Business Archives - Page 9 of 13 - McLellan Marketing Group

Why Facebook matters to every business

September 21, 2011

Why Facebook matters to every business

I’ve heard all the reasons, especially from B2B companies…but the “our customers aren’t on Facebook” excuse is just that, an excuse.

We buy radio stations and send direct mail hoping to hit some of our target audience. Why do we look at Facebook so differently?

With statistics (thanks to HubSpot for sharing this slide) like these… every business owner and marketing director should be figuring out how to leverage the Facebook crowd.

I’m not saying you need a fan page. Or have to do a contest or create a game. I’m saying you’d better understand what happens there. You’d better be monitoring what is being said about your company there.

You need to decide HOW to be there. But you can’t ignore it simply because you have a preconceived idea of who hangs out there.

Odds are… it’s your customers. And they hang out there a lot.

How much should you spend on marketing?

September 15, 2011

How much should you spend on marketing?

I know I need to do some marketing but how much should I spend? How much do other companies my size spend?

This is probably one of the most asked questions of marketing agencies and consultants. If you google the phrase, there are 17+ million results. And yet, we keep asking. So let me see if I can drill down to the heart of it.

One of the reasons why it’s on everyone’s mind is because there is no magic answer. No one solution.

Before we get into the methods of determining a right answer, let’s be very clear about these two points:

1) The exact amount matters less than having an amount. In other words, having and tracking a marketing budget, even if your initial number is off, is much more important than getting the number exactly right.

2) You can have the right budget and spend it on the wrong things. A marketing plan should always be tied to a strategic marketing budget.

Now, let’s tackle the question. Here are some of the more effective ways to set a marketing budget:

Percentage of gross sales/revenue:

This is probably the simplest method. Most experts recommend somewhere in the range of 2-8% of gross sales. McKinsey & Company is often quoted at 5%.

Most small businesses (less than $5 million gross revenue) should shoot for at least 7-8%.

Industry-specific:

Many industries have their own standard. For example:

Consumer package goods: Up to 50% of projected net sales to launch a new product
Industrial B-to-B: 1% of gross sales
Retail: 4-10% of net revenues
Banks/Credit Unions: 2-5% of assets
Law firms: 1-4% of gross revenues
Pharmaceuticals: Up to 20% of net sales
Hospitals: 1% of net revenues

Lifetime value of customer:

The idea is simple. You identify how much profit (on average) you make during the lifetime of that customer relationship and determine how much you are willing to invest per customer acquisition. If you choose this method be very careful that your numbers are accurate.

Goals/Plan driven:

The thinking behind this method is really a blend of some of the others. Identify measurable goals (# of new clients, % of revenue increase, etc) and then determine your sales equation.

For example: For every 100 prospects approached, you get 25 initial meetings. From those 25 meetings, you can expect to get 12 invitations to present a proposal. From 12 proposals, you will score 4 new clients. If your goal is 20 new clients, you now know that you need to approach 500 qualified prospects. You build your marketing plan to accomplish that and assign the costs accordingly.

Again, this method requires very accurate numbers to make the equations viable.

So what do you think? Which method do you currently use? If you don’t have a marketing budget, which method do you think would serve you best?

With all due respect, what are you waiting for?

September 4, 2011

…what are you waiting for?

I’m all for having a plan when it comes to marketing. To just start flailing around is usually a waste of money and opportunity. But for many businesses, the need for a plan and the “right” time is just an excuse to do absolutely nothing.

I’m also absolutely positive that there is one marketing tactic that you KNOW you should be doing but for some reason you haven’t started it yet.

Maybe you don’t have the perfect name for your newsletter. Perhaps you aren’t sure if you have the stamina to blog. Or something might happen in the 4th quarter that would negate the momentum of the initiative (translation = you’re scared).

Just start. Don’t put it off for another minute.

You are letting your head get in the way of your marketing gut. Maybe you can’t explain why you know it’s the right choice or you have never done it before so you’re worried you’ll do it wrong — whatever is stopping you — get out of your own way.

Call it a pilot program or a test run. In your own head, make it sound like it’s no big deal. However you have to psych yourself out/up — do it.

Marketing is an every day thing. Not a special day thing. It’s not the Thanksgiving china — it’s the Corelle dishes you use on Mondays (and Tuesdays…). So get over yourself and just make this happen.

How can you actually get this done?

