Save Your Advertising Dollars by Saying "No"

As small business owners, so many of us have fallen prey to the smooth talking media sales reps.  The minute you open your doors for business, sales reps from the TV stations, newspapers and radio stations are the first ones in your door.  In their hands they have what I like to call “the deal of the week”.  You know you need to market your business, especially when you’re just starting out, so you sign up for these promotions because they’re “a limited-time promotion” and “you’ll never get a better deal”.

I have a client who, when I first met her, had spent over $15,000 in advertising the previous year.  Her comment to me was “I’m not sure if any of it worked.”  This was a very clear example of someone who had been too nice to say, “No, thank you” to the sales reps.  I understand that sales reps need to make a living.  I get that.  What I’m saying is that you need to be smart about where you’re spending your money.

Before the sales reps ever come walking through your door, here are some things you need to do to save yourself a lot of money.

1. Know your customers very, very well.  I don’t just mean your existing customers, but who your ideal customer is.  Who do you want to communicate with?
2. Know where your customers are.  Do they read a physical newspaper or do they read an online newspaper?  Maybe they don’t read a newspaper at all.  Maybe they follow their favourite media online and get updates through social media.  You can’t communicate effectively to your customers if you’re not sure where they are.
3. Create some marketing goals.  These goals will stem from your overarching business goals.  Do you want to attract a new demographic?  Do you want to introduce a product or service?  Decide what you want.
4. Establish some tools to measure the effectiveness of your marketing campaigns.  If you have no way of tracking what’s working and what isn’t, you’ll never know what forms of advertising to use.  This is precisely why too many business owners wind up spending way too much money on their advertising.
5. Stick to a budget.  When you develop your marketing plan for the year, you need to create a budget to work from.  Stick to that budget and don’t be afraid to tell the sales rep that this current promo doesn’t fit into your budget.

Now, every time a sales rep walks through your door with the latest “limited-time promotion” stay strong and walk away from the “deal” if it doesn’t fit into your plan.  If it does fit into your plan and budget, take advantage of the deal.  Work closely with the sales rep to make sure the ad copy addresses the campaign goals and you’ll be all set.

Exceptional Service - The Cornerstone of a Successful Business

Marketing is so much more than just advertising.  I’m going to say this until every small business owner gets that through their heads!

Marketing ≠ Advertising

Marketing is a complete set of activities working together to create a positive, memorable brand image of your company.  And one of the most important parts of that is the level of customer service that the customer perceives your company provides.  It’s not just about what level of service you actually provide; it’s about what the customer perceives to be great service.

Having worked in retail management for so long, I am probably now the pickiest customer out there.  I worked hard to create amazing teams of staff members who delivered exceptional service and went above and beyond for each and every customer.  So now, when I go into a store I automatically take note of everything going on in the store.  I pay attention to the cleanliness of the store, the visual layout, the friendliness and professionalism of the staff, and how knowledgeable and customer-oriented the staff are.

These are just a few of the things managers and business owners need to be keenly aware of.  Yes, I’m the picky customer so I notice stuff that maybe other customers wouldn’t be looking for.  But why not strive to impress even the pickiest of customers.  Even the customers who might not have paid attention to the small details will be very happy with what they perceive as “exceptional” service.  After all, who doesn’t want to feel special?

We’ve all had some bad customer service experiences in our lives and they remain stuck in our memory forever.  But fabulous, amazing customer service experiences also stand out in our mind.  One experience stands out in my mind so clearly… and it happened over 9 years ago!  My husband and I had taken our 2 boys to Ottawa to visit my brother and some friends of ours.  We decided to take the boys (who were 2 and 7 at the time) to Moxie's Restaurant for dinner.  The waitress we had that night was absolutely phenomenal.  She did everything possible to make sure our kids thoroughly enjoyed themselves, which of course made the meal that much more enjoyable for my husband and I.  Now, every time I see a Moxie’s Restaurant, I associate the place with happy thoughts and fully recommend the place to all of my friends and family.

That’s what you want your customers to do.

Take an honest look at your own business.  When you take out the bias you have towards your own way of doing things and really look at things from a customer’s perspective, you may not like what you see.  So, don’t scrimp on your training budget when it comes to fully training your staff on exceptional customer service.  Remember that that memorable  image will remain in your customers’ minds for a very long time.

Decision Making 101 for Entrepreneurs - Taking Accountability

One of the most important things that I expect of people (any myself) is accountability.  We’ve all gone through ups and downs in our lives, both personally and professionally.  We’ve all made mistakes and said and done things that maybe weren’t the wisest choices.  But how can you expect to learn from those decisions if you don’t own up to them in the first place?

