In many situations, we tend to swing to one extreme or the other of the market research scale. Either we skip this step altogether, or we get so mired down in research that we lose sight of why we’re doing it. Here’s a solution that works well for lots of situations.
One problem with asking people what they would or would not like, buy, or champion is they don’t know. Until the opportunity arises to actually make a purchasing or other commitment-level decision, their views may be skewed.
Given this reality, a great way to accomplish effective market research in many cases is to offer a product or service in a live, but limited, situation. Depending on the nature of the product or service, production may even happen after this test is complete. Let me share a simple example from a real-life test I helped a client with a number of years ago.
This client made organizers for garages that included shelves, cupboards, closets, countertops, and so on. He wanted to ramp up to get into this business in a big way, but wasn’t sure if the market would support his vision. He had completed a couple of jobs on a word-of-mouth basis, but didn’t want to dive in without more substantiating research, so he came to me.
This guy was sharp, and had completed some of his own digging into how to conduct market research. He had a pretty good plan. When we looked at the time and expense of implementing the plan, however, he became discouraged. Then I shared this approach:
We created a half-page flyer describing his product and showing pictures of the two jobs he had completed. We made an easy call-to-action of a no-cost initial bid which included rough plans and put his phone number as the contact vehicle. We then made 250 copies, which yielded 500 half-page flyers. He and his family stapled rubber bands to the corners of the flyers and distributed them to homes that fit his target. In one day of distributing flyers he got two jobs--more than enough to warrant moving forward. (I might note that instead of telling him to go full throttle based on this initial outcome, I suggested he continue to distribute flyers while he completed these two jobs and let the business grow naturally and according to market demand.)
One of the beauties of simple marketing vehicles like this (another one I’ve seen good results from is free online classified ads) is that you can turn the prospect faucet up and down in volume according to need. Just make sure to consider sales cycle time frames and work ahead of your need.
Of course, this isn’t an answer for all businesses. And it shouldn’t be your company’s only marketing activity, even if it works well (because markets and response rates change). But this approach, or a similar one you devise with your team’s help, can turn market research activities into profit centers instead of expenses while taking the anxiety out of wondering if a product or service will be accepted by your audience.
Here’s to your profitable market research success!
Bryan Waldon Pope
No fluff. No hype. Just real-world marketing insights for real business decision-makers
Showing posts with label small business marketing. Show all posts
Showing posts with label small business marketing. Show all posts
Monday, June 20, 2011
Monday, May 16, 2011
Our Companies’ Customer and Client Experiences
We’d all like to believe we have laid out and perfected the client experience for everyone from those who just heard about us for the first time to those who have been doing business with us for years. Unfortunately, this simply isn’t true. Not for any of us.
Where is the experience strong for our clients? Where do we fall down? This is an area of our businesses we should look at regularly. Here are a few pointers to get you started.
1. We must realize we are not our clients. What you or I want does not necessarily reflect what our audiences want. I’ve even had businesses that sold products and services I don’t personally use. That doesn’t matter, and it shouldn’t. It’s the audience’s needs that matter, not mine.
2. Ask our clients how we measure up. A great place to begin our journey to a superior client experience is to ask our clients how we’re doing. How could their experiences with us be even better?
3. Look at our competitors. What are they doing well? Where do they fall short? What opportunities are our because of these realities?
4. Engage the assistance of some trusted advocates. Members of our marketing teams, or other advocates, who our employees don’t know can be assets to us in the form of secret shoppers or similar prospects or clients. Have them test the waters. Ask them to be a little less than model clients and see how employees manage their requests or attitudes. This can be very insightful.
These are just a few ideas. Gather your marketing team or get with some trusted peers from other businesses and explore the ways you can take a look into the experience your clients are having with your company. These insider peeks may be very useful to you in enhancing your clients’ experience.
Here’s to your marketing success!
Bryan Waldon Pope
Where is the experience strong for our clients? Where do we fall down? This is an area of our businesses we should look at regularly. Here are a few pointers to get you started.
1. We must realize we are not our clients. What you or I want does not necessarily reflect what our audiences want. I’ve even had businesses that sold products and services I don’t personally use. That doesn’t matter, and it shouldn’t. It’s the audience’s needs that matter, not mine.
2. Ask our clients how we measure up. A great place to begin our journey to a superior client experience is to ask our clients how we’re doing. How could their experiences with us be even better?
3. Look at our competitors. What are they doing well? Where do they fall short? What opportunities are our because of these realities?
4. Engage the assistance of some trusted advocates. Members of our marketing teams, or other advocates, who our employees don’t know can be assets to us in the form of secret shoppers or similar prospects or clients. Have them test the waters. Ask them to be a little less than model clients and see how employees manage their requests or attitudes. This can be very insightful.
