Fast-Food Restaurateur Shares Secrets for Success
Franchising is big business. A published report indicates one in 12 businesses is a franchise. In the aggregate, franchises provide jobs for 14 million Americans. It’s an accepted business model for people who want to be in business, but who need business-model support.
To be successful for either side – the company or franchisee – it takes commitment and discipline.
Companies have to be diligent about selling to the right franchisee – someone who has the character and tenacity to successfully follow a game plan and be committed to community involvement. That’s one reason for MacDonald’s success. It’s been estimated MacDonalds only selects 1 percent of the people who apply for a franchise.
On the other hand, prospective franchisees have to pick the company with a strong game plan.
Quiznos appears to have picked the right person in Seattle’s Pioneer Square, located near Safeco Field where the Seattle Mariners play. He’s 30-something Victor Twu, who’s also a jazz musician and big-time Mariners’ fan. He owns a second location on Westlake Avenue in South Lake Union.
Note: His customer service and attention to detail caught my eye. My other half and I have been lunchtime customers for more than a year off and on. Sometimes, months would go by before we returned to his establishment. But he always remembered us and our favorite menu items.
He didn’t pressure us to try other menu items, which most restaurateurs try to do. They think it insures long-term customer loyalty if customers sample all the menu options. That’s true in some cases, but some customers have specific reasons for patronizing a restaurant at lunchtime, and don’t want to be bothered. In my case, it’s the location, tasty sandwich, quick service and being remembered as a customer.
So it’s helpful if restaurateurs know when and whether to lobby customers. And the savvy Mr. Twu seems understands human nature. What makes him tick?
Here’s an edited interview:
Q: What’s your background?
A: My educational background is a degree in music from the University of Washington. That said, as a musician, I gained many years of experience in the hospitality and restaurant business. But prior to my current business, I’ve had no management or business experience.
Q: Why did you go into business?
A: I decided to go into business when I was at a crossroads. I knew I didn’t want to make a career out of teaching music and taking whatever gigs I could – I wanted to play and write music because I enjoyed it. So I did consider going deeper into my education for music hoping to attend a good school in New York (the “Mecca” of jazz). Then I remembered how much I hated school, probably ever since third grade. So what about my own record label? The riskiest most unprofitable industry to get into? No. I figure I was ready to get to work. I knew I was willing to work hard and if I am going to do so, I might as well do it for myself with these goals in mind: Comfortable living, growth in knowledge and skills, and eventually gain the time and space I need so I can concentrate on music and also do a little traveling.
Q: What’s your feeling about Quiznos’ value-pricing strategy?
A: Quizno’s new everyday lower price strategy is a smart idea based on other lower price models. Market research has shown that most people believe Quiznos has superior food compared to similar brands but are not as likely to visit more often because they think it’s too expensive. The idea is to drive more volume with frequent visits and to gain new customers as well.
Q: What are your challenges?
A: Consumers are very low in confidence and this has an effect on selling sandwiches as well. People are spending less per transaction in my restaurant or visiting rarely. Not to mention, there are fewer customers due to layoffs or offices closing or lower occupancy in buildings or whatever. It doesn’t matter; the fundamental ways to operate are still the same. Each guest must get friendly prompt service and enjoy a satisfying lunch day in and day out and now I’m giving everyone a good deal as well! I’m also trying to grow my business through catering and delivery – this is a critical component to grow my business.
Q: What advice would you like to offer?
A: If you are considering being your own boss at one point you should 100 percent decide either yay or nay. Be prepared for long hours and hard work. I believe being a good example and very team-oriented is a good way to go. Nobody wants to work for a lazy dictator. If you are indifferent to your employees, they will be indifferent to your customers. Also be prepared to be number one, be the best at your craft and exude this confidence. Be prepared to enjoy mental and emotional growth and hopefully financial freedom!
Postscript: He’s apparently achieving his goals. I stopped by recently and inquired about Victor and an employee said he wasn’t at the store – he was traveling.
Go Victor and go Mariners!
From the Coach’s Corner, one cool way to make money and to feel good about your business is cause-related marketing.
For more information, see this column: “Cause-Related Marketing Can Increase Sales by Double Digits.”
Are You Committing The Seven Deadly Sins of Selling?
Whether you are an established company or a startup, what you probably need most in this economic climate is a positive revenue stream. It’s possible with a higher-performing sales staff.
So you might wish to consider the latest strategies of a globally known sales trainer, Roy Chitwood, who is based in Seattle.
He says salespeople often commit seven crucial errors. Mr. Chitwood, of Max Sacks International, has the credentials to address the topic – more 250,000 salespeople at 3,000 companies in 18 countries have used his sales counsel.
He’s released a white paper, “The Seven Deadly Sins of Selling.”
Here’s an excerpt:
Sin No 1: Talking too much, listening too little. The typical salesperson walks into an office, gives the official two minute warm-up – asking about the fish on the wall or the family photo on the desk – then, like a high diver, leaps into a hot presentation about this feature and that feature, the options available, the price and the savings. There is no close. Most interviews are terminated by the prospect so they can get on with their life. Knowing what questions to ask and how to ask them is the only way to find out if you’re making a presentation to the person with the real need, the authority and the money.
