Archive for October 13, 2007

Top Line, Conversions or Upselling

richhall asks:

I have read that getting new customers in the pipeline is the most important goal for companies.  I have also read that client conversions and up-selling are imperative to growth.  Which is true?

Mr BizPlan answers:

You questions surrounds two major philosophical mind sets among marketing experts today.  One camp believes that top line growth can solve all of a companies problems and that means making investments in branding you company and heavily marketing your products/services.  The other camp believes that concentrating on converting more of your leads and then working selling a higher average ticket, whether it be through up-selling, packaging or ancillary products. 

I believe that both are important…but should be used at different times in a company’s life-cycle.  When you are a new company with a limited customer base then loading up the top of the funnel is where you should concentrate your efforts.  Marketing experts have determined that a client will have to see or hear your ad about seven times before they respond to it.  This means that new companies have to invest a large amount of their budgets into marketing and branding efforts. 

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