Banks Have Credibility Issue with Affluent Women, Study
More than half of wealthy women are frustrated with their banks, according to a study by Boston Consulting Group (BCG). The BCG study concludes 55 percent of respondents with a quarter of a million dollars in liquid assets believe they get poor service from banks.
The women customers complained about men getting more consideration, a higher level of counseling, and better value in financial terms.
Respondents also said they feel ignored by wealth managers in discussions in favor of their male partners, even when it’s made clear that they’re the decision-maker not the man.
Women also believe they get fewer favorable choices because bankers assume they have a low-risk tolerance.
The wealth manager issues are reminiscent of the car business. Even in the 1990s, car manufacturers such as Chevrolet installed vanity mirrors only in the visor above the passenger’s front seat. Salespeople would often only address the man when a couple was in the showroom.
“What banks need is a revolution like the automotive industry had,” said one wealthy woman, “to finally understand that women not only sit in the cars, but also choose buy and drive them.”
It’s reported that women are responsible for a third of North America’s Indeed, women control (i.e., make the decisions) 33% of North America’s affluence. Their aggregate portion is $9 trillion.
Ostensibly, wealth managers don’t know how to communicate with women. In essence, women want to be treated equally and be apprised of services designed for them.
“This may seem contradictory,” BCG reports, “but the desire for a tailored approach is really a sign that women have distinct needs and expectations as clients.”
There are several reasons why women have different concerns; they range from the birth of a child to divorce.
Preferences of women include simpler financial statements and financial goals for the long term. And women want deals structured on a friendly relationship basis – empathy, tailored counsel and trust.
My sense is that wealth managers don’t have to panic in this $4.5 trillion+ marketplace. If they start the client process with a foundation using empathy and treating the woman client like it’s an event, they should do well. Actually, that’s the same process I’d recommend for wealth managers with male clients. Simply put, wealth managers should do their homework, ask open-ended questions and be mindful of a woman’s perspective.
From the Coach’s Corner, see this site’s Marketing/Sales section for more tips for successful sales.
Profits: How and Why to Align Marketing with Sales
If marketing isn’t synchronized with sales, a company doesn’t enjoy optimized profits. So why is it so many companies don’t align their marketing with sales?
A 2010 study by Northern Illinois University and consulting firm Miller Heiman reveals some noteworthy data – companies that strategically align marketing with sales are more successful – even during the downturn.
Among 2,000 responding companies surveyed in Asia, Europe and the United States, about 33 percent orchestrate marketing and sales. However, another 33 percent say their two departments are in a “state of neutrality,” and the remaining third do not align the two functions.
In comparing 2oo9 results to 2008, the results are eye-opening for aligned companies:
- 12 percent stronger sales and 5 percent more qualified leads.
- 8 percent higher probability of conversion rates of 40 percent-plus.
- 29 percent conversion rate compared to only 24 percent for “low-aligned sales teams.”
- Aligned firms had a higher probability of success – 19 percent and at least a 5 percent sales increase. They also enjoyed a 3 percent growth in new business. But poorly aligned companies suffered from a .5 percent decrease in new business.
- In retention of customers, aligned firms were 11 percent more likely to enjoy 5 percent or higher success for highly aligned companies.
- In billing, their odds were eight percent higher for an increase and at least 5 percent higher than poorly aligned firms, which experienced a 3.5 percent decrease. Sales for aligned companies dropped 1.2 percent.
- In revenue, aligned firms were 4 percent more likely increase 5 percent. Lowly aligned companies had a 2.9 percent revenue decrease. Highly aligned firms decreased 1.2 percent in revenue.
But it isn’t necessary to examine financials to see missed opportunities.
Here are three examples:
- Many marketing campaigns are perceived as ostentatious. The copy is clever but doesn’t appeal to the five value-buying perceptions that motivate people to buy. (The value perceptions are in this column, The Seven Steps to Higher Sales)
- Marketing collateral boasts of professional salespeople, but salespeople fail to match the message in the marketing. When customers call to buy, the salesperson doesn’t fully understand the product, doesn’t develop a rapport, and is not enthusiastic. The salesperson fails to treat the occasion like it’s an event for the customer. If the customer doesn’t have a change of heart, in the end the salesperson fails to say thank you or to prevent buyer’s remorse.
