THIS is why 90% of all businesses fail

This video is about the common mistakes that businesses make, particularly in marketing, and how to avoid them in order to achieve business growth.

This video by Adam Erhart was published on Jul 27, 2023.
Video length: 13:35.

This YouTube video titled "THIS is why 90% of all businesses fail" is about the common mistakes that businesses make that lead to their failure.

The video discusses the concept of random acts of marketing, where businesses do too much in too many wrong places, resulting in ineffective strategies. The speaker, who identifies himself as Adam, shares his own experiences and mistakes in business and provides strategies for avoiding these mistakes. He emphasizes the importance of identifying and targeting the ideal customer and focusing marketing efforts on the platforms where they are most active. The video also introduces the concept of segmenting the market and provides charts to illustrate the process.

Overall, the video aims to help businesses understand and fix the mistakes that hinder their growth and success.

• Doing too much in too many wrong places leads to random acts of marketing.
• Businesses need to focus on using their resources effectively.
• Segmenting a market is important, but businesses often over-segment.
• Lack of clarity and focus leads to confusion and ineffective marketing.
• Consistency and persistence are key to business success.
• Not segmenting at all or hyper-segmenting can result in ineffective targeting.
• Focusing on existing customers and firing bad fit customers are important strategies.

THIS is why 90% of all businesses fail - YouTube

Section 1: Random Acts of Marketing

• One of the biggest mistakes in business is doing too much in too many of the wrong places.
• This leads to random acts of marketing, where there is no clear goal or strategy.
• Businesses need to focus on using their resources (time, money, and energy) effectively.
• Identify your ideal target market and focus on reaching them in one or two specific places.
• Stop investing in places where your target market is not present and allocate resources to better locations.

Section 2: Targeting vs. Over-targeting

• Segmenting a market is important, but businesses often go too far and over-segment.
• Understand the concept of Total Addressable Market (TAM) and segmentation.
• TAM represents the total possible market, while segmentation breaks it down into different categories.
• Having an audience of millions is too big to target effectively.
• Segment your audience based on demographic, geographic, and psychographic details.

Section 3: Lack of Clarity and Focus

• Many businesses lack clarity and focus, leading to confusion and ineffective marketing.
• Define your unique selling proposition (USP) and communicate it clearly to your target market.
• Focus on solving a specific problem for your customers.
• Have a clear marketing message that resonates with your target market.
• Avoid trying to be everything to everyone and instead, focus on your niche.

THIS is why 90% of all businesses fail - YouTube

Section 4: Lack of Consistency and Persistence

• Consistency and persistence are key to business success.
• Many businesses give up too soon or lack consistency in their marketing efforts.
• Stay committed to your goals and keep pushing forward, even when things get tough.
• Consistently deliver value to your customers and stay top of mind.
• Be persistent in your marketing strategies and adapt as needed.

Segmenting and Targeting Mistakes

• Not segmenting at all leads to a watered-down message that is not interesting or relevant to anyone.
• Hyper-segmenting down to the smallest detail can result in not enough data or information on any one segment.
• The solution is to find the most common characteristics between your top customers and build your ideal target market from there.
• Expand your segmenting list only if necessary.
• Dial in your perfect customer before adding other criteria.

Not Focusing on Existing Customers

• The cost of acquiring a new customer is 5 to 25 times more expensive than retaining an existing one.
• Increasing customer retention rates by just five percent can significantly increase profits.
• Focusing on existing clients and customers should be a top priority.
• Redirect some marketing efforts towards existing customers.
• Take a step back and find new ways to better serve existing customers.

Not Firing Bad Fit Customers

• Some customers may slip through as bad fits and cause challenges and difficulties.
• Fix any mistakes or miscommunications, but don't be afraid to fire disaster clients.
• Disaster clients take up a significant amount of time and can destroy motivation.
• Don't try to make them happy, as it's unlikely to happen.
• Avoid taking on bad clients or customers in the first place.

Avoiding Email Phobia

• Email phobia can be caused by fear of hurtful or hateful emails from clients or customers.
• Put systems and processes in place to avoid bad clients and attract high-quality people.
• Be crystal clear in your communication to avoid misunderstandings.
• Set boundaries and expectations with clients and customers.
• Focus on attracting and working with people you enjoy.

Section 1: Understanding Your Customers

• Segment your customers based on factors that actually matter.
• Retain your best customers by serving them to the best of your ability.
• List and rank all of your customers from best to worst.
• Create an ideal customer Avatar profile based on your top 20% of customers.
• Identify common characteristics among your top customers, such as gender, industry, or pain points.

Section 2: Training Your Customers

• Train your customers on how to treat you, your team, and your business.
• Avoid responding immediately to emails or unreasonable demands that go beyond your initial agreement.
• Be cautious with discounting and slashing prices, as it can create an expectation for future discounts.
• Consider using upgrades instead of discounts to make customers feel special.
• Utilize rewards to increase customer loyalty and retention.
• Offer rewards as a way of saying thank you, without requiring a purchase.

Watch the video on YouTube:
THIS is why 90% of all businesses fail - YouTube