Starting right now — create a list of what you need to have/do to launch.
Set a date. A firm date that you’re not going to miss.
Tell someone (your team, your boss, your customers) that you’re going to do it and when (i.e. We’re launching our company Facebook fan page on Oct 1!)
Create a reward for yourself/team to celebrate the launch (it can be as simple as ice cream cones to as big as a day off)
Start chipping away at the list. Now. Today.

You have 4 months left in 2011. There’s always going to be a reason not to start. Isn’t it time that you just did it anyway?

THE best customer service tip ever

August 31, 2011

… stellar customer service = pinky swearing

I’m going to tell you THE secret to incredible customer service, customer retention and word of mouth referrals.

It’s quite complicated so you’ll want to print off this post and hang it somewhere where you can refer to it every day.

If you’ve got music playing or some other distraction around you — turn it off/put it away so you can fully concentrate on the concept I am about to unveil before your very eyes.

Ready?

Pinky Swear.

When we were kids, if you pinky swore — that was a blood oath, a die or do it sort of thing. There were no asterisks, exceptions, small type or exclusions. It was a pinky swear. Enough said.

If you want your customers to rave about you and to come back time and time again — pinky swear.

If you are so old that you don’t remember pinky swearing — let me translate it for you.

Do what you say you’re going to do. Every time. No exceptions.

Go forth….and pinky swear. Your customers will love you for it.

Where does your brand live?

August 30, 2011

…How does your brand come alive?

When we talk about a company’s brand, in most cases people’s minds jump immediately to their logo. No argument – a logo is a vital element of how you communicate it. It is the visual representation of who and what you are. But your logo is just the beginning of it.

Others might point to your tagline and suggest that’s where your brand lives. Again, it’s an important communication tool for telling people what your company is all about. But where both your logo and your tagline fall short is that they’re one-way communications. You are showing or telling, but your audience is not actually experiencing your brand.

Brands really come to life when an experience confirms or amplifies the promise that your logo and/or tagline might offer. Here are some key spots that you might not think about from a brand point of view. But, they’re places where you can truly bring it to life for your employees, customers and vendors.

Your office/work space: You know what they say about first impressions. One spot where many first impressions are created is when someone comes to see you for the first time. Whether you have a retail space, office space or work virtually through an extranet — how it first appears to your audience will stick for a long time.

Does it feel very corporate and official?
Is it welcoming and kind of funky?
Could it be called cluttered or filled with interesting items?
How about neat, with everything in its place?

All of that speaks to your brand and what matters to you.

Your “first day at work” experience: Never forget, your most active and important advocates are your employees. And for them, there are few days more memorable than their first day at work. What is that day like for them?

Are they assigned a buddy who helps them get oriented to your workplace, the people and the procedures?
Is there a small gift (maybe a hat with your company logo on it) waiting for them at their new desk?
Do some of their teammates take them out to lunch?
Are they given training or is it a baptism by fire?
Is everything ready for their arrival or are you scrambling to get paperwork and supplies to them?

Think how many people are going to ask them “how was your first day?” From a brand perspective, what do you want their answer to be?

Your “return” policy: Even if you are a corporate lawyer, you have your own version of a return policy. How do you handle an unhappy client? What do you have in place to avoid making them unhappy in the first place?

Do you have a guarantee tied to your pricing or billing?
Do you have a confidential way for them to register a complaint?
Do you offer refunds without restrictions, boundaries or tiny type?
Do you have an apology gift or letter that is ready to go in the case of a hiccup?

Remember that an unhappy customer is likely to tell more than twenty people why they’re unhappy. Do you have policies and procedures in place so that your brand comes out smelling like a rose when those stories get told?

Just like everything in else in life – we can talk all we want, but it is our actions that really tell the story. How you wrap your brand around key experiences like those first impressions, the first day of work and when things go wrong will go much further in terms of creating a lasting brand.

So where do you think your brand is most alive and vibrant?

Marketing tip #83: You really can’t make the horse drink

August 26, 2011

You can’t make a customer buy!

Here’s an uncomfortable marketing truth: With few exceptions, you cannot control potential buyers.

No matter how great your product, how spectacular your price or how unparalleled your customer service reputation — if they aren’t ready to buy, they just are not ready to buy.

Yes, as the old adage says — you can lead them to the water. But once you get them there, you only have two choices. Try to force their head into the water or entice them to hang out by the water trough until they’re actually thirsty.

And trust me, if you’ve spent any time around horses or a stubborn prospect, you know that you cannot force their head into the water. No matter how badly you’d like to!

