Posts Tagged ‘Delight Customers’

Marketing Communication: It’s All About Meaning

Friday, February 12th, 2010

In celebration of Valentine’s Day, I want to proclaim my love for the expert use of words. I liken word definitions to a gradient. Synonyms of a word retain the color of the original but vary dramatically in shade. I illustrated this concept based on the age-old question,”What is the true meaning of love?”


Meaning of Love – Larger version

If you click through to the larger version, you can see that following synonyms of a word can lead to some surprising definitions. In business and marketing, it is especially important to know exactly what words mean to your audience. Using the perfect words can help us communicate more perfectly.

For example, I was purchasing a gift card last night and was disappointed to see that the gift cards came in specific dollar amounts. I asked the salesperson, “Do you offer gift cards in variable denominations?” I realized I had chosen the wrong words when my question was answered with a blank stare. Trying again, I asked, “Can I get a gift card with any amount I want on it?” “Oh sure,” he replied. There are many ways to say any one thing. The goal of good communication is to find the words best suited to the person hearing or reading them.

What are some ways you could improve communication with your customers? Here are some thought starters:

  • Most businesses use jargon and acronyms. When you use them with your customers, do they understand what you mean?
  • Email and text messaging are notoriously bad at conveying inflection and context. Do the messages you send carry a double meaning if read differently?
  • The best way for your customers to understand you is if you talk like they do. Do you listen for their terms and phrases? Do you use them in communication?
  • How often do you listen to your customers? Do you make an effort to understand them?

If you talk to your customers in ways that are meaningful to them, your message will be more successful. Get to know different types of customers, the ways they describe your business, what they expect from the relationship with you and what words that they use. Successful communication will lead to success with your business goals.

(In future articles, I’ll delve into how to develop business goals for your small business. Marketing starts with knowing what results you want.)

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Posted in Blogging, Marketing Theory, Philosophy | No Comments »

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.

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Posted in Customer Experience, Marketing, Relationships | No Comments »

What experiences are you creating for your customers?

Friday, January 8th, 2010

With a small business, marketing can be defined as, “The experiences you create for your customers.”

One of the most powerful concepts in marketing is Brand Harmony, developed by Steve Yastrow. I work closely with Yastrow & Company, and have seen the benefits of Brand Harmony for our client companies. Steve Yastrow’s book of the same name, Brand Harmony, defines your brand as, “Every experience your customer has with your company.” (14) If these experiences blend into a harmonious whole, your customer develops a rich, positive brand impression of your company and products.

A company we work with, Prairie City Bakery, creates a great experience with their baked products. They sell baked goods such as cookies, muffins and doughnuts to food service vendors, convenience stores, drug stores, etc. They have faced the challenges of offering a great-tasting and high-quality product while also providing a quick snack for consumers. Part of this experience is the packaging, which makes it look homemade. President Bill Skeens is fond of saying, “People eat with their eyes,” a statement which shows an understanding of the importance of customer experience.

Netflix also creates good customer experiences. The system learns which movies you like and dislike to recommend other titles to you. If you lose a DVD, they don’t accuse you of stealing it. With their increasingly populated Watch Instantly section, you hardly even have to bother with DVDs. (But every company has room for improvement. Netflix team members…if you are reading this… please add a “Holiday” movies genre. It’s ridiculously difficult to find those titles.)

Each time a customer comes into contact with you or your products, you are creating an experience for that customer, even if you aren’t trying. Sometimes, especially if you aren’t trying. The worst– and most memorable–customer experiences come from brand disharmony.

How many times have you heard the phrase, “The system won’t let me.” from a customer service representative or retail store cashier? Technology is an area where many companies create disharmony. Rarely are systems designed with the customer experience in mind. Recently, I discovered that my bank’s idea of offering electronic payment is to print a physical check and mail it to my vendors for me. Imagine my surprise when I received a late notice from a vendor that I had paid “electronically.” The bank told me they needed four days’ notice to process the payment, and I had only given them two. How is that a better experience than simply writing and mailing a check myself? Why would they design such a useless system?

When you create brand disharmony, you confuse your customers. They don’t know what to think about you– Even worse, they know exactly what to think about you, and it’s unfit for print. But when the experiences you’ve created for your customers create Brand Harmony, they feel an affinity for your company and have a rich sense of why they want to buy from you.

Think of some companies you have an affinity for and that create great Brand Harmony with you. What experiences do you have with those companies? Now, ask yourself: How can I gain inspiration from these companies? What experiences should I create with my customers?

Don’t just think of your “traditional” marketing communications. Customers don’t care if your billing department and marketing department are separated by a chasm. If your invoices and advertisements don’t create complementary experiences, your brand will be weak in their minds.

By thoughtfully considering what experiences your customers should have and putting those thoughts into action, you can help your customers know exactly why they buy from you. If they have a good answer for that question, they will be less likely to switch to a competitor or make do with a substitute product or service.

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Posted in Customer Experience, Marketing Theory | No Comments »

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

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Posted in Business Plan, Customer Experience, Internet, Relationships, Small Business, Small Business Interviews | 2 Comments »

Existing Customers Create New Customers

Friday, October 23rd, 2009

Companies spend a disproportionate amount of money on trying to acquire new customers. Let’s say a company wants to find just ten new customers. How much could they expect to spend?

The cost to gain 10 new customers via TV, Pay Per Click or Direct Mail

Let’s hope that company is selling something that has a margin of more than $80, or they won’t see any profit. If only they knew that keeping existing customers happy naturally creates new customers. And it costs very little.

More often, companies treat existing customers like chopped liver. They forget about—or worse, punish– someone as soon as he buys something from them.

If you are a satellite television customer, the cable company will be glad to give you three months of free cable to become their new customer. If you are an existing cable customer, you know to expect the onerous contracts with rate raises and dread calling the dismal customer service when your signal goes out.

Companies focus on acquiring new customers at the expense of maintaining existing customers for mainly two reasons:

  1. That’s what they’ve always done. When a product or company is brand new, there are no existing customers. All marketing efforts have to be focused on gaining new customers. This marketing inertia carries through well after a company has become established.
  2. Those evil competitors! We must act now to steal market share away from them! What companies don’t think about is that it costs more to steal a customer from a competitor than to keep an existing customer.

An existing customer who is loyal to your company will buy more products more often and will rave about you to their friends. We all nod appreciatively when we are told that word-of-mouth and referrals are the most powerful motivators to encourage customers to try a new product, but then we go on with our e-mail blasts and Val-Pak coupons. Instead, we should be creating that word-of-mouth by inspiring our existing customers to rave about us!

But how do you create raving customers? Anticipate what would delight them. Then, deliver it! Netflix recently sent me an email that because of their increased operational efficiencies, they would be lowering my monthly subscription fee. Oh, and by the way, now I can watch thousands more movies instantly, and they created a movie player that works on my Mac. All without me having to ask. I’m delighted! I’m loyal! And here I am telling you about Netflix.

But what if you don’t know what would delight your customers? Ask them. A part of my consulting work is finding out what a company’s favorite customers love about them and to help them do that for every customer.

Remember, if we have existing customers, that means prospective customers don’t even exist yet. Companies should only spend a proportionate amount of their marketing budget on customers who don’t exist yet. Don’t invest yourself too heavily in imaginary friends.

Instead, we should focus a higher proportion of our efforts on relationships with existing customers. If we delight them, they will reward us by buying more from us with higher frequency. And, as a benefit, they will create our new customers for us.

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Posted in Customer Experience, Customers, Marketing, Marketing Theory | No Comments »