As a business owner, you make decisions all day, every day.  It’s sometimes hard to know what decisions are the “right” decisions because sometimes there is no “right” or “wrong” choice, just a subjective choice.  Here are some tips on how to make decisions that you can feel confident about and will be able to own up to no matter the outcome.

1.       Make your decisions based on your key core principles.  For me, if I am questioned about the decisions I have made, I want to know that the decision I made was based on honesty, accountability, and responsibility.  If my choices don’t fit those criteria, then I need to keep thinking until a decision can be reached that will fit those criteria.

2.       Keep other people in mind.  If you have the responsibility of being the final decision maker on an issue, think about who will ultimately be affected by this decision.  Is it a change to a process that will affect customer service?  If it is, then you’ll need to keep in mind how the customers will feel about the change and take into consideration your front line staff who will have to implement this change.

3.       Don’t worry about what other people think.  I know this sounds contradictory to what I just said, but let me explain.  Every decision you make in life will not only affect you, but everyone around you.  However, not everyone is going to agree with your decision or support it.  You will never be able to please everybody.  I know it’s hard to hear people tell you that you’re wrong or that you screwed up.  Everyone is going to have their opinions but as long as you are confident with your final decisions, not everyone’s opinions are going to matter.

4.       It’s okay to change your mind.  People make mistakes.  If you see that the choice you made was a wrong choice, don’t let your pride get in the way of making a better choice.  Too often people hold onto their decisions out of sheer stubbornness.  But this is where some of your accountability comes in.  If you made a mistake, own up to it, apologize if need be, make a different choice, learn from it, and move on.

Strong leaders are people who can make important decisions on the fly but are also confident enough in themselves and their abilities to be held accountable for their decisions.  They don’t let pride or stubbornness or greed get in the way of making decisions that have a positive impact on their organizations.  So, as you go about your day today, making decisions all day long, keep these points in mind.  Remember that you are a role model for your staff.  Be accountable to that.

3 Easy Steps to Creating a Marketing Budget

Setting budgets is so critical to any business, big or small.  But I often see so many small business owners just winging it, not really knowing where all of their money is going.  I’m not an accountant but staying on budget is crucial to my job.  Everything I do is based on a budget.  Without a budget or a plan, a business runs the risk of spending more money than it is taking in or, conversely, not spending enough money to grow the business and compete. We all know that we need to spend money to make money and we want to save as much money on those expenses whenever possible.  But how do you determine how much to spend on marketing your business?

Creating, monitoring and managing a budget does not have to be a scary, overwhelming thing.  Even if you have no accounting experience or if you don’t think you have enough time in a day to do it, it really is imperative that you take the time to do it… and do it well.   It will allow you to allocate resources where they are needed. You simply need to work out what you are likely to earn and spend in the budget period.  Here is an easy 3 step plan for creating a marketing budget that works.

Step 1:

Start by creating budgets for the entire year. Be realistic about your projected sales for the budget period.  If you overestimate, it will cause you problems in the future.   Develop separate budgets for marketing, inventory, payroll, and anything else that you will be required to spend money on.  Continuously check to make sure your budget balances and that your numbers make sense.   

Don’t forget to work in a salary for yourself.  I see this happen all the time, where the business owner sinks so much money into the business that they don’t bother paying themselves. 

Step 2:

To create a marketing budget for the year, set your budget between 5 and 10% of your gross annual sales.  When you think about it, if you only have $100,000 in sales with a marketing budget of 5% that means you only have $5000 to work with for the year. Choose a number that you are comfortable with but a substantial amount of money to achieve all of your marketing objectives.  In step 3, you will need to use your creativity to know where best to allocate those dollars. 

Step 3:

From the budget amount you determined in step 2, develop your individual marketing campaigns for the year.  Determine a budget for each campaign based on the yearly marketing budget you have just set for the company.  Make sure you align your marketing goals and objectives with your campaign planning and spending.  You may need to put more money into marketing activities in one or two months in the year, especially if you’re running a strong campaign or if you run a seasonal business, and less in other months.  Just really take a look at your marketing goals and make sure you’ve budgeted enough money for each of those activities.  If that 5% you allocated in step 2 isn’t enough, go back and adjust your numbers. 

Remember that advertising doesn’t have to cost you a fortune.  Leave the big marketing budgets for the big corporations who have the money to spend on it.