These are just a few ideas. Gather your marketing team or get with some trusted peers from other businesses and explore the ways you can take a look into the experience your clients are having with your company. These insider peeks may be very useful to you in enhancing your clients’ experience.
Here’s to your marketing success!
Bryan Waldon Pope
Monday, April 18, 2011
Making the Most of Groupon, Living Social, and Other Group Discount Programs
Many business owners wonder how they should manage discount offers. If we only discount deeply for new customers and clients, we risk losing existing patrons. If our best discounts go to our loyal advocates, we may pass opportunities to bring in new business. And, in the end, is it good to create a client base of discount-minded buyers? As with most topics I address, the answer is, “Maybe.”
It all depends on two factors: our business model, and our retention systems.
Take a discount pizza chain as an example. Most of these establishments have business models based on ongoing discount campaigns. It’s the way the business was meant to operate and can run profitably with a large percentage of patrons using discounts. Other business models only allow for a small percentage of transactions to be made at a discount without digging into planned profits.
A fast-growing approach to discounting is the use of programs like those offered by Groupon, Living Social, and other such group discount sites. Are they worthwhile? Again, maybe.
Before getting overly excited about having hundreds of people taking advantage of our offer, we need to make a few considerations:
:: Can we handle the volume, or will we just upset a large group of would-be clients while inconveniencing those we already serve?
:: If the offer needs to be significantly restricted to be doable (e.g. blackout days, limited number of redemptions per day/week/month, limits on products or services that can be purchased, etc.), do we risk misunderstandings that stress prospects and our own staff?
:: Do we have a plan in place to transform these bargain hunters into ongoing clients if our business model is not overtly discount-based?
In addition to these basic considerations, remember that when using these services, we’re discounting costs already, then splitting the reduced revenue with a third party. Being able to figure out whether this makes sense for our business shouldn’t be a guessing game. What is our current Client Acquisition Cost (CAC)? Run a few numbers and see if such a discount approach is in line with other paid advertising activities. We may find group discounting represents a good investment, and we may find we can do better with other approaches. Knowing these numbers in advance will help keep us from misstepping.
Even when the initial process of bringing a first-time buyer through our doors is cost effective using these services, we mustn’t forget the importance of keeping that newfound client active. An effective, functioning loyalty system is a must prior to engaging in any such prospecting activities. Whether new business comes to us through paid advertising, low-cost publicity or social media, or contingency programs in which we only pay for results, we want to capture and keep those customers.
So here’s my answer as to whether group discount programs are worthwhile:
:: Do you capture, manage and use data on your customers or clients to keep them active?
:: Does your business model allow for discounts of up to 75% as your investment for gaining a first-time buyer?
:: Do you have opportunities to increase first ticket sales with products or services above and beyond the discount without making your new client feel like a second-class citizen for having used a coupon?
:: Will the use of the coupon offer put restrictions on the prospect that make his or her first experience different from future experiences as a “regular” client?
:: Will you be able to bring back these first-time patrons and build a rapport with them that is in keeping with your existing model?
If the answer to all five questions is yes, group discounting may be a viable for your business. It may warrant a carefully crafted test. If there are ‘no’ answers in your responses, consider all angles of this approach carefully before taking the leap.
Whatever we do to grow our businesses, we want to create consistently positive experiences for our employees, prospects, and clients. Here’s a 3-minute news story video that brings up some of the potholes you may encounter. It’s worth watching if you’ve considered using group discounting as a means of building your business: Groupon Pros and Cons News Story
I’m not saying group discounting is inherently good or bad. It makes great sense for many businesses, and can be the destruction of others. If we follow the steps leading to making informed decisions about how we will share our message with our audience, we’ll more consistently engage those vehicles that bring expected returns while avoiding those that will damage our efforts.
Gather your team and discuss your specific situation. That’s why they are there.
Here’s to your marketing success!
Bryan Waldon Pope
It all depends on two factors: our business model, and our retention systems.
Take a discount pizza chain as an example. Most of these establishments have business models based on ongoing discount campaigns. It’s the way the business was meant to operate and can run profitably with a large percentage of patrons using discounts. Other business models only allow for a small percentage of transactions to be made at a discount without digging into planned profits.
A fast-growing approach to discounting is the use of programs like those offered by Groupon, Living Social, and other such group discount sites. Are they worthwhile? Again, maybe.
Before getting overly excited about having hundreds of people taking advantage of our offer, we need to make a few considerations:
:: Can we handle the volume, or will we just upset a large group of would-be clients while inconveniencing those we already serve?