- Or note the lack of enthusiasm when marketing campaigns are introduced to sales staff – the salespeople appear bored or they’re superficially attentive.
In the three scenarios, profits aren’t optimized. Sometimes, it’s because the wrong people are on the sales staff or the marketing creates images that can’t be met by sales. But, it’s also safe to assume the marketing and salespeople aren’t on the same page. They often don’t speak the same language.
That’s ironic for professionals who are supposed to be good communicators. Instead, there are often turf battles. Marketing people think they’re the only ones who are strategic thinkers. They think salespeople can only see to the end of their noses and are only concerned about their monthly sales quotas. Salespeople feel marketers aren’t carrying their own weight in generating sales leads. And so on.
The solutions:
- Everyone needs to get on the same page. Starting with the senior executive, there needs to be a commitment for collaboration. The chief marketing officer and sales managers need to meet regularly, especially over lunch. Good things happen when people break bread together. The philosophy must filter down both staffs.
- The two sides should continually work on talking the same language.
- They should proactively look for weaknesses and breakdowns in communication.
- Everything should be tested. There should be an agreement about prospect leads and quality.
- Establish an ongoing reporting dialogue – input and feedback between marketing and sales.
- Review and develop metrics for efficient accountability for both functions.
Good luck!
From the Coach’s Corner, for the above reasons by design, this Web site combines marketing and sales into one business-coaching category, Marketing/Sales, where you’ll find dozens of business-coaching columns.
5 Tips If Your Web Site’s Traffic Slows in Summer Months
Traffic on the Internet slows in the summertime, according to Peter A. Prestipino at Website Magazine. So much so, his article refers to the slowdown as the “Web summer doldrums.” Frankly, I’ve never noticed. But I respect his insights.
From his 10 years experience, he offers five tips for helping your summer Web traffic; they include:
Create 30, 60 and 90-day plans – Mr. Prestipino suggests developing and implementing strategies in 30-day increments.
“The 30-60-90 strategy is ideal as an outline of what you will accomplish, what you want to accomplish, and, finally, what you wish you could accomplish,” he writes.
“In 30 days you will want to have created a media center on your site; in 60 days you will want to have had 10 bloggers written about your website or its products and services, and in 90 days you will want to get coverage from at least one major media news source,” he adds. “There are clearly a lot of steps involved to get there but writing down your plan will get you thinking about how to achieve them. When you plan, you plan to succeed.”
Complete Big Projects – Mr. Prestipino asserts that in the process, you will uncover a challenge that needs to be solved.
“…big projects might be a Website redesign, link building campaigns, conversion testing, etc,” he writes. “When it comes to selecting which big project you want to complete, you’ll need to weigh the potential return against the time commitment and legwork necessary to get the project done.”
He points out the most-complex projects usually don’t provide short-term benefits.
“Decide what would most benefit your business (creating social media campaigns, email marketing campaigns, etc.) and stick with it,” he explains. “When you know what you need and resolve to complete the task, it will make a difference to the bottom line in the near and long term.”
Network until Your Fingers Hurt – He says a good summer-investment of time is working on your connections and contacts.
“If you’ve established a Facebook Fan page, recruit new members,” he writes. “If you’re a LinkedIn user, find colleagues, customers and others in your industry to connect with.”
He believes social media endeavors are vital and it’s important to be uncompromising in your efforts.
“The best place to look might just be in your own customer list and even your own inbox,” he suggests. “Start there and shore up your friend and fan base this summer for long-term Web success.”
Stockpile Information and Ideas – He says even if you want to take easy in the summer, at least start accumulating ideas and information.
“It will undoubtedly be a challenge not to act on the information you encounter on the Web as much of it will probably motivate you to act on the suggestions provided, but doing so will ultimately give you a library of ideas you can leverage in the future,” Mr. Prestipino writes.
