It's been a tough year economically for many independent business professionals. The mortgage and housing market has been decimated. The stock market is stuck in the mud. Credit in general is tough to come by. Customers are struggling so businesses are struggling. Given the latest economic statistics, a rapid recovery is probably not in the cards. So what type of marketing strategy do you employ in this kind of environment?
Customer retention is always important. During slowdowns it's even more so. The whole point of marketing and advertising is to acquire new customers. If you're not keeping the ones you have, you're spinning your wheels at best. Take care of the customers you have. Take every opportunity to exceed their expectations. Send them updates, greetings or special offers at least once per quarter. Even if you do no other advertising, do not neglect this group.
Don't go away. It may not be a good time to engage in massive, aggressive advertising campaigns. All forms of advertising are going to be less effective in a down market than in a healthy one. However, if you don't keep your brand visible, you'll be starting from scratch when the recovery arrives. Shift more resources to "top of the mind" advertising. This is marketing designed, not so much to spur a quick sale as to keep the public aware of who you are and what you have to offer. These ads can be small and simple. They may consist of nothing more than your logo, name, tagline and contact information. Lasting promotional items are a great way to go for this type of marketing. Things like refrigerator magnets, car magnets, banners at local sports events, calendars, pens and other free goodies can all help keep your customer base "brand aware" for a prolonged time at a one-time cost.
While you may have the time to engage in more new product and service development and testing, don't put too much stock in sales results at this point. Put the new stuff out there, but don't bank on it. Also, don't label it a loser because it didn't catch wind in this economy. Save the aggressive roll out for better times. What people are looking for right now is value. Try new ways to package and bundle current products and services in a manner that creates a better value for the customer.
Misery may love company, but company doesn't like misery. Stay upbeat and pleasant. If a customer wants to vent for a few minutes, listen, offer empathy, but don't pile on. You don't have to be a Polly Anna, but keep your own problems to yourself.
If you want referrals, give referrals. In good times, a referral from a network partner, friend or associate is a pleasant surprise. In times like these, it's solid gold. It will be appreciated and remembered. Remember the first question a good capitalist should ask him or herself is "How can I help?". That's how you find and create opportunity, generate goodwill, acquire and retain customers and relationships.
In good times and in bad, all you can do is the best you can do. So, do all you can do.
Subscribe To
Posts
All Comments
Saturday, September 6, 2008
Friday, August 8, 2008
How not to retain a customer
Over the past week or so, I've received about a dozen automated calls from my trash service provider. I assume it's because my contract is about to expire and they'd like me to renew.
I wont mention the company name, but it starts with a "Waste" and ends with ...agement.
The recording instructs me to call a toll free number. At first I just ignored the calls. I generally don't take orders from recorded messages. But, after a few times, curiosity got the best of me and I actually made the call.
Incredibly, the call was answered by another recorded voice that instructed me to wait on hold! I still don't know why the heck their robots keep calling. Evidently, it's not important enough for any actual human being on their end to be bothered with. Their regard for my time, on the other hand, is non-existant.
Of course I will be using a different provider when my contract with these diva's expires, which can't come soon enough.
I wont mention the company name, but it starts with a "Waste" and ends with ...agement.
The recording instructs me to call a toll free number. At first I just ignored the calls. I generally don't take orders from recorded messages. But, after a few times, curiosity got the best of me and I actually made the call.
Incredibly, the call was answered by another recorded voice that instructed me to wait on hold! I still don't know why the heck their robots keep calling. Evidently, it's not important enough for any actual human being on their end to be bothered with. Their regard for my time, on the other hand, is non-existant.
Of course I will be using a different provider when my contract with these diva's expires, which can't come soon enough.
Sunday, August 3, 2008
Six Degrees of Separation, It's not Just for Kevin Bacon anymore.
The Six degrees of separation theory, made popular by the Six degrees of separation from Kevin Bacon game, got a boost this week from a rather extensive study conducted by Microsoft. Actually it's more like 6.7. The idea is that any person on Earth can be connected through acquaintances of acquaintances within less than 7 "degrees". One degree would be your friend, two degrees a friend of your friend, etc..
Of course the phenomenon would be less expressed in societies that prohibit or restrict communications. Connecting with someone in North Korea would be a more difficult task than with someone in London.