It’s going to take some time to play with your numbers to make everything balance.   That is ultimately the goal… to make sure you’re not in the red.   Stick to your budget as closely as possible, but review and revise it as needed. Remember it’s a plan, a guide to your business finances.  It’s not set in stone, but constant review of it is essential to make sure you know where your business stands.

 

Make Work-Life Balance a Priority Over The Holidays

Christmas is my favourite time of the year.  Cooking, baking and wrapping presents with my family are experiences I will remember forever.  But as an entrepreneur, a wife and a mom, I sometimes don’t feel like I have enough hours in the day.  Now that my kids are home from school for the holidays it really becomes a balancing act of priorities.

Business owners all across the country struggle with the juggling act every day.  But I’ve started to look at things from a different perspective lately.  I used to get stressed out easily trying to be too many things to too many people.  Then I suddenly had a “light bulb moment” and realized that I was trying to please everyone else, but I was miserable.  I started to take stock of the things that were absolute priorities in my life.  I did some de-cluttering of my life and really made a conscious effort to focus on only the things that were really important to me.

For me that means raising my children the best that I can, loving my husband just the way he is, growing my business through dedicated daily effort, surrounding myself with people who are loving and supportive, and being the best friend I can be to the people who genuinely mean the most to me.

So, as you can see my business is a major priority for me.  But it’s not my only priority.  As we soon head into the New Year I have a clearer focus on my future now that I have gotten rid of the clutter.  I have discovered that when I make myself happy, I am less stressed out which in turn make the other people around me happy.  As an entrepreneur you never stop thinking about your business but over the next few days, take the time to put business thoughts aside for a while and really focus on the people in your life.

Merry Christmas everyone!

In memory of Allen Wayne Latham (1947-2001)

How to Increase Your Sales This Week

I often hear people say that Christmas has become too commercialized and that it’s not about the true meaning of the holiday anymore.  But no matter what your thoughts are on this, this weekend is the busiest shopping week of the year.  In fact, according the 2012 BMO Holiday Spending Outlook, it is estimated that Canadians will spend an average of $1610 per person this holiday season.  That’s a lot of money! 

Having worked as a store manager, area manager, and regional manager in the retail industry for over 10 years I know firsthand what it takes to operate a successful retail location.  As a retailer you can capitalize on consumers’ spending this week to increase the amount customers spend in your store (instead of your competitors’ store!) with a few simple sales tactics that really work.

·         Encourage multiple unit sales (UPT’s) – Set a UPT goal and hold a contest among your staff to see who can get the most units in one sale.

·         Increase your average total transaction dollar amount – Encourage your staff to make each sale a minimum amount, for example $50 per sale.

·         Show complimentary items. Don’t just tell customers about the other items in your store.  Show them!  And present them with items they already want to purchase.

·         Put items near the cash so customers will see them when they already have their money in their hand.  These are referred to as Point-of-Purchase items (or POP’s) for a good reason.  Often customers will pick up one of these items just out of curiosity while you’re entering their other items into the cash.  Train your staff well on providing exceptional customer service and selling these items will just come naturally to them.

·         Create displays that tell a story.  People purchase benefits not products.  When they can see themselves using a particular product that’s when they will buy it.  Get creative with your displays, but don’t overdo it.  You don’t want it to be so busy that the customer gets overwhelmed and walks away.

Try these tricks in your store and you’ll reap the rewards of having more sales in your cash and you'll be able to say that you helped put more money into the economy.  But amidst all the craziness, don’t forget why we celebrate Christmas in the first place.  Happy selling!

Creating a Positive Company Image During the Holidays

The holiday season is upon us in full force.  Santa is at the shopping malls and in parades all across the country and people are lining up outside stores to get the best deals on gifts.  But lately over the past several years, I’ve noticed a difference in how people approach the holiday season.  Have people gotten more lazy, less thoughtful, less considerate,  andless respectful over the years?  Or am I just getting old and expect some good old-fashioned manners?

Maybe when I was younger I just didn’t notice, but it seems that people are now a lot less thoughtful.  I realize we’re all busy, trying to do too much to make Christmas a wonderful experience for everyone we love.  But imagine that every time you step out your front door that you are a representative of your company.  No matter what position you hold in that company, whether you are the CEO or the stock boy, you represent that company every time you talk to someone.  You may not be talking business, but the image you project will be remembered by the people you spoke to.

 

Marketing is about creating a positive image in the minds of your customers.  And there are lots of marketing communications tools to do that with.  But have you ever given much thought as to how your personal image reflects on your business?