He says he always generates about 30 article ideas and another 10 to create revenue for his magazine.
“Stockpiling information and ideas will serve you well when you hit those creative blocks or when you finish one project and want to start another,” he explains. “When you are prepared, your chances of success are that much higher.”
Learn One New Thing – Mr. Prestipino suggests learning at least one new concept.
“Learning is a process,” he philosophizes. “The more you know, the more prepared you are to achieve success — Web success.”
He also invites readers to share their ideas at www.websitemagazine.com.
He deserves a big thumbs-up for his excellent counsel. Actually, his Web site is a must-read if you want timely information.
From the Coach’s Corner, if you haven’t focused on your social-media potential but want to start, why not now?
A personal case study:
Since I learned that search engines incorporate social media to assess Web-site relevance, LinkedIn, Facebook, Twitter and Digg, etc., have provided a nice boost to this site’s online presence almost immediately after I implemented the social-media practices, especially on Google and Bing.
My Web site gets as many referrals from social media as it does from Google. It helps with repeat visitors. I don’t bother anyone by tweeting about having a cup of coffee or other trivia…it’s usually a tweet to convey useful information. Further, as soon as I post a headline from my business-coaching Web site, the number of visitors to my site skyrockets. (I also take advantage of the LinkedIn feature to synch my LinkedIn and Twitter accounts. Tweets are automatically posted on my LinkedIn account.) Frequently, they are re-tweeted.
Press releases with pictures have also been beneficial.
Also, I’ve posted articles on a technology-client’s site, and promoted them on Facebook which is synched with Twitter. The client has enjoyed a 50 percent increase in visitors and climbing.
To connect with me:
www.linkedin.com/in/terrycorbell
Business Got You Down? Tips for a Morale Boost
If sales are discouraging and you feel like you’re on a treadmill going nowhere, it’s probably because you’re worried about the future. Trust me, you’re not alone. The trick is taking baby steps and not worrying about the future results. Instead, focus on the positive. Business success and strong sales stem are made possible by enthusiasm, and an attitude of service and gratitude.
This means not focusing on the proverbial “results department.” That department door might not open. So only focus on footwork and simply knocking on the “results department door.” Imagine knocking on one door and then moving quickly to knock on another.
Don’t wait for the doors to open because that’s what leads to despair. It’s true that a watched pot never boils.
Moreover, this is a good time to measure your progress – not your obstacles. Consider the acronym, GO, which stands for gratitude and options.
By way of explanation, sometimes discouragement is so bad a businessperson obsesses about what’s not working instead of relishing what is working. By focusing solely on the problems they become bigger. When that happens, it’s an endless cycle of despair. The person feels trapped.
Conversely, if a businessperson focuses on the positive, such an attitude of gratitude opens the person up to a childlike wonder and creates hope. Hope leads to options. So, with hope, anything is possible. Know that for each problem – I prefer the word challenge – there are 10 possible solutions for options.
But how can you get gratitude and options?
First create hope for growth. Examine the progress you have made and start a gratitude list. Pat yourself on the back for any footwork. Start by asking yourself, “Where, how, when, why and with whom have I made progress?” Write or type your answers. No progress is too small to list.
For some examples of progress to list, ask yourself these 10 sample questions:
- What networking events, lunches or meetings have I attended?
- What new acquaintances have I made?
- What recognition or positive comments have been made by others about me?
- What free publicity have I received either from my efforts or those of others?
- Have I created a new Web site or marketing collateral?
- Any new skills or knowledge?
- Have I attracted any new clients or retained old clients?
- Are there any companies or businesspersons indicating interest in my capabilities?
- Have I done any pro bono or volunteer work?
- Do I have a support system or mentor?
If you can’t give a positive answer to the 10 questions, then do what you have to do for the right answers. That’s just to get you started. Perhaps there are other pertinent questions you can ask.
Now, it’s time for a new vision for growth – here’s how:
- Write out your vision plan. One page will do.
- Set goals for footwork – not results.
- Periodically, each day ask yourself, “Is what I’m doing right now, productive?” (Chances are it isn’t productive, so focus on what is.)
