I am not a financial planner and I know very little about your investment portfolio. Nevertheless, I know the safest place to invest right now: your business. Before I discuss your business as the safest investment, let me clarify what I mean by “investment.”
Most assume that investment means strictly money. This is a myopic view of investing. Any good financial planner will tell you that money is only part of the equation. Time and energy are also critical elements to solid investing. To ensure an investment is worthwhile, the investor must spend much time and energy researching the decision. Only after time and energy are spent can the investor spend the money. So let’s be clear that an investment requires three things: time, energy and money.
With this understanding, let’s tackle why investing in your business is the safest investment you can make. In a word: control. When you invest in your business, you are in the driver’s seat. Few other investments offer the control that your business offers. Buy a home and get pulled up and down by home prices and valuations. Invest in the market and strap yourself to the DJIA roller coaster. A business, on the other hand, puts you in control.
Control allows you to allocate more time, energy and money when needed. Spend more time, energy and money on a property and you might increase the value, but it’s tough to control what your neighbor does. Spend more time, energy and money with your stock portfolio and you could boost the return, but it’s tough to know when the next multinational is going to go under. But spend more time, energy and money on your business and you can usually generate more business.
Is investing in your business foolproof? Absolutely not. You must invest your time, energy and money wisely. Just because it is the safest investment, doesn’t make it guaranteed. But as many business owners are finding out in times like these, a little extra investment can go a long way and probably much longer than other investments. Certainly safer.
Magic Formula to Coupons & Discounts
Today, many businesses are forced to play pricing wars to remain competitive. Long term sustainability is at stake so many companies slash prices. Marketing experts will say you should never differentiate on price but reality for many businesses can be different. Compete or close seem to be the only two options.
Recently I had a client ask me if there is a secret to couponing. He wanted to know if there was a magic number or a magic offer that would immediately entice consumers to come in and purchase. My answer was no. Simply put, if there were a magic number, then marketing would be easy. Things aren’t cut and dry in the marketing and pricing world.
However, there can be a magic formula to coupons and discounts. Here are some ingredients I propose to make your couponing or discounting successful:
1) Tangible Offers Sell: while the offer depends on the industry, the message should communicate tangible benefits. For example, “Free Gift on orders of $50 or more” is nice, but “Free Recipe Book” is more tangible.
2) Test and Learn: try one coupon across a couple of marketing channels (e-newsletter, direct mail, events, etc.) and see which channel is pulling the better response. Try different coupons across the same marketing channel and see which is pulling the better response. Learn from these tests and apply it the next time.
3) Consistency Builds Business: find a simple offer that you can consistently communicate. People may hear your message the first time, but it may take them 3, 6 or even 12 times to really understand your message and take action. Stick with the program long enough to truly understand if it is working.
Finally, the coupon or discount you offer depends on your business and your industry. Working with your customers during times like these will really prepare your business once the economy turns. For this reason, always think long term. Decide today where you want your business to be post-recession and act accordingly. Today’s couponing and discounts will position your business as a low-price leader today, but is that where you want to be in the future? Sustainability is key but so is long-term positioning.
Recently I had a client ask me if there is a secret to couponing. He wanted to know if there was a magic number or a magic offer that would immediately entice consumers to come in and purchase. My answer was no. Simply put, if there were a magic number, then marketing would be easy. Things aren’t cut and dry in the marketing and pricing world.
However, there can be a magic formula to coupons and discounts. Here are some ingredients I propose to make your couponing or discounting successful:
1) Tangible Offers Sell: while the offer depends on the industry, the message should communicate tangible benefits. For example, “Free Gift on orders of $50 or more” is nice, but “Free Recipe Book” is more tangible.
2) Test and Learn: try one coupon across a couple of marketing channels (e-newsletter, direct mail, events, etc.) and see which channel is pulling the better response. Try different coupons across the same marketing channel and see which is pulling the better response. Learn from these tests and apply it the next time.
3) Consistency Builds Business: find a simple offer that you can consistently communicate. People may hear your message the first time, but it may take them 3, 6 or even 12 times to really understand your message and take action. Stick with the program long enough to truly understand if it is working.
