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Learn The Skill of Demand Generation for Any Business

Learn The Skill of Demand Generation for Any Business

Hi, there this is Rajat from Startup Frat. Welcomes you to this blog. Today we are gonna talk about rocket landing. How do these guys you know these days Elon Musk is landing rockets on mars and then rockets back on the earth and things like that? He has been able to achieve, what a lot of the government agencies like NASA etc. could not achieve for the last 30 to 40 years.

So, what is the thing with this rocket landing? I will just share with you the trivia and then I share with you how it applies to you? Especially if you are either a corporate professional who wants to quit your job, you know who wants to get into your own business. But you can’t understand how and it’s a big risk quitting a job and then starting a business. You need to understand all the dynamics before you do that. Or you are a certified professional like a doctor, lawyer, chartered accountant, or architect who’s lost in an ocean of other such qualified professionals and you don’t feel so special anymore.

You are a small business owner with a business on the ground. You have a practice on the ground, sale on the ground. Restaurant, travel agency anything like that, and you sick and tired of having every downturn in the economy, every band, every riot, every government announcement, they ask you to shut your business down and you’re sick and tired of it. And you want out of it. Or you are a performance marketer which is used to sell something on commission. You are a mutual fund salesperson, LIC salesperson, multi-level marketing, direct selling agency anything like that, real estate brokerage, etc.

So, you don’t have your own products to sell products for other people you make a commission out of it. If you are in any of these 4 categories then this particular concept could possibly change your entire view of things. So let’s get started and I’ll talk to you about, what the rocket landing problem was and how they were able to solve it?

How Does Rocket Landing work?

So, basically what happens is that What you are saying is? once a rocket takes off, satellite out then this satellite has to let’s say they landed people on the moon and then they said well the satellite has to come back. And when this satellite actually comes back it has you know used to land it in the ocean and things like that. Then even if this rocket or the satellite is coming back into the atmosphere there to be very careful about it. Because if it’s coming back to earth something like that the earth is exerting this gravitational pull and this gravitational pull accelerates an object. Anything that’s in the atmosphere accelerates it towards it.

So, if a rocket is trying to land back on the earth or if it’s trying to land on the moon or something like that. What happens is, it can not come straight and land. Even in the water, it’s gonna accelerate so much that when it hits the water it’s just gonna disintegrate into the pieces. And that is what used to happen with a lot of space flights. Now, how do they do it? how do the scientists do it? They figure out that the earth or whatever body lets say they have to land the rocket on Mars.

Earth

You know the earth is rotating ok and then it’s exerting this particular force. So, What do they do is? they figure out, what is the distance at which I can bring a rocket-like straight. So, it doesn’t go straight in. It goes straight, and then the gravitational pull kind of takes it in a little bit. So, it takes around with the gravitational pull. And then it goes all the way here and the gravitational pull is going on increasing. Because it keeps accelerating the object towards the ground. Which is the point of impact which could be here or whatever. This rocket keeps on moving forward at a certain velocity so that it does both directly and hit the ground but can a goes into it like the spiral and you know that’s how it hits the ground or the water at an angle.

Now of course they have computerized. The computerization is so good that they don’t need to send people for them to be able to navigate. It’s like how they landed you know landed the rocket on the Moon the satellite on the moon. But even automated with computer chips and all this rocket can actually come to the landing point their level tool and vertically and not disintegrate and things like that. So that is the whole concept of the rocket landing and they of course scientists and physicists knew all these equations.

Then knew the gravitational pull. They knew all the theories about it. You know for so long but it’s only recently that computers become so advanced that actually a computer can actually manage all these forces and be able to land the rocket you know to take off a rocket away from the earth bring it back to the earth and be reusable. So that is what its actually reducing the cost of space flight. Otherwise, you know every rocket takeout basically me the rocket is lost forever.

Now, why are we talking about it today? So, if you look at all the forces and everything, they have a big impact on your business these concepts have a big impact on your business. I will show you just, what happens is? You have your business back in the old days which means throughout the period of 1970s, 1974-1975 all the way till 2018. What has been happening is? Consumer demand in India has been rising. Consumer demand in India has always been on rice.

This means whichever business you are in, If you are a doctor, lawyer, chartered accountant, if you are a corporate professional if you have a small business on the ground if you are a performance marketing selling some products or whatever it is. You have never needed to figure out, which also means me outside the small business. You and I have never needed to figure out you know how to channel demand? How to control demand? How to generate a command?

All we did was basically we just set up the shop at the right place which could be the main street of your area or the MG road of your area of the Connaught Place of your city or whatever. You just set up your shop in the place where the customers are going to come which has a good reputation for having your kind of business is supply customers. And then customers would come, all you need to do is basically just supply them, just figure out, what they want? Give to them at the pre-negotiated rate and life is good.