Remember that no matter who you’re talking to, that person could someday be a potential client or may refer you to a friend who could give you your next big break.  I know we’re all busy, but this season when you’re out running around, take the time to say please and thank you to the sales associates helping you, be considerate of the other shoppers, help someone just because.  These are not only good business practices but they are things that should be in everyone’s daily repertoire anyway.  

So, like I was saying it’s a busy time of year.  People are rushed and tired and sometimes in a grumpy mood and we’ve all seen people at the grocery store in their pyjama bottoms.  Think about this before you leave the house… you never know who you’re going to meet throughout the day.  I doubt you’d want your first meeting with a potential client to happen in your jammies!  I'm not saying you need to go shopping in a business suit, but getting dressed is a good first step.  And, remember that Santa’s watching… so you might want to make sure you’re on the “nice” list and not on the “naughty” list!

How to Leverage Customer Service to Avoid Negative Business Reviews

Later this week I will be attending a luncheon hosted by our local Chamber of Commerce.  The guest speaker is my personal friend and social media celebrity Dave Carroll.  Dave’s a musician who has used his talents to raise awareness of customer service in this country.  For anyone who hasn’t heard of him, you can visit his website at www.davecarrollmusic.com for the full story.

So since we’re only 3 weeks away from Christmas I thought this would be a fitting time to talk about the most important thing to a business… customers!  One of the most important parts of the marketing plan is your personal selling activities.  The customer experience is what people talk about when they talk about your business.  Do you want people giving rave reviews about your business or do you want people telling their friends to never shop in your store?

This is the time of year where you need to put aside your ego and pride, just buckle down and do whatever needs to be done.  Whatever the customer wants, you make it happen.  I would hope that you’re doing that all year long, but at this time of the year, when you have 10 times more people in your store than usual, it really is a challenge to stay on top of every customer.  But I can guarantee you that if you can just focus on providing exceptional service to each and every customer they will remember and appreciate it.

For many years I was a retail sales manager, first for a telecommunications company, then for a clothing retailer.  Each store that I managed achieved sales results that surpassed the competition and the other store locations within the company.  And I truly believe it was primarily because our customers felt appreciated in our store and kept coming back… and bringing their friends with them.

Here are some tips to help you provide the best possible customer experience.

·         Treat your customers like they are guests in your home.

·         Brace yourself for the craziness.  You know it’s going to be crazy busy so just go with the flow.  No point in stressing out over it.  Customers are already stressed out as it is trying to complete their shopping.  They don’t need you to be all frazzled too.

·         Anticipate your customers’ needs and order enough product to have on hand.  Not having enough product leaves you with unhappy customers and lost sales.

·         Train your staff well.  Staff need to be trained in customer service and they need to know how to multi-task.

·         Drop everything when a customer enters your store.  Stop chatting with your co-workers, put down the new shipment of product you just received, tell the Purolator guy he’ll have to wait a second, and make your customer your number one focus.

·         Conversations that are private in nature need to held in a staff room where customers can’t hear you.  I once walked into a store where a manager was reprimanding an employee for being late, completely oblivious that a customer had just walked into the store.  That just makes the whole shopping experience very uncomfortable.

So, unless you want to end up like United Air Lines as the subject of a viral YouTube video bringing their terrible customer service to light, give your customers everything they want and you just might be the subject of a viral YouTube video praising your amazing company instead.

Happy selling!!

Five Questions to Ask a Marketing Consultant

In our last blog I told you about some of the things you need to have prepared before hiring a marketing consultant. But something else you need to have prepared is a list of questions that you will want to ask a marketing consultant before you sign any contracts.

People are sometimes skeptical of marketer, associated marketing with pushy advertisements.  But marketing is not just advertising so please don’t think of us like a slick, used-car salesman.  It’s very rare that you will encounter a consultant who is greedy and just out to screw you over.  Highly skilled, quality marketers adhere to very strict policies and procedures.

But just to make sure you’re comfortable with the working relationship here is a list of questions you will want to ask.

1.       How will you direct my marketing only to prospective clients so I don’t waste money on reaching the wrong people?

The marketing consultant should ask you what type of customers you want to attract.  You should have a general idea of your target market but the consultant should be able to help you refine it.  With this information the consultant should be able to give you some ideas on how to best reach these people.  Any knowledgeable consultant will give you some ideas during your initial interview but will let you know that your overall communications plan will develop over time, with a plan and a strategy created before any communications are implemented.