- Keep records of your baby steps.
- Honor your progress with gratitude and keep it going with affirmations.
- Stay in close contact with your support system.
- Get exercise, sleep and medical care when needed.
- Practice stewardship of your assets. Focus on cleanliness and organization.
- Focus on your favorite hobby and recreation.
- Ask clients for feedback. If a client complains, don’t get defensive just take notes. When you’re complimented, ask for referrals to two people who might also appreciate what you have to offer.
- Keep on practicing gratitude. Always handwrite a thank you note when someone considers buying or hiring you. Thank people for their business. In fact, in every e-mail, note, meeting or telephone conversation, remember 98 percent of the time a thank you is warranted.
- Keep in mind the adage, “What goes around comes around.” Try to listen more and avoid treating others as though they’re invisible, and you will be accorded greater respect.
- Keep smiling. A jovial Joe or Jane is an attraction to others.
- Look around for someone else to help. This will help you smile.
- As you succeed, carry this message to others.
As you go along and think of other pointers, add them to these suggestions.
Now, GO! Good luck!
From the Coach’s Corner, here are 30 Time Management, Stress Reducing Skills.
In fact, you might wish to consider a bevy of other business-coaching columns in these categories: Planning, Operations, Marketing/Sales, Finance and HR.
Why Small Business Prospects Are Trending Up
May 8, 2010
Two studies about small businesspeople provide inspirational insights.
A new “Signs of the Times” study by FedEx Office shows 72 percent of responding U.S. businesses believe they’ll help lead the charge to business recovery. Conducted in April, 2010, it included small businesses with five to 100 employees with minimum revenue of $100,000.
The temporary help company, Kelly Services, funded a global study which revealed 20 percent of respondents are working as entrepreneurial independent contractors and another 50 percent aspire to work for themselves. It was a survey of 134,000 people in 29 nations in Asia, Europe, and North America.
The FedEx study:
Fifty-one percent of responding businesses indicate they’re already recovering or will be in great shape by the start of 2011. That’s quite a change. In 2009, 54 percent were worried about the economy.
Eighteen percent are now looking to hire workers compared to just 9 percent in 2009.
Marketing will have a bigger priority – 42 percent will budget for marketing this year. Thirty percent will increase budgets for sales activities.
“Small businesses are definitely getting it right when it comes to identifying and investing in the tools that will help them bounce back from a difficult period,” said Randy Scarborough, vice president of marketing for FedEx Office. “From print ads and direct mail campaigns to online marketing programs and a social media presence, small business owners today are smart and savvy about how to maximize their budgets while connecting effectively with new and existing customers down the street and around the world.”
The FedEx study highlights the wisdom of small businesses on the importance of marketing.
In the early stages of the recession back in 2008, a previous FedEx study revealed relatively few small businesses were fully aware of the effects of the downturn. That’s when 41 percent said they anticipated increasing their marketing budgets. But in 2009 when virtually every business felt the negative impact of the downturn, 44 percent were looking to increase their marketing budgets.
The current study indicates 34 percent slashed their marketing in 2009, but 31 percent regret making the cutback.
Eighty-seven percent believe in the importance of print marketing collateral, and 61 percent believe traditional marketing tools will yield a better return on their investment than the Internet.
Ironically, 51 percent of the 18 to 34 year-old demographic advocate banners, posters and signs vis-à-vis 36 percent of those aged 55 and older.
But many of the respondents say they will embrace the Web more – 46 percent online and 36 percent on social media.
But the study’s red flag: Many small businesses have not designed a cohesive logo and tagline. Sixty-four percent admit their messaging is “somewhat consistent,” 23 percent can’t afford to design messaging and branding, and 13 percent admit spending too much because they don’t have the ability or time to research possible deals.
The Kelly Services survey:
It’s not just about companies cutting back to save on employee benefits, according to Kelly Services. Uncertainty about economics is what is really triggering the trend for entrepreneurship or independent contractors.
The increase in free agency: Twenty-six percent in North America,19 percent in Asia and 17 percent in Europe.
