A Small Business Marketing Campaign that Understands the Customer

James Free Jewelers is enjoying success with a clever marketing strategy tailored for engaged couples. With any bridal purchase over $5000, customers receive a free 4-day, 3-night honeymoon cruise.

Small business marketing campaign

This offer is much more attention-grabbing and interesting than a straight percentage discount, while still preserving margin for the retailer. A full-price, 4-day Bahamas cruise with Norwegian starts at $658/couple. That’s 13% of a $5000 purchase. Considering the bad PR that cruise lines like Norwegian have received in the recent past, James Free Jewelers probably doesn’t pay full-price for these complimentary cruises, allowing them to preserve even better margins.

Changing the conversation from a 13% discount to a free cruise shifts the purchasing decision away from raw price calculations into a more imaginative realm. You can picture a couple debating about which engagement ring to buy, and one of them says, “That other jeweler may be cheaper, but they don’t offer a cruise!”

Also, the promise of a cruise could push couples to spend more money with James Free Jewelers. They might opt for an engagement ring that’s a bit more expensive to qualify for the promotion. Also, the offer might motivate them to purchase the engagement ring and wedding bands from James Free, instead of shopping around and buying the pieces from various jewelers.

I encourage other small businesses to get creative with their promotions and use James Free’s campaign as inspiration. Think of experiences or benefits that would complement your products and services, like a honeymoon cruise for newlyweds. You’ll give more of a WOW factor and likely end up spending less marketing budget.

Before Choosing a Business Name, Run it by a Teenage Boy First

Or you might miss unfortunate innuendo. Fallas looks like a perfectly fine name… until you say it out loud.

Before Choosing a Business Name, Run it by a Teenage Boy First

This probably wouldn’t be my first choice when shopping for school uniforms.

The “Teenage Boy” test might seem unconventional, but it could just save your marketing and branding from public ridicule.

The Great Shrinking Business Model

As a business model, Redbox is on its way to completely replacing Blockbuster. And the company has accomplished this goal in a remarkably short time period. Examining the two business models reinforces the importance of creativity, flexibility and appealing to changing market demands in our own businesses.

Redbox wins this competitive fightLaunched in 2002, Redbox is the company placing movie and game rental kiosks in prominent places around the country (i.e., those ubiquitous red boxes). Blockbuster, of course, is the retail chain with a similar function founded in the 1980s and enjoying success through the early 2000s.

From Redbox’s about page, one learns there are 34,600 Redbox locations in the US, and 68% of the population lives within a 5-minute drive of one. Blockbuster, meanwhile, boasts of just 2,500 stores across the entire globe– down from 6,500 stores in 2010. Clearly, Redbox is on the ascendency.

I call this competition the great shrinking business model. For local movie and game rental, Redbox learned that a kiosk could take the place of an entire retail store. It was quite a revolutionary business decision to implement a strategy that relied entirely upon glorified vending machines.

But the model certainly makes business sense. In a convenience-driven market where almost all consumers own and use credit cards, renting a movie for about $1/day on the way home from the grocery store is easy to understand and simple to do. Selling through a kiosk also allows consumers to rent media 24-hours-a-day.

By taking advantage of evolving consumer behavior, Redbox benefits from a streamlined overhead– with fewer employees, drastically reduced leases and lower insurance rates than required to run a full-size retail store. These optimizations allow Redbox to offer the exact same product as Blockbuster more conveniently and for a cheaper price.

Blockbuster is the market loserSome might argue that the experience of interacting with a movie buff employee at a retail movie rental store makes the visit worthwhile. Perhaps, but it seems that the corporate nature of Blockbuster killed that experience along with the neighborhood video rental store  years ago. My last experience at a Blockbuster included an uninterested employee mumbling “hi” to me without even lifting his head out of box of movies he was sorting. Frankly, I feel the kiosk is more friendly.

By analyzing the business models, it comes as no surprise that Redbox is quickly eliminating the market need for Blockbuster. This rapidly shrinking business model should make you think about your industry– are you the clever innovator or the stodgy competitor about to be taken by surprise?

Small Business Marketing for Retailers

On “Getting Down to Business” with David Weatherholt, we talked about the holiday shopping season and what it means for retailers.

Black Friday has come and gone, and with it, many retailers hopes of enjoying a profitable November. In this podcast, I explain the history of Black Friday and Cyber Monday. This year’s performance was worse than last year’s already abysmal showing– consumers spent almost 8% less per person this year than last, resulting in an overall revenue increase of just 0.7%. Black Friday this year showed that we need to revolutionize our concept of how retailing works– for both large and small businesses. Consumers have changed the way they shop. To learn more, listen below:

Download the small business marketing for retailers MP3 file here. (13.38MB)