Archive for the ‘Relationships’ Category

Should I be on Twitter?

Tuesday, November 29th, 2011

If you answer “Yes” to the following two questions, you should probably include a Twitter presence in your marketing plan:

  • Are you interesting?
  • Are your customers on Twitter?

That is my basic litmus test to answer if a business or person should be on Twitter. More specifically, personalities, speakers, authors, thought leaders, news organizations, technology companies and similar groups should make room in the marketing budget for Twitter.

Who shouldn’t be on Twitter?

To effectively market with Twitter requires quite a time commitment– you have to develop a community of followers by engaging in conversation and keeping them interested. If your customers don’t use Twitter, don’t bother including it in your marketing activities. It’s OK to just say “No!” to any marketing activity that won’t help you reach your business goals.

What should I say?

Marketing on Twitter is less about what you say and more about how you participate. People use Twitter for news, stories, conversations, and to learn what others are thinking right this moment about important (and not-so-important) issues in their lives. No one uses Twitter to receive deals or special offers from businesses. Be friendly and join conversations. Consider Twitter the cocktail party of marketing more than a megaphone.

What about that Twitter vocab?

Here’s some Twitter vocabulary to get you started.

  • Tweep – a Twitter user
  • Tweet – What tweeps post
  • # – This little guy is called a hashtag, and it allows tweeps to add categories to their tweets. For instance, #marketing would be a tweet about marketing. Usually, event organizers specify a hashtag to use when attendees are tweeting from the event, so people the world over can follow the happenings.
  • RT – Retweet. Give credit where credit is due. If you repost someone’s tweet, credit them with RT @username.

Be Good, Businesses

Thursday, September 29th, 2011

The plumber ruined my plaster ceiling.

A year later, the roofer broke my deck.

Does this look right to you?

Does this look "right" to you?

They both told me, “I want to make this right.” Then, they did everything in their power to avoid paying. (With limited success. I’m pretty tenacious.)

In the age of word-of-mouth marketing, with Angie’s List, Yelp and girlfriends getting together for coffee, how could any business person be so short-sighted to think shirking a responsibility today would result in profit tomorrow?

Honesty and virtue are key ingredients to long-term success. It sounds old-fashioned, because there’s nothing new about being a good business with good people.

Dishonesty can lead to short-term gains–remember Enron?–but ultimately ends in business disaster. For the plumber, I wrote a reasonable yet scathing review of his business and chose one of his dozen competitors to be my go-to plumber. As for the roofer, I related my story to friends and neighbors, so they can make informed decisions in the future. I’m just one home-owner, but my influence extends beyond my own purchasing needs.

And the same is true of your customers. Each day, your customers are evaluating your dependability and trustworthiness. They are sharing their opinions with friends and family. Their opinions carry more weight than the most perfectly-designed marketing campaign.

So, be good. Do the right thing.

Your business will profit from it, and so will your conscience.

P.S. Bonus: The effects of unethical business decisions extend further than word-of-mouth. If you have customers who won’t pay anything until the last jot and tittle of the contract are fulfilled, they’ve likely been treated badly in the past. They feel the need to protect themselves. And who can blame them? We’ve all heard the lie at sometime or other, “I want to make this right.”

Marketing Throughout the Lifecycle

Friday, July 22nd, 2011

Do you have different marketing strategies for interacting with customers at each phase of the customer lifecycle? Most businesses don’t, but they should. The cost of acquiring a new customer can be quite high– think of traditional metrics like CPM, CPC or less traditional ones like the time spent making unfruitful sales calls and writing proposals. However, the cost of keeping a customer is usually much less. (Additionally, the cost for getting referrals from your customers is often nothing.)

