Skip to main content

Do not loose money even in your 1st Transaction



It is a very general business tendency that whenever any entrepreneurs starts making initial transactions they think more from the top line revenue , which is not bad at all

Some of the top objectives are frequency of Some of the top objectives are frequency transactions repeat transactions, volume of transactions etc. Well this might just make your top line very healthy as the revenue starts flowing in

All this may come at the expenses of loosing money at every transactions primarily due to some extraordinary incentives being offered to lure to customers to be the first users. The core thinking here is that customers who have not heard about will not buy your product unless given on discount.

All this may come at the expenses of loosing money at every transactions primarily due to some extraordinary incentives being offered to lure to customers to be the first users. The core thinking here is that customers who have not heard about will not buy your product unless given on discount.

Yes you are an unknown brand , new to the market so you are forced to think that i need to subsidize my offering to get the customers. This has been traditionally done in the past so we also need to do it

Well it may not be possible always to be profitable from the day one but it is very strongly recommended not to loose money on every transactions. This does not mean that you have to make profits but even if you are able to recover all the money spent in making that transaction than i guess you are on the right track to me profitable soon

Leaving at the later stage to become unit positive may not be easy & you to might get stuck in that vicious cycle. Once you give the customers a discounted price that you are yourself setting the standards in the market & will not be able to move up the chain sooner.

Discounts are not bad , they should be given but the timing & the way they are supposed to be given is very important


Not to forget the customer loyalty doesn't come from the incentives , it comes from the product & impeccable after-sales service.

Comments

Popular posts from this blog

Why is digital marketing important for Medium and Small Enterprises ?

One of the key differentiators of the success of a business is the number of customers that it can reach as more customers mean more sales volume.   One of the technological innovations that helps a business in this direction is digital marketing . It is indeed a boon for MSMEs as it lets you reach your target audience with ease, simplicity and at very low cost. Cost is always a concern for most MSMEs. Why would anyone not want to use the power of the internet with over 3 billion users to further the cause of their own business? But it is a fact that deploying digital marketing for their own benefit seems a herculean task for many MSMEs as they feel that they are not adept nor attuned for the digital world, they also tend to think that they will not reach their target market or they simply do not have adequate information, lack sufficient human resource and tools to manage the digital world. Here is where organisations like Outsourced CMO can help these MSMEs bridge the

Do marketers need to worry about job losses in AI dominated future ? (Part 1)

The age of AI driven automation is well and truly upon us. Pizza Hut is experimenting with robots called Pepper and virtual assistants like Siri and Alexa are a reality now. According to Pizza Hut the experiment with Pepper will not only make the customer service faster and more efficient but will also make it easier for people to customize their orders. The company expects a reduction in customers’ wait time for orders and far superior and personalized user experience. This does indeed represent a threat to the first line of marketing personnel.   Although it is equally true, that Pepper has not been so successful outside Japan, where it is sometimes available at hotel lobbies as a virtual concierge and was actually fired from a Scottish grocery for less than satisfactory performance! But this can be seen as a step in the learning curve for AI controlled robotics and as we all know that this learning curve is indeed quite sharp.   Marketeers are confused as to h

“OUTSOURCED CMO” is now registered Trademark

Simplicity is the key in today’s brand world. Keeping it in mind along with collaborative consumption mindset, brand   OutsourcedCMO   has helped companies gain recognition within various markets and continue to do so.   And now, to protect our identity and exclusivity, we have registered our brand name ‘Outsourced CMO’ – Yes, Outsourced CMO is registered now ! This means we at Outsourced CMO hold exclusive rights to use this brand name and no person/firm can use it without our permission. The goodwill and trust we have built over the past years helps in differentiating and separating our services from other players in the industry and this step will protect it for us and companies who hired us. The registration process protects any infringement as per the Government of India and will bring on legal hassles for infringers. Since Outsourced CMO strongly believes in the concept of shared economy, we at Outsourced CMO strive towards lowering marketing costs, strengthening commun