Roadblock - Improper Use Of New Media

Social Networking, Internet, Text, Etc.

I have come across a number of advertisers lately that are pouring their resources into the NEW MEDIA, especially the Social Networking sites and Twitter. A word of caution, while these options sound cutting edge, they are not a way to generate new business. The growing number of users on these sites do not want advertising. MySpace, once the king of social sites lost 4 million unique visitors in June 2009, while Facebook grows at nearly the same rate. Many users cite the abundance of advertising on MySpace as a nuisance and a reason for switching. Let's not forget the many choices of sites as well. Facebook, MySpace, BeBo, etc. Not to mention how fickle these users can be. In this arena, the popular sites can change very rapidly. (Facebook leaves MySpace in the dust)

Twitter and Text messaging. Both are forms of opt in advertising. People have to ask for your ads. If they get tired of your ads or don't want them, they just delete you.

Just like internet advertising and other passive media like newspaper, none of these forms of media are able to create a brand or get potential consumers emotionally involved. They are great at extending a brand, marketing to existing customers and sometimes reaching people that are in the market to buy TODAY.

There is a place for this form of advertising, but not as your PRIMARY media. You will see traditional media to continue to shine and help break your business break free of the clutter of all of the new media choices in places where peole want and even expect ads! Drop me an email at rcovert@gpmnow.com if you care to discuss further!

Face To Face Roadblocks

Pre-Qualifying and Making Decisions For Your Customer

This could probably be two separate posts, but I feel the need to get them posted now.....before it happens again. The two are similar yet different.

Pre-Qualifying is simply deciding whether a customer is really a prospect or that they can only spent so much money before you really talk to them. My first job was at a Chevrolet dealership in a small town in Southern Missouri. I was 19 years old and had been on the job for just a week. I knew nothing about selling cars. One morning, an old early 70's pick up rumbles onto the lot and a very hairy man with a beard and dirty overalls with a dirty t- shirt gets out. All of the "veteran" sellers virtually pushed me out the door to talk to this guy. "Go ahead newbie, this one is yours." "Giggle, giggle." To make a long story short, the gentleman walks up to a brand truck and asks, "How much?" I told him the sticker price and he replied, "I'll take it." "Well. let's go do the paperwork." We pass the smirking "veterans" on the way back in. They assume the guy is wasting my time. When we get to my office, he reaches into the bib of his overalls and pulls out a wad of $100 bills and asks me to count out what I needed. As I walked out to start the paperwork process with a wad of cash, the smirks quickly faded. A lesson was learned that day by the newbie and veterans alike. That scenario played out more often than you would think. Never pre-qualify.

The second part today is vital. Do not decide what your customer will or will not buy. Give them the options and let them say no. Right now, our staff is working on selling our sports programs, High School and University of Kansas. I ask that every customer gets the opportunity to say no to the plans. For some reason that is difficult for people to comprehend. But, that is for another day. One of our sellers, Scott Swedlund, a nearly 20 year veteran of the business called me yesterday afternoon almost giddy. "You will never believe it, but (client name removed to protect the innocent) just bought our Total Sports package. I was just going in to change his commercial and didn't even have the package with me! I thought his budget was spent." (Shame on you!) But, to Scott's credit, he saw an opening and seized the opportunity. You see, this client owns a restaurant and bar. He is trying to attract fantasy football leagues to come each week and watch all of the games at once. Scott asked him a few questions about what each customer would be worth and suddenly the sports package was a viable option. Scott was fortunate to make this one happen because he was prepared when the opportunity presented itself. How many opportunities are being missed because we are deciding what a customer may or may not buy?

Speed Trap

Set A Realistic Time Horizon

Don't get caught trying to cut corners with your advertising and expect to get there faster than is possible. Advertisers make the mistake of thinking that advertising is like turning on a light switch. Advertising takes time to work. How long varies depending on the purchase cycle of your product. A restaurant can expect quicker results than a mattress store. People have the need to eat every day, yet need a new mattress every ten years or so.

Advertisers stumble when they try to decide when a customer is going to need their product instead of being consistent and committing to the message and let the advertising go to work and persuade the customer to shop you when they are ready.