There are many different customer lifecycle models, but I like Steve Yastrow’s. In fact, he wrote a great article about the topic, “Most Companies Stop Marketing.” Here’s his model:

As illustrated, most businesses focus their marketing on helping customers learn about them, then slack off when it comes to purchasing and the ongoing customer relationship. Think of it like the cable TV, wireless phone provider or car insurance model: reel customers in with a great deal, then see how much hassle you can get them to put up with before a competitor entices them with a better deal. Most businesses aren’t quite as blatant as this, but the result is the same– customers get upset or bored with them and move to a competitor.

Your business will have an incredible competitive advantage if you develop and implement marketing strategies for keeping your customers. When competitors lose their customers, those customers will come to you. And these customers will stay with you, breaking the cycle of fickleness.

Give Thanks to Your Customers

Friday, November 26th, 2010

How often do you “give thanks” to your customers? I don’t mean sending them a coupon or throwing them a scanty “Thank you!” as they walk out the door. I mean being truly thankful to your customers.

They could spend money with your competitors, yet they choose you. Without customers, you and your employees wouldn’t be able to make a living. Even be thankful for the customers who complain. Without them, you would never improve, and many silent customers would simply stop buying.

I can’t tell you how to give thanks to your customers because I don’t know them. Giving thanks is a personal, individualized practice, and you need to do it based on what you know about your customers.

So on the day after Thanksgiving, after you’ve given thanks to God, family and country, spare some time to be thankful for your customers.

Small Business: Marketing with Personality

Friday, May 7th, 2010

Small businesses have a great marketing advantage over large businesses: built in personality. Large companies strive to develop personalities with expensive advertising and PR campaigns– think Apple (I’m a Mac), Wal-Mart (Power to the Savers) and Toyota (the Swagger Wagon family). But if you have a small business, you are the personality (for better or worse).

Why is personality a great small business marketing tool? By showing your personality, you give customers something to be loyal to. Loyalty can’t be bestowed on products or services, but people are loyal to other people and organizations. Loyal customers will buy more from you and rave more to their friends. You just need to show them some personality.

What have you done lately to infuse the best parts of your personality into your small business?

Small Business Marketing Spotlight: LMB Associates

Friday, March 26th, 2010

In the marketing spotlight this week, we have Lorena Blonsky, owner of LMB Associates, a firm specializing in recruitment of information technology professionals.

She has owned the business for the last 20 years and recruits mostly in Chicago and the Midwest. Lorena started off our interview by telling me, “I love being a small business owner because of the flexibility it allows in my schedule and because I love what I do. I’m able to control the quality of the work that gets done. I am committed to quality work; I have a commitment to my clients, and they really appreciate and value that.”

(Some recruitment definitions for my readers: Clients are the companies LMB Associates represents, while Candidates are those seeking jobs with LMB Associates’ clients.)

Since LMB Associates is in its twenty-first year, I wanted to know what factors Lorena credits for her success. She was able to give a very forceful answer:

Determination to succeed is critical and most important. There never was a question that I would succeed. Sometimes other people just give up.  When I first started, someone told me that I would make a lot of money and make it very quickly. In actuality, it took me eight months to make my first dime, and it wasn’t so easy. To people on the outside, they only see the end success. But there is a lot of work that goes into creating something and making it successful.”

Lorena emphasizes that hard work and determination are crucial for any aspiring entrepreneurs:

“It’s a very important thing to know and understand before you start your own business that it is going to be challenging. I’m glad I went through this experience, although I wasn’t glad at the beginning, while I was going through the pains of starting up. The truth is the start-up time gives you an accurate, honest assessment of what you’re in for, and I think that’s very important.”

Lorena’s hard work continues, as the economic downturn has become the biggest challenge for LMB Associates. Lorena says, “It’s been a shrinking job market, and my business is very dependent on economic circumstances.” She adds that the economy has had other, indirect, influences on her business: “There’s been a lot of volatility in the market, such as clients downsizing, consolidating offices or moving technology responsibilities offshore. Understanding these market changes present challenges but can also present opportunity.”