This applies to you know small business owners, charted accountants, doctors and lawyers apply to performance marketers like real estate agents and multi-level marketers. We never needed to figure it out. Do you know how to get customer demand? Because demand was always there and demand was always rising. So, we were kind of any position like this with the gravitational pull of the business of whatever it is already bringing in customers. It was definitely not the gravitational pull of the business; it was just that the customer demand was so much. That people would basically just show up to the store or show up to your office or you get a lot of inbound inquiries.

There was so much demand. All you had to do was once this customer showed up, then basically set figure out how to close the deal, give them what they want, etc. Now, this customer demand is evaporated. This means the customers who had already made up their minds that they want your product or service don’t exist in the market anymore. Even if they do exist in the market, you know they are very very careful about how they spend money? For example, right after the lockdown ended a lot of people wanted to travel, a lot of people said OK man I had it I want to go out take my family out for some vacation, etc.

But they were very careful about how they spent that money. It’s not very easy to sell travel deals all the people are willing to buy travel deals. Just one example same with restaurant same with nightclubs, you know same with lots of business is just because of demand. People are very careful with their money now. Because they don’t know what’s going to happen tomorrow. So, now what does that mean is? If you are working on the cream of the business the cream doesn’t exist.

Generate the Demand

So, what do you have to do is? generate the demand. This means you have to outreach to the customer. Make sure they understand that you exist, make sure you are on top of their mind. When they need your product or service and even better create that need in their mind before they need it. So, when they actually do need they think of you first. And all of these things need to happen simultaneously. This means if you spend your money on advertising, sending out newspaper flyers, that here in this area you know we provide these services, salon services, legal services whatever.

They may not immediately need those services at that point and the time they do need the services they gonna remember you. So, all that advertising money is wasted. The fact that you grab their attention till the time they actually are interested or desired as in consuming a service. You need to have a system where you stay on top of their mind. Then obviously everything else has to remain the same.

This means once they do decide they wanted a service then they do need to contact you, you need to bring them and do the actual negotiation and all of that. Now the part that is not working is that if you get a customer straight to your product or your services, I start talking about the product or service just like you did a few years backside two years that probably. If you start talking about the product and services not enough to convince them. Not only those customers are also because they care with their money there are more likely to actually go out and compare your rate with your competitors and really take a lot of time in making a decision.

On top of that, if you’re selling third party products which is you could be into multi-level marketing, or even into real estate, mutual funds, selling LIC, travel agencies, most travel agencies are just a front for selling packages at the backend which could be are larger brand packages like Thomas cook or whatever.

So, they make a cut on the actual package. Now, even if you are a front-end seller what happening is? the commission rates are decreasing. Because people not spending money asking for more discounts, asking for more bonuses, asking for more freebies. So, the income for you is getting crunched. If you are a doctor, lawyer, chartered accountant, What happening is? You have no time. There is not enough time to actually go out and find customers. You either go and find customers or you service the customers.

If you are a degree-holding professional like I started out as a degree-holding professional, I have a medical degree I started out working as a medical doctor in a government medical hospital in Maharashtra. I have a pretty good medical degree, I have an MBBS degree from India’s number 2 ranked medical college. So, if I wanted to go out into private practice, either I want to find the business or I am wanting to supply the business with basically means is that I am not supporting the patients or I am gonna basically figure out where to get the patients from?

In those days I was not so much of a problem, if you had a good reputation patients would come to you. But today there is an oversupply of doctors, an oversupply of lawyers, oversupply of chartered accountants. If a customer wants or if a patient wants to decide which hospital to go to? which doctor to go to? They are very very careful because of course then you know times are tight and for other procedures like elective procedures for dental doctors etc. Spend are dying in the market.

So, what do you do? If you bring a customer or a potential customer straight to your product and service, they are not going to buy and you probably experience that, you probably experience that. So, what is the solution? The solution is, you gotta utilize a technique which is called demand generation. Most people in India don’t understand it very well. Because there was no need to understand it. We may have been having a role for last many many years. So, what do you do is it? Starts with an idea.

Starts with an idea that has to be converted into desire, desire has to be converted into conviction which is they must know all the different players in the market providing the service and they must understand that you are the best for whatever reason. Everybody who the existing business is the best at something on the other. You don’t necessarily need to be the best at the service, you don’t necessarily need to be the cheapest at the service, you have something that a certain kind of customer likes.

So, you start with an idea converted to a desire converter convection and then you make a sale and all of these four items cannot happen independent of each other. This means you got to cycle it all the time. So, this is the customer who doesn’t you know exists. They somehow come into your gravitational field and then they come all the way they keep rotating keep getting you to know they keep getting so-called indoctrinated with your offer.