What does this mean from a marketing perspective. There are a few take-aways. First, come up with a consistent, but concise message. If you've ever seen "Johnny Dangerously" you know how badly the grapevine can screw up a lengthy message, even in just 7 generations. Keep it simple, memorable and to the point. Second, don't target your market too narrowly. While you may focus on a particular demographic, that demographic interacts with other demographics. Some of your marketing efforts should be directed at more general audiences. Let your message "resonate".
Perhaps the most important take-away is that any person you come in contact with is a potential conduit to billions of others. Take nobody for granted. You are always in the spotlight, even if you can't see it.
Of course the phenomenon would be less expressed in societies that prohibit or restrict communications. Connecting with someone in North Korea would be a more difficult task than with someone in London.
What does this mean from a marketing perspective. There are a few take-aways. First, come up with a consistent, but concise message. If you've ever seen "Johnny Dangerously" you know how badly the grapevine can screw up a lengthy message, even in just 7 generations. Keep it simple, memorable and to the point. Second, don't target your market too narrowly. While you may focus on a particular demographic, that demographic interacts with other demographics. Some of your marketing efforts should be directed at more general audiences. Let your message "resonate".
Perhaps the most important take-away is that any person you come in contact with is a potential conduit to billions of others. Take nobody for granted. You are always in the spotlight, even if you can't see it.
Friday, July 25, 2008
Leverage Your Marketing Influence
Marketing is all about influence. You're trying to influence your potential customer base to give you a try. Of course you have to deliver on expectations once you convince someone to come your way, but your success is first dependent on getting the customer to your website, your door or on the phone.
There are many ways to go about reaching your customer base. Most of them are very expensive. After all, putting an idea in front of thousands, tens of thousands, hundreds of thousands of people can take a lot of distribution resources. What if you could reach them through proxies? What if you only had to reach 100 people to influence 10,000?
In marketing, this is done all the time. The most common form of this type of marketing is the celebrity endorsement. The idea is to influence the people who influence your customer base, or at least a significant percentage of them. You could make the worst ham sandwich in the world, but if Brad Pitt went on a television interview and said "Boy the ham sandwich I had at Bob's Deli on 5th street the other day was the best thing I've ever tasted." you can bet that Bob's Deli would be swamped, at least for a few days. To make good use of leveraged marketing you have to get to know your customers. What else are they interested in? Who do they look up to? Where do they get their information? To be sure, all of your customers are not going to be the same, but if you could reach 80% of them by focusing on a half dozen areas of interest, you can save yourself a lot of time and resources.
Choose your targets carefully. You don't want to turn on one segment of your potential customers while turning off another. For example, if 40% of your customers are registered with one political party and 30% with another, specifically creating a message to appeal to one or the other risks turning off 60-70% of your customers. You want to associate your product with personalities and ideas which are appealing to a significant segment of your customers and at least neutral to the rest. If you decide to team up with an organization, don't choose a polarizing one.
Your budget may not allow for a celebrity endorsement from Brad Pitt, but there are no doubt, celebrities you can tap. Use the image of a popular radio show personality, team up with your local YMCA, think of industry experts in your field and how you can work together. Whenever possible, feature your current customers in your advertising.
Most importantly, keep in mind that everyone you deal with everyday will interact with a number of other people during the course of their day. Will they talk about you? What will they say? Will they relate a positive experience or a negative one? The people within your sphere of influence each have their own spheres of influence. Always be aware of that fact and look for opportunities to engage new spheres in a positive manner.
There are many ways to go about reaching your customer base. Most of them are very expensive. After all, putting an idea in front of thousands, tens of thousands, hundreds of thousands of people can take a lot of distribution resources. What if you could reach them through proxies? What if you only had to reach 100 people to influence 10,000?
In marketing, this is done all the time. The most common form of this type of marketing is the celebrity endorsement. The idea is to influence the people who influence your customer base, or at least a significant percentage of them. You could make the worst ham sandwich in the world, but if Brad Pitt went on a television interview and said "Boy the ham sandwich I had at Bob's Deli on 5th street the other day was the best thing I've ever tasted." you can bet that Bob's Deli would be swamped, at least for a few days. To make good use of leveraged marketing you have to get to know your customers. What else are they interested in? Who do they look up to? Where do they get their information? To be sure, all of your customers are not going to be the same, but if you could reach 80% of them by focusing on a half dozen areas of interest, you can save yourself a lot of time and resources.