This doesn't mean that advertising can't generate immediate results WITH THE RIGHT OFFER, it just isn't something that you can count on consistently.

Triggering events happen every day that bring people into need for your product or service. A few years ago, I had the entire family over for Thanksgiving dinner. In-Laws, Cousins, extended family, the whole deal. About 2pm, we realized that the hot water heater was out. Cold water for dishes, no showers. Not good. I had an immediate need for a plumber. Didn't have a need at 1:59. I called the plumber that had been advertising 24 hour emergency service. Didn't ask what it cost. They showed up, fixed it and charged me twice the normal rate.(It was a holiday) I thanked him. I was happy. Great strategy by the way.(That's a bonus lesson!) The point here is that no one could have predicted when I would need my water heater fixed, but this plumber was at the top of my mind when I needed them.

So, when you commit to a plan, give it time to work. Don't give up and try something else. It will cost you money and you end up starting from square one. Happy motoring.

Roadblocks, Potholes, Detours and Speeding Tickets

The Road To The Customer Is Full Of Challenges.

It seems easy when you assess the six checkpoints on the Road To The Customer. But what I haven't talked about are the hidden disasters awaiting you on your journey. Fortunately, most can be avoided if you know what to look for. When you encounter one, don't let them keep you from getting back on the road toward your original destination. The Customer.

I will cover these randomly and in no particular order, but the first roadblock is in the initial strategy for creating your message. It is so tempting to tell everyone about your business. How long you have been there. How much experience you have. Your awards. A picture of your dog. Features of your product(s). Family owned since.......Roadblock #1 is PEOPLE DON'T CARE ABOUT YOU. I know that's hard to hear, but as Roy H. Williams, The Wizard of Ads wrote, "The risk of insult is the price of clarity." They care about what your product can do for them. They need to see themselves taking ownership of the product or using your service. Good ads focus on the CUSTOMER, not the business that is advertising. Good ads elicit emotion and persuade consumers. We do this by talking to them about the thing that they care the most about. Themselves and/or their family. Remove this roadblock and watch your return on investment grow! Stay tuned, more to come!

Taking The Show On The Road

Strategically Sound Seminars Coming Up.

Last week was a good one. I confirmed a deal with the Lawrence Chamber of Commerce to present a workshop for small business advertising and marketing. It will be one session per month over three month starting in September. September 18th, October 16th and November 20th. The small investment to attend will go to the PIECE Project. (Basically, a Leadership Lawrence class for high school Freshmen).

On October 8th, I will be a part of a round table on local advertising at the Cookeville, TN Chamber of Commerce Retail Summit. Should be a blast!

If your business or group needs a speaker or consulting on advertising and marketing, drop me a line at rcovert@gpmnow.com .

Road To The Customer - Checkpoint #6

After The Sale Strategy

Well, you did it. You navigated the hazards and road blocks and made the sale. The customers is gone and the money is in the bank. No time to rest now. Begin making the next sale. No, not the next customer.....the one that just left. That is your best next prospect for a couple of reasons. First, this customer knows other people and will be your best form of advertising. Positive word of mouth. Second, this customer will buy again. Make sure someone doesn't steal them.

I have said and written on many occasions that the only way to grow your business is to get new business or sell more to your existing customers. You can get both if you use these after the sale strategies. Most of your competition does not.

SAY THANK YOU - Sounds silly, but how many times have you purchased something and the clerk says, "Here you go." and you say' "Thank You." to the clerk that YOU just made a purchase from. Shouldn't the seller be the one saying thank you? Customers want to know that their hard earned money they spend with you is at least appreciated.

FOLLOW UP - To see if the customer is satisfied. Make a call the next day or the next week to see if everything is as it should be. Are they happy with their purchase? Say thank you again. This is a great time to insure positive word of mouth. You can correct any challenges or problems at this time.

ASK FOR REFERRAL - If your customer is happy, ask if there is anyone in their sphere of influence that cold also use your product or service. Maybe make them an offer for their next purchase if someone buys from you that they refer. Partner with a restaurant and offer gift cards for every referral that buys. Satisfied customers will be more than happy to give you names. If you ask.

