THINKing

My New Business Secret Formula

We’ve talked here often about the fact that there is no marketing magic bullet. But there is a new business magic bullet, and I’m going to tell you the secret formula. Only a handful of those who read this will successfully implement within their business because it is not shiny and new.

Like most businesses, you are probably spending up to 80% of your marketing budget on bringing in new business because that’s exciting. It’s not as much fun implementing my new business secret: do great work for current customers.

But Harry, you are saying, I’d rather go out and bring home the new business buffalo than focus on my current customers. Where’s the benefit?

Let me disabuse you of the notion that there is no benefit in this hyperfocus on current customers.  Doing great work for current clients spawns so many good things for your business.

Even if you have the best salesforce in the world and they can sell anyone anything once, if your company doesn’t wow them with your service they aren’t going to buy from those superb sales folk again. Some estimates show that if you cut customer churn by just 5%, you can increase profits by at least 25%.

If that’s not reason enough, then consider these stats relating to customer retention:

• 91% of dissatisfied customers won’t return
• 96% of dissatisfied customers won’t tell you the real reason why they won’t be back
• it costs 10 times more to replace a customer than it does to keep him
• repeat customers spend 33% more than new customers

But how is doing great work for current customers the secret to my new business program, Harry?

I’m glad you asked. Here’s the key statistic that you need to internalize: referrals from repeat customers are 107% higher than from non-customers. Loyal customers talk you up to others who are like themselves. In other words, they are targeting the right customers for you and you don’t have to spend a dime.

Are you doing great work for your customers? Maybe it is time to reevaluate.

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7 Ways To Kickstart Your 2010 Marketing

It’s 2010, now what? Have you completed your marketing planning or did you leave it to the last minute? No matter. We have 7 ideas of things you can do to kickstart your marketing.

Define Your Customers.  I had a client one time who told me that “all carbon-based lifeforms” were the targets of his advertising. Needless to say, I quickly disabused him of that notion. If you want to spend your money wisely, this is the#1 thing you can do right now for your marketing effort.

Focus On Current Customers. I know that you want to go out and take down that new business buffalo, but you’ll get a greater return by getting more business from current customers.

Get Referrals. If you have done a good job for existing customers, they will tell their friends about you. But you need a strategy to make this happen.

Activate Your Customers.  It is no secret that I believe email is still one of the best ways to generate goodwill, referrals and business.  Plan your email attack to activate customers now.

Open Your Wallet. I’ve been accused of being against paid advertising. I am not. I’m just against unplanned, poorly focused advertising. Some of your competitors are still weak from the recent economic strife. You still have an opportunity to kill the weak, if you’ll spend some money smartly to take market share.

Be Sociable.  Humans - being human - love social interaction, particularly of the face-to-face variety. Always have, always will. So, look for ways to add human interaction to your marketing. Also, reexamine your approach to social media.  

Be Tactical. First off, let me say that I’m a strategy kind of guy. But sometimes you just need to do something to get your marketing off dead center.

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Top Content 2009 Edition

In case you missed some of our most read content this year, below is a sample of the top posts of 2009. Is your favorite here?

Twittering Journalists

Customer Retention Strategies

When Billboards Go Bad

Twitter: Time Waster Or Cool Tool?

Branding Lessons From Santa

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Top Content

In case you missed some of our posts, here are the top five read of all time:

Twittering Journalists

Top 10 Story Starters For Blocked Bloggers

Newspapers: Dig The Grave 

When Billboards Go Bad

It’s The Relationship, Stupid

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Face Time

Some social media proponents would have you believe that the digital world is the new Nirvana. Guess what? Humans - the users of social media - haven’t really changed their behavior in 75,000 years. Although, we do dress better now, and we’re not all cavorting naked on the plains of the Serengeti.

Humans - being human - love social interaction, particularly of the face-to-face variety. Always have, always will. In fact, a recent survey by Forbes indicates that executives favor face-to-face meetings over the virtual kind.