Sadly, to stay with the analogy — most companies don’t have any carrots or sugar cubes at the ready. Which means their “horse” wanders away. And by the time they’re ready to buy — probably has wandered to someone else’s watering trough.

I see so many companies that can get a prospect in the door but if they don’t buy that instant, have no way of staying in touch, creating a relationship or keeping under the prospect’s nose until it’s the right time for them to buy.

Imagine this scenario: Someone who would be the perfect sweet spot customer called today and chatted with you on the phone for 15 minutes but wasn’t ready to buy — what would you do/say to keep them connected to you until they were ready to buy?

Could you hold their interest for a month? 6 months? 3 years?

If you didn’t have an answer or don’t think you could keep them around the water trough for as long as you need — you are letting sales walk out your door.

So…now what?

Your customers are afraid to spend

August 23, 2011

…Customers are afraid of the coming tides

Building a sandcastle (with our without the pre-form buckets) is a childhood ritual that brings with it a sobering life lesson.

Unless you are uber cautious about location — the tide is going to come in and wipe out that sandcastle sooner or later. And if the tide doesn’t get it, beach walkers, dogs or 4 wheelers will do the job.

Young or old, there’s something haunting about watching the waves creep up on your masterpiece, knowing you can’t alter its fate.

I think that’s exactly how our customers are feeling today. They’re leery of investing too deeply or buying into new long-term programs because they have this nagging fear that the waves are heading back in.

The world economy’s continuing struggle, the US debt ceiling debacle and credit rating slap on the wrist and in general, a sense that it’s tougher to make a buck these days does not bode well for us as marketers.

How do we function in an environment of nervous trepidation?

Acknowledge it: Don’t hide from it. Don’t pretend it isn’t there. Be up front about it. Recognize that your sales cycles are going to be longer. Build your projections accordingly. The only way to weather the storm is to be well prepared for it.

Make the most of it: If your customers are less likely to sign long term agreements or are going to want to stretch out their payments — price accordingly. Create a new, shorter term choice but price it at a premium. That’s not taking advantage — that’s upselling.

Don’t cut your prices: This is one of the biggest mistakes business people make during tough economic times. It may make short term sense but it’s a killer long term. If you reduce your prices — you will never be able to raise them back to where they belong again.

Manage your costs by managing your customers: Not all customers are created equal. Customers who are not a good fit, demand too much of your time and don’t reward you with their dollars in equal measure are actually draining your company’s resources. Perhaps it’s time to fire some of them?

Re-think your business model: It may be that how/what you’ve sold in the past simply isn’t going to work in 2011 and beyond. Just because you want to sell it doesn’t mean there’s still a market for it. Or maybe it needs to be re-packaged or re-tooled. If you were starting a new business from scratch in your industry — what would it look like? Should you move in that direction?

You can’t work in marketing or own a business for very long without running into shifts in the economy. And we’re not going to love every shift. So you have to be willing and ready to adapt.

How are you/have you accommodated this current economic climate?

You need a smaller net

August 15, 2011

…are you fishing with too big a net?

Fear can make us take our eye off the ball and lose focus on what really matters. In marketing, that often translates to these sorts of mistakes:

I’m afraid this is the only ad/website/sales letter they’ll ever see so I need to cram everything I can into it.
I’m afraid they’ll choose someone else so I’ll lower our price, even though my price is fair.
I’m afraid we won’t have enough customers, so I’ll chase everyone that breathes.

I must admit, I get on my soapbox about this one. One of the best things about smart branding is that it repels the wrong customers. People who are not a good fit.

Every business has a “right fit” customer and those are the only people you should be actively pursuing. Why would you want to win a new customer only to deliver at a so so level.

You can rock the socks off the “right fit” customers. They’ll brag about you to their friends. And you’ll love working with them. Stop being content with anything you can catch in that big net of yours. Go get a smaller net and chase after just the right fits.

Need more convincing? I got this note on Facebook the other day from Sherry Borzo, a business woman I know here in Des Moines.

“Must tell you, because I’m pretty sure you were the one who said it so often in my presence a few years ago, but I truly GET the idea of working only with your ideal customer. It makes for a much happier environment for both business person and customer. It is like you’re building your own little community. So important. Always think of you saying that when I’m working with a customer that fits well with what I do.”

Amen to that! Toss that big old net in the garbage and begin catching your right fit customers.

Are you sure it’s what they want?