Choose your targets carefully. You don't want to turn on one segment of your potential customers while turning off another. For example, if 40% of your customers are registered with one political party and 30% with another, specifically creating a message to appeal to one or the other risks turning off 60-70% of your customers. You want to associate your product with personalities and ideas which are appealing to a significant segment of your customers and at least neutral to the rest. If you decide to team up with an organization, don't choose a polarizing one.
Your budget may not allow for a celebrity endorsement from Brad Pitt, but there are no doubt, celebrities you can tap. Use the image of a popular radio show personality, team up with your local YMCA, think of industry experts in your field and how you can work together. Whenever possible, feature your current customers in your advertising.
Most importantly, keep in mind that everyone you deal with everyday will interact with a number of other people during the course of their day. Will they talk about you? What will they say? Will they relate a positive experience or a negative one? The people within your sphere of influence each have their own spheres of influence. Always be aware of that fact and look for opportunities to engage new spheres in a positive manner.
Saturday, July 5, 2008
Inflation/Recession strategies
Being a business owner means predicting the unforeseeable, making adjustments on the fly and dealing with ever-changing market conditions. Inflation is looming as a threat today. While nobody can predict the future. There are ways to cope should inflation become a reality.
Just-in-time inventory management (ordering just what you need as you need it) is a good way to go in a relatively stable or declining price environment. During periods of inflation, bulk buying makes more sense. If you have product on the shelf that you purchased at $1/unit and your next shipment runs $1.50/unit, with just-in-time inventory management, you adjust your retail price accordingly and just keep up with the increased costs. If you have a large inventory on hand at the lower price, you can adjust your price immediately, increasing your margin on the previous shipment, or choose to stay below your competition for a time, giving you a marketing edge. Take advantage of bulk pricing and give yourself more price flexibility.
Cushion the blow. If you find you must raise prices you may be able to soften the impact by adding value or adjusting packaging sizes. You may choose to reduce quantity per package rather than raise package price. Conversely you may choose to up both the price and the quantity, saving some money on packaging and so reducing the price increase. You can add services, such as installation or extended warranty. You can package related goods together, or offer a free related or accessory product with the purchase.
Credit's tight. Capital can be hard to come by. But there are ways to generate cash flow without borrowing from a bank. Having a limited time big sale is essentially like writing yourself a 30 day loan (if you're on net 30 with your suppliers). You have to get the word out and you have to make it an offer that's hard to pass up (10% off is not going to get the job done). This is a very short term play and requires cash-flow discipline on your part, but it has the added benefit of generating customer traffic and buzz.
If you have fixed rate debt and your income is keeping pace with inflation, accelerating payments is not a good strategy. Your debt to income ratio is declining, providing you're not taking on new debt. Put any excess cash flow to work somewhere else. If you have variable rate debt, and you think inflation is on the horizon, now's the time to refinance to fixed rate.
A challenging economic environment can also present opportunities. Look for used equipment or special offers from suppliers. When suppliers have specials, they're generally signaling that they need cash-flow. Help yourself out by helping them out. Take advantage of sales and special offers. Look for estate sales and liquidations. Position yourself for the economic recovery now. When customer traffic increases, be ready for it.
If you've been putting off upgrading your website because you didn't have the time, and sales are currently down, you have the time. Get it done. The same is true for aesthetic improvements and maintenance inside and outside your shop or office. Consider this an economic "half-time". Don't spend it hunkering down. Spend it preparing for the next leg up. Work on new product ideas, get active in your networks again. Don't spend a lot of time conversing with peers about how tough things are. Pessimism breeds pessimism. Spend quality time with optimists.
I'm not an old man, but I've seen a few recessions and periods of enconomic upheaval. Every time, you'll hear predictions of the end of the world as we know it. Don't buy it. Staying positive, looking for opportunities and hanging tough through hard times will give you "street cred" as well as confidence. Both of which will benefit you and your business when the inevitable recovery arrives.