2.       What qualifications do you have in marketing and business?

College or university courses alone will not create a competent marketing person.  But it’s at least a step in the right direction.  I personally have both a college diploma in Business Management and a university degree in Marketing Communications.  However, real world experience allows the consultant the opportunity to apply what they learned in school to real situations and to learn what works and what doesn’t.  Your consultant should be able to provide you with a portfolio of work they have completed, including clients you can call for a reference.

3.       Have you ever worked in sales?

Working in sales is the best way to learn how people make buying decisions.  I actually started working when I was 15 years old and almost all of my jobs have been in some sort of sales role.  I have over 20 years of experience in the retail industry, having been a sales associate, a store manager, an area manager and a regional manager.  I have won several awards over the years for my selling and management skills and in the process I learned a lot about people; how they think, how they solve problems and how they make buying decisions.  Hiring a marketing consultant who has an extensive understanding of sales, the selling process and the buying process as well as insight into consumer behaviour is a huge advantage to you when developing your marketing plan.

4.       What is your marketing background?

There are lots of people out there who claim to be a “marketing consultant” or “marketing service provider”.  But let’s make something very clear here.  Marketing is not advertising.  It’s not just about writing a press release or creating a logo.  Nor is it about creating a website or writing a blog.  It’s about developing an overall marketing strategy to work to deliver your core message to your specific intended target market.  Many people understand methods of communication or are very creative and talented in their own industry.  But marketing relies on both the method of communication AND the message.  The most powerful methods are of no value if they deliver a poor marketing message.  So, make sure the consultant you hire has in-depth experience in marketing, not just design.

5.       Besides marketing, in what areas do you consult?

None.  In fact I limit my consulting to a specific type of marketing, a specific type of client and a specific type of relationship.  I specialize in working with small businesses, but not all small businesses.  The clients I help are small business owners with companies that employ less than 100 people and are located in off-the-beaten-path, rural areas of the country.  My clients have very specific needs that are unique to them because of their proximity to (or lack thereof) services often only available in large urban centres.

Marketing has branched out into dozens of sub-specialties.  When looking for a marketing consultant you need to determine if their specialty is right for you.  There are some marketing consultants who say they do it all.  However, they generally have experience working with many types of clients but often not many of any one type.

Asking these few questions will give you a feeling about whether or not this will be a good working relationship.  Remember that when you’re hiring a marketing consultant, this is a relationship you will want to nurture over a long period of time.  As your business grows and changes, your marketing needs will also change, so having a consultant you can trust is vital to the success of your business.

 

Things You Need to Know Before Hiring a Marketing Consultant

Have you ever watched the show Dragons Den?  Or the American version, Shark Tank?  I’m addicted to watching those shows every week.  There are a few of the Dragons and Sharks that I would love to partner with in business and some that I could do without.  Some of the Dragons and Sharks have changed over the seasons and some have made a big impact on my own business decisions. 

I think what’s really amazing to me when I watch Dragons Den or Shark Tank is the sheer number of people who come on the show completely clueless about doing business.  Time and time again, people have spent countless hours and money developing a new product.  But they obviously have not done their research first.  People go out there on national television absolutely, solidly believing in their product but it’s clear that the market doesn’t want or need it.  Their valuations are often ridiculous too, usually because they have valued their company at a million dollars or some other crazy number but they haven’t made any sales yet.  But what really gets me (and I think it’s because I’m a marketer) is the people who go out there and have no clue who their customer is.  They go into this dramatic sales spiel about their product but then one of the dragons cuts them off and says, “But who’s going to buy it?”  It amazes me that they often can’t answer that question.

Whether you’re going on Dragons Den or Shark Tank to pitch a product or you’re approaching a consultant to help you move your business forward, there are things you need to do to prepare for this meeting.  So, here are some thoughts about what you need to know before hiring a marketing firm.

·         Do you have a business plan?  If you don’t have one that’s an issue because it shows me that you haven’t taken the time to do your research.  And if you wrote a business plan 5 years ago and haven’t looked at it since, you need to do that and update it.

·         Do you know your numbers?  You need to know how much it costs to produce the product, how much to sell it for, what your expenses are, what your profit will be and an accurate sales forecast for the next 12 months.  You also need to know how much you will be allocating to marketing expenses.  I can help you with that, but you need to come in prepared.

·         What are your marketing objectives?  Many clients come to me and say, “I need help with my marketing.”  Well, that encompasses a lot of things, so what exactly do you want help with?  What are your goals and how do you think various marketing activities will help achieve those goals?

·         What makes your product so different and special?  I can help you further define your differentiating factors and help you align those with the right target market, but you need to be able to clearly tell me why this is such a fabulous product and why anyone would buy this from you as opposed to buying it from a competitor.