August 11, 2011

…Give your customer choices they actually care about

One of the buzzwords that continues to bounce around the marketing world is “value add.” I have no issue with providing more value to your customers. In fact, I think it’s a dandy idea. But I think you can also stub your toe when you do it in a vacuum.

As you know, I fly a lot (visiting clients, speaking at conferences, etc) and I always fly United. Like most of you who travel a fair amount, I have traded choice of airline for airline perks.

For the most part, I love United and the benefits I get as one of their frequent fliers. But it also gives me an opportunity to see many a marketing attempt go awry.

What your customers want, in terms of value add, is real value, not value for show. Let me show you a few examples (at United’s expense):

Real value: The Red Carpet Clubs — very cool spaces with plenty of free wifi, soda, snacks, really comfy chairs and best of all, customer service reps who will take as much time as you need to help sort out a messed up ticket or change in plans. (Value added — comfort and great service)

Value just for show: Unlimited upgrades for their upper tier customers. Except…. in many cases, they don’t upgrade your companion if you’re flying with someone else. So really — it’s just mean teasing. “Oh, we wanted to upgrade you but your kid/spouse/buddy will have to fly coach.” Who wants to be that jerk? Which means I only get to use the upgrades I’m offered if I am flying alone. (You’re pretending to give me a value and then taking it away)

Real value: Letting frequent fliers board the plane first, meaning there’s always overhead storage space available. (Value added — convenience and comfort)

Value just for show: The ridiculous red carpet line (complete with a scrap of red carpet that you have to cross) that only makes the casual traveler feel like they don’t matter and the frequent flier feel conspicuous. (You’re using me to advertise your perks)

Notice how the real value happens when a company selflessly worries about what matters to their customers. But the value just for show is when the company decides, without asking their customers or walking a mile in their shoes. Then the “value add” looks self serving and may actually diminish the experience for your best customers.

So as you contemplate how you can appreciate your customers and reward them for their business — be sure the value add is genuine AND actually valued.

You’ve got a bird in your hand. Now what?

August 8, 2011

… Do you value what you already have?

Like the old idiom goes…a bird in the hand is worth two in the bush. I’d argue, when the bird is a customer, the ratio is even greater.

For years, at the risk of preaching, I have been banging on the idea that we spend way too much time and energy chasing after potential customers and way too little time and energy romancing (and creating a love affair) our current customers.

I’ve pushed on the idea that our math is all backwards. It’s cheaper and easier to get more (and more profitable) business from our existing clients — and yet, our “new business” efforts are always aimed at strangers, rather than those friendly, pre-disposed to love us customers.

Which is why I’ve always enjoyed and respected Becky Carroll and her blog Customers Rock. Becky is an Age of Conversation author and a huge believer in the power of treating customers like gold.

So when Becky emailed me and asked if I would read her new book The Hidden Power of Your Customers (click here to buy*) I have to admit — I already knew I would like it. Because I knew it would tout the importance of creating love affairs with your customers.

I just finished it — and wanted to share it with you. As I suspected, Becky spends time making the points that I’ve made above. But the lion’s share of the book is spent showing readers HOW to cultivate and celebrate their current customers. Becky teaches us the how using the acronym ROCK.

R = relevant marketing. This is all about talking to your customers how and when and where they want it. Which, of course, means you need to listen/ask them.

O = orchestrated customer experiences. Brilliant companies are very purposeful in crafting customer experiences that deliver delight and marvel their most valuable clients. It doesn’t happen by accident.

C = customer focused culture. I don’t care how smart or insightful a leader you are — if honoring your customer isn’t baked into your organization’s culture… it won’t happen.

K = killer customer service. This is all about consistency. (as you know, one of the cornerstones to good marketing) When your brand and values are woven into your organization’s culture…. your entire team is able to deliver incredible customer-centric service, regardless of circumstance.

One of the best aspects of this book is the collection of case studies. Becky went beyond the usual suspects and tells tales of customer loving companies like Nicor National, Salon Radius and Sanuk. (Nope, I’d never heard of any of them either!) The fresh stories add a depth that other books are missing. However, no book on treating customers can leave out stories from Disney and you’ll enjoy those as well!

If you want to build an organization that truly treats its current customers as a precious commodity — this book will serve as a valuable guide to making it so.

Check it out and let me know what changes the book inspired.

*Yup, it’s an affiliate link and I was sent a copy of the book by Wiley. However…as you know, I get 4 or 5 books a week. I only recommend the ones I genuinely believe you’ll value and enjoy.

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