In the book “The 7 Habits of Highly Effective People” Dr. Covey spends a lot of time discussing what he labeled “P” (production) and “PC” (production capacity) balance and why it is important in your business or organization. He uses the analogy of the goose that laid the golden egg to illustrate his point with the golden egg being “P” and the goose being “PC”. The lesson here is that if you do not take care of the Goose, you jeopardize the golden egg.
Metaphorically speaking in business our clients or customers are our Goose and the profits we make from their purchases is our golden egg. In online marketing businesses we rely on a client base we call a list and if it is not obvious by now that is our “Goose” and we need to nurture it, not cook it.
How to apply the principle of “P” and “PC” balance to your list as an online marketer. In simple terms we need to change our focus from collecting eggs to feeding the goose. How we go about it is simple and boils down (no pun intended) to one word “Value”. We have to provide value to our customers or risk losing them.
In online marketing we build a list and put it on some type of auto-responder that bombards them with offer after offer and forget about them. Clearly this is a focus on “P” (production) or the proverbial “golden Egg” and while you may make a profit in the short term, you will lose these customers in the long term. In other words you lose the “PC” production capacity or “Goose”.
This is not a difficult problem to solve, you already have the tool In place in the form of an auto-responder. Instead of bombarding your customers with offers, consider providing value. With some experimentation you will find what works for your client base in terms of value versus offers. What a concept, actually giving back to your customers. If you balance “P” and “PC” as Dr. Covey recommends you will not only insure your success in the long term but you will continuously improve and increase your customer base.