Dear Scott, Even in tough economic times we must remember...
"Growth is a function of growth, not of reduction. You cannot cut your way to success. The most important factor is to increase top line - revenues. The second most important factor is to maximize the bottom line - profits - by keeping as much of the top line as you possibly can." - Alan Weiss In this issue: 1. Business Growth Strategy #11... Remove the Risk 2. Where Does America Spend Its Ad Dollars? Your goals are your own business. Helping you reach them is ours.
Craig Arthur - Wizard Partners Australia PS. Have you booked your seat to Boom Your Business, Nashville? (Aug 1st & 2nd)
1. Business Growth Strategy #11... Remove the Risk  By Mark Fox, Wizard Academy adjunct professor
From the Editor: The below story is from Mark's new book... DaVinci and the 40 Answers. A Playbook for Creativity and Fresh Ideas. You can download more sample chapters here.
I used “Peel the Onion” a couple of years ago with one of my clients. She sells pigs for a living – not exactly rocket science.
“So what issues do you want to work on today in our creative thinking workshop?”
“We need more sales!”
(Never heard that one before)
“Why do you think sales are not growing like you want them to?”
“I don’t know. It doesn’t make sense.”
“Does your competition provide a better product or service?”
“No, in fact even our competition will admit we have the best bloodline and breed of pigs on the market. All of the review magazines rate us number one; in fact, we have the highest customer retention rate in the business: 98%. The 2% of customers that actually leave us leave because they got out of the pig business all together or the owner died!” (FYI – yes, there are pig review magazines out there.)
“Well let’s peel this onion back a little. If you have the best product on the market what is stopping you from getting more market share?”
“Customers just don’t want to switch providers even when they know we can offer them something better.”
“Why?” (keep peeling)
“Well it is the risk of switching to us. The average herd is about a $250,000 investment and they feel the risk in switching is too great. If they switched to us and our herd acquired a disease or something the loss could financially ruin them. They can’t afford that kind of loss.”
“Does this ever happen with your pigs?”
“No never. We have the best breed on the market.”
“Never? Really? Never?”
“No. Never.”
“Then why don’t you eliminate the risk for them? Put your money where your mouth is. If you are so confident that your product is superior and that there is literally no, or at least a very remote risk of illness, why don’t you guarantee potential customers that you will pay the $250,000 if anything happens.
Promise to replace their herd with the herd of their choice if they get sick.”
“No one in the industry offers anything that radical.”
“Why not be the first and dramatically differentiate yourself then?”
To their credit, and my joy, they implemented this policy. They are quickly gaining market share. I don’t mention the company name at their request; they want to turn the industry on its head before the competition knows what hit them. From the Editor: Guarantee $250,000! Courage and commitment, are just 2 of the ingredients required if you wish to boom your business. Do you have them? About: Mark L. Fox is a leading authority on teaching practical creative thinking techniques for business. Mark has an undergraduate degree in Chemical Engineering with an MBA. Having held top management positions in Rocket Science, Aircraft Hydraulics, Engineering Services, Customer Service, Software, and e-Business, Mark has an extremely diversified background. He has held positions ranging from Management and Operations to Sales and Marketing and Research and Development. Some of Mark’s unique accomplishments include increasing e-business sales 600 percent in one year, receiving NASA’s highest recognition of “Launch Honoree” at the age of 23, and being the youngest person promoted to the position of Chief Engineer on the Space Shuttle program at the age of 31. Mark was also the Chairman of the “orbital debris” committee and an eight-time collegiate “All American” in Marksmanship. Mark also designed and built a 10,000-pound rocket, built his own airplane, and flies hot air balloons.
Q. Customer Experience... What's Your Policy When Things Go Wrong? "The customer doesn't expect everything will go right all the time; the big test is what you do when things go wrong." - Sir Colin Marshall
By Roy H. Williams (Uh-oh, am I about to light an email fire I can't put out?) Hear the memo, read by the Wizard himself. Here is where the ad money goes in Australia. Traditional wisdom says, “Advertise in the newspaper. Everyone reads the newspaper. There are lots of radio stations but only one newspaper.”
The problem with traditional wisdom is that it’s usually more tradition than wisdom. 
Take a look at the chart at the top of this page and you’ll see that the total, combined ad revenues for
(1.) the internet with all its banners, pop-ups, co-registration schemes and Google Adwords accounts, plus
(2.) the ad revenues from all the billboards sprinkled across the 3.54 million square miles of these United States, plus
(3.) the combined revenues of all of America’s radio stations
is less than the combined ad revenues of America’s few hundred newspapers. Did you read my article from last week, Radio / Newspaper Smackdown?
Let me summarize for you what it said:
If you
(1.) make exactly the same offer on radio as in the newspaper, and
(2.) spend exactly the same amount of money with each media,
(3.) across precisely the same span of time,
radio outperforms newspaper nearly 14 to 1.
As I explained in the detailed report, we fell into our discovery by accident. Our original plan was to buy newspaper ads since we assumed the newspaper would reach a larger percentage of our target than any other media.
Our assumptions were based on a faulty perception. That’s traditional wisdom for you.
When our test indicated that radio was outperforming newspaper nearly 14 to 1, I began to wonder, “With all the billions of dollars spent in media each year, why has no one ever comparison-tested the media in a series of controlled experiments?”
There I go, assuming again. A bit of research led me to uncover a study conducted 37 years ago (1971) by the Research Committee of the National Advisory Council on Radio in Education. On page 155 I found, “For the test, the manufacturer of a shampoo selected territories in which his sales had been equal and satisfactory over a period of years. An advertising campaign with increased appropriations was prepared, and at the end of the test period, sales increases were used as the gauge of the merit of the medium. In territory No. 1, where newspaper advertising was used, the sales were increased by 3 percent; in territory No. 2, where radio only was used, they were increased 40 percent.”
Gosh. 40 percent versus 3 percent is nearly 14 to 1, right?
Why has there never been a scientifically controlled, nationwide test funded by the radio stations of America?
Frankly, I was comforted to learn that my organization was the second, rather than the first entity to discover that radio outproduces newspaper nearly 14 to 1. If we had been the only people ever to discover that little nugget of information, I would have been plagued by doubt. I'm big enough to admit that my confidence was bolstered by the fact that another organization arrived at virtually the identical conclusion when I was just 13 years old.
But the greater question remains,
“Why has there been no scientifically controlled test?”
I ask the advertising agencies spending all those billions,
“Why has there been no scientifically controlled test?”
I ask the major advertisers of America,
“Why has there been no scientifically controlled test?”
And I ask you the same question in this week’s e-Poll.
We’re anxious to hear your theory.
PS. Today's rabbit hole is too weird for words.
I definitely wouldn't go down it if I were you. (If you are game, click the image at the top of this article.)
 Closing Thought... When is it Time for Change? "Whenever you find yourself on the side of the majority, it is time to pause and reflect." - Mark Twain See you next week. Craig Arthur - Wizard Partners Australia
Your goals are your own business. Helping you reach them is ours.
Call or email to book a FREE alignment meeting. No obligation. No pressure. It is at this meeting we both decide if there is a fit between our 2 companies. It is only then can we explore your options. We will never try to sell you. Call (07) 4728 4866. | 
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