Sin No 2: Selling the product, not the benefits. When someone buys a drill bit, it’s not the drill bit the customer wants, it’s the hole. People buy to fill a need or solve a problem. No one is willing to pay for a product or service they don’t need or does not perform. Yet salespeople sell as if they will. Presentations continually focus on the width, height, weight, power, speed, buttons, bulbs or whatever of the product/service. Whether they’re individuals or committees, people buy benefits, not features. Prospects have hidden buying motives. There are reasons why they select one brand over another, why one product/service seems to fill the need better.
Sin No 3: Never asking for the order. As a prominent study proved, more often than not, customers don’t have to worry about a pressured close, because in 62 percent of the cases, the salesperson never asks for a sale. For most salespeople, selling is an uncomfortable experience because they don’t know where to go in their presentations.
When prospects say “I would like to think it over,” “Your price is too high,” “I want to shop around,” what they’re really saying is, “You haven’t convinced me to buy.”
Sin No 4: Pushing for the close too often, the salesperson tries to “sell” rather than help the customer “buy.” When the salesperson is ready the trick closes begin. These old closes and gimmicks are outdated and backfire more often than they work. The prospect has fears, uncertainties and doubts about the decision to spend money, and when closed too soon, reacts negatively to being forced to makea decision. Pushing too hard means the salesperson is forcing the prospect to build a defensive wall that won’t come down easily. Following the sequence of a well- given presentation means asking for the order will be at the right time.
Sin No 5: Wasting selling time. Selling is a problem for most salespeople because they don’t know how to spend their time profitably. Selling is prospecting, cold calling and obtaining leads. It is traveling to meet strange people, having to send emails and proposals, make phone calls and hand out brochures. It is doing the paperwork and servicing the client. There is only one way to insure you get to the close, and that’s by having a logical sales procedure. This is why the salesperson should learn the buyer’s decision-making process.
Sin No. 6: Not identifying prospects from suspects. There are many people who will listen to a sales presentation. It may make them feel important or help them fill their time. Whatever the reason, it doesn’t help the salesperson get any nearer to the sale. In fact, it takes the salesperson further away from the sale because time has been wasted and the point-of-entry into a company has been mismanaged.
Presenting to people who are not qualified is just that – presenting. It is not selling. And a company or a salesperson can’t make a profit by just presenting. Probably the greatest misuse of a salesperson’s time is presenting to someone who doesn’t have the need, the authority or the money.
Sin No. 7: Making a sale, not a customer. A professional salesperson is someone who helps a prospect satisfy a need. And most importantly, your company can count on the loyalty of a new client – one that will return with repeat and increasing orders. For many salespeople, just getting the sale is the only objective. To accomplish this end, they use whatever means are available – assumptive closes, high pressure tactics, promises of extra incentives, threats of price increases or whatever other tricks are in the bag. Salespeople like this sometimes walk out with a sale, but they don’t sign on customers. In fact, the customers may be so resentful of the pressure and tricks, they may rethink their commitments.
Mr. Chitwood’s Web site: www.maxsacks.com.
From the Coach’s Corner, a study confirms the importance of maintaining your Web site for higher holiday sales. A research firm, Nielsen Online, identified the top five reasons why customers visit a retailer’s Web site before visiting its store.
The reasons include:
- Wanted to compare prices between different retailers whose stores I might shop – 33 percent
- Wanted to see if the product I was looking for was in stock – 28 percent
- Wanted to find sales in the store – 26 percent
- Wanted to come up with holiday gift ideas before I went shopping – 22 percent
- I ordered online for in-store pickup – 12 percent
E-Mail Marketers Plan to Greatly Increase Use of Videos, New Study
March 2, 2010
You can expect to see a lot more videos in your e-mail. Marketers plan a major expansion in their use of videos in e-mails, according to a report in Website Magazine. The magazine quotes a study by Getresponse.com.
The Getresponse suvey indicates 80 percent of respondents will insert videos in 2010. In 2009, only 15.7 percent used videos.
Sixty-five percent of e-mail marketers feel that such videos are effective. Sixty-four percent of such marketers now using videos say videos result in more sales.
Common uses of videos: Customer testimonials, product demos, product offers, and training courses.
You can see the report at GetResponse.
From the Coach’s Corner, I don’t believe the study by Gertresponse is too self-serving. It’s getting more and more challenging to reach consumers. Note this column: Of Interest to Web Publishers, Videos Continue Surge in Popularity.
For an overview of how to overcome consumer overload, see: Marketing Strategies to Cut Through the Clutter.
Study Provides Vital Lessons for Web Sites Seeking Profits
For information and advertising, consumers apparently trust their local newspaper Web sites over any others, according to a new comScore marketing study. It shows 57 percent of respondents prefer newspaper sites for trusted content – local information and ads.
Here’s another stunning statistic: The sales conversion rate was a whopping 82 percent.
In essence, the survey revealed that the advertisers’ selection of the medium in which to advertise is the most important consideration – not the creative. Forty percent “…agreed that their opinion of online advertising is influenced by the type of website on which the ad appears.”
This was especially true for reaching upscale consumers. Sixty-three percent of high-income households and 60 percent of college-educated shoppers trusted newspaper sites more than others.
True, the study was funded by the Newspaper Association of America (NAA), but the study was conducted by the authoritative comScore. It was conducted in Nov. 2009 and released in Feb. 2010.
