| I've always been impressed with businesses that can | | | | annual parades that use the same route through the |
| start up in an already crowded niche, and grow very | | | | city and come within a few blocks of his business. He |
| rapidly. I've seen many examples of this, is it just | | | | sends a few people out to the parade route to sell |
| luck, or is how they go after the customer? | | | | balloons to the gathering crowds. Again some |
| Businesses have different ways of attracting new | | | | success, he has created a new market for his |
| customers and interacting with their existing | | | | balloons. |
| customers. It may possibly be safe to say that no | | | | A couple of years go by and he sees that the sales |
| two businesses use exactly the same methods; | | | | along the parade routes have tapered off. He |
| however all use some combination of 3 basic | | | | decides to petition the city to route the parades past |
| approaches to acquiring customers or prospects. | | | | his place of business, which they agree too. He |
| These 3 approaches to new customer acquisition are; | | | | approaches many of the other businesses along the |
| | | | new parade route to advertise on his balloons, and |
| 1. Passive - Some businesses are completely passive, | | | | sends more of his people out along the parade |
| waiting for the phone to ring or some other way of | | | | routes to give the balloons, with the advertising on |
| letting customers, both new and repeat find them. | | | | them, away. Huge success, he has now created a |
| These businesses are taking a reactive approach to | | | | flood of business customers who benefit from his |
| customer acquisition and retention. | | | | advertising balloon giveaways and expands that idea |
| 2. Active - More successful businesses will engage in | | | | to other venues. In this mythical example we see all |
| advertising, promotions and other forms of letting | | | | 3 approaches, some businesses will progress through |
| potential customers know what services they offer. | | | | all 3, others will just start with the pro-active mindset. |
| These businesses are taking an active approach, and | | | | Any bets on which will become the super-stars? |
| are by far with the vast majority. | | | | - Passive - If our balloon manufacturer had taken this |
| 3. Pro-Active - These are the businesses who if they | | | | approach he may not have survived his first year. |
| do not find conditions that exist already to make | | | | - Active - Back to our balloon entrepreneur, he |
| them grow, they create their own. The superstars | | | | recognized that the parades were drawing crowds of |
| take a pro-active approach, they look for things they | | | | prospective customers into the inner city area and |
| can change or markets they can create to attract | | | | just put his balloons among them. |
| new business. | | | | - Pro-Active - Our start up balloon manufacturer got |
| Here is a mythical example. A balloon manufacturer | | | | the city to change the parade route bringing more |
| decides to start a new plant in a medium size | | | | exposure to his business, he approached the other |
| mid-America city. While researching where to locate | | | | businesses along the new parade route with a novel |
| he decides to build his plant in the inner city area. He | | | | way of increasing their exposure. |
| opens and sends his sales people out to flower | | | | It does not matter if you are an online marketer or a |
| shops, gift card shops, local restaurants etc., anyplace | | | | "brick & mortar" entrepreneur, the methods for |
| that might sell, or benefit from giving away balloons. | | | | employing these strategies are different, however |
| He has some success, but knows there is more | | | | they still follow the same 3 basic approaches. |
| business out there. He discovers that his city has 2 | | | | |