A majority of executives say the recession has cut back their travel and face-to-face meetings, and they don’t like that very much. A full 84% of those surveyed say they prefer real-life interaction over digital.

Although you can’t meet with everyone of your online shoppers, you can provide them some human interaction, too  They are craving this. According to an August 2009 survey conducted by Harris Interactive for human-assisted shopping site IMshopping,

77% of US Internet users who made an online purchase in the past six months would be interested in help from a real person before buying certain things on the Web. Though a majority of online shoppers reported a desire for help at least some of the time, 82% of respondents said they had not been able to get that assistance in the past. And more than one-half of that group said it had affected their purchase decision negatively—at least some of the time.

I’m not saying there isn’t a place for virtual meetings and online interaction. I’m just saying that you need to understand the genetic need humans have for the tangible. It’s harder to read people during digital interactions, and you can’t build deep, meaningful relationships solely using ones and zeroes.

The same holds true for tangible marketing material. There is a time and place for everything, and now is the time for you to stand out by being more tangible to your customers and allies.

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A Fresh Wind Is Blowing

The business winds are changing direction, but there are some organizations that don’t get it and never will. The news media and big ad agencies are two industries doomed to be swept overboard if they don’t keep a weather eye out. Today, it’s about transparency and a new focus on customer service, doing what’s right for the customer. I’ve found if you do what’s right for the customer, you, too, will ride under full sail.

Let’s review a recent example of what I’m talking about in the marketing arena.  We have a client leaving another agency to come to us for a number of services, including SEO, email marketing and Google Adwords.

Old school companies try to lock clients down by tying them to agency accounts for Google Analytics, Adwords, or email marketing, or  by hooking them into proprietary content management systems and the like.  An agency which manages all of its Adwords or Analytics in a master account is not going to want to give another agency administrative access. Guess what? You can’t transfer Google Analytics accounts and you lose all the historical data. Adwords account can be transferred, but it takes an act of Congress.

When we set up client accounts - although it is less convenient for us - we set them up in the client’s name. That way, if the client ever decides to move on, we can hand over the accounts and wish them well. That’s the new, transparent, customer-oriented way to do business.

Are you old school, or are you harnessing the fresh wind?

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Links 7/20/2009

A detached retina has kept me sidelined for about a week, but the eyesight is getting better. So, here are a few things I’m trying to read with fuzzy vision:

10 Fundamentals of Good Writing -  Why have companies lost their voice? The biggest reason is fear. Good communication can’t thrive where every word is second-guessed and scrubbed of all meaning. We’ve got to get back to good writing, and it’s up to communication executives like you to make it happen.

Twitter Generates $48 Million Monthly In Media Coverage -  What are  Twitter mentions worth? According to news-monitoring service VMS, a cool $48 million over the past 30 days. (That’s half of what Microsoft plans to spend marketing its biggest product launch of the year, Bing.)

Cinnabon Direct Mail. Mmmmmm. - (You have to register to read this).  Bakery chain Cinnabon is one company embracing direct mail over more tech-savvy channels and seeing customer acquisition rise as a result. The days of direct mail’s marketing dominance may be over, but don’t call it dead yet.

Customer Loyalty: How To Earn It. -  THINKing has written about the topic of customer retention often. There’s a saying in the business world: Customer acquisition is an investment, but profitability is built on customer retention. And with the economy in its current state, it’s more important than ever to keep the customers you have.

MasterCard Launches “Priceless” iPhone App - The Purchase, N.Y.-based company is introducing the “Priceless Picks” app, which gives consumers a location-based utility to find and share their favorite picks with others. Via the iPhone’s GPS technology, users can find shopping deals, entertainment options and dining venues based on the users’ current location or where they are going.  MasterCard is extending its “Priceless” catchphrase to a new iPhone application.

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Check Please

Let me know if I’m off base here, OK? I got a check from my mother-in-law for my birthday. She has written it on her Wachovia checking account. The good news, I initially think, is that there is a Wachovia branch very close by.  So, I head over and pull into the drive-through.