In fact, comScore reports newspaper sites were the No. 1 preference for all types of content, including classified ads.
Thirty-six percent of the 3,050 respondents said newspaper sites were trusted for ads compared to 23 percent who preferred television station Web sites, and 12 percent for portals.
No. 1 newspaper rankings also included:
- Local information – 29 percent
- Local sports – 27 percent
- Local entertainment – 26 percent
- Local classifieds – 39 percent
The criterions for ads: timeliness, credibility and relevance.
Incidentally, the results favoring newspaper sites were true for all ages. In the 18-34 demographic, newspaper sites beat television 35 percent to 22 percent. The spread was even greater between newspapers and portals, 35 percent to 11 percent.
That’s heartening news for traditional journalists who have long worried about the trends in declining newspaper readerships, especially among the young.
NAA has 2,000 member newspapers nationwide.
To see the study – Site Matters: The Value of Local Newspaper Web Sites.
No surprises here, but I disagree with the findings in one regard. Any media Web site with a strong local news image will equal the clout of a newspaper site.
The study is welcome news for me as a business-performance consultant. I’ve long advised clients about two basic tenants in marketing and sales success:
- First impressions are important.
- The medium success is synonymous with the message.
In other words, news and public affairs usually attract the most civic-minded consumers with above-average net worth. But I would include radio and TV sites with newspapers in this regard.
And remember the adage, “Birds of a feather, flock together.” For Web sites, be selective to whom you sell ads. If you’re an advertiser, check the quality of the other advertisers before you buy.
From the Coach’s Corner, in 2009 I wrote about the importance of developing trust with consumers in my case study of a failed financial institution, Venture Bank, in Washington state.
My thesis: Eclectic branding does not work when you want someone to trust you with their money.
The moral: Somehow, smart consumers inherently know that when branding doesn’t convey trust and value, it’s a reflection of poor management decisions.
See: “Marketing: Why One Bank Fails, Another Succeeds.”
Competitive Intelligence Author Shares Her Insights
Even before the Great Recession, businesses had headaches in reducing risks.
KPMG’s 2007 study of 544 global executives revealed that many companies wanted to be able to be able to manage their performance, but only 20 percent were able to make reliable forecasts.
Yes, it’s increasingly difficult to stay on top of marketplace challenges and to invest in trends to get the most return on your investments. That’s why the competitive intelligence (CI) process is sweeping the planet. CI enables a company to reduce risks and accelerate profits.
The returns are great, but it usually requires a hefty investment. Best Practices LLC said in 2007 the average CI budget was a whopping $821,613. The average CI manager was paid $148,709.
If anyone knows how to make CI cost effective, it’s author Seena Sharp. She wrote the book, “Competitive Intelligence Advantage: How to Minimize Risk, Avoid Surprises, and Grow Your Business in a Changing World.”
“It’s a pragmatic view of CI and how it can immediately provide benefits to those companies that use it,” she said. “Better decisions, reduced risk.”
Not only is she a great author, she is the knowledgeable as principal of consulting firm, Sharp Market Intelligence, www.sharpmarket.com.
Here’s an excerpt of an interview with Ms. Sharp:
Q: How do you differentiate CI from market research?
A: Market research (MR) captures what consumers say about what they’ve done or will do. Often, the reality is not the same as actual behavior. No one is deliberately lying – we just believe better about ourselves. We exercise four times a week, and eat five vegetables a day, etc. MR is more focused on the past and on intentions.
CI is more focused on what is actually happening in the marketplace and on the near future.
MR is more tactical and methods-driven, while CI is more strategic and results-driven.
MR results are mostly quantitative; CI results are factual, but also include insight, perspective, and raising questions.
MR relies mostly on consumers, while CI taps a wide range of constituencies, including competitors, suppliers, distributors, major customers, and experts.
With MR, software is widely used, while you cannot get CI from software. CI requires analysis and thinking, identifying patterns and discontinuities.
Q: What are your “11 Myths about Competitive Intelligence?”
A: The myths are:
1. Market research and competitive intelligence are the same.
2. Competitive and competitor intelligence are the same.
3. Data, information and intelligence are the same.
4. Competitive intelligence is spying.
5. There’s no information on private companies.
6. The best information comes from my industry.
7. Information is free.
8. Information costs too much.
9. Not every decision requires competitive intelligence
10. Competitive intelligence is a waste of time.
11. You cannot use software for CI. Software can gather and organize info – to a limited extent – but it cannot do the analysis of a seasoned, experienced, sophisticated businessperson.
Q: Why do you feel statistics, facts and forecasts are the wrong tools for gauging the future?
A: There are no statistics or facts about the future. Statistics and facts are very useful for providing an understanding of what has happened, for providing a foundation for understanding a company or industry or product. We can forecast the near future for planning purposes, as long as we understand the likelihood of their not being accurate.
No one has more statistical information or formulas for analyzing them than do economists and stockbrokers – and yet they can’t get it right. How can the rest of us, with far more limited tools available to us, hope to have accurate forecasts? So, as long as we understand their limitations, they will be useful – just not likely to be true.
Part of the reason we cling to forecasts is that they provide comfort. It’s a hard number that won’t be challenged, in comparison to an idea or opinion. The 1950s were a period of relative stability and expected growth, so it was far, far easier to forecast fairly accurately. Somehow, we’ve never let go of that belief, even for those who weren’t in the work force during that period. We want to be able to forecast and to get a sense of our future.