Marketing is one of the most time consuming and expensive aspects to operating a business and it is absolutely crucial to any business.  But you can’t expect to sit back and just let it happen.  You need to do your homework first.  Here is also a list of questions to ask your marketing consultant before signing any contracts with a marketing firm.

Reaching Life's Milestones

Reaching important milestones is a big part of life.  Now that the kids are back in school and focused on their school work and activities it’s time for us to refocus, to set goals and to reach for some of our own milestones in life.  About a month ago, I celebrated a very big milestone in my career.  My company, Small Business Marketing Solutions celebrated its first birthday!! 

Over the past year in business I have learned a lot about myself and what I’m capable of achieving.  And anyone who has a dream but doesn’t think they have what it takes should read these lessons learned and know that you can absolutely achieve anything you set your mid to.

1.       Don’t let anyone stand in your way.  A year ago there was a person in our community who was hell-bent on destroying me.  Because my career hinges on my reputation, I was terrified of what other people thought of me, especially those that had never met me.  I soon learned that the vast majority of people actually wanted me to succeed.  I had given way too much power to this one person and I needed to regain that power back.  So, as scary as it was, with my head held high I mustered up the courage to make some really key phone calls and I walked into meetings and networking events with confidence.

2.       Believe in yourself and others will too.  When you believe in your abilities and what you have to offer, you will attract other like-minded, positive people.  If you honestly believe that you are capable of providing an exceptional product or service, don’t be afraid to share that with everyone.  But there is a difference between having confidence and being full of yourself.  Confident people just exude that confidence and positive people are drawn to them.  They don’t go looking for admiration from anyone who will give it to them. 

3.       Persevere when things get tough.  I knew that going into this business was not going to be easy.  Having kids to take care of and bills to pay along with juggling work responsibilities is part of the world we live in today where the vast majority of women work outside the home.  I’m not going to say it’s easy to balance it all, but keep your goals in mind in everything you do.  Just keep plugging through, giving 100% in everything you do, whether it be your business, your finances, your family, or your friendships.

4.       Stay focused on your goals.  Sometimes it’s difficult to remember why you started this venture in the first place.  I knew that going into this I was opening the only marketing communications consulting firm north of Sudbury.  My goal was to give small businesses throughout northern Ontario the opportunity to adequately plan their marketing strategies with the assistance of a local marketing firm who understood their needs.  Just because we’re a little off the beaten path doesn’t mean that businesses in this area shouldn’t have access to the same resources as businesses in other areas of the country.  Keeping that focus top of mind throughout the year has helped me stay on track as to why I chose to start this company.

 

5.       Don’t settle for less.  Don’t sell yourself short.  Setting goals and achieving them is what keeps me motivated to do more.  I may not have achieved all of my goals by the timeframe I had originally set out but that doesn’t mean I’ll never reach them.  It may just take a little longer to do that.  I know what I want to achieve in my life, my career and my business.  And there is no way I’m going to settle for anything less.  I have goals set, but more importantly I have a plan of action to achieve those goals.

6.       Build a strong support system.  This may sound harsh, but there are people in your life right now that are weighing you down.  Surround yourself with people who genuinely care about your success, people who you can bounce ideas off of, people who will share in your big moments and be there to listen when things start going south.  I’ve had to part ways with “Negative Nellies” and I’ve been fortunate to have found people in the business community who have become real champions of my business.  The friends I have are people who genuinely like me for who I am and want to be friends with me.  I don’t hide my emotions well, so I don’t have patience for phony people.  But the one person I know that is always backing me up is my husband.  Having been together for 12 years, our marriage has been through a lot of good and a lot of not so good.  I don’t do this job (or anything else for that matter) for the recognition, but it’s nice to know that at the end of the day, someone is proud of me.

I once had someone tell me that they admired me for having the guts to start my own business.  I never really looked at it as having the guts to do something that other people may be afraid to do.  But it really does take a certain personality to run a successful business.  Not everyone is cut out for it, nor do they want to.  But if you’re anything like me and you want to make a contribution to business community in any way, just go for it. 

Social Media Communication - How to Make it Work for You

This past weekend was our high school reunion.   As part of the celebrations we had the honour of a performance by two of our alumni, Don and Dave Carroll, also known as Sons of Maxwell.