Nearly 25 percent of all respondents indicated a desire to launch a business, especially 48 to 65 year-old males.
“The economic downturn has resulted in a new way of thinking about careers and job security. Many people have watched their jobs disappear and now want to do something that puts them in more control of their career,” says Kelly Services Executive Vice President and Chief Operating Officer, George Corona. “These are often people with many years of experience, who may have been displaced and who have taken an entrepreneurial approach to marketing their skills.”
Other results:
- Some 20 percent are freelancers, consultants, independent contractors or free agents. That’s 28 percent of baby boomers, 20 percent of Gen X and 18 percent of Gen Y.
- Another 12 percent would love to be independent.
- Younger people are worried about failing and older folks fear healthcare costs.
- Thirty percent of Gen Y would like to start their own business, but only 22 percent of Gen X and 14 percent of baby boomers would like to do so.
- Forty-eight percent feel they abilities are adequate. Fifty-four percent of baby boomers and Gen X and 40 percent of Gen Y feel confident.
“Many of those who lost their jobs as a result of the global economic crisis have had to reinvent themselves as independent contractors, freelancers and consultants. This self-employment trend may continue as more people become attracted by the autonomy, independence, and flexibility of working for themselves,” Corona added.
In conclusion, these studies demonstrate the ability and fortitude of entrepreneurs.
And, use a metaphor like Reggie Jackson once said about his Mr. October capabilities as a New York Yankee: Entrepreneurs “are the straw that stirs the drink” in economic growth.
From the Coach’s Corner, Jerry Savin, an authoritative consultant at Cambridge Technology Consulting Group, has a reminder about your online presence:
“Today, we received a frantic call from a former client asking why their website was down,” writes Mr. Savin. “As it turned out, their domain registration had expired. Oops.”
His suggestions:
- Check the expiration dates of your current domain registrations.
- Confirm that the Administrative Contact on the Domain Registration is current and the contact’s email address is correct.
- Pay attention to the email reminders. Domain Registrars send out multiple domain registration expiration emails.
- Renew your domain registrations before they expire.
“Google gives slightly more weight to domains with longer registrations,” he adds. “So registering domains for 5 years or longer makes sense.”
His Web address: http://www.ctcg.com
LinkedIn: www.linkedin.com/in/jeraldsavin
Tweet: www.twitter.com/CambridgeTech
Invigorate Sales with Customer Retention, Referral Strategies
April 15, 2010
Avon, the No.1 direct seller of cosmetics is ostensibly implementing new strategies to accelerate sales, including a new product mix. A Reuters report also indicates another goal is to retain customers despite losing sales representatives.
Basically, for higher profits, Avon will cut back on its non-beauty products, such as jewelry and kitchen products while focusing on sales of hair and skin care items, including children’s.
This is in response to marketplace challenges. Avon’s North American revenue dropped 9 percent in 2009 after a 5 percent decrease the year before.
Avon’s dilemma serves as a reminder to review customer-retention strategies. It takes more than new products to invigorate sales.
First and foremost, if customer loyalty is not paramount at your company it should be. Businesses lose business 70 percent of the time it’s because customers feel taken for granted.
In this digital age with a heavy reliance on social media, the Internet is indeed important. But the No. 1 reason – 52 percent of the decision-making process – why people buy a product or service is what customers think of a company’s spokesperson and sales reps.
Yes, the quality of the product is important, but for customers to really feel like they’re making a smart buying decision, they want a good rapport and want to feel appreciated. That’s the best way to turn them into brand evangelists.
Here are more pointers:
- Like a marriage to enhance any business relationship, it helps to listen during 80-90 percent of conversations.
- Create an interactive dialogue and invite feedback.
- Don’t get defensive in the face of criticism even when the customer is wrong – simply take notes and use basic assertive techniques.
- Upon receiving a compliment from a customer, ask for two referrals – the names and contact information of “two people just like you who this need great product, too.”
- Provide added value without hurting the bottom-line.
- Prevent buyer’s remorse by reminding the customer of the value of the purchase.
- Say and write the magic words, thank you, at every opportunity.