HAND WRITTEN NOTES AND EMAIL - So simple, yet virtually no one does it. It makes us feel special to get that note of thanks. Remember, marketing is any touch with your customers and good marketing is getting to them more often. Making customers feel even better about having done business with you.

SCHEDULED LONG TERM FOLLOW UP - Every three months or so, check in again. You never know when their moment of need may be. Are they still satisfied? Any new referrals?

DO SOMETHING EXTRA - What can you do for each customer that they didn't expect? We just had a new air conditioning unit installed and got a large tray of assorted choclates delivered to the office as a thank you from the heating and air company. Pretty small investment for them, but everyone in the building was surprised and talked about it.

It's a long and winding road to get a customer. Make sure that you keep them.

Road To The Customer - Checkpoint #5

Face To Face Strategy

Everything is good. The plan is together, customers are coming in and things look great. Now, the hardest thing to control. You or your staff comes face to face with the customer. (This could be on the phone as well) This is the time that the sale is won or lost, but as business owners or managers, too little time is spent focusing on this area. I had a customer the other day that agreed to an advertising plan. He was from a service industry and I went through the Roadmap To The Customer with him to stress that the advertising that he had just invested in was only one part. He told me then that the person he had answering the phone could be a real witch. (that's not what he really said, but it does rhyme and this is a family blog!) I assured him that his ability to convert phone calls to actually sales would be greatly hampered by this challenge and the better the advertising the more business he would lose if this problem wasn't rectified. He understood and took a copy of the Road To The Customer to try and teach her the importance of good contact with potential customers.

Here are a few areas to focus on :

SMILE - In person or on the phone, everyone wants to see a real smile. Force yourself to smile and it is nearly impossible to be in a bad mood. The attitude of your customer changes with you.

KNOW YOUR PRODUCTS - Where things are. What services are offered. Features and benefits. If you do not know an answer, make it a point to find out as quickly as possible.

PROBE NEEDS OF CUSTOMER - Ask them how you can help them. Probe what they are looking for. Why they are making the purchase. Not to be nosy, but to better understand what to recommend. The more that you know about what they want and why, the easier it is to show them a product that best suits their needs. At this point, it is about their needs, not your products or service.

BE SINCERE - Truly take their needs into consideration. Want to help them get what they want. Sound easy? Too many people just go through the motions. The more that you get involved with them in the purchase, the harder it will be for them to buy somewhere else.

UPSELL - There are only two ways to grow your revenue. Get new customers or sell more to existing customers. If they are making a purchase, it's ok to ask them to buy something to go with it. Sometimes it is something that they needed and forgot. For example, I shop at a local golf store. The owner never fails to ask me if I need a box of balls with every purchase. I have known him and shopped there for 5 years and he has never failed to ask. He will also point out sale items while I am checking out. "Hey, we have a pair of shoes on sale in your size. You can save $50. You are going to need them soon anyway." He has never offended me by asking and a few times I did forget to buy balls and was glad that he asked. If he didn't, I would have bought them at the pro shop or somewhere else on the way when I remembered! The sale would have been lost.

Please do not take this part of the process for granted. Concentrate on it. Train your people. Anyone that talks to customers!

Road To The Customer - Checkpoint #4

In Store Strategy

You have a great plan. Your value strategy is sound. The advertising is getting people to call or come in to the store. Does the first touch one on one between your business and your potential customer match what you are telling them?

STORE APPEARANCE – Well lit, clean and organized. Sounds simple, but when you have been in as many businessses as I have, well, trust me, don't take this for granted.

HIGHLIGHT ADVERTISED SPECIALS - Don't make people ask where the specials are. You are advertising them because you want to sell them. Sometimes businesses want to test their advertising by making consumers jump through hoops to get something. Don't test the advertising. It is proven to work. Let your money work for you. Have a display or a flyer describing your advertised products or service. Have your staff mention them and ask if they had heard or seen what you are advertising. Aided recall works wonders.

