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FoxFire!Wednesday, April 29, 2009Some Businesses Are Growing If we didn't have enough on our plates already, now we have to watch out for symptoms of swine flu. But that's not really my topic here. My goal is to give a little encouragement in generally discouraging times.
You don't have to go far to find bad news today. You don't have to go anywhere at all. The bad news will find you. Economic duress, political friction, and now pandemic disease potential. Nice. But in the midst of all this, some companies are growing. It can be done! In the past week alone, I've been in contact with three businesses in three different industries who are all expanding -- a pool management company, a commercial roofing company, and a lotion manufacturer. By all indications, companies like these should not be growing. Economic pressures and tightened budgets should be causing customers to lay low. These three have a common trait, however. They're all spinning off new divisions to serve different customers or serve existing customers in new ways. Think things are tight? Take a fresh look at customers in your marketplace and you might find opportunities to grow despite a general atmosphere of recession. Is there something you can add to your offering that creates new value for existing customers? Is there a similar type of customer you could target with only a slight change in your product or service lineup? If so, you can invigorate your business during these leaner times, and emerge with gusto when times improve. It's being done already. Maybe it's time you did it too! Labels: customers, differentiation, marketing, planning, strategy Monday, April 27, 2009Competing in Bad Conditions I just heard a funny thing on a scoring report on sports radio: A heavily favored tennis player lost a match to a lower-seeded unknown, and blamed it on the windy weather.
Which is odd, because the wind doesn't usually target just one player. From my own experience, I don't mind playing a competitive golf match in tough conditions. The weather affects everyone the same -- or does it? It's the same economic environment for everyone right now, but does it affect us all the same? No, I would argue that just like outdoor sports, some people handle the conditions better than others. It's the same economy for all the furniture stores and jewelry stores in town. It's the same economy for all the community banks and credit unions in town. It's the same economy for all the realtors and funeral homes in town. But some will do better than others. Some will actually grow, while others will not survive to see the recovery. Determine to be one who rises to the challenge. In tough conditions, you may need to play your shots a little differently. Minimize waste, obviously, but also improve your offer. Purchasing priorities are different now than two years ago. Get inside your customers' heads to see what drives their choices in times like these. Tighten your focus on the customers you have. What patterns do you find? Who is missing? Are different groups responding in different ways? Identify customer groups you don't have. What are they looking for? They might be experiencing reduced service from your competitors who claim it's just "belt-tightening." That's opportunity for you! The wind is blowing, but wearing out is not an option. Fight on, and fight smart. Labels: customer centered, marketing Saturday, April 25, 2009The Price of Fame I just received an invitation to be published in a Who's Who of American Professionals book. Again.
All I have to do is confirm my information -- and pay a little fee. If you have to pay to be considered a "who's who," that's not an honor, it's a product. It should be called the Who's Who Among Professionals Who Pay to Be Listed. Now we know the price of fame. I'm sure there must be a point to these publications, but I just don't see it. When you make an offer to a prospect, it doesn't hurt to be clear about why it's a good offer. Labels: marketing Thursday, April 23, 2009Bridled Creativity The Detroit Lions logo has gotten a makeover. This one has teeth and claws, and many in Detroit are hoping their play on the field next season will reflect that.
Having seen what happened to them last year, I hope so too -- purely out of pity. Their friends across town, the Pistons, reworked their logo a while back too. It lasted only a few seasons, and their design investment went up in smoke. My dad still has a jacket with that logo on it. Might be a collector's item someday, like misprinted coins or baseball cards! The Lions didn't launch off in new directions, they merely refined and streamlined what they already had. The pose is the same, the color scheme is the same, but the impact is cleaner and sharper. The Pistons went in a more "creative" direction, ditching their admittedly old-school logo for a ridiculously contrived mish-mash of ideas. It's just too much. Which design is really more creative? That's subjective, but I'd argue that it's harder to pull off what the Lions did than to build a jumble from scratch. The point is, creativity can be a huge competitive advantage. If you don't have it, find it. (I'd recommend starting with us.) But know this, "unbridled creativity" is not a good thing for your business. Creativity should be bridled -- that is, made subject to your strategy and a deep understanding of the customer. Then you can unleash creativity within those principles and know that you'll emerge with a logo or promotional material that not only looks good, but makes sense and works for you. Labels: branding, design, marketing, planning Wednesday, April 22, 2009Same Old Same Old In the book How to Get Your Competition Fired (which I've just reviewed -- check it out at http://www.foxmarketing.us/reading.php), a survey of marketing from insurance agencies nationwide shows that they all say pretty much the exact same things about themselves. Not an effective strategy for standing out.