- Depending on the level of purchases, make personal contact a priority.
Finally, remember women make 80 percent of all household-buying decisions. So adapt your strategies accordingly.
Elsewhere in this Marketing/Sales category are numerous related columns with proven solutions for maximum profits, including my “60 Ground Rules for Effective Client Service.”
So if you’re losing customers, improve your odds in heavy double-digits with excellent customer-retention and referral strategies.
From the Coach’s Corner, a new study reveals 73 percent of all women Internet users are heavy into social media. There are a lot of enlightening details in Website Magazine.
Insights for Capitalizing on the Hispanic Market
There are almost 309 million people living in the United States – 47.8 million are Hispanic, according to the U.S. Census Bureau. Nearly half are believed to live in California or Texas.
We’ll soon have an update once the 2010 census is tabulated. The U.S Census Bureau is working overtime to develop the most-possible data. The 2000 census had a 72 percent response rate. At stake, of course, is the allocation of $400 billion+ in taxpayer dollars.
For marketers, the Hispanic population is an opportunity not to be ignored. And 2010 is an ideal time to touch the emotional heart strings of Latinos.
Consider two emotional holidays:
- The 200th anniversary of Mexico’s Independence Day
- The 100th anniversary of the Mexican Revolution
Cinco de Mayo is a holiday that commemorates Mexico’s defeat of the French in the Battle of Puebla on May 5, 1862. But it’s not the most important holiday in Mexico. (But I’ll have more on that later from an expert.)
The No. 1 holiday is Mexico’s Independence Day, Sept. 16th, which marks Mexico’s emancipation from Spain in 1810.
The Mexican Revolution is also considered important to citizens of Mexico and their supporters, especially, in this 100th anniversary of the end of class warfare on November 20th of 1910.
But like any target niche, consistency throughout the year is vital for top-of-mind awareness. So what’s the best approach for the Hispanic market?
Meet an expert I’ve known for several years: Rebecca Lambert, who is an account executive for Bustos Media in the greater Seattle area with 15 years of rich sales experience. (Bustos Media, www.bustosmedia.com, is headquartered in Sacramento, CA, and has 25 radio stations and 4 TV stations.)
But why Washington state? It’s considered a fast-growing Hispanic marketplace. With a population of 6.03 million people, 271,285 or 7.3 percent are Hispanic.
“Reaching out to the Hispanic community is not something you just think you will try, it requires commitment and patience,” she says. “But the rewards it can bring are huge for the bottom line of your company.
“I have seen companies who are just starting who have made a commitment to make Spanish an integral part of their marketing plan, who have not regretted it, and I have seen people who were much fainter of heart who knew that they should but couldn’t commit to anything but dipping their toes in the water, who failed,” Ms. Lambert explains. ”Don’t waste your marketing dollars, unless you are willing to commit to the venture for at least a year. Make the determination, and do it the right way the first time, and that is how you will build your brand into the community, and create a firm and loyal customer base.”
She provides other strategies, including understanding the market.
“First of all, you cannot just have someone translate your commercial or collateral into Spanish and think that you are hitting the target, it is important to speak with someone who can do needs assessments of your business, so that they understand who your current customer is, and how fitting a Hispanic component into that equation will work,” she says. “If your current customer base is age 24-46 males, then you want to make sure that your message is hitting 24-36 male Hispanics.
“…you have to tell Hispanics you want their business, that they are welcome to come in, you have to tell them why they should do business with you, and you have to give them a reason to do business with you right now,” she adds.
About understanding the culture, she suggests homework.
“Cinco de Mayo is not a Hispanic holiday, unless you are from the city of Pueblo (Mexico), then you might celebrate the fact that an important battle on the way to independence was fought and won there, but if you really know your culture, you will know that September 16th in Mexico is the true date of independence of Mexico.”
In other words, if you own a restaurant, acknowledge the difference. If you want to attract partiers on Cinco de Mayo, focus on attracting English-peaking consumers, too.