I have dozens of headlines from the mainstream newspapers with the following words in their headlines, “unexpected,” “lower than,” “surprising.” These all indicate that what was predicted by the experts just didn’t happen. And it doesn’t – not in a changing world, and what industry isn’t changing.
The reality is that few businesspeople recognize the changes that are happening in their industry, and when they do point to changes, they’re ones that have been happening for decades, such as more technology, faster, more convenient. But they rarely know about the changes that provide opportunities.
Q: What are the key indicators of change, opportunity and potential threats?
A: Differences. Change refers to something that’s different. So, any observation of what doesn’t fit or isn’t the same is ripe for consideration of an opportunity or threat. I counsel my clients to pay attention to surprises, as well as info that’s contradictory or unconventional, or challenges assumptions. This is the info that is typically ignored, laughed at, or underestimate. But it’s virtually always a first sign of market changes.
Q: Businesspeople typically are apprehensive about uncertainty. What’s an example of your principle, “surprise to avoid surprise?”
A: Customers who don’t fit your target profile. Virtually all businesses have customers who don’t match who the company thinks buys their products. They could be women or teens or rural dwellers, or people whose income is below $25,000, etc. Businesses are still stuck in defining their customers according to demographics. That’s useful – to a limited extent.
The book, “The Millionaire Next Door,” clearly painted a picture of wealthy individuals who have 10-year-old cars, and don’t buy jewelry or expensive cars. Yet, sellers of pricey items passionately believe that it’s the wealthy who have the means to buy their products. The reality is that your customers are those who want your product or service, not those who can afford it.
Q: What’s your philosophy on determining if changes are fads or trends?
A: I have studied the definitions of fads vs. trends – and while the matrix comparing them is reasonable, I would be hard-pressed to identify anything as a fad. Virtually all fads last several years, so while they may not have staying power, they’re not gone in a few months or a year, as most people think of fads.
On the other hand, when I ask people for trends in their industry, they mention things that have been going on for years and often for decades, such as more technology, faster, more convenient, etc. The point here is that most trends are facts, because people don’t recognize trends until they’ve been happening for years. They will categorize virtually anything that’s different from conventional wisdom as a trend, when it’s really a fact. This could include customers who don’t fit the profile.
Think about people older than 50. Their purchases or activities are constantly and still referred to as something new or different, when the reality is that it’s been true for decades. Many of the attention that boomers have been getting are things that people over 80 have been doing for decades – dating, having sex, exercising, working, etc. Not new, but many refer to it as a trend.
Q: What do you consider the importance of substitute and indirect competitors and the danger of focusing on competitors?
A: Any customer or prospect who buys a product or service from a company that is not a direct competitor, is a substitute or indirect competitor. For example, if you need a financial planner, but had a bad experience with one in the past and refuse to use another one, you might get your needs met from a wide variety of other companies – such as banks, lawyer, accountant, and software, etc.
Now, a financial planner will not consider any of these to be competitors. But if they lose business to a lawyer, the lawyer is their competitor for that particular service. The important thing to recognize is why is a non-industry professional getting the business? This is the key to satisfying customers. The financial planner will usually refer to price, but in industry after industry that we have investigated, price is virtually third or fourth in importance. It’s only first when the companies have not differentiated themselves, so that to the customer, all seem the same.
Q: What else would you like to add?
A: CI is not gathering data, and it’s not focusing on competitors. It’s going way, way, way beyond that to gaining insight and perspective about a world that is constantly changing and changing in unexpected ways.
The value from CI should save far more money than the investment, such as hiring an accountant to do your taxes. CI tells you – in advance – what you will discover later. The reality always presents itself. It’s just a matter of when you want to learn it.
From the Coach’s Corner, here’s the link to an archive of her entertaining, informative “byte-size” SharpInsights: http://www.sharpmarket.com/sharpinsights/index.html
Not only is she authoritative, Ms. Sharp is a fun consultant with whom to work. (We’re members of Consultants West, www.consultantwest.com, a roundtable of veteran consultants that meets regularly in Los Angeles.)
Strategies for Maximum Customer Loyalty, Profits
If you’re finding it a challenge to create profits, you might appreciate knowing that you’re not alone. Profits in this Great Recession are elusive for other businesspeople, too.
A case in point: 50 percent of the members in a Seattle-area business-networking group admit to selling products at below cost to remain in float. That’s according to a survey by Washington State University and the Seattle Executives Association (Feb., 2010).
The leads group, with about 100 member businesses, is comprised of one business per category throughout the greater Seattle area.
They described their employment, financing, inventory and sales situations as “stagnant to declining.” However, they were optimistic about their prospects.
Obviously, it’s important to do a profit analysis to determine your strengths, weaknesses, opportunities and threats. Then develop a strategic action plan and implement it.
Another factor affecting profits is customer retention. American businesspeople and consumers have become cost-conscious and look for opportunities to save money.
Many companies are slashing prices and making the mistake of focusing on price in their sales messages. That means your customers are constantly hit with discount offers. And they are tempted to change to your competitors because of price, quality and service.
But it isn’t a permanent switch. Such customers will gravitate to the next low-ball offer. So advertising to attract such customers is simply not cost-effective.