I’ve known Dave personally since our high school days so I always look forward to getting a chance to talk to him whenever he and Don come home.  This year, I didn’t have a chance to talk to him because he was so busy selling his new book, aptly called “United Breaks Guitars”.  Dave’s musical career got an unexpected boost in 2009 when communication between him and United Airlines prompted him to communicate in a new and different way.  This story has been told thousands of times, but I’ll just do a quick recap.  In 2008, Don and Dave and their band mates were travelling to Nebraska for a performance via United Airlines.  United Airlines subsequently broke Dave’s beloved Taylor guitar but refused to help him in any way.  After months of arguing with them, he did what he know how to do best.  He wrote a song.  In fact he wrote 3 songs.  He produced a video for the first one and put it on Youtube.  Not expecting much to happen with it, he was shocked to see how quickly the video (which incidentally had been produced on an almost non-existent budget) was gaining attention.  With the promise to United Airlines that he would write 3 songs, Dave wrote and produced the final 2 songs and posted them on Youtube within several months of the original video.  Since that time, the videos have had 12,310,382 hits, 1,533,940 hits and 533,663 hits respectively.  For the whole story in Dave’s words, visit his website at http://www.davecarrollmusic.com/music/ubg/story/.

Youtube is the most widely used search engine in the world.  Owned by Google, Youtube generates in excess of 2 billion hits every day!!  So, you can only image how Youtube videos can have an impact on your business.  Of course, a lot of Youtube videos are funny animals or babies doing silly things, kind of like “America’s Funniest Home Videos”.  And you do hear of the occasional “discovery” like Justin Bieber, but that’s very rare.  However, it really is possible to use Youtube along with other social media to create a buzz around your company. 

The key to using social media is remembering that you are still communicating with customers.  Social media is not a one-way street.  Our current generation uses social media and text messaging to communicate.  A generation ago, it was the telephone.  Before that it was written letters and telegrams. I’m sure I’m going to offend some people here by saying this, so I apologize in advance.  But here’s my opinion on people who say they are “social media experts”.  That is like saying you’re a “telephone expert”.   Social media is a form of communication and you need to have proper etiquette in that forum the same way you do on the telephone. 

So, when using social media,

·         Be polite
·         Develop 2-way dialogue with your customers and communicate regularly but not to the point of being a pest.  Nobody wants to get overloaded with stuff online the same way people don’t want to get a hundred phone calls from you in a week. 
·         Use appropriate social media sites.  There are so many sites out there but if your customers aren’t using them, why bother?
·         Allow people to get to know you. Show your personality. Dave’s videos show his personality.  Let your personality come through and you too will build a fan base of your own.

We may not all have the YouTube success that Dave Carroll has had, but that doesn’t mean social media won’t work for your business.  Follow the tips I’ve given you and watch your fanbase grow too.

Olympic Style Training for Business

Once again, the Olympics are upon us.  Hopes and dreams of hundreds of athletes are either achieved or shattered.  And all it takes is one mistake or one flawless performance.  Think about how much time and effort these athletes have put into their chosen sport, how dedicated they are, but how unbelievably rewarding it is in the end.

The same can be said about your business.  You can’t expect your business to be successful right out of the gate.  A lot of small business owners start their business with a grandiose idea of what their sales forecast will be for year 1, 2, and 3.  Rarely are those numbers realistic.  Why?  Because as a new business owner, you are absolutely determined that your product or service is the best and everyone needs it. 

Put that into perspective of the Olympic athlete.  When a 10 year competitive athlete says they’re going to make the Olympics one day, they’re generally just brushed off as having a “dream”.  Lots of kids have dreams of making it to the Olympics (that’s their grandiose sales forecast of life), but only a very select few will ever achieve that goal.  But, you can be one of those “kids” who grows up to be an Olympian in your own sport.

You have a business concept that you know is good, just like the kid who know he has an athletic gift.  But what you do with it will determine how far you can take it.  So, what do you need to do?

·         Dedication – If you want to make a name for yourself, dedication is paramount.  How hard are you willing to work?  Olympic athletes train 5+ hours a day, 6 days a week, with a solid focus on the goal they have set for themselves.  You can’t expect to compete in the OIympics by watching from the sidelines.  Nor can you expect to be successful by just sitting around waiting for customers.

·         Key Partnerships – Athletes have built relationships with the top coaches and doctors in the country to ensure that they are in the best possible shape.  Partnerships with carefully selected sponsors helps to fund all the training and travelling involved.  As a business owner, you need to make some very key connections as well.  Develop cross-promotion opportunities with other businesses, practice your communication skills to help you establish connections at networking events, reach out to your customers in a way that makes them feel like you really care.