There is a remarkable sameness in many industries. Most, in fact. Everybody wants the sale, and everybody says the same things to get it. The very topic of differentiation makes a lot of business owners uncomfortable. I remember one business owner, when the topic of differentiation came up, leaned across the table and lowered his voice as if confessing some horrible sin: "Look," he whispered, "our business isn't really different. It's just ours. We do a good job, we treat people right, we play by the rules, but there's nothing really special about it. We just need more customers, that's all." He thought he was speaking for himself. He may have been revealing the unspoken feelings of most business operators. I wouldn't want to change any of the things you do well. And I obviously want you to correct or minimize any areas that are lacking. But primarily, I want you to add just one extra thing. Something that customers will think is cool -- and different. There are lots of ways to give extra. Do your customers fear risk? Add your own twist on warranty protection. Are your customers in a hurry? Add free delivery options or quicker turnaround or faster setup. Are your customers intimidated by complexity? Simplify, demonstrate for free, or show ease of use. In an incredibly commoditized automotive supply business selling to manufacturing facilities, one company promoted "The Fives." As in five-minute response to faxed or emailed requests for information, five hours to pricing, five days to delivery, and so on. It was different from their competitors, and it was succinct and specific. Their product was essentially the same as everyone else's, but their way to market was distinctive and helped them remain a player against bigger rivals. For financial institution auditing, CPA firms follow the same protocols and ensure conformity to all the same laws. So how to stand out? I can think of one that is launching a key differentiation -- me. With every completed review, the bank or credit union will receive a free marketing audit to ensure their promotional programs are on-target. Quite a perk these days when dollars are precious. If you're competing in a "same old same old" market, let's talk. We'll help you find your special place in the minds of those who matter -- customers. Labels: customer centered, differentiation, marketing, planning, strategy Tuesday, April 21, 2009Face Your Customers I was visiting a client in a medical office building today, and noticed a waste of the hospital's money.
As natural light bathed the beautiful three-story atrium, with fountains bubbling pleasantly in the background, there was a series of vertical banners that were doing absolutely no good. Their idea was to promote a variety of services throughout the building, including glaucoma screenings and some elective medical services. But they're facing the wrong way. In his book Why We Buy, Paco Underhill notes that customers entering a building are on a mission -- to get inside and get where they're going. That's it. They're not taking in any messages on their way in. I've witnessed it myself. As I looked from the perspective of someone walking out, all the banners had their backs to me. Turn those puppies around, and you'll instantly grab more eyeballs. The exit route is prime territory for messages. People aren't in such a hurry, and the landscape is wide open for communication. Do you have underutilized space along your exit route? Face a message to your customers on their way out, and give them a good reason to come back soon! Labels: customer centered, marketing, research, signage Customer Close-Up An article was recently forwarded to me regarding the efforts of Disney to get inside the heads of boys. My guess is, somebody didn't approve of market research targeting kids. But if you're doing legitimate business, and your customers are kids, you're losing sales if you don't!