It’s true that many customers base their decisions on price, only. That’s 18 percent of buyers. So, it’s key to target the other 82 percent who can be persuaded to buy based on their five perceptions about value.
My research also shows that you have to reach a prospect with five positive messages before the decision is made to buy your product or service.
Why companies lose customers
When devoutly loyal customers shop elsewhere, 70 percent of the time they feel taken for granted.
Customers will leave you for a myriad of reasons, including failure to properly answer questions, treating them abruptly, making the buying process inconvenient, failure to solve problems quickly and subsequently failing to provide added value to assuage an unhappy customer.
Losing customers also means blown opportunities for word-of-mouth advertising and customer referrals. Plus, social networking and blogs – positive and negative – have changed the marketplace even more.
That’s why listening to customers is so vital – to gather information, to analyze it, and to develop answers.
In large cities, the advertising opportunity costs are high – usually $300 to $400 or more per customer.
If you lose a customer, it will cost you more to attract a replacement. Then, you have to factor in the sales curve – how long it takes for a new customer to become profitable.
So profits suffer in a down economy if you lose customers and can’t easily replace them. That means layoffs, which will hurt you even more.
Fifty-two percent of a customer’s value-perceptions motivating them to buy from you hinges directly on what they think about your people – spokespersons, sales reps and other personnel. (For more on value perceptions, see “The Seven Steps to Higher Sales.”)
So it helps to have ongoing discussions with your staff on these topics: Why customers buy from you, perceptions about poor customer service, and the factors about your service and products they like the best.
Meantime, be proactive in other ways.
Continually query your customers in formal surveys and in casual conversations using open-ended questions to get solid answers, not “yes” or “no” answers.
Take action steps and make improvements when feasible.
After you get great feedback and measure the results of improvements, tell your customers and express your appreciation.
When customers make purchases, don’t forget to thank them and prevent buyer’s remorse by tactfully reminding them of the value of their purchases.
And explain to your employees why it’s important to stop using the most-trite phrase on the planet: “Have a nice day.” Instead, your employees need to focus on providing an attitude of service and gratitude.
You’ll be creating a happy buying environment for repeat business and customer loyalty.
From the Coach’s Corner, how would you like some social-networking tips from an outstanding salesperson?
Meet Sean Heiner, he’s director of the membership department at one of the nation’s premier business organizations, the Association of Washington Business (AWB). AWB is Washington state’s chamber of commerce.
From personal experience, I can tell you he’s pleasantly persistent and personable, but I’ve also noticed he keeps up with the times and social-networking trends.
He graciously provides five social-networking tips:
- Don’t stop networking outside the social media world, and think that LinkedIn, Facebook or Twitter are replacements for actual human interaction, they aren’t. If you use all of the tools listed above, you will progress much faster with higher quality contacts who actually want to hear from you.
- This one is basic but crucial – use the same picture on your Twitter/LinkedIn accounts, and Facebook, as well, if you use it at all for business purposes.
- Post! Don’t simply regurgitate information you read somewhere else. Sure, this will allow people to know what you’re interested in, but it will not enhance your personal brand within the business world, online or otherwise. Plus, once people catch on they may begin to tune you out, and that is social networking death.
- Verbiage and diction – don’t use shorthand text style messaging ever in a professional setting, and spell check anything you put on the web. You would be appalled at how many people don’t.
- Jump in feet first. So many tell me they are not “techy” enough to use social networking sites, and I’m sure they are also still enjoying their gramophones, but just go for it! All of the social networks I use, and there’s about five total, take up less than 20 minutes a day, unless of course you count reeling in all of the new business I’ve been able to generate through that activity.
Advice for Ad Agencies to Generate New Business
An article in AdAge.com caught my eye: “Marketers Exhibit Cad-Like Behavior at the RFP Ball.”
The author, Jennifer Modarelli, opined about the lack of courtesy and respect companies give to advertising agencies. I agree with her.
And there were excellent comments – such behavior is symptomatic of the times. Such sales opportunity costs are too high.
Many ad agency ideas are worth millions. Therefore, it’s important for ad agencies to earn a place at the senior executive decision-making table in the conference meeting rooms.
If you’ve encountered such behavior as an agency, as a business-performance consultant, here are some options you might wish to consider:
- Unless, you have the staffing to absorb such high sales opportunity costs, stop reacting to RFPs.
- In your pitches, stop giving details without an agreement and compensation. Instead, share your approaches to prospects’ marketing dilemmas. Otherwise, a cost-benefit analysis will show the resulting legal hassles aren’t worth it.
- Refrain from giving proposals – try letters of agreement after using the appropriate steps to sell your brand to prospects (a trick I learned from fellow members of www.consultantswest.com).
- Offer benchmarks for your performance and show empathy for marketplace conditions. But monitor the client. That’s an approach I used early in my career as a young account exec at KIIS-FM in Los Angeles when a Beverly Hills client doubted my approach (but he had unkempt aisles in his upscale store). Later, as an agency VP, I once saved an account after a client whose niche was women complained about my mediocre results. I reviewed our approach and I was perplexed, so I visited one of his mall locations where I noticed several problems (i.e. the first 6 customers weren’t greeted, dirty store windows, and blaring male oriented hard-rock music). So it had to be the client’s poor performance. I asked to meet with the client outside one of his locations. He saw for himself the company’s self-destruction. So, when I bought my own shop, this is how and why I expanded my services/revenue streams to provide other business services.
