Closest To Cash
CTC = Closest To Cash
I want to talk to you about an often overlooked area called CTC.
What I mean by CTC is, closest to cash.
If you think about it, give thought to how is your business performing?
The reality is it’s either you’re going to be in one of these scenarios:
- We’re desperate or in need of sales – so you’re behind the target.
- You’re doing okay – so you’re on target
- Or you’re crushing it out there – so you are ahead of target.
There’s a whole host of different sectors in there, but I’m just summarising those three.
You’re either on track, behind, or ahead of sales.
Common Uses Of The CTC Strategy
I often see this CTC strategy used when people are behind in sales.
So we’re down on target, let’s put an offer out there and see if we can drive some business.
But, ultimately, while that’s a very effective strategy, it should always be done.
The reality is, keeping a CTC offer that’s active in your business at any one time, whether you’re on track or you’re ahead of target, is a great way to bring in new business.
It’s a great way to keep cash flow rolling into the business.
The DFS CTC Strategy
Here in the UK, we have a furniture store called DFS, and a lot of the more modern retail stores now are following suit.
People like Oak Furnitureland would be another example.
Even down to car supermarkets, the big wholesale car supermarkets do similar strategies, where it appears they always have some kind of sale on their products.
For the international audience, you may not get this as much; maybe there’s the US or a European store that does something similar.
But, here in the UK, there’s always a joke, “Why does DFS always have a sale on?” It’s on 12 months of the year.
Well, the reality is, the strategy behind what DFS do is, they always have a sale on, but they have a deal on a different range of products.
We all understand house furniture; whether you call it a sofa, a settee, a couch, whatever you call it, it doesn’t matter.
But, there are ranges like there is in cars, or iPhones, there are different models.
The company DFS is smart to use sales on different products at different times.
So let’s say a particular piece of furniture is reaching its end of life, they’ll put a sale around that.
That sale might only be for four weeks.
How To Adopt The CTC Strategy In Your Business
So if you look through your business, let’s say you’ve got three channels, or brands, or ranges of products.
Inside of each one, you might have two or three different products.
Ideally, what you’re trying to look at is four products across three channels or three products against four channels.
- In quarter one, you can put a closest to cash offer around a sub-sector of those products.
- In quarter two, you change that over and put it onto a different outcome.
- In quarter three and four, rinse and repeat the process
The critical aspect here is to ensure you have a clear definition
and understanding about your products and services, and how they fall into each deliverable channel.
Our REAL CTC Strategy Explained
So in our business, the three-channel real examples I’m going to provide are
- Growth Engine Community
- HubSpot Agency
- Executive NXD and Coaching
CTC in the Growth Engine Community
The community membership is only $10 a month, our low ticket offer; it’s designed to bring people into our content and to help them and provide high-value upfront.
Periodically, we will offer
- Free membership for a limited time
- Or three months free to boost numbers
- Or A free consultation with every new paid membership
CTC in the HubSpot Agency
In our HubSpot Agency, we wouldn’t say “Our HubSpot retainers have X money off”, however, we will promote incentives that provide additional value such as,
- An upgraded strategy pack
- or some extra SEO work
- or some try before you buy project agency work.
CTC in Executive Coaching
I don’t discount that, that’s not even open at the moment, so I’m not taking new people in, however, when that does open again, I would promote extra value benefit through
- Include some agency deliverables as an added value service,
- Upgrade them to three months free mastermind
- Provide associated and valuable services that would typically be chargeable such as financial forecasting without additional cost.
When considering closest to cash, think about how you can put a rotating offer on throughout the year allowing you to keep a bottom of a funnel, lower ticket, or even maybe a free trial into a paid service, which is running all the time.
Don’t wait until you’re behind the target, or if you’re on target or ahead of target, get those closest to cash offers in play, get them running, get them rotating.
Make sure your sales team and your customer services team are aware of the promotion and then put them into your marketing funnels and your paid ads.
Existing Clients should benefit too; some may have bought product X, but not product Y.
Go and offer them a cross-sell, that’s another excellent opportunity around CTC.
I’d love to hear from you and take your views around:
- Are you running CTCs, closest to cash deals periodically?
- Are you just running them when you’re behind the target or getting started with a range,
- Or is this a structure that you’re already using?
I’d love to get your feedback on it, leave us a comment below.
Any questions, we’ll get those answered.
So as always, I appreciate you continuing your to Growth Engine Development.