Disney has noticed a disconnect, and they want to fix it. Disney Channel's audience is 60% female, and merchandise/theater/film/theme sales are even more heavily girl-driven. This is great, of course, but what about the boys? When you see who your sales drivers are, you study them closely to maximize that performance. But there's a second thing to study, which Disney is putting resources into: who your sales drivers aren't, and how to adapt your strategies to change that. For example, the researchers had questions and conversations with randomly-selected boys (who were paid a sweet $75 for their time, and with parent approval). You should do the same. Regularly. But just as important, they also kept their eyes open for unspoken cues to their targets' thinking and motivations. Like watching how they carried their skateboards (bottoms-out, to show the often customized graphics). Or like noting what is kept on the back of shelves -- things that aren't forefront, but that he hasn't gotten rid of yet. Here again, you should do this, too. Regularly. Ask your non-customers questions -- about their decisions and priorities as they relate to your products and services, and about activities and tendencies that aren't directly related to business. Listen to what they tell you. New ideas are found here. But also watch them in their "natural habitat," how they go about their business. This will show you things they don't tell you in an interview setting, as well as things they do without even thinking much about it. This can tip you off to successful ideas as well. Most readers won't go to these efforts to know their customers. That means huge advantages await if you do. Labels: customer centered, marketing, research Wednesday, April 15, 2009Find Your Phrasing In a TV ad for osteoporosis medication Boniva, I've noticed an interesting choice of words: "Boniva works with your body to rebuild bone..." Phrasing and word selection are not by accident in a big corporation's advertising, and should be just as deliberate and intentional in yours.
You're paying to send this message, so make sure you get it just how you want it. Almost before I could analyze the why behind their choice of phrasing, I heard it again -- this time for the laxative Miralax: "Miralax works with your body to..." well, you know what it does. It's clear that pharmaceutical marketers have picked up on something their customers want to hear. The market is cool to the idea of putting chemicals into your body, but warm to the idea of things that are natural or appear to work naturally. Hence the rise in use of homeopathic remedies for a variety of ailments -- and the very logical repositioning on the part of drugmakers. In this environment, a phrase like "works with your body" resonates more positively than it may have five or ten years ago. Then, it may have sounded weak; now, it sounds almost organic. And organic is very fashionable right now! It takes a certain sensitivity to know what matters to your customers, what allays their fears or motivates their buying decisions. Do your best to recognize trends in attitude so wherever those attitudes move, you will be right there speaking their language. Labels: advertising, customer centered, marketing, messaging Tuesday, April 14, 2009Foolproof Revenue Model? If you were designing a revenue model for a huge organization, it would be hard to create a more dynamic system than the one that funds the various levels of government in these United States. The income streams are remarkable! It's the perfect storm!
There are literally billions of transactions in the American economy every single day, and almost all of them produce revenue to the government. They earn* revenue on what you make, what you buy, what you use, and what you own. And of course, after a lifetime of this, they deserve^ a cut when you die too. Billions of dollars pour into the Treasury daily! If you didn't know better, you'd wonder how they could possibly spend it all... Income taxes, sales taxes, excise taxes, property taxes, capital gains taxes, Social Security taxes, inheritance taxes, and more. When you pump gas, they make money. When you pay your cell phone bill, they make money. When you make a house payment, they make money. When you buy an ice cold soft drink from the neighborhood convenience store, they make money. Notice I didn't say this is bad. We can debate good or bad some other time and place. The point of all this is very, very non-partisan. I'm not going to use a business blog to spar over marginal rates or anything of the sort. I don't want to go on a lengthy tirade about the lunatic complexity of the tax code or the gross irresponsibility of our elected officials for whom all this money is never, ever enough. There's nothing partisan about this. My point is, with revenue streams as incomprehensibly vast as the government has, we as business owners of every political stripe should have this in common: They absolutely must do better. It's non-negotiable. They must acknowledge that they are stewards of our money, and they must be reminded often what this means. The federal government in particular is a grotesque, disgusting beast. They take a model that would appear foolproof, and demonstrate that nothing can withstand their breed of fool. Meanwhile, municipal governments are mostly starving. This is going longer than I wanted, for which I apologize. I'm not telling you to call, write or email your Congressman or Senator. What you do with these thoughts is obviously up to you. But what I suggest is this: First, expect and pursue the very best out of yourself and your business. And second, insist on the same from your government. Get your own house in order first. Then you can speak with authority when you expect them to follow suit, because it will be personal to you. And speak we must. * I use this term very loosely ^ I use this term with all kinds of sarcasm Labels: government Monday, April 13, 2009Getting a Try ESPN Radio's Colin Cowherd had a good take today that reminded me of a piece I wrote a long time ago -- about what advertising can do and can't do.