- Develop ground rules for client service (my firm has 60). Occasionally, I’ve encountered some friction with a client, so I pull out my service policies and I discover I failed to adhere to them.
- Solicit compliments. When you get them, ask for two referrals to their peers at other companies who might need your great marketing.
- Pre-sell your shop. Bypass the advertisers’ “screening out consultants” by getting close to the advertiser in advance. Join the largest business organization in your locale and volunteer for appropriate committees.
- Continue your SSP, shameless self-promotion. Try new approaches. During the last recession, I convinced a TV station to allow me to do on-air testimonials explaining five benefits the station provided my clients. In turn, my clients were impressed with the frequent testimonials and took pride in my “doing favors for the station”. After a year, I had to repeatedly ask the station to stop the testimonials because I developed an optimum number of clients (the station’s sales management enjoyed the new business the testimonial attracted).
Good luck!
From the Coach’s Corner, OOPS, I just realized I need to be more diligent about following my own advice, so I’ll skip writing this Coach’s Corner giving more tips and will reflect on more business-development ideas.
Marketing – How to Profit from Emerging Human Behaviors
One of the traits successful businesspeople share is the ability to see the big picture. That’s true in marketing, too.
So a marketing thesis caught my eye: “5 marketing megatrends you can’t ignore” by Adam Kleinberg. He’s the CEO of Traction in San Francisco.
He points out that everyone is seemingly aware of trends including Twitter, the baby boomer passion for home renovation or that green is cool.
But he contends it’s best to understand the big picture. I agree. It’s one of the complaints my clients have often voiced about their employees or vendors. Their typical comments: “People don’t understand what’s at stake or they don’t understand my vision.”
Mr. Kleinberg certainly gets it. He understands that many companies have not capitalized on what he calls the “5 marketing megatrends you can’t ignore.”
Businesses broadcast their value propositions, target their niches and distinguish themselves from competitors.
My sense of his argument is that most do not forecast emerging human behavior, tastes and leverage trends to be relevant. That means better understanding the big picture.
His five mega trends:
Mass collaboration is powering the new economy – He explains how some businesses are innovating to create better products almost by consensus with stakeholders outside their companies. He calls it the “collaborative economy.”
“A fundamental shift has occurred in which brands have become a conversation — and audiences have just as much of a say in the shape of that dialogue as marketing directors and agency copywriters, he wrote.
He singles out Apple for good reason. The results speak for themselves. Apple customers are fiercely loyal.
Constant connectivity in an on-demand world – He suggests Millenials only know about instant gratification.
He’s right. For them, everything is on demand – they’re instantly and constantly wired. They only know technology.
I would add the word, mobile, to describe the phenomenon.
He cites Sprint for its “now” concept. Sprint is making inroads to being synonymous with “get what you want now.”
Globalization: Making the world a smaller place – He reminds us that globalization is a permanent. It’s not going away. We’re all globally interconnected.
Candidly, in studying the visitors’ data for this Biz Coach Web site, I’ve been amazed at its national and global reach – not just the locations of my site’s users but how certain columns attract readers and why bloggers re-post certain Biz Coach topics.
Unions don’t seem to get this global concept and complain about offshoring of jobs. Yes, I have a lot of empathy, but one of the emerging trends is that more and more people are enjoying their abilities to empower themselves.
Mr. Kleinberg understands and makes this suggestion: “The recession has left millions of Americans out of work, many wondering what their next move should be. Today, they can start their own global business from the comfort of their living room.”
Hey, I agree – he’s preaching to the choir as I’ve written about this. For more, see this Biz Coach column: “Need a Job? The Recession and Offshoring Don’t Have to Be Obstacles.”
As a company example that understands what’s taking place, Mr. Kleinberg suggests Alibaba.com and discloses it’s a client of his:
“It’s a website that helps small and medium-sized businesses around the world find suppliers or manufacturers for virtually any product or service they might need. Alibaba.com makes it possible for virtually anyone with a laptop and an idea to find a supplier half a world away to help them build a business. The site has 42 million members, and the company has grown from 18 employees to 10,000 in a decade,” he wrote.
Pervasive distrust in big corporations – Mr. Kleinberg asks these questions:
“Does our economic situation have you infuriated with corporate America? Do you feel like the jerks on Wall Street and the incompetents in Detroit almost destroyed this country’s financial system to line their own pockets? Do you trust big banks to have your best interests in mind?”
He adds: “If you answered ‘yes, yes, no,’ to the above, you’re not alone.”
That’s exactly what’s occurring in politics: “Showdown in Massachusetts – Winning the Hearts of Voters.”
He contends that the brand that gets it is Ally Bank, and quotes the company’s advertising propaganda:
“We are Ally Bank, built on the foundation of GMAC Financial Services. And with that experience we’ve learned that these times demand change and a new way of doing business. So we’re taking banking in a new direction…That means talking straight, doing right and being obviously better for our customers.”
A global sense of urgency to fix the problems of a modern world – He asserts going green has become an immediate priority:
“Being green is a minimum standard…But being green is symptomatic of another megatrend that is influencing the world on a massive scale — a global sense of urgency,” he wrote.