Sales

What is indoctrination? does this idea resonate with you yes or no? Do you think you want to do it? how badly do you want it on a scale of 1 to 10? These are the different players in the market who compete with us but this is the stuff that makes a unique. Does this interest you? And then many interests. What is gonna take to do business with you? So, there are 3 or 4 stages in which customers decide. We don’t understand these stages mostly we don’t because at the end of the day till now we only dealing with 2 stages which is conviction and sales.

A customer who was convinced to pretty much knew what they wanted? They would show up to the store and we’re only a question of price or offer or whatever bonuses it is. Today that’s not the case. Today you have taken catch them in the outer stratosphere and then you slowly rotate them all the way to the point where they get a conviction and sale. Now usually when I do my workshops are usually when I do my academy sessions in the Startup Frat academy. Somebody or the other is always on raised a hand says all that I understand Rajat that all the selling and marketing etc.

But where is the time? it is not worth my time. You know to actually figure out how to go after thousands of people rather than the 5 or 10 that I know are probably gonna do business with me. Not worth your while not worth my while to employ people and call these guys by database get. You know some digital marketing lot of people do Facebook Ads or they employ an agency to do Facebook ads and the agency will turn around maybe 3000 leads. There is just not enough time to call all of them, she calls maybe 5, 10, 15. You release your conversation is very difficult to get these guys to be convinced.

Then you say hey man this thing is not working for me and I totally agree with you and I have been there myself. So, if you are in a position where you say all this marketing doesn’t help, telemarketing doesn’t help, Facebook ads don’t help, all the marketing agencies digital agencies don’t help. Absolutely I agree with you 200%. Now, here is the thing with ads, any kind of ads, offline ads, online ads, Facebook ads, telemarketing whatever it is. That the ads only work on the first layer.

The ads only grabbed a person’s attention and see it and Idea and to their brain. What you need is a machine that does all of the rest of the stuff for you. Which means? The ads only bring people into your gravitational pull. Once it comes into the gravitational pull, you need to have a machine that takes them slowly here and brings them to us safe landing. And the only way you can do it cost-effectively is by having a completely automated sales machine where you only ask for the order at the end.

If you have to be personally present to ask for the order. Let’s say your travel agent, you say common man nobody spends 200000 rupees or 300000 rupees on travel this thing without meeting a person. I totally agree with you. What you gonna do is? You gonna have this machine bring these people through the 4 stages till the time there just you left at the end. Not only that we could two or three steps further. Some other things that you are doing in the old economy to convince customers you won’t have to do again. This means if you have to price compared to educate a customer saying these are the reason why be a better and customer says wow this is good, I want to do business with you don’t have to do any of this stuff anymore.

All you gotta do is show up and provide the offer and select the customers were willing to work with you. It’s a game of selection. If you do this game right it becomes a game of selection rather than a game of convincing. And we call this process demand generation and it was invented by some salespeople in America back in the 1800s.

Why because it was a highly capitalist economy with multiple suppliers vying for customer retention even back at that time. People who were into sales of all these different products really had to work very hard to get customer attention. So, they worked out all the nitty grittiest So, that if they gave one little ad in the newspaper at that time. They could just figure out how to grab customer attention and then worked their way all the way around to a sale.

Today it doesn’t happen if people see ads in the newspaper and they forget and are the only people who can really monetize ads in newspapers or on TV. Another big player is Reliance Jio the Procter and gamble of the world. You can’t do that even I can’t do that. So, what demand generation basically teaches us is, assuming that an ad any kind of ad is able to bring a customer’s attention into my gravitational sphere. How do I make sure that I have a system ready have that gravitational pull ready so that this rocket travels in my ecosystem and comes to a safe landing.

Now you can let this machine lose. So, that if even if you’re spending 10000 rupees on ads every month, it consistently gives your customers that either pay you 10000 or more than 10000 before they come into the business with you. So, it has to be cash positive business which means if you acquire a customer it has to be a cash positive enterprise. You cannot just keep paying for ads and expect that one day you know I spent 200000 rupees in ads this month. Probably these customers are gonna buy 20 lakh rupees worth of products and services so I make my 200000 back. It doesn’t work like that.

The machine not only has to work itself it ok so as to feed itself, but it also has to collect money from customers for different products that we help our customers create. This means at Startup Frat this is what we specialize in. We help all of our clients, create front-end products where if you spend a certain amount of money on ads the customer pays you when they arrived to meet you. They pay you a certain amount upfront. So that all this money that you invest in ads is basically monetized.

Telecaller

Then you can deal with the customers. All this machine has done is ratcheted down all the filtration down to an automated fashion. This basically means even if you do have telecallers, they gonna call customers and closed at least 50000 rupees deals and not 5000 rupee deals. So, it makes everything cash viable. Now if you’ve been watching so far and some of these ideas resonate with you should like to know more about this process I would like to invite you to our masterclass which walks through the whole process is called demand generation.

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