:: If the offer needs to be significantly restricted to be doable (e.g. blackout days, limited number of redemptions per day/week/month, limits on products or services that can be purchased, etc.), do we risk misunderstandings that stress prospects and our own staff?
:: Do we have a plan in place to transform these bargain hunters into ongoing clients if our business model is not overtly discount-based?
In addition to these basic considerations, remember that when using these services, we’re discounting costs already, then splitting the reduced revenue with a third party. Being able to figure out whether this makes sense for our business shouldn’t be a guessing game. What is our current Client Acquisition Cost (CAC)? Run a few numbers and see if such a discount approach is in line with other paid advertising activities. We may find group discounting represents a good investment, and we may find we can do better with other approaches. Knowing these numbers in advance will help keep us from misstepping.
Even when the initial process of bringing a first-time buyer through our doors is cost effective using these services, we mustn’t forget the importance of keeping that newfound client active. An effective, functioning loyalty system is a must prior to engaging in any such prospecting activities. Whether new business comes to us through paid advertising, low-cost publicity or social media, or contingency programs in which we only pay for results, we want to capture and keep those customers.
So here’s my answer as to whether group discount programs are worthwhile:
:: Do you capture, manage and use data on your customers or clients to keep them active?
:: Does your business model allow for discounts of up to 75% as your investment for gaining a first-time buyer?
:: Do you have opportunities to increase first ticket sales with products or services above and beyond the discount without making your new client feel like a second-class citizen for having used a coupon?
:: Will the use of the coupon offer put restrictions on the prospect that make his or her first experience different from future experiences as a “regular” client?
:: Will you be able to bring back these first-time patrons and build a rapport with them that is in keeping with your existing model?
If the answer to all five questions is yes, group discounting may be a viable for your business. It may warrant a carefully crafted test. If there are ‘no’ answers in your responses, consider all angles of this approach carefully before taking the leap.
Whatever we do to grow our businesses, we want to create consistently positive experiences for our employees, prospects, and clients. Here’s a 3-minute news story video that brings up some of the potholes you may encounter. It’s worth watching if you’ve considered using group discounting as a means of building your business: Groupon Pros and Cons News Story
I’m not saying group discounting is inherently good or bad. It makes great sense for many businesses, and can be the destruction of others. If we follow the steps leading to making informed decisions about how we will share our message with our audience, we’ll more consistently engage those vehicles that bring expected returns while avoiding those that will damage our efforts.
Gather your team and discuss your specific situation. That’s why they are there.
Here’s to your marketing success!
Bryan Waldon Pope
Monday, March 21, 2011
Small Increases That Bring Big Profits
Too often, we find ourselves concentrating on bringing in new customers and clients as the sole method of increasing revenues and profits. Building our client base is important, no doubt. But here’s a way to substantially increase revenues by adding two commonly overlooked variables to the mix beyond bringing in new clients.
Get MORE clients to spend MORE money MORE often. Let’s say we get 10% more clients to spend, on average, 10% more per transaction, and help those transactions happen 10% more often. That scenario could look something like this:
If we have 1,000 clients spending, on average, $100 per transaction, and that happens 10 times a year, we have gross revenues of $1,000,000. Not a bad little business. Applying the formula above, we now have 1,100 clients spending, on average, $110, with 11 transactions per year for total revenues of $1,331,000. That’s a revenue increase of over 33 percent with just 10% more clients! And if we run those numbers through our funnel to determine profits, we’ll see that, in most cases, a much larger percentage of our newly found revenues go to the bottom line since our fixed expenses are already covered prior to this increase.
While your situation may differ from my example, the principle holds true for all businesses. We’ll never have exactly the same increase in all three of these areas. Growth in each of these segments is easier or more difficult from industry to industry. My point is that we altogether too often don’t look at increasing the average value of each transaction or helping those transactions occur more often as significant means of increasing revenues. Run your own numbers based on your current situation and plausible opportunities for your business and see the difference these two often-forgotten variables can make in your revenues.
Here’s to your marketing success!
Bryan Waldon Pope
Get MORE clients to spend MORE money MORE often. Let’s say we get 10% more clients to spend, on average, 10% more per transaction, and help those transactions happen 10% more often. That scenario could look something like this:
If we have 1,000 clients spending, on average, $100 per transaction, and that happens 10 times a year, we have gross revenues of $1,000,000. Not a bad little business. Applying the formula above, we now have 1,100 clients spending, on average, $110, with 11 transactions per year for total revenues of $1,331,000. That’s a revenue increase of over 33 percent with just 10% more clients! And if we run those numbers through our funnel to determine profits, we’ll see that, in most cases, a much larger percentage of our newly found revenues go to the bottom line since our fixed expenses are already covered prior to this increase.
