Marketing for service-based businesses revolves around telling the business’s unique story. Business owners in the service industry benefit from using the rule of twenty-six to build authority and add value to the business.
Increasing website traffic, conversion rate, and average value per client
The conversion rate for a business is defined by the business’s ability to convert website visitors to customers. A website should be able to compel qualified leads to take action and deter unqualified leads from taking inaction. Time wasted with a bad lead is an opportunity cost that can bankrupt a small business. Attracting the right people to take action helps maximize efficiency and eliminate time wasted by unqualified prospects. Search engine optimization (SEO) can help increase website traffic, conversion rate, and average value per client. Businesses benefit from using search engine optimization which generates organic inbound traffic that generates leads over time.
A customer’s lifetime value (CLV) associated with your business measures the value of the customer to your business throughout the entire relationship. Customers with a strong customer lifetime value are likely to advocate on behalf of your business and refer your business to others. The average value per client is improved through the realization that each client has different needs and ensuring that those needs are listened to and have a solution. Businesses can use paid advertisements can boost marketing campaigns that help funnel customers through various communication channels, helping to improve customer lifetime value overall.
Maximizing marketing effectiveness and efficiency
Businesses can increase the effectiveness of their marketing strategies and save time by developing a niche. Businesses benefit from targeting clientele that has specific needs and lifestyles that correlate with the business’s mission. Developing a niche gives a business insight into where the most rewarding and profitable relationships can be formed with customers. Business owners should start by analyzing their target consumers or the customers that pay the business the most with the least amount of effort put toward marketing to them. Businesses should tell a story that highlights the needs of their target consumer and offer a solution that either alleviates their pain or obtains their dreams.
Marketing effectiveness and efficiency are maximized when a business tells a story that is concise, eliminating distracting or unnecessary clientele from the marketing equation. A business’s story or mission should be visible as soon as a prospect visit the website. Any additional information can be incorporated in other areas and should not overshadow the main goal of the business. Methods to collaborate or engage with the business should be presented early on as well.
Know your business margins
It is important for business owners to know key financial figures for the business. Knowing the business margins helps business owners figure out how much they should spend on marketing activities. Figures such as gross profit margin and cost of acquisition are key when deciding how much money to allocate to the marketing budget. Businesses that spend too much money on marketing and fall short in funding elsewhere have the potential to go bankrupt.
Business owners also benefit from knowing how much revenue is earned from various channels of communication. Business owners should have the mindset that one channel will eventually end. It is best to optimize the most profitable channels while simultaneously testing the success of other channels in the process. Keeping track of the business margins allows business owners to see the marginal revenue earned from improving various key performance indicators associated with the rule of twenty-six.
About Michael Buzinski from Buzzworthy
Michael Buzinski, President & CMO of Buzzworthy Website Marketing, is a lifelong entrepreneur, digital marketing thought leader and best-selling author. Dubbed a “visionary marketer” by the American Marketing Association, Michael’s sole mission is to help entrepreneurs avoid the time drain and frustration of managing profitable digital
marketing campaigns. Buzz, as most call him, has simplified digital marketing success with The Rule of 26 and is on a mission to double the
website revenue of service-centric businesses across America.
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