CLEARLY PRICE MERCHANDISE - A great number of shoppers want to look around and gauge what they are interested in before they talk to anyone. They HATE asking the prices. Please clearly mark your merchandise or services. Even if the pricing is complex. Have it as "STARTING AT " or give a price range. Have you ever been to a jewelry store and had to ask, "How much is that one?", only to have to play it off cool with a little nod of the head when it is ten times more than your price range and you quickly slink to another area of the counter. Never wanting to ask again.

WELCOMING - Greet consumers when they come in with a smile and a greeting. Offer assistance if needed. What if you offered everyone a water, soft drink or coffee while they shop? Partner with a local coffee shop. One bank locally gives fresh baked cookies to their guests. This goes for the phones to. Have a cheerful, helpful voice on the phone when consumers call. Your on hold messages can re-inforce your advertising strategy. Many potential customers are lost due to poor phone!

Many advertising campaigns have been ruined by poor strategy in the store.

I Don't Believe In Luck

Luck is when opportunity meets preparedness. The same opportunities are out there for everyone. Are you grabbing yours?

I am taking a little detour from the Road To Your Customer series today to issue a big virtual high five to someone that is EXECUTING and reaping the benefits.(See previous post on DK vs DE)

A few months ago all of the sellers in our company sat down and we calculated how many wholly new prospecting calls they needed to hit their personal goals for the year. Most where between 5 and 10 per day. Most of the sellers are attempting to get their numbers, but still falling significantly short. In order for this to work, you have got to be diligent and disciplined.

At the beginning of this month, we announced a sales contest for new business. Business that has not advertised with us for longer than 12 months. Winner goes on a tropical vacation. As I write this, one person has twice as many points as anyone in the company. Lucky? I think not.

Tara Quigley in Bloomington, Il has been with us about a year. She has embraced these prospecting goals fully. She makes 7 new prospect calls EVERY DAY. She schedules the time. She only averages 1 out of the 7 that actually turn into appointments. Just 14%. 5 appointments more per week than she would have had. Tara is ecstatic about it. She has closed two customers for $10,000 or more that she would never have called on. In the last month. Since starting the program, she has closed 5 of those prospects and has 3 more presentations pending.

When talking with Tara yesterday, she said,"This prospecting system is the only reason I am winning the contest. I am kicking (butt)."

Tara hasn't won yet, but there is a rumor that she has already started stocking up on sunscreen.

The opportunities are out there. Are you getting your unfair share?

Road To Your Customer - Checkpoint #3

Now that we have gotten our business and pricing strategies down, we can begin telling people about it. It's time for advertising. The step that communicates your strategy and persuades consumers to give you a chance to earn their business.

It's time to develop your Advertising Strategy.

DEVELOP STRATEGY - This is the culmination of the first two checkpoints. By now we have enough info to differentiate you. We know what needs communicated to persuade consumers to choose you.

WHY ADVERTISE CHECKLIST - This will determine short or long term plans. It will answer the questions Why would consumers shop your store or use your service TODAY or when the need arises. This will help determine the direction of your advertising by defining what you want it to accomplish. (Email me if you would like a copy of the checklist)

RELEVANT – Must be relevant to the consumer. Messages must be about them, not you. Pavlov would never have won a nobel prize if he had used broccoli paste with his dog!

CHOOSE MEDIA to dominate. Unless you have extremely large budget, you need to choose a medium to dominate. No need for media mix. As long as you have a sound strategy, any medium used properly will get you where you need to be.

3Rs – Right Message (Strategy) + Right Number of Times(Frequency) = Results ($$)

CONSISTENCY – Of message and schedule.

COMMIT - What is your time horizon? You must commit to your advertising for at least this long. Don't question your plans. Give it sufficient time to work. Do not chicken out!

For more on planning your advertising strategy, drop me an email.

It Pays To Read Carefully

I have been wondering if anyone was reading my blog. Everyone says they are. So, I threw in a little curve ball yesterday to see if anyone was really paying attention.

One person caught it.

Thanks to Renee Williams in Lawrence, Kansas for keeping me honest! In my last post, I defined value as when the anticipated price was LESS then the actual price. In reality, the definition is when the anticipated price is MORE than the actual price, Great Job, Renee, you win the prize! Send me an email to claim it.