 

·         Patience and Persistence – Any athlete who has been training for 15+ years has dealt with numerous set-backs.  If you expect to beat out the competition, you’ll need to have lots of patience, knowing that there will inevitably be set-backs and hurdles to deal with.  How you handle those will determine your future.  Handle difficulties with class and patience instead of getting upset and giving up.

So, use the Olympic athletes as inspiration.  Find that Olympian inside you and give it your all.  In time, you will also be basking in the glory of a very successful business.

Direct Marketing - It's Not Just Junk Mail

We have all had “junk” mail appear in our mail boxes.  Well, it’s only junk if it doesn’t interest you.  But that doesn’t mean direct response marketing doesn’t work.  If it didn’t work, nobody would do it.   Similar to sales promotion activities, direct response marketing is designed to encourage immediate action.  Things like catalogues, direct mail flyers, sales or fundraising letters, magazine inserts and statement stuffers.  Even some forms of television can be considered direct marketing.  Things like infomercials and commercials that encourage you to “Buy now!  Just call the toll free number on the screen.  If you call in the next 10 minutes, you’ll receive a free bonus gift!”  Direct marketing is very highly targeted to ensure that the advertiser is reaching only a very specific target market as opposed to mass marketing which attempts to reach a much broader audience.

 

Advantages of Direct Marketing:

·         Allows you to target your message to a very specific audience.   Whatever kind of business you have, you will have defined specific target markets when creating your marketing plan.  Mail-outs can be sent specifically to those people only instead of mass mailing something.  Also, each specific piece can be customized to each person in that target market.

·         You can evaluate its effectiveness. If you compare the number of responses to the number of pieces mailed, you can calculate the response rate. If you include coded coupons or response cards you can keep track of exactly who responded and from where.

·         Mail readers are actively involved.  When people take the time to read their mail, your message will have their undivided attention while they open and scan through it.

Disadvantages of Direct Marketing:

·         Many people don't like unsolicited offers and many are skeptical of their validity.

·         Increasingly, busy people don't even open what they view as "junk mail."

·         Using this method of advertising requires thorough maintenance of mail lists. Many small business owners don't take the time to update their mailing lists. With outdated lists, however, mail goes to undeliverable addresses, which is a waste of money.   Another possible glitch - an inaccurate list may misspell names or address a person who has died. These kinds of errors annoy, or worse yet offend, the recipient.

·         Some groups are concerned about the environmental impact of resources used for advertising mailings.

·         It can be expensive.  When creating a direct marketing campaign, you really need to weigh out the cost differential between producing the materials and the profits earned from any new business the campaign will generate.

Tips on Developing Your Direct Mail Piece

·         Focus on customer benefits and do it right at the beginning. The first sentence (the lead) in a direct mail letter should be about benefits.   Your prospective customer only takes a second or two to decide whether or not to keep reading or to pitch it.  So, make sure the benefits of your product or service are offered right up front.

·         Keep the offer simple, easy to understand and persuasive.

·         Include a "call to action."

·         Ask the customer to "call today."

·         Include a postage-paid reply card.

·         Make the offer for a limited time to encourage prospects to act.

·         Make it easy to respond or place an order. Include order forms if appropriate for your product. Include a:

o   toll-free phone number (24-hour ordering if possible)

o   fax numbers

o   email addresses

o   payment options such as credit cards

o   payment plans for big ticket items

·         Use a personal and friendly writing style. Mail is a one-to-one communication; make it sound that way.

·         Create different direct mail pieces to address different audiences - even when you're offering the same product. Your product or service may have a different benefit for different target markets. So, create multiple forms of the same offer for those different audiences.

·         Consider making your mailing "3D" by including an object in the envelope that will peak the recipient's curiosity.

Mailing List Options:

Mailing lists are available for purchase, but they can be quite costly, especially for small businesses on a tight budget.  A better option is to use your house list.  That means that you really need to be diligent about obtaining information from your current customers and people who have inquired about your product or service in the past and maintaining it.  Keep your mailing list current by periodically asking your customers for their current mailing address.

Success Measurements:

When you include coded coupons or response cards, you can track how many you have received and where they came from.  Direct mail experts tell clients to expect anywhere between a .05 percent and 1 percent response rate.  That means that if you mailed out 1,000 direct mail pieces, expect to receive about 10 responses.  That might not sound like a lot, but it’s better to receive 10 actual sales, than 500 “maybes” that you could be chasing down forever.  So, don’t increase the number of mail outs just to increase your response rate.  The quality of the response is what’s important.