Just-in-time inventory management (ordering just what you need as you need it) is a good way to go in a relatively stable or declining price environment. During periods of inflation, bulk buying makes more sense. If you have product on the shelf that you purchased at $1/unit and your next shipment runs $1.50/unit, with just-in-time inventory management, you adjust your retail price accordingly and just keep up with the increased costs. If you have a large inventory on hand at the lower price, you can adjust your price immediately, increasing your margin on the previous shipment, or choose to stay below your competition for a time, giving you a marketing edge. Take advantage of bulk pricing and give yourself more price flexibility.
Cushion the blow. If you find you must raise prices you may be able to soften the impact by adding value or adjusting packaging sizes. You may choose to reduce quantity per package rather than raise package price. Conversely you may choose to up both the price and the quantity, saving some money on packaging and so reducing the price increase. You can add services, such as installation or extended warranty. You can package related goods together, or offer a free related or accessory product with the purchase.
Credit's tight. Capital can be hard to come by. But there are ways to generate cash flow without borrowing from a bank. Having a limited time big sale is essentially like writing yourself a 30 day loan (if you're on net 30 with your suppliers). You have to get the word out and you have to make it an offer that's hard to pass up (10% off is not going to get the job done). This is a very short term play and requires cash-flow discipline on your part, but it has the added benefit of generating customer traffic and buzz.
If you have fixed rate debt and your income is keeping pace with inflation, accelerating payments is not a good strategy. Your debt to income ratio is declining, providing you're not taking on new debt. Put any excess cash flow to work somewhere else. If you have variable rate debt, and you think inflation is on the horizon, now's the time to refinance to fixed rate.
A challenging economic environment can also present opportunities. Look for used equipment or special offers from suppliers. When suppliers have specials, they're generally signaling that they need cash-flow. Help yourself out by helping them out. Take advantage of sales and special offers. Look for estate sales and liquidations. Position yourself for the economic recovery now. When customer traffic increases, be ready for it.
If you've been putting off upgrading your website because you didn't have the time, and sales are currently down, you have the time. Get it done. The same is true for aesthetic improvements and maintenance inside and outside your shop or office. Consider this an economic "half-time". Don't spend it hunkering down. Spend it preparing for the next leg up. Work on new product ideas, get active in your networks again. Don't spend a lot of time conversing with peers about how tough things are. Pessimism breeds pessimism. Spend quality time with optimists.
I'm not an old man, but I've seen a few recessions and periods of enconomic upheaval. Every time, you'll hear predictions of the end of the world as we know it. Don't buy it. Staying positive, looking for opportunities and hanging tough through hard times will give you "street cred" as well as confidence. Both of which will benefit you and your business when the inevitable recovery arrives.
Tuesday, June 10, 2008
Fourth of July Marketing
The Fourth is coming up fast. Don't wait until June 30th to start thinking about your Independence Day ad campaign. The time to start planning is now. But what to do?
First is to determine you objective. The kneejerk reaction is to think of some hook to get people to immediately come down to your store or office. Maybe a coupon or a big sale. There's nothing wrong with that type of marketing, but I want to expand on a more long term approach. Take the opportunity to be a part of the day. Be a part of the conversation, a part of the event.
What do people do on the Fourth of July? They show the red, white and blue and they barbecue. They get together with friends and relatives for fun in the sun. How can you make your business a part of the celebration? First of all, put your politics on the shelf and be a full-bore, red blooded American for a few days. People really are tired of the grade-school like bickering that goes on every night on news in the name of the American People. The Fourth is a time for everybody, regardless of politics to celebrate the fact that we're in country where all this bickering is possible, thanks to the bravery and determination of our forefathers, our servicemen and women and some very strong willed individuals. This is their day. It's not a day for persuasion. It's a day for celebration. Deck out the office, the storefront, your indoor displays. Show your pride. Let others be proud.
Now for the barbecue. People are going to spend most of there day at the park, in the backyard, among family and friends. You can still be a part of it. Now is the time to stock up on your red, white and blue promotional items. Frisbees, hacky-sacks, flags, flag pins, flag magnets, balls, toys, things that will show up at the office and/or the party with your logo on it. A red, white and blue BBQ Apron would make a great door prize for a pre-Fourth networking event, as would a nice cooler, a set of drink cups.
If you're going to be open on the Fourth, consider a ridiculous one-day discount for anyone with a military ID, active duty, retired, dependents, anyone. Even if you take a loss for the day, your display of gratitude will be appreciated and talked about.