“Another distinction between Hispanic culture and American culture is that Mother’s Day is not celebrated on the second Sunday of May, but on May 10, regardless of the day it falls on,” Ms. Lambert advises. “Don’t discount targeting sales on general market holidays to Hispanics, but don’t miss those unique sales opportunities on culturally relevant Hispanic holidays.”
Are Latinos, in general, big on social media?
“Hispanics are the largest-growing internet users in the country. It make sense to some degree. International phone calls are still pricey, and with technology today like Skype and even smart phones, it is becoming less expensive to stay in touch with family. And you can connect more often, send photos, videos, etc.,” she explains.
So, what’s her closing pitch?
“The spending power of U.S. Hispanics is over $1 trillion; that’s equal to the gross domestic product of Canada,” Ms. Lambert concludes.”Do you want a piece of their business? If you can make them loyal to you, you will have it.”
To contact Ms. Lambert: http://www.linkedin.com/in/spanishradioseattle
From the Coach’s Corner, Bustos’ stations include these fast-growing Hispanic markets:
Surprise? Facebook and Twitter Increase Odds for Sales
March21, 2010
New research confirms what might be obvious. Products with a presence on Facebook and Twitter are favored by users of those social media, according to a published report in WebProNews. The study, by Chadwick Martin Bailey and iModerate Research Technologies, indicates marketers benefit in word-of-mouth and direct sales.
WebProNews eporter Mike Sachoff wrote that 79 percent of tweeters and 60 percent of Facebook users recommend such brands to their friends.
Sixty-seven percent of tweeters and 51 percent of Facebook enthusiasts are predisposed to buying the products themselves.
Another conclusion: If a brand is not promoted on the two social mediums it is viewed in a negative light by users as not being contemporary.
And there were other interesting numbers, according to WebProNews, the 1500 respondents were asked: “What does it say about a brand if they are not involved with sites like Facebook or Twitter?”
The reporter listed these results:
- “It’s expected that a company have some digital face – whether it’s on FB or Twitter I don’t know – but they need a strong electronic presence or you doubt their relevance in today’s marketplace.” (Females 50-54)
- “Either they are not interested in the demographic that frequents Facebook and Twitter or they are unaware of the opportunity to get more exposure in a more interactive method.” (Males 35-39)
- ”It shows they are not really with it or in tune with the new ways to communicate with customers.” (Females 18-24)
- “If they’re not on Facebook or Twitter, then they aren’t in touch with the ‘electronic’ people.” (Females 55-59)
My Biz Coach conclusions: in terms of cost-effectiveness, there’s an obvious upside for businesses to use Twitter and Facebook. With the exception of the cost of advertising on Facebook, it only takes time to create messages on both of them.
But for the more sopisticated palate, my sense is Facebook will be more influential and will outlast Twitter as a trend. Here’s confirmation: Compared to Google, Facebook Users Favor Online News Sites.
From the Coach’s Corner, here are three other related Biz Coach topics:
- Achieving Strong Results on Google Now Easier with Social Networking
- Facebook Clips Google – Is Google’s Bloom Falling off the Rose?
- E-Mail Marketers Plan to Greatly Increase Use of Videos, New Study
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):
What No One Tells You about Raising Investment Capital
Need Sales? Use Old School/New School Marketing
A reader, who was a marcom professional, once asked me for help with her employer.
“I’m new to my company as a Marcom professional, but my boss already has high expectations and is pressuring me to generate revenue fast. That includes attacking our competitors. Help!”
It appeared to me her boss was desperate and expected miracles in marketing and communications. If you are in a similar situation, consider until you develop trust and respect from your new employer, you’ve got a tough job.
Otherwise, you’ve got two choices: Find another job or develop a successful strategy and market your ideas to your boss.
Also, the value of marketing is often underestimated and it’s the scapegoat when other factors should be blamed for poor sales. Marketing professionals often complain about a lack of senior management respect or lack of access to the CEO.
What’s more, marketing budgets are the first to be slashed during tough times. Ironically, that’s the time to increase marketing. A marcom professional needs to know how to sell ideas inside the office as well as outside.