Stay tuned for the third checkpoint in the road to marketing your business!

Road To Your Customer - Checkpoint #2

Value Strategy

Now that we have evaluated the overall business strategy, let's move to pricing. Where will you be on the price ladder? Most expensive, middle of the pack or low cost leader. Depending on your products, the decision might be made for you. Any strategy can work as long as you know where you stand and you have a plan.

COMPETITIVE PRICING - How do you compare to the competition? It's vital that you know where you stand.

VALUE STORY – What builds the value in your product to justify the price? Value is created when the anticipated price is more than the actual price. Even if you have the lowest cost product, you can still create more value to make your product more attractive to consumers. What does you competition do to create value. That becomes the standard. You start there.

For example, local value priced local jewelry stores find themselves competing with the number one diamond jewelry in the United States. Pretty hopeless, huh? Not if there is value attached to buying from the local jeweler. Special wrapped, showing that you care. Who wants to tell people that their special piece of jewelry came from Wal-Mart? What if every purchase came with a single red rose or a gift certificate from a local romantic restaurant? Just do a little recipricol arrangement with the restaurant and viola, added value without cutting into margins!

Consumers are more value conscious now than ever. You don't have to been the cheapest, just the best value!

Road To Your Customer - Checkpoint #1

Your Business Plan

As we have discussed before, marketing is more than just advertising. Marketing is every touch that your business has with your potential customers through the time that they become customers. There are 6 checkpoints on this journey. We will cover one in each of the next six chapters. These checkpoints are a work in progress, so they may evolve slightly over the next few weeks.
When you look at your business, be open and brutally honest. In order to improve, you must have a clear picture of your business from the outside looking in.

Checkpoint #1 is your overall BUSINESS STRATEGY.

What PRODUCTS you carry. Where do they fall on the quality ladder? Top of the line, mid-pack, economy end?

Your LOCATION. If you are in a location with naturally high traffic, you are paying more in rent and will need different strategies than if you are off the beaten path. How is parking and access?

REPUTATION of the current business or franchise. Strong history, unknown, misconceptions in the market. What do your current customers say about you?

COMPETITION. Who are your biggest competitors? What are your advantages? Disadvantages?

DIFFERENTIATION. What separates you from everyone else in the market

WEB SITE. In today's business world, one of the first things to evaluate is your web presence. Your web may be one of the first touches with your customers and will say much about you.

VISION. Where do you want to be down the road?

TIME HORIZON. How long before you see yourself there?

Now that you have evaluated and spent time developing the answers from checkpoint #1, we will move on to the second checkpoint. Pricing Strategies.

The Perfect Media Mix For Small Business

Is not to mix at all.

Advertiser : But I have to get everyone!

Me: No, you don't. You just have to get enough to reach your goals.

Most small businesses cannot afford to dominate multiple media like Coke, Anheuser Busch or McDonald's.

Any single radio station, newspaper or cable channel has enough potential consumers to move the needle in your business. If you have the proper message. Too many advertisers try to spread their money out in an attempt to reach as many people as possible. They end up without enough frequency to persuade any audience effectively.

Dominate one media first. Decide what the highest and best use of your ad dollars are. Develop a strong strategy and dominate that medium. The right message(strategy), the right number of times(frequency) will get results($$$).

The smallest am radio station in your town will blow your doors off if you follow this advice. There is no perfect mix unless you have dollars to waste.

Focus Your Message

I met with a client that I have worked with for several years. He has not been happy lately about his advertising return on investment. I spent a long time thinking through what is wrong. I realized that I had broken a couple of my primary rules of advertising. First, I allowed the customer to tell me what he wanted in the ads. Oh, I started out with the best intentions, but over time I got lazy and tired of fighting him every time we started a new commercial. I acquiesed and did it his way. I knew it was not the right thing to do. We crammed too many things into one commercial. We talked about three separate businesses in one commercial. In another we talked about one business and multiple products. Not good advertising. I didn't mean to, it just happened.