It's an election year and emotions can run high in politics. The high price of fuel has got a lot of people steaming. Resolve now that from at least June 30th to July 7th, it's time to be optimistic and help your customers, your prospects, your neighbors to be too. Focus on what's great about this country for a week or so. There's a lot to choose from. Remember our common ground, the things that make Americans Americans: The individual spirit, the dogged determination, the unyielding optimism, the unstoppable imagination. Embrace it, promote it, be a part of it. Make it memorable, make it fun.
First is to determine you objective. The kneejerk reaction is to think of some hook to get people to immediately come down to your store or office. Maybe a coupon or a big sale. There's nothing wrong with that type of marketing, but I want to expand on a more long term approach. Take the opportunity to be a part of the day. Be a part of the conversation, a part of the event.
What do people do on the Fourth of July? They show the red, white and blue and they barbecue. They get together with friends and relatives for fun in the sun. How can you make your business a part of the celebration? First of all, put your politics on the shelf and be a full-bore, red blooded American for a few days. People really are tired of the grade-school like bickering that goes on every night on news in the name of the American People. The Fourth is a time for everybody, regardless of politics to celebrate the fact that we're in country where all this bickering is possible, thanks to the bravery and determination of our forefathers, our servicemen and women and some very strong willed individuals. This is their day. It's not a day for persuasion. It's a day for celebration. Deck out the office, the storefront, your indoor displays. Show your pride. Let others be proud.
Now for the barbecue. People are going to spend most of there day at the park, in the backyard, among family and friends. You can still be a part of it. Now is the time to stock up on your red, white and blue promotional items. Frisbees, hacky-sacks, flags, flag pins, flag magnets, balls, toys, things that will show up at the office and/or the party with your logo on it. A red, white and blue BBQ Apron would make a great door prize for a pre-Fourth networking event, as would a nice cooler, a set of drink cups.
If you're going to be open on the Fourth, consider a ridiculous one-day discount for anyone with a military ID, active duty, retired, dependents, anyone. Even if you take a loss for the day, your display of gratitude will be appreciated and talked about.
It's an election year and emotions can run high in politics. The high price of fuel has got a lot of people steaming. Resolve now that from at least June 30th to July 7th, it's time to be optimistic and help your customers, your prospects, your neighbors to be too. Focus on what's great about this country for a week or so. There's a lot to choose from. Remember our common ground, the things that make Americans Americans: The individual spirit, the dogged determination, the unyielding optimism, the unstoppable imagination. Embrace it, promote it, be a part of it. Make it memorable, make it fun.
Monday, June 2, 2008
Fathers Day Promotional Idea
Fathers Day is less than 2 weeks away, so if you're going to do some marketing around it, time to get on it.
Here's one to think about. Offer a discount on Fathers Day for Dads that bring the kid(s) with them. Use tag lines like "Show Us Your Kids!" "To Heck With Work, Take Your Son or Daughter Shopping!" "Fathers Day Special - Must Show Proof of Fathership"
It's different and if it inspires Dads to come to the store with the kids, they're all much more likely to remember the trip and your business. Make sure you have something for the young ones (bubble stuff is cheap and always a big hit). If the kids don't have fun, you're adding to Dad's stress, which defeats the purpose of the day. Avoid candy and sweets. Some kids can't have it and they don't really understand why. Again with the parental stress. Small toys, water, fruit, it doesn't have to be the Showcase Showdown, just something to show they were expected and that they are welcome.
Here's one to think about. Offer a discount on Fathers Day for Dads that bring the kid(s) with them. Use tag lines like "Show Us Your Kids!" "To Heck With Work, Take Your Son or Daughter Shopping!" "Fathers Day Special - Must Show Proof of Fathership"
It's different and if it inspires Dads to come to the store with the kids, they're all much more likely to remember the trip and your business. Make sure you have something for the young ones (bubble stuff is cheap and always a big hit). If the kids don't have fun, you're adding to Dad's stress, which defeats the purpose of the day. Avoid candy and sweets. Some kids can't have it and they don't really understand why. Again with the parental stress. Small toys, water, fruit, it doesn't have to be the Showcase Showdown, just something to show they were expected and that they are welcome.
Subscribe to:
Posts (Atom)