I drop the endorsed check and my NC driver’s license into the canister and shoot it through the pneumatic tube. Teller comes on and says “Mr. Hoover do you have a Wachovia account?” I tell her that I do not. She says that I will have to come inside the bank and present two forms of identification. “Are you kidding me?” I ask.

“No. We require non-customers to come inside since the drive-through is primarily a service for our customers.”

“Well, I’m guessing your customers wouldn’t want you hassling people they have written checks to. And I’m guessing you don’t want to convert me into a customer if you have that kind of last century policy.”

I left in a cloud of burning rubber, vowing never, ever to utilize a Wachovia - now Wells Fargo - service. I also vowed to tell everyone what I think of Wachovia and their failed policies.

Now, am I off the reservation here? Do you think this is a good policy? Come on, tell me what you think.

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Old Media Drives New Media

The average American’s Internet use has nearly doubled in the past two years, according to a MediaPost article. This means that the Internet now accounts for 1/3 of the average US consumer’s media day. So, how are you going to get those Americans to your website, hmmm? By the way, did I tell you that your website is one of about 186 million?

Google Adwords can help, but it doesn’t drive the volume of web traffic most local businesses would like to see. If you have your own email list, superb. Nothing like email to drive current customer traffic. But what about for customer acquisition?

If you haven’t noticed, there is a fire sale going on at the old media store. Newspapers are struggling, so, too, are many radio and TV stations. Rates are down and so is competition for eyeballs. It’s a great time to increase your share of voice and take market share from weak competitors.

In my mind, a local business should be looking at these media opportunities. In particular, I’d look at my local newspaper, especially if it has a solid web presence. You can pick up packages that include both print and web options. For instance, according to the same MediaPost article:

The report further reveals that seven daily newspapers have achieved a net unduplicated reach of 80% or more when the past 30-day website visitor figure is combined with the past month print readership figure. Among these newspapers are the:

• New Orleans Times Picayune with a total unduplicated reach of 85.8%
• San Antonio Express-News (80.6%)
• Post-Standard in Syracuse (84%)
• Buffalo News (83.3%)
• Democrat & Chronicle in Rochester (80.9%)
• Peoria Journal Star (80.4%)
• Omaha World Herald (82.2%)

Says  Bob Jordan, President of The Media Audit,

“Daily newspapers were the first to embrace a multi-platform distribution strategy amidst a period when consumers were spending more and more time with the Internet. And as a result, newspapers followed the way of the consumer. By doing so, they have broadened their reach to include younger consumers. And these consumers are buying new cars and driving sales for retailers who represent a significant portion of the newspaper industry’s revenue… ”

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Bad PR Call

So, let’s say you take your Audi to the dealer for some repairs and leave it overnight. The next morning you get a call from the dealership telling you that your tires and rims have been stolen. And, oh by the way, the dealership is not liable and is not going to pay anything. To make matters worse, the customer is a single mom with triplets.

This just happened here and is a very bad decision on the part of Audi of Charlotte. Oh, yes. I called them out by name.

According to Audi General Manager Bill Taylor,

“The dealership goes to great lengths to protect the customer’s property,” Taylor said. “We have these policies in place. Unfortunately we have to base our practices on the majority of things, not the minority of things. There are faultless victims here. I’m as faultless as the client is.”

Well, if you have been reading this blog for any length of time, you know how I feel about someone saying the “P” word (policy).

This decision on the part of Audi of Charlotte is just wrong. I could understand if the customer had left a laptop in the backseat and it was stolen. That is stupidity on the customer’s part. But wheels and tires? Come on, man! Unless you are in a NASCAR pit crew, you don’t just pull wheels off a car in seconds. Was there no security at the dealership?

I’m suggesting that we use social media to spread this story, so that the dealership will be punished in the court of public opinion. So, start spreading.

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