There is another looming challenge for the recruitment industry:  the Internet. Lorena isn’t worried about the challenge from Monster or HotJobs in the long run, because recruitment web sites aren’t necessarily saving companies time or money.  Recruitment web sites offer a high volume of resumes, but they provide no quality control. She says, “Companies need more capable, human resources to put toward screening candidates when they choose that option. I offer more than bodies to fill a room or paper in the form of dozens of resumes. I work with each client organization to find the best match for their needs.”

Many companies find that using recruitment web sites can tarnish their reputations among job seekers, if they do not follow up with candidates. Lorena explains,

“Candidates often don’t get responses from the companies to whom they send their resumes.  Companies should send a letter of thanks to a candidate who has sent his or her resume. It makes the companies look bad when they don’t respond. The way a person or organization treats people is very, very important. If you treat people poorly, they won’t want to work with you and that reputation will get into the marketplace.  And if you treat people with respect, they never forget it.”

Treating people respectfully is key to LMB Associates’ business. Lorena’s marketing strategy is to treat people as individuals, learn about their needs and develop relationships with them. She says,

“Often recruiters are just looking for the next buck. I differentiate myself by treating people as people. I give people the respect they deserve. Candidates might not know how to write a résumé, so I give them my time, sample resumes, suggestions and support. Candidates can become demoralized while searching for a job. I pump people up to feel good about themselves, because they need to know that, even though the market may be tough, they bring value to the marketplace. It’s a big deal to give people a boost so that they can get out there and do what they have to do: find a new job.”

She uses a similar strategy for her client organizations:

“I listen to what my clients say they need, then I ask questions, based on the qualifications they seek, their insight and feedback. My clients have personnel issues that need to be addressed, certainly that they need to hire someone but also often beyond the job description. What my clients need from me is to maintain confidentiality, to understand their needs and to assess what types of candidates will fit into their organizations.”

From listening to Lorena, it is evident that she loves what she does:  working with her clients and candidates. Before concluding the interview Lorena added,

“I like working in technology because it’s always changing and mind-expanding, and I like working with technology people, who are on the cutting edge of that change. I like having clients in a variety of industries; it makes work more interesting. I love working with candidates, who are all different kinds of people from all cultures, socioeconomic backgrounds, religions, and environments.”

To learn more about LMB Associates, view current job openings or contact Lorena, visit LMB Associates.

Undercover Customer Relationships

Friday, March 5th, 2010

Who would have thought reality television would showcase the value of creating customer relationships? CBS’s show, Undercover Boss, follows CEOs of  large corporations as they “go undercover” as entry-level employees. In several instances, the CEOs have learned just how important these employees’ relationships are to creating loyal customers.

Joseph DePinto, CEO of 7-Eleven, wanted to discover the secret of their most successful stores. He said of one location,

“It’s the epicenter of coffee for 7-Eleven. This store sells more than 2,500 cups of coffee every day. I need to figure out what makes their coffee business so great, so I can roll it out to our other stores.”

He finds out that in this store with the highest volume of coffee sales, it’s all about the relationship, not the product.  Watch the clip below:

After working with Delores, who greets most customers by name, Joseph DePinto realizes,

“That’s why we’re selling 2,500 cups of coffee. Not because we have great coffee but because we have Delores there.”

In a more unusual situation, Waste Management president Larry O’Donnell learns the local trash collector is the literal face of his company to customers. After watching trash collector Janice greet and hug customers, he began to see her job as building relationships with their customers, in addition to collecting the trash. He made plans to change Waste Management’s approach to productivity measurement.

The specific segment isn’t available, but the full episode is here: Undercover Boss – Waste Management (The segment starts at 30:00).

These corporate leaders got the opportunity to see what their customers and employees experience first-hand. They witnessed the value of customer relationships. But you don’t have to go undercover to build relationships with your customers- you just have to start doing it.

