Small Business Marketing to Up Your Profits in a Down Economy with Marketing Systems

One of the single biggest marketing problems I see with small businesses is the lack of a marketing system. Every thing they do is tactical and is rarely planned, budgeted, tracked or measured.

A media rep comes into the business and says, “You need my product to get clients.” TV, radio, newspaper, Yellow Pages or an agency. The thing is that they all have compelling stories and loads of statistics on impressions, market awareness, branding and loads of other marketing terms. Which do you choose?

Most businesses are in a “trial” mode and will keep trying whatever is sold to them, hoping that one of them will be the magis bullet. Worse yet, they continue running an ad without knowing if it is generating the results they need. They think, “Hey, I’m getting my name out there.” When somebody needs me, they’ll give me a ring.

As the spider webs gather on the phone, the owner gets frustrated, the ad rep tells them they need to run a larger ad or run it longer. That’s a bunch of garbage. If you had an investment that was tanking and your broker told you to wait or invest more, you’d find a new broker.

Before you advertise, you need to think of how you are going to systematize your marketing. The advantage of the marketing system is that you can actually plan on results. Wouldn’t it be nice to know if you implement a certain element of your marketing system, you will most likely make a fairly predictable amount of profit?

Companies all over the world are doing it everyday. The owner knows what business is coming in and where it is coming from. Once I set up a system in a business and test my materials, the owner knows that if they send out a certain mailing to their clients, they will make a predictable return. If they run a particular ad with a particular offer, they know it will make them a predictable amount of money.

You can do the same in your business. In my previous posts, I talked about leverage. Now we are into the systems and the types of systems that you can build in your business. I make money and get referrals through the success of my clients, not due to the size or frequency of their media buys. Stick with me and I you will learn the basic elements of implementing my powerful and guaranteed Hidden Asset Marketing System in your business.

Up your profits in a down economy – How to open a cash windfall

Have you ever “mined” your client list? If you have a list of satisfied clients, an email list, a list of vendors and a personal network, you are probably sitting on a gold mine from which you can “extract” a cash windfall.

In my previous couple of posts, I referenced the importance of regularly “touching” your clients. If you’ve been doing that (or even if you haven’t done so regularly), you’ve been building and cultivating a relationship with them since they have been buying from you. You can leverage this relationship for immediate cash.

How do you go about doing this? Sit down in front of your computer and write a letter to your best clients and tell them about your situation, that you need to raise cash to help build and improve your company. In return for their support, you will give them special treatment, special discounts and bonuses just for them.

This is a very powerful technique that leverages one of your most important Hidden Marketing Assets, the relationships you have cultivated over the years. Will it work for you? Only testing will tell but the odds are in your favor because your clients trust you and people enjoy helping people they trust and have given them good service

Now, if you really want to leverage this concept, start thinking about whom you can create a joint venture with and make a special offer to their client and prospect list. I’m not talking about the BS internet joint ventures where a guru gets other gurus to promote their latest and greatest products, without seeing it or having any idea of what it does. You know what I mean. You get the same email from twenty people saying their “good friend” has the most amazing money making system in the world

I’m talking about a genuine relationship with a business owner you know and trust. Somebody who has the same beliefs about quality and service that you do. I’ll go more into structuring joint ventures in another post but start thinking of how you can approach clients and prospects with a very special offer.

Increase your profits in a down economy- Part 2

Where do you want to spend your marketing dollars in a “down economy?”  In my last post, I wrote about how the media plays a big role in the perception of the economy.  If you believe them, the entire world is now broke and living in boxes underneath highway overpasses.

Business owners start to believe that there are no longer clients willing to buy from them and they enter a hibernation mode, hoping they will make enough sales to survive.

Have you been to a department or grocery store lately?  If so, you may have seen what I have been seen.  People are buying things.  Have you been to a restaurant lately?  Did you notice that people were buying meals? Have you noticed a dramatic decrease in rush-hour traffic because nobody has a job any more?

Hey, I believe there are some serious problems with the economy but the fact of the matter is that people are still making and spending money. The wise business is not retreating. Instead, they’re spending marketing dollars wisely. They are throwing useless “brand/image” advertising out the door. They are demanding accountability from agencies and others selling them media.

The way I look at it, if your marketing isn’t delivering a measurable return, either get rid of it or figure out how to measure it. There are companies out there that do detailed ROI projections for capital investments but often spend the same amount of money on marketing with no strategy to measure return.

The bottom line is that this is the worst time to cut back on your marketing. Your competition is probably doing it so why not take advantage of the situation to strengthen your presence? When things turn around, there will be a lot of your competitors who may be great buyout targets.

You also need to spend some serious time strengthening your relationships with your clients. Be sure you are maximizing revenue from each transaction. Be sure your sales reps are well-trained in selling skills and product knowledge. Be sure your service staff knows how to up-sell and cross-sell.

