I wrote previously about ProfitXL: Supersize Profits with the SHUVAM Framework: “ProfitXL is built around five themes: the need for one-way push channels to become two-way conversational pathways thus bridging the chasm between acquisition and conversion, the transition from point solutions on the brand’s properties (website and app) to a unified martech stack, the identification of Best customers and creating differentiated experiences for them, getting close to zero CAC (customer acquisition cost) for new customers, and measuring growth based not on paid marketing spends but on repeat purchases from existing customers and revenues from referrals. This is ProfitXL’s SHUVAM framework: Story, Hotlines, Unistack, Velvet Rope Marketing (VRM), Acquisition (done right), and a new set of Metrics to measure progress. SHUVAM is the path for exponential forever profitable growth. If followed rigorously, it can help a brand create the ultimate endgame and moat in a business – a profits monopoly (“profipoly”). The ProfitXL mindset and SHUVAM strategy will help marketers increase revenues, reduce spends and improve shopper experiences.”
Since then, I have been thinking about how to get wider adoption for the idea. While ProfitXL will help Netcore sell its products, there is a bigger agenda: to lead an industry-wide movement away from wasteful overspending on new customers (“AdWaste”) and shift focus to building deeper and profitable relationships with existing customers. There is thus an opportunity to position ProfitXL as a system, defined as “a set of ideas or rules for organizing something; a particular way of doing something.” Many of the actionables listed in ProfitXL’s SHUVAM framework are not being implemented by marketers for their brands. This is what needs to change – not just at the level of a single brand, but as an industry. Eliminating the “profit killers” in marketing is about instilling good habits in the marketing strategy which can lead not just to profitable growth, but also make it enduring, and eventually help the brand to creating a profipoly.
This essay is about the idea of how to sell ProfitXL as a system for marketers to adopt and make part of their day-to-day operations. ProfitXL is more than a single point solution or even a stack (multiple interconnected solutions); it is a bigger idea that the marketing industry has forgotten – how to ensure existing customers come back for more and bring their friends. ProfitXL is about creating a disciplined process which can deliver 25% year-on-year growth for long periods of time and at the same time cut marketing spending by 50%, leading to a dramatic improvement in profitability as the table below shows.
This is just in the first year. Imagine the power of growing revenue and profits growth over multiple years. ProfitXL is the system which can help any consumer-facing brand build a compounding machine, the secret of an enduring, great company. My challenge: how do I persuade marketers to adopt the ProfitXL system?