He was discussing a show that ESPN promoted very heavily, but got cancelled. His observation: "The idea that we can promote something to a (specific) rating is laughable." You'll tune in once or twice, but you won't devote your time to it if you don't like what you see. Then he made an interesting contrast: "Have you ever seen a promo for PTI?" For you non-sports fans, PTI is Pardon the Interruption, a very popular ESPN opinion/commentary show. They do very little in the way of promotion because to a significant audience, PTI is appointment viewing. Once you've seen it, you like it and you come back. Advertising works. Advertising drives traffic. The idea with advertising to those who haven't experienced you is to get them to give you a try. Advertising can generate a trial, but it can't make people like you. Where advertising agencies and media sales reps often fall short is selling you (sometimes overselling you) on what advertising can do, to the neglect of what it can't do. If advertising doesn't generate visits or calls or clicks, evaluate the advertising. But if you're getting first-timers but not repeat traffic, evaluate the other factors of customer behavior. That is, make sure your location and people and products/services and customer experience are the kind of stuff that make people want to return. (And if I may self-promote for a moment, Fox Marketing Group exists to help you with the "total package" of marketing endeavor from traditional advertising to customer contact to shopping environment. We're not selling one marketing tool or another, we're working to connect you to customers at every point in the buying process -- including making sure your business is the kind that makes people want to come back.) Labels: advertising, customers, marketing Wednesday, April 8, 2009Brains on Tap One summer during my college years, I worked for a camp in northern Wisconsin. I learned a lot that summer, including a little management philosophy.
During the first couple days, as a kid would be filling his or her cup at the cafeteria soda fountain, ice cubes would go flying as they bounced off the rim of the cup. Multiply this by a few hundred campers, and you had a mess on the floor (and a liability issue, too, I suppose). The camp director told the cafeteria crew to find a solution quick, and added, "Think like a kid. Be creative!" He was a master delegator because he didn't just pawn off jobs, he encouraged creative solutions from the minds he had right there on the scene. The next day, a sign was posted on the pop machine: "Glass up high, ice won't fly!" It was perfect! It was quick, so kids would see it and read it. And it was witty, which won their compliance. They held their cups up high, closer to the ice dispenser, and the problem was solved. When business owners call me, they expect creativity. But for many of the little day-to-day problems and issues within a business, there are perfectly creative minds right there on-site. Give employees the chance to create and "own" a solution, and they'll treat your business with an owner's pride. Labels: creativity, employees, management Wait Loss Plan From at least four unrelated sources comes this little nugget for business improvement: Customers judge service quality not on the basis of how well they were treated or how well problems were resolved, but by wait time.
(Fittingly, this post is very short.) How quickly are your phones answered? How quickly and smoothly do your checkout lines move? What is the "wait" between customers deciding to purchase and walking out with their purchase completed? The friendliest, most knowledgeable staff will not keep customers feeling "well-served" if there's too much time burned during the actual buying process. Build a speedy transaction into your game plan, and your perceived level of service will instantly rise. Labels: customer centered, customer service Tuesday, April 7, 2009Branding on the Front Lines Branding is done in two places -- in the boardroom, and on the front lines.