Which company does he cite? IBM.
“IBM has wrapped its big blue arms around the massive sense of urgency that is sweeping the globe with its campaign for ‘A Smarter Planet’,” he wrote.
He indicates that IBM’s website summarizes how IBM is relevant:
“The technology is here.
The people are ready.
The time is now.”
Congratulations to Mr. Kleinberg, www.tractionco.com, for his insights. I received his article via the folks at www.imediaconnection.com.
So study human nature or hire someone who gets it. Treat this economy as an opportunity for growth. And go find a need and fill it. Good luck!
From the Coach’s Corner, if you trade in South America, here’s more on constant connectivity:
comScore (the Internet research company) reports that Microsoft was No.1 in instant messenger applications in Brazil in Dec. 2009. But Google is making inroads.
The press release: http://bit.ly/b6jr40.
WA Entrepreneurs Celebrate 16 Years of Commerce Networking
Today, the world of commerce is buzzing over Bing’s proposal to pay the Fox media Web sites to de-list from Google. It was prompted by basically two reasons – Fox’s visionary founder Rupert Murdoch and newspaper publishers who have been frustrated about how they are treated by Google, and the goal of Microsoft’s Bing to overtake Google in the search.
Yes, this event illustrates the complexity of commerce and how it has evolved in the last 16 years.
If my memory is accurate since 1993, consider these developments:
- Fox Broadcasting Company launched programs seven nights a week. That was also the year Fox acquired the rights to broadcast the National Football League games previously owned by CBS. The network has certainly succeeded. It has delivered No. 1 ratings for 18-49 demographic ratings since 2004.
- Throughout the globe, pocket- size telephones started becoming quite the rage.
- Intel announced its 3.1 million-transistor Pentium microchip about the time Microsoft introduced Windows NT.
- Linux was launched as a free operating system and Apple Computer introduced us to its hand-held computer.
- President Bill Clinton signed NAFTA, the North American Free Trade Agreement, into law.
Meantime, a group pioneering as a leads-generation organization in Federal Way, WA has created its own buzz, and is preparing to celebrate its 16th anniversary as Referrals Unlimited.
As a leads group, Referrals Unlimited (www.referralsunlimited.org) helps its small-business members attain their entrepreneurial goals. They keep track of the commerce the group generates – the dollar amount is impressive. Recently, I had the pleasure of attending a meeting as a guest to discuss the planned Biz Coach radio program, and met several of the charming members who are proud of their products and services.
Let’s meet some of the members:
“I offer a weight loss program for busy women who want to eat well and lose weight easily,” says Kristina Brown of Heart of Nutrition. “There is no deprivation, just yummy foods that bring your body back into balance so that the weight comes off naturally and without starving yourself.”
Ms. Brown says she’s been in business 10 years: “I bought my first health/cook book when I was just 19 and have been reading, cooking, and sharing this ever since.”
David Sobie represents a security firm, Global Technology Solutions, Inc. (www.globalts.net).
“Global Security, founded in 1988 and with offices in Oregon, Washington, and the greater Kansas City area is a full service security, fire, access control and low voltage home technology provider, “says Mr. Sobie, who boasts of more than 10,000 business and residential customers in Washington, Oregon and metropolitan Kansas City.
Richard Day specializes in identity theft mitigation and prepaid legal services. He doesn’t waste any time in succinctly explaining his services.
“My name is Richard Day protecting your assets against identity theft and giving affordable access to the justice system,” says Mr. Day (http://www.linkedin.com/in/richardday7).
Simone Perry aesthetically preserves what she calls sentimental assets at Sentimental Preservation by Simone (www.sentimentalpreservation.com).
“Whether it is something past down to you from ancestors or from a special event in your life, I can put it in a protective display for you to enjoy,” Ms. Perry says. “I also have unique textile preservation boxes for storing wedding gown, uniforms, christening gown or quilts. Call me today to preserve those treasures before they are lost.”
Isabel Tessier has marketed vitamins for more than three decades.
“Golden Neo-Life Diamite vitamin company has been in business since 1958, and I have been a consultant with GNLD for 31 years,” says Ms Tessier. She says her products deal with fatigue, stress, digestive problems, diabetes, allergies and cholesterol (www.healthplus-vitamins.com).
Renae McGregor owns Legacy Boutique Gift Baskets.
“From Seattle and the Pacific Northwest, our gourmet gift baskets contain the most mouth-watering foods” Ms. McGregor proudly states. “Our baskets are filled with Northwest Coffee, Chocolates, Salmon, Mustard, Cookies, Summer Sausage, Nuts, Died Fruit, Popcorn and Oh! I can’t forget Tim’s Chips! Even our Beer and Wine are from the Pacific Northwest.”
With the exception of the month of December, she guarantees next-day shipping.
“Our web site www.legacyboutique.com, displays a variety of categories, for example, baby, bath body-spa, beer, birthday, chocolates, student, corporate, custom, get well-sympathy, as well as gifts for women and men, housewarming and wine to name a few.”
Referrals Unlimited’s treasurer is a banker, Marty Markey, who introduced me to the group. She is the branch manager at Rainier Pacific Bank (www.rainierpac.com) at its Twin Lakes branch. (Disclosure: I’ve known her as a businessperson, and I’ve observed her outstanding customer service skills for a few years.)
