Seven Strategies for Stomping Your Competition LERN Lifelong Learning 2007 Paul Franklin

2 Rule One: “It’s better to be a good copycat than a great inventor” — unknown inventor zIt’s usually better to be second out-of- the-gate than first. zWatch and study the competition and watch and study them some more. zKnow what the marketplace can absorb.

3 Become a Copycat NOT an Inventor zClone the competitions’ Star Programs and make them slightly different. yChange title. yMake it brand new. yMake it improved (more stuff, more high tech, more length, more better instructors, MORE SOMETHING!). yPrice it differently. zClone the competitions’ Cash Cow Programs if there is PLENTY of room in the market.

4 Look Beyond Your Backyard zEstablish a benchmark group of non- competing programs and study them. zCreate a relationship with your benchmark group(s) zClone the best of the benchmark group AND don’t tweak.

5 Some Key Marketplace Issues zOverall size and concentration? zHow much does the competition control? zWhat’s the loyalty of the market? zDoes the competition do anything to induce loyalty? zWhat’s the role of price? zCan a big enough piece of the market be captured to make your effort profitable?

6 REMEMBER… It’s better to be a good copycat than a great inventor.

7 Rule Two: Protect Your Best Customers at All Costs! yYou aren’t the only smart one out there. y20-25% of your customers give you 80% of your Operating Margin. yTo protect them, you have to know who they are. ySegment the market. yOnce you know who they are: xFocus most on your best customers.

8 Focus on Best Customers xSurvey them continuously. xPromote specifically to them. xProgram specifically to them. xHold special events just for them. xCreate loyalty-building efforts. xCajole, pamper and coddle them. yPROTECT THEM!!!!! yRemember, you aren’t the only smart one out there.

9 Rule Three: Price to Win zPrice above your competition and play the “high end, high quality” game. zBEWARE: They can’t know how you are different and better unless you tell them six ways to Sunday. zDon’t be afraid to compare and contrast what you offer to what the competition offers. zSURPRISE: Often a higher price brings new people to the market.

10 Price to Win zPrice the same as the competition and rely on other factors to differentiate your program. yTime, title, content, materials, location, instructors yYou must tell your customers and prospects exactly how you are different and why those differences are good for them.

11 Price to Win zPrice just below the competition. zStress same value at a lower price or zGood value, no frills, lower price. zBEWARE: Live by price, die by price!

12 Rule Four: Play the LifeTime Value Game zIt’s six to seven times more costly to get a new customer than to retain a current customer. zRetaining a customer and selling frequently to them over a sustained period of time yields an exponential value to your bottom line. zAND, it makes your life easier!

13 LifeTime Value 1 (1-repeat rate) x average activity fee 1 (1-.66) x $100 = $303.30

14 Increase LifeTime Value z1/(1-.75) x $100 = $400 zA 9% increase in your retention rate yields nearly 25% in added value per customer.

15 Increase LifeTime Value z1/(1-.75) x $150 = $600 zA $50 increase in the revenue yield per customer in a given year yields $200 in added lifetime value of each customer.

16 LifeTime Value Game zMake improved retention AND improved frequency the highest priority. zCreate courses & for current customers. zPractice stair-step programming.

17 Rule Five: Play Your Cards Close to the Vest zBe careful … yWhat you say and where. yHow you handle phone inquiries. yWhat numbers you reveal anywhere. yWhat you say in print. zA little paranoia is very good business in our profession!

18 Rule Six: Out Promote Them!!! zMail more often, focused on your best customers. zProvide better and more detailed promotions. zAlways, always focus on “WIFM.” zIntegrate other contact portals “just for them.” zDeepen your “pitch” by providing more information on your website. zLearn from the pros: get a 20-25% boost by guaranteeing your programs!

19 Rule Seven: Let them know how you are better! zRemember: They can’t know if you don’t tell them. zYour job is to educate your prospects and customers about your advantages NOT to inform them about your programs. zCompare, contrast, juxtapose. zProve it with a good guarantee!

20 Rule Eight: Know Them as Well as You Know Yourself zStomping the competition has to be a priority. zYou must watch your competition. zStaff time must be put to it. zVigilance in studying the competition AND protecting your best customers are the keys.

21 Tactics for Knowing Your Competition zBe a customer and call. zBe a customer and go. zGet on their mailing lists. zVisit their website often. zBe a part of their web discussions. zAnalyze their offerings. z Analyze their promotions. z Analyze their market share and project their numbers. z Do whatever it takes to know them like you know yourself!

22 Now Go STOMP!