Each commercial needs to make one point and make it well. The campaign should build on itself like bricks in a wall with a common thread running throughout, but each commercial or ad is a brick all on it's own. If you own a coffee shop that sells cappucinos, smoothies, muffins, teas, espresso, etc., each item should have it's own commercial in the campaign. Don't laundry list them all together. A bank should have different commercials telling their story about checking accounts, cd's, home loans, auto loans etc. Use the time to explain why customers should choose you in each area. Remember, we need to create a preference. Differentiate what you do. One item at a time.

FInd Out Your Customers' Motivation

People don't really want to buy from you. They do want what you can help them get. What is that? Don't know. Ask them.

When we are interacting with customers, we begin to think that customers want to hear about our products. They really don't. Most people (let me know if you find ANY) don't wake up in the morning, hop out of bed and excitedly prepare to go buy insurance or a new water heater. Now, they may get excited about a new couch for the living room. But not for the reasons you think. Maybe the kids are gone and it is a reward for themselves. Maybe they remodeled and need it to match for an upcoming dinner party. Whatever it is, find out their motivation and it will give you common ground to talk to them and how to sell them. They will want to buy from you because you care about them and what they want and are not focused on your own product.

If someone is visiting a health club for the first time and knows absolutely nothing about working out, it would be very intimidating if the health club representative takes them to the free weight room without first assessing what the customer wants from the health club. This person might be looking to lose a few pounds and doesn't want to feel dumb when they work out. I would throw out a few questions first. Thanks for stopping by today. What motivated you to visit our facility? What would you like us to help you accomplish? What is most important to you when choosing a health club? Have you belonged to a health club in the past? What did you like? What would you have changed? These questions will tell you where to go next. It works for any product or service. Try it and watch your close ratios and average orders go through the roof!

I Don't Need A Washing Machine.

Any amount of advertising cannot create the need for a consumer to buy you product or use your service IF THEY DON'T HAVE A NEED.

If your washing machine works fine, would a sale on washing machines get your attention? NO. What if they were half price? SO? Your car tires have 6,000 miles on them and the local tire store has buy one tire get one free. Do you buy them? It's a good deal. Sorry, don't need tires.....today. I will in 30,000 miles though.

Too many advertisers expect advertising to have an instant impact on their business. Advertising can only motivate consumers that are ready to buy because they have a need or want OR create a preference for when someone has a need.

When creating an advertising campaign, you must decide a direction. Do this with 2 simple questions.

1. Why would a consumer shop your store? What do you want people to know about you to persuade them to put you at the top of their mental rolodex when the want or need arises. This is the best long term strategy.

2. Why would a consumer shop your store TODAY? For that small percentage of the population that are in the market right now. Do you have a special offer or sale? Something that would make people that have a want or a need choose to come in today. This one is a little like playing in a mind field. Is your price the best? Is there a need in the market TODAY? What are you saying to people that are not in the market to buy today? Do you set yourself up to be the low price (a low margin) provider.

It is possible to combine the two for best results, but it takes some thought and planning. Contact a trained professional for help! Let me know and I can steer you in the right direction!

Running A Business Without Customers

A business without customers would be a lot less stressful, but not very profitable.

Dealing with customers gets frustrating at times. They get worse when we are in a bad mood it seems. If only we could do business without dealing with those pesky customers.

Surprised to hear this from me? We all have times when we feel like we don't want to see another customer. We want to stay in bed with the covers pulled up over our heads. We want to hide behind the counter or not get out of the car. We don't even want to see another person. Yes, other people feel the same way. It's not just you. That should be the first step to feeling better. You are not alone.

The difference is that the best people realize it and find a way to deal with it quickly and get back to what has made them successful. I try to remember a customer that I made happy. Look at pictures of my kids. Listen to one or two favorite songs. Head to the gym for an hour

Don't have a pity party feeling sorry for yourself. Don't bring others down. Your business will suffer. Misery loves company. No one can motivate you, but you.

Long time friend and colleague Bruce Welker sent me a good quote to wrap this one up, "Optimism and Pessimism are just attitudes…not realities.”