Accelerate sales by asking yourself these four questions:
1. What in my past has prepared me to deal with this challenging situation?
2. What is needed short-term and long-term?
3. How can I maximize customer loyalty?
4. What new initiatives are needed?
In other words, use old school/new school thinking.
Del Sharbutt, the legendary broadcaster with a cavernous voice, was one of my radio mentors in the mid-1970s. (Del Sharbutt, 90, a Broadcast Announcer – The New York Times; Del Sharbutt – Entertainment News, Obituary, Media – Variety.)
He was retired when I met him. I was news director at an all-news radio station.
Del’s career included being a news anchor for the Mutual Broadcasting System, which had been the world’s largest radio network. He was an emcee for Frank Sinatra’s big band concerts, and was the creator of two hugely successful advertising slogans: “LSMFT, Lucky Strike Means Fine Tobacco” and Campbell Soups’ “M’m! M’m! Good.”
When he spoke I listened. Even though my radio station had jumped from last in the ratings race to second place in just one year, it had challenges attracting young women in a competitive California market. Del suggested I interview elementary school kids about what they wanted for Christmas. It was an old idea but the results were astounding.
One of his responses still pays me dividends: “Kid, every experience is a learning experience.”
Hence, the question: What in my past has prepared me to deal with this challenging situation?
For challenges in customer loyalty, I turned to my interest in sports. Defense in sports is a good metaphor for effective customer loyalty programs. Baseball teams win the World Series essentially because of great pitching and error-free play in the field. So protect your turf with a strong customer loyalty program while you also strategize for new opportunities.
A case study of a high-tech company
One of my firm’s clients, a life sciences imaging company, contracted me to analyze why its sales were flat. The marketing manager was frustrated so I suggested that I interview a cross section of their customers. One of the keys was to ask open-ended questions to get comprehensive answers instead of yes or no answers.
The marketing manager liked my research approach, but he only wanted me to talk with the disloyal customers. My goal was to get a snapshot of the big picture – an overview of what all the client’s customers liked and disliked. I persuaded the client to allow me to interview high-volume satisfied customers; second-tier customers; and customers who stopped buying altogether.
The client sent letters to 25 of its worldwide customers to expect a telephone call from me. The most helpful solutions evolved from an interview with one of my client’s biggest customers, who told me: “We like them a lot.” When I asked the customer what he liked the least, he said: “They’re great people and we like everything about them.”
But in a follow-up question, I asked: “If you had a magic wand, what would you change about the relationship?”
The customer answered: “When we have a problem, their customer service is a nightmare.”
Also, my recollection is that the client’s technicians and customer service reps rarely – if ever – said thank you to their customers.
The nightmarish quote was a shock to the marketing manager. He asked me to present my findings to the company’s board of directors. The board was astounded.
For a solid foundation, these areas need to be addressed for an effective customer loyalty program:
- Make certain that everyone in your company has an attitude of gratitude and says thank you to customers either for their purchases or for even just considering your company’s products.
- Enhance trust by soliciting feedback from your customers. Act on their comments quickly.
- Make certain customers are fully aware of your full line of products.
- Develop a customer rewards program and value-added programs to multiply sales.
- Develop a customer-privacy policy. Communicate it with customers.
Avoid Comparison Ads
Regarding your boss wanting to attack competitors, you never want to be known for such tactics. Always take the high road. When the media or customers ask you for a comment on your competitors, immediately respond with a compliment. Then, toot your company’s horn. Otherwise, you will turn off customers and you’ll find yourself in the unfortunate position of having to cut prices.
So when I was a young dedicated journalist, Mr. Sharbutt also stunned me with another tip: “Radio is not a music medium or a news medium. It is an advertising medium.”
That was also true for TV and newspapers. The same could be said today about the Internet – an estimated $22.8 billion sector in 2009.
Video ads are particularly effective in targeting young adults and teens. For a case study, here are campaign samples that were successful in synergizing TV with social networking:
So, remember: If you use old school/new school thinking, good things will happen.
From the Coach’s Corner, here is a source for good tips on leveraging the Internet: Entrepreneur.com, visit Online Advertising Strategies for Small Businesses.