Finally, quit listening to the media and chart your own future.

Attract premium and profitable clients with a powerful Unique Selling Proposition

Why should I buy from you?  A simple question but one that few business owners are able to answer.  They say, “We have good service,” or “We’ve been in business for 50 years.”

To the we have good service company, I say, “Well, you better have good service or I’ll never be back.”  Good service is expected, it’s not a differentiator.  If you’ve been in business for 50 years, that may mean nothing to most people.  Who cares how long you’ve been around?  TWA was one of the best known names in the airline industry.  They gave good service and were in business a long time.  They are now a nostalgic memory.

Your Unique Selling Proposition (USP) answers the question, “Why should I buy from you vs. your competition or do nothing at all?”  If you can’t answer that question, then you are hoping your prospect will figure it out on their own and will hopefully decide you are worth the investment.

Creating a USP is not as dificult as it may seem, if you follow a process and approach it as a stategic project that answers the why should I buy from you with a compelling reason.  If you approach this as a project to create a clever slogan for an ad, you are handicapping yourself.  In a series of videos, I am going to walk you through the process of creating a powerful and compelling Unique Selling Proposition.

I hope that you find these videos helpful.  At any time, feel free to contact me, Paul Flood, to discuss or review your USP.

Do your client’s miss you? You must keep in touch with them!

Is this you? Staring out the window, hoping a client will appear over the horizon with loads of cash in their hands ready to fork it over to you? Do you wonder where your clients have been? For most business owners, the answer is yes. The reason is they’ve done nothing to create a relationship, let alone nurture one.

Just think about it. How often does any business you patronize ask for your name? What is the chance for them to develop a relationship with you if they don’t even know your name?

They spend tens of thousands of dollars in advertising to get new customers. They are out in the yard digging for bones when all they need to do is wag there tails and show appreciation to the person who gave them their last one.

They are ignoring a key marketing concept, Life Time Value (LTV). The LTV looks at the value of a client over the lifetime of the business relationship. Here’s a simple formula to calculate LTV:

What if the average dog refers one other neighborhood dog per year who becomes a loyal client? Over a twelve year period, the potential value of one happy dog can exceed $25,000!!! Can you see why it makes sense to spend $20 per year to strengthen relationships with existing clients.

Keep in touch with your clients. They do want to hear from you !! Ask them to return and to buy from you again and again. It’s that simple. Get their names and develop relationships with them. You need to do more than throw them the occasional bone or table scraps.

Here are some things the pet boutique can do to cement a bond with their furry clients:

• Send a coupon for a pampered pet day.
• Send a special treat on their birthday and monthly pet care newsletter.
• Take their picture and hang it on the lobby bulletin board. Use the picture to create custom post card appointment reminders.
• Send the dog’s family birthday cards on the family birthdays..
• Hold a “Where’s Fido?” month to ask back the dogs who quit coming to see you. Put a treat in a special envelope addressed to the dog and say “I miss your wagging tail and cold nose. Please come back in to see us.”
• Hold a special human training days where the dogs’ owners can learn how to take care of them.
• Have a pet art show. Hire a caricature artist to draw caricatures of the dog and their owners. Sign them with paw prints.
• Create a pet blog where your clients can share the funny and cute things their owners did.
• If you hear a client has died, send their owner a sympathy card.
• Get a welcome board to welcome all your clients by name on the day of their session. Their owners will say “Look, Sparky. There’s your name on the board!”
• Have a pet Halloween costume contest. Charge a $10 admission fee with all proceeds going to the local animal shelter. Invite local media. Find local celebrities that love animals and ask them to be celebrity judges.
• Call to confirm appointments.

The list of possibilities is endless. Notice that the cumulative cost of my suggestions is probably less than $10 per dog per year! Now, if your pet groomer did these things, would you look elsewhere for grooming services? You’d even pay them a premium.

Not in the dog grooming business? Well, there’s good news. Humans also like to hear from you. Before you say, “It’s expensive to keep in touch with all of my clients,” be sure to calculate the LTV and the cost to acquire a client. You may think good service is sufficient to retain clients but, in today’s world, good service is the minimum to BE in business.

There are many inexpensive and simple systems to maintain client contact. Topping my list of recommendations are newsletters and greeting cards. Here is an automated greeting card system I use and recommend. Email is easy but the odds of it being delivered and read keeps decreasing and dogs have a hard time with keyboards.

Your competition is sniffing the air and putting out plenty of treats to convince your clients and prospects to switch over to them. It is up to you to build an invisible fence of loyalty around them. You can help to insure that your clients will give your competitors a “slight correction” if they try for the business!

Client loyalty is not a mystery buried in the ground with old bones. It requires quality products and service and regular communications from you to let your clients know you appreciate their business and want them to buy from you again.  If you forget this critical concept, you can plan on always sniffing around the neighborhood, forever looking for your next client.