While your situation may differ from my example, the principle holds true for all businesses. We’ll never have exactly the same increase in all three of these areas. Growth in each of these segments is easier or more difficult from industry to industry. My point is that we altogether too often don’t look at increasing the average value of each transaction or helping those transactions occur more often as significant means of increasing revenues. Run your own numbers based on your current situation and plausible opportunities for your business and see the difference these two often-forgotten variables can make in your revenues.
Here’s to your marketing success!
Bryan Waldon Pope
Monday, March 7, 2011
The Myth of Dead Media
I keep hearing it from Internet marketing ‘gurus,’ and I’m sure you do too: Traditional media are dead.
Yes, the Internet and its accompanying technologies are powerful. They’re fun. And they can be wildly effective. There’s no question the uses of new technologies and the audiences they attract are growing at ever-increasing speeds. Only someone living in a cave would argue against these facts.
But this doesn’t mean old, low-tech media are dead. Not by a long shot. In fact, these changes may just make for some unique and potent uses of these long-standing marketing vehicles.
Consider these nuggets from our history: When TV came around, radio was surely on its way out, right? Apparently not. The fax machine was going to put a serious hurt on the overnight delivery business. Hmmm…seems FedEx, UPS, and others are doing just fine. And what about email? There’s the end to hard copy snail mail. Oh, wait! My snail mail campaigns are still beating email for response rate and profits.
The bottom line is this: there’s no such thing as a one-size-fits-all answer to the best vehicles for us to use to carry our messages to our audiences. Use the Internet. Use other technologies. Test them just as you do any other medium for your messages. But make sure you’re not walking past willing prospects in the process by completely missing the places they read, socialize, look for answers, and make their purchases if they are not completely immersed in our techno-society. You may be surprised to find unclaimed territory where you can make a meaningful impact on your audience. Instead of simply following the hype, step back and do a little research of your own. As always, make sure you include your team in these efforts. Their insights can be invaluable.
Here’s to your on- and off-line marketing success!
Bryan Waldon Pope
Yes, the Internet and its accompanying technologies are powerful. They’re fun. And they can be wildly effective. There’s no question the uses of new technologies and the audiences they attract are growing at ever-increasing speeds. Only someone living in a cave would argue against these facts.
But this doesn’t mean old, low-tech media are dead. Not by a long shot. In fact, these changes may just make for some unique and potent uses of these long-standing marketing vehicles.
Consider these nuggets from our history: When TV came around, radio was surely on its way out, right? Apparently not. The fax machine was going to put a serious hurt on the overnight delivery business. Hmmm…seems FedEx, UPS, and others are doing just fine. And what about email? There’s the end to hard copy snail mail. Oh, wait! My snail mail campaigns are still beating email for response rate and profits.
The bottom line is this: there’s no such thing as a one-size-fits-all answer to the best vehicles for us to use to carry our messages to our audiences. Use the Internet. Use other technologies. Test them just as you do any other medium for your messages. But make sure you’re not walking past willing prospects in the process by completely missing the places they read, socialize, look for answers, and make their purchases if they are not completely immersed in our techno-society. You may be surprised to find unclaimed territory where you can make a meaningful impact on your audience. Instead of simply following the hype, step back and do a little research of your own. As always, make sure you include your team in these efforts. Their insights can be invaluable.
Here’s to your on- and off-line marketing success!
Bryan Waldon Pope
Monday, December 20, 2010
Finding Our Hidden Marketing Assets (Part 2 of 2)
In my last post, I talked about people and organizations that may be seen as marketing assets. Today I’ll share two other categories of possible assets we should each examine with the help of our marketing teams.
The two categories are: tangibles and intangibles. These categories cover just about anything that isn’t a person our group of people. I enjoy working with clients to find these resources because they are usually much more readily visible by me than by the people working day-to-day in the business. That’s the power of your mastermind team. Since they aren’t in the trenches in your business every day, they stand in a better position to see these assets and opportunities. Here’s a short list of items under each category to help prompt the creative juices as you consider your own situation:
Tangibles
Wasted production space
Overstocked items
Old inventory
Repackaging current products or services
(bundling, re-purposing, etc.)
On-hand collateral material
Databases
Etc…
Intangibles
Successful campaigns and activities from the past
Joint-venture opportunities
Bartering
Publicity opportunities
Unused intellectual property
Relationships and connections
Etc…
Between the lists I shared previously and these two, every person reading these posts has the opportunity to identify and engage at least a couple of meaningful assets at no financial expense to increase revenues.