How not to treat your customers

Friday, January 29th, 2010

It’s said that the brain cannot process a negative. We can prove this with a simple example: Under no circumstance should you think of a pink polar bear. Do not think of a pink polar bear.
Of course, you just thought of a pink polar bear.

At the peril of using negatives, I want to give small businesses advice on how not to treat their customers. In the following examples, imagine how your customers would respond if you tried these bad tactics.

Don’t offer customers a make-believe loyalty program.

Any customer can tell that buying six smoothies in a month in exchange for a free one is not a good deal. If you insult their intelligence, customer disloyalty will skyrocket.

Smoothie make-believe loyalty

Don’t try to trick customers with sneaky advertising.

A company named Sneaky Advertising tried to post a spam comment on my blog. I visited their site, and took the screenshot shown below.. There’s no such thing as stealthy profits, because no one is fooled by those haphazard advertisements. If you trick customers into viewing your advertisements, two things can happen: they ignore it, or they get angry about it. If your customer gets angry at your advertisement, that means they are really angry at you. Only advertise to your customers in ways they find acceptable.

Sneaky Advertising doesn't work.

Don’t act like a large company when you’re not.

Small businesses can offer customers things that large companies cannot. Use your size to your advantage– don’t try to hide it. Large companies have many faults that small businesses must avoid such as unnecessary bureaucracy, unwieldy communication and treating customers like a number.

Don’t talk negatively.

Remember the pink polar bear example earlier in this article? Speaking in negatives is not an effective way to communicate your message. Focus more on your strengths than your competitors’ weaknesses or jabs. Just try to read the following excerpt from DirecTV’s website without focusing on, “NO!” and “ONLY!”

No! DirecTV

All of these points have something in common and can be summarized in one statement:

Don’t treat your customers like they are stupid.

Your customers are smarter than ever, have access to more information than they did a year ago and grow more discerning with every sales pitch they hear. Most importantly: they can tell if you are trying to trick them.

Use your marketing budget to treat your customers as the intelligent, discerning people they are. If you do, you will have the opportunity to grow loyalty, sales and referrals.

Paint-By-Numbers Marketing

Friday, January 1st, 2010

Marketing Technology is Not Enough

Advances in marketing technology allow us to learn so much about our customers. With the information customers share with us, it’s never been easier to develop customer relationships and loyalty. But when the technology is used to create paint-by-number experiences, customers will feel a dissonance and know you aren’t actually interacting with them. Customers are very clever and can tell when companies use marketing technology against them instead of for them.

Laura Poland, an Indianapolis wedding photographer and close friend, experienced this technology dissonance first-hand with OvernightPrints.com. She usually orders business cards and brochures using her professional email address. However, one time she placed an order using her personal email address. OvernightPrints.com stored both of these addresses in their marketing database but didn’t record that the addresses belonged to the same person.

OvernightPrints.com’s records showed that Laura was a loyal customer when she used her professional email address. They sent her the following year-end coupon for 25% off any order:

But OvernightPrints.com also had Laura’s personal email address on file. Clearly, the personal email address wasn’t loyal to them. It had only placed one order. In a bid to “activate”  this dormant customer, they sent a sweeter deal to the email address that had only ordered once:

We wanted to give OvernightPrints.com a chance to respond to Laura’s disappointment at finding her loyalty was not rewarded. Here is the email from their customer service department:

Part of our marketing strategy to reactivate “inactive” customers is to send them different offers, which sometimes offer greater discounts.  We also have a Loyalty Program for our top customers, which provide excellent discounts as well. Should your purchases reach the level that qualifies you for the program, we would very much like to invite you to participate.

So it seems that Laura is neither loyal nor disloyal enough. OvernightPrints.com uses their technology to categorize their customers, and it seems some categories are luckier than others.

What lesson should we all learn from this marketing faux pas? (Besides that ordering infrequently from OvernightPrints.com is the best way to score deeper discounts). If a company tries to use technology to “cheat” some customers, the customers will find out. And that will erode their relationship with the company. No one stays loyal to a company (or friend) that doesn’t show loyalty to them. Carefully use your marketing technology to bring you closer to your customers, instead of further away from them.