“Rainier Pacific Bank builds profitable relationships by providing valuable financial solutions for its customers,” says Ms. Markey. “We have served the diverse financial needs of our customers in the Tacoma-Pierce County market area of Washington State for over 75 years with consumer and business banking services, income property lending, investment and insurance services.”
As you might expect of a banker with unusually good customer service skills, she is very enthusiastic.
“We strive to be the choice for financial services in the markets we serve, and enjoy a deep level of community involvement throughout our history as a financial institution. Come see us in the local markets of Federal Way, Tacoma, Gig Harbor, Spanaway, and Puyallup!”
Amen. As a kid growing up, a family friend and employer, Andy Andrews at the Palm Springs Tennis Club used to reward me with tickets to the spring training games of the then-California Angels. That’s where I had the thrill of watching baseball stars, such as Willie Mays, play in the desert sun.
As I thanked him for the tickets, Mr. Andrews once told me: “It isn’t what you know, it’s who you know.”
So, to the Referrals Unlimited members, happy anniversary, kids!
From the Coach’s Corner, SCORE (www.score.org) has a site providing numerous business-management tips: http://www.score.org/business_tips.html.
Checklist to Build Your Brand on a Budget
Branding is very important. Nebulous branding is a leading cause of business failure.
Besides ill-defined branding, when a business fails there are several likely reasons. They include poor planning, insufficient passion, ineffective management, weak finances, undesirable location, and ineffective use of technology.
A solid brand will help you land customers and insure customer loyalty. For sustainability and strong customer relationships, remember your customers want consistency and a positive tone.
Successful companies also work on continual improvement. They gain market share by becoming more competitive. That includes effective pricing as part of their branding process.
For success in brand-building, remember it’s a process to manage the feelings and thoughts of your customers by creating a happy buying environment.
How?
Address the five critical value-buying perceptions that motivate customers to buy from you. While pricing is important, target only customers who want value, not necessarily those who want the cheapest price. My research shows 18 percent of the population will only buy the cheapest product or service.
Target the other 82 percent who are concerned about price but they have other concerns about value.
No company has ever succeeded by only focusing on selling at the lowest price. Even Walmart’s branding slogan is “Save Money. Live Better.” And they always position a greeter at the store’s entrance. Costco creates a community atmosphere with lots of added value.
Much like buying a house, you need to build brand equity. That means first tapping into the value-emotions of your customers.
The value perceptions and their percentages of importance include:
- What customers perceive about you, your employees and spokespersons – 52 percent.
- Image of your company – 15 percent.
- Quality of product or service utility – 13 percent.
- Convenience –12 percent.
- Price – 8 percent.
So, for a quick primer on affordably building brand equity, here is a checklist of 29 tips:
- Test your ideas. Rely on the opinions of successful people and get a mentor. Use them as a focus group. But in the end make sure you have a strong aptitude for decision-making and follow your instincts.
- Develop a mission statement. What is your reason for launching a business and values?
- Create a logo and insert it in every one of your collateral messages, such as advertising, letterhead, signage, business cards and Web site.
- Create a Web site. Only 52 percent of businesses have a Web site, which might give you a competitive edge over others who don’t have one. Keep it current and update it every two years. Insert your logo as a favicon, which is short for favorites icon; also known as a website icon or a shortcut icon. In this way, it will show up in the search line on users’ computers. It will add sophistication to your online image much like bigger companies.
- If you have a small company, own your keyword names – both your name and that of your company’s. If your company is named after you, that’s even better. How many quality references does the Web have about you?
- Market yourself personally as well as your business.
- Stay current on social media; at least LinkedIn, Twitter and Facebook.
- Become known as the leader in your industry. Choose the right colors for your business. For example, research shows certain cars with certain colors do not sell well, such as purple or yellow.
- Tell a great story.
- Be consistent.
- Personality and character is important to show value, stability, security and fun.
- Partner with other successful people and businesses.
- Create a leave-behind sales flyer. Differentiate yourself from competitors. Limit it to one page with short paragraphs, your contact information and logo.
- Volunteer your time and expertise.
- Get face time with customers.
- Speak, write and teach. Customers love buying from experts.
- Develop and maintain a prospect list with deadlines for action and follow-up.
- Offer your expertise to reporters who cover your industry and don’t forget trade magazines. Don’t be discouraged if a reporter doesn’t call you. Be patient. I once offered the expertise of a law firm client as an authoritative information-source to the media and five years later he was quoted in a major newspaper.
- Create press releases for the media and post them on your Web site on a “Press” or “Media” page.
- Personally contact the media with your ideas.
- Use cause-related marketing, especially in this economy.
- Be present at as many relevant events in your community as possible.
- Post your appearances in a calendar on your Web site.
- Budget permitting, join your chamber of commerce and industry associations.
- Study SEO techniques so customers can easily find you and discover information about your abilities and expertise.
- Develop and implement policies for excellent customer service and retention.
- Practice an attitude of gratitude.
- Always demonstrate that you want to make sales, but you don’t need them.
- Keep on trying whenever you fail. Every experience is a learning experience.
From the Coach’s Corner, you might want to check the other marketing/sales pages for more branding tips.
For outstanding strategies in finance and technology, I wholeheartedly suggest reading the insights of strategic technology consultant Joey Tamer (www.joeytamer.com):