I’d love to hear your success stories or answer any questions you have. Just comment below. Let’s uncover our hidden marketing assets and put them to work.
Here’s to your marketing success!
Bryan Waldon Pope
The two categories are: tangibles and intangibles. These categories cover just about anything that isn’t a person our group of people. I enjoy working with clients to find these resources because they are usually much more readily visible by me than by the people working day-to-day in the business. That’s the power of your mastermind team. Since they aren’t in the trenches in your business every day, they stand in a better position to see these assets and opportunities. Here’s a short list of items under each category to help prompt the creative juices as you consider your own situation:
Tangibles
Wasted production space
Overstocked items
Old inventory
Repackaging current products or services
(bundling, re-purposing, etc.)
On-hand collateral material
Databases
Etc…
Intangibles
Successful campaigns and activities from the past
Joint-venture opportunities
Bartering
Publicity opportunities
Unused intellectual property
Relationships and connections
Etc…
Between the lists I shared previously and these two, every person reading these posts has the opportunity to identify and engage at least a couple of meaningful assets at no financial expense to increase revenues.
I’d love to hear your success stories or answer any questions you have. Just comment below. Let’s uncover our hidden marketing assets and put them to work.
Here’s to your marketing success!
Bryan Waldon Pope
Monday, August 16, 2010
3 Fast Ways to Increase Revenues NOW! (Method 1 of 3)
Most of the people who talk with me about marketing are looking for a quick fix. I hate the see this because consistently engaging in effective marketing practices can go a long way to removing the need for these emergency blitzes. I certainly understand, however, that sometimes a business just needs a shot in the arm to get over a hump. Over my next three installments, I’m going to share three ways virtually any business can create an income boost that can bring in new money in as little as one day, but absolutely within 30 days.
Method #1: Hold an Open House, Seminar, or Other Event
Regardless of the type of business you have, you either have a place of business people can come to, valuable knowledge you can share with your audience, or both. This means you are a candidate for holding an open house to allow prospects to get to know you better, a live or tele-seminar to share your knowledge, or some other similar type of event that gets you noticed.
:: Decide what type of event you are going to hold. It doesn’t have to be fancy or over-the-top. It just needs to meet your audience’s needs.
:: Involve the media and your contacts in getting the word out. Sit down and look at all the places and people who can help you publicize your event. You have at least a few, including the local paper, online community calendars, vendors, and clients; but chances are good you have many more than that. Get your team involved and think through all the possibilities.
:: When you have your plan in place, launch your publicity campaign two to four weeks in advance of the event, depending on the time commitment your event requires on the part of an attendee. A drop-open house only needs a couple weeks’ advance notice, while a full-day seminar calls for four weeks. Remember, though, that most of your attendees won’t RSVP (if that is required) until a few days before the event. That’s just human nature.
:: Keep it simple, especially if you’re new to such an event. Let your fears go, make your plan, and DO IT! You’ll be surprised at how effective events can be in raising your profile, improving client and customer loyalty, and improving your top-line revenues.
Watch for my next two installments. They offer even quicker ways to bring in new money NOW.
Here’s to your marketing success!
Bryan Waldon Pope
Founder
Marketing Success Institute
Method #1: Hold an Open House, Seminar, or Other Event
Regardless of the type of business you have, you either have a place of business people can come to, valuable knowledge you can share with your audience, or both. This means you are a candidate for holding an open house to allow prospects to get to know you better, a live or tele-seminar to share your knowledge, or some other similar type of event that gets you noticed.
:: Decide what type of event you are going to hold. It doesn’t have to be fancy or over-the-top. It just needs to meet your audience’s needs.
:: Involve the media and your contacts in getting the word out. Sit down and look at all the places and people who can help you publicize your event. You have at least a few, including the local paper, online community calendars, vendors, and clients; but chances are good you have many more than that. Get your team involved and think through all the possibilities.
:: When you have your plan in place, launch your publicity campaign two to four weeks in advance of the event, depending on the time commitment your event requires on the part of an attendee. A drop-open house only needs a couple weeks’ advance notice, while a full-day seminar calls for four weeks. Remember, though, that most of your attendees won’t RSVP (if that is required) until a few days before the event. That’s just human nature.
:: Keep it simple, especially if you’re new to such an event. Let your fears go, make your plan, and DO IT! You’ll be surprised at how effective events can be in raising your profile, improving client and customer loyalty, and improving your top-line revenues.
Watch for my next two installments. They offer even quicker ways to bring in new money NOW.
Here’s to your marketing success!
Bryan Waldon Pope
Founder
Marketing Success Institute
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