In the boardroom (or wherever planning is done), attention is given to competitive strengths, differentiation, positioning, and desired perceptions. A plan is made, visuals are created, strategies are verbalized. And then branding is projected through advertising and other communications. That's where branding is typically decided by management. And that's where thoughts of branding usually stop. But your brand is ultimately determined by the customer. And their perception is reality. Take a bank, for example. If management has invested in its brand via graphics and advertising but not the teller line, they've missed the most critical branding element of all: the customer experience. If you position your company as the fast, responsive player in the industry, but the customer has to wait on hold too long when calling in, what is your true branding? Not fast and efficient, but slow and annoying. If you position yourself as a high-end provider for high-end clientele but customers get treated like cattle, do you really think your brand will be perceived as premium? The customer ultimately decides what your mark means to them. So rename your Training department the Front-Line Branding department, because the customer experience is where your true reputation will be built or eroded. Labels: bank, branding, credit union, customer service, marketing, planning Monday, April 6, 2009Desperation Stinks My wife was at the allergist's office the other day when she overheard a pharmaceutical rep getting a minute with the doctor. (She claims she wasn't eavesdropping -- he was just around the corner and she couldn't help but hear him.)
At one point, he actually said to the allergist, "You need to help me keep my job." Seriously. Great pitch. (He was selling Xyzal, by the way, which has got to be a rotten place to be, considering all the over-the-counter options already available.) This is desperation on display. I saw another example just the other day at a trophy shop. A banner said, "Stimulate our economy, buy a trophy!" The owners obviously felt that people weren't worried about their own personal economy, but rather revolved their lives around the survival of this one trophy shop. Desperate. Or sometimes it's just narcissism. I once dealt with an outdoor advertising rep who happened to be pregnant. Not once but three times during our conversation, she said, "You gotta help me feed this baby." When people are desperate, some fear-based instincts kick in that need to be recognized and suppressed. They lose sight of creating a win for the customer, and go directly after a win for themselves. Remind yourself often, as financial expert Dave Ramsey has said, that "the axis of the world does not drop through the center of your head." These folks need to get their minds right: It's not an allergist's job to keep a drug rep employed; it's the company's job to produce effective, competitive medications and give their reps better training. It's not my job to feed a media rep's baby; it's her job to make my clients a great deal on the audience her billboards provide. It's not your job to stimulate the economy of an awards dealer; it's their job to penetrate sports leagues and schools and companies, and win their business. Looking for a handout is desperate, and desperation stinks. Compete! Consumers have their own worries. Their lives don't revolve around us, and it's not their job to devote themselves to our survival. If you catch yourself thinking anything other than this, shake it off! When your needs begin to trump your customers' needs, it's time to revisit how success happens in capitalism. Bring value to the customer, and the customer will pay for it. Focus more on the front half of that deal -- what they need, not what you need. It will be refreshing, and do your business some good. Labels: bad habits, customers, marketing Allstate Names Names If only the "good hands" people could get their hands on that little gecko...
In a recent TV ad, Allstate did something I've not heard them do before -- they named names. Specifically, they named Geico. Most companies, especially established players like Allstate, would prefer not to mention competitors at all. I haven't done the research to verify this, but I'm guessing Geico's massive advertising investment is yielding some business from customers switching from Allstate. And it's quite an investment at that. Geico absolutely dumps money into TV and radio, and have done so for years. They're running what appears to be four separate campaigns simultaneously -- the gecko, the cavemen, the "money you could be saving," and a few straight-forward spots thrown in just to keep you on your toes. Allstate's been pushed far enough, and now they're pushing back by name. When do comparative ads work? That's a topic for a longer discussion (it usually favors the competitor with lower share, not the market leader), but the strategy here appears to be about disspelling impressions of "savings from switching." Allstate now claims that the average customer switching to Allstate from Geico saved money. We're more accustomed to hearing that claim the other way around. Who knows if they're comparing apples to apples regardless of who you're switching from or who you're switching to? (We would need Progressive to find that out.) The "savings" game is one filled with questionable claims, regardless of industry. But as a small business owner or manager, take interest in this battle of the bigs. Watch how they position themselves, alone and in regard to each other. Then look at your own market. Are there valid comparisons to make? How direct should you be in describing them? Maybe, just maybe, it's time to name names. Labels: advertising, comparisons, competitors, marketing
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