Small Business Marketing Spotlight: Sugar Cupcakery

Friday, December 18th, 2009

Downtown Milford, Ohio has a sweet new addition this year. Sugar Cupcakery serves gourmet organic cupcakes and specialty teas. It is owned by sisters Krista Tevar and Karla Jennings and opened on Labor Day—after just six months of planning. They credit the business-friendly environment in Clermont County for their speedy open. They chose a charming building with a baking history—in the 1800s, it was Adam’s Bakery.

The idea for Sugar came late in 2008 when Krista and her family were in Delaware for Thanksgiving. They stopped by a cupcakery in Washington D.C., and she thought, “This would be a really fun business to have.” From there, the plan was set into action. She credits Karla for the creative energy behind Sugar Cupcakery’s design.

Karla, a photo stylist, develops the recipes and designed the trendy, colorful interior of Sugar. She explains that one of the challenges to effective design is creating a good plan and sticking with it, even in the face of contrary opinions. “Don’t listen to naysayers if you know your plan will work,” she advises.

Small business marketing focuses on relationships

Krista knows the importance customer relationships play in small businesses. She says,

“People who have never been here before are surprised by what they get. We deliver an experience with our cupcakes. It’s more than a take out place where you get a cupcake on a napkin. Our menu is very vague because we want to talk to people, and we want people to ask questions. We have a relationship with our clientele.”

Because they get to know their customers, Krista and Karla are able to help people with special dietary needs. They’ve worked with parents to create special recipes for children who’ve never had cupcakes—letting them share in the same birthday fun other children enjoy. They also offer special-order vegan and gluten-free cupcakes. Krista notes, “We only need a day’s notice for special orders. Just call us, and we’ll work with you.”

Social networking is a key marketing strategy

In an environment where many small business marketing departments can’t make heads or tails of social networking, Karla attributes Sugar’s success to two factors: location and social networking. She elaborates,

“Everyday, I post on Facebook, Twitter and Flickr. I try to link them all together. We get a lot of feedback. Social networking enables our customers to tell us what they think. It’s so rewarding because customers come in and say, ‘I follow you on Facebook! I know what your specials are!’ We try to get people to share their pictures. You just have to know how to tag everything, so that it links back to who you are. Always make sure to include the city, state and name of the business.”

Developing social networking and local relationships together have allowed Sugar to expand its influence to other opportunities. They have several corporate accounts, including with PNC Bank. Recently, Sidewinder Coffee in Northside starting carrying their cupcakes.

Among their cupcake and tea offerings, they also have a private room for parties or meetings. It holds between 20-40 people, has a patio and a flatscreen television for presentations or slide shows.

As with all small business endeavors, it hasn’t been easy to achieve success. In the beginning, obtaining cost-effective, fresh and organic ingredients was a challenge—sometimes they had to settle for what they could get. But through much research, networking and negotiating, they finally have suppliers that meet their demanding standards and still leave room for profit.

In their final comments, Krista and Karla leave us with advice for entrepreneurs just starting out:

“Save your money and be patient. It’s a lot of work. You have to do all the work yourself at first. You have to make sure you’re really organized, motivated and know what your business plan is. You really have to plan and outline. It’s less overwhelming if you plan.”

Sugar Cupcakery is a great example of a small business that understands marketing, customer relationships and how to use technology to get closer to their customers (instead of further away from them). They realize that having a great product isn’t enough to ensure success– although I can attest that their product is amazing.

Contact Details:

Sugar Cupcakery
32 Main Street
Milford, Oh 45150
sugarcupcakery.com
513-340-4166
sugarcupcakery@gmail.com

Hours:

Tuesday – Thursday 11am – 7pm
Friday and Saturday 11am – 10pm