Finally, the coupon or discount you offer depends on your business and your industry. Working with your customers during times like these will really prepare your business once the economy turns. For this reason, always think long term. Decide today where you want your business to be post-recession and act accordingly. Today’s couponing and discounts will position your business as a low-price leader today, but is that where you want to be in the future? Sustainability is key but so is long-term positioning.
Marketing = Parenting
My daughter is 3 years old. She is quite playful and energetic which makes meal time difficult. While she generally stays in her seat, she is easily distracted from her food. I tend to be a bit firm in my discipline and I find myself repeating the same messages: finish your veggies, no elbows on the table, no dessert if you don’t finish your meal, etc. It’s pretty much the same one-sided dialogue night after night.
But you know what? The repetition is working. We are seeing her focus a bit more on the meal. She is not perfect, but she is beginning to understand the importance of eating everything on her plate. She even repeats our instructions to her when she sees us with elbows on the table. Our parenting success in this realm has come from the consistent repetition of the same message over and over.
Marketing is no different. Successful marketing comes from the consistent repetition of the same message. There is really no secret to the whole thing. Just repeat, repeat and repeat. In time, the consistent message will be heard by the end user. Over more time, those end users that hear the consistent message will take action. And in the long run, end users will spread the message themselves.
The “Marketing = Parenting” analogy is further understood when we talk about using different marketing channels. Let’s imagine that Peter is a high school student. Peter’s mom, Suzie, wants to make sure that Peter doesn’t forget his doctor’s appointment next week. To remind him, she makes a sign for Peter and hangs it in the bathroom. On the day of the appointment, Suzie calls Peter’s cell phone and leaves a message. She also texts him to remind him several hours before the appointment.
Did it work? Of course! The consistent repetition of the same message across a number of channels (signage, cell phone, text) forced Peter to remember his appointment. Not only did he remember the appointment, he took action and got himself to the appointment on time. This is parental marketing success!
Perhaps I am oversimplifying things by saying marketing is the same as parenting. Of course there are other elements to parenting and marketing that don’t equate. However, my point is that in parenting we need to repeat the same consistent message over and over again to achieve the desired result. In marketing, we need to do the same thing: repeat the same message—perhaps in a variety of venues—over a long period of time to accomplish the desired return.
Similar to parenting, think long term for your marketing. Think about repeating the same message over and over across a number of marketing channels. The more you repeat, the more it will stick, the more action will be taken and the more referrals you will get. It may take time, but neither children nor consumers will understand your message if you just say it once.
But you know what? The repetition is working. We are seeing her focus a bit more on the meal. She is not perfect, but she is beginning to understand the importance of eating everything on her plate. She even repeats our instructions to her when she sees us with elbows on the table. Our parenting success in this realm has come from the consistent repetition of the same message over and over.
Marketing is no different. Successful marketing comes from the consistent repetition of the same message. There is really no secret to the whole thing. Just repeat, repeat and repeat. In time, the consistent message will be heard by the end user. Over more time, those end users that hear the consistent message will take action. And in the long run, end users will spread the message themselves.
The “Marketing = Parenting” analogy is further understood when we talk about using different marketing channels. Let’s imagine that Peter is a high school student. Peter’s mom, Suzie, wants to make sure that Peter doesn’t forget his doctor’s appointment next week. To remind him, she makes a sign for Peter and hangs it in the bathroom. On the day of the appointment, Suzie calls Peter’s cell phone and leaves a message. She also texts him to remind him several hours before the appointment.
Did it work? Of course! The consistent repetition of the same message across a number of channels (signage, cell phone, text) forced Peter to remember his appointment. Not only did he remember the appointment, he took action and got himself to the appointment on time. This is parental marketing success!
Perhaps I am oversimplifying things by saying marketing is the same as parenting. Of course there are other elements to parenting and marketing that don’t equate. However, my point is that in parenting we need to repeat the same consistent message over and over again to achieve the desired result. In marketing, we need to do the same thing: repeat the same message—perhaps in a variety of venues—over a long period of time to accomplish the desired return.
Similar to parenting, think long term for your marketing. Think about repeating the same message over and over across a number of marketing channels. The more you repeat, the more it will stick, the more action will be taken and the more referrals you will get. It may take time, but neither children nor consumers will understand your message if you just say it once.
4 Absolutely Crucial Keys to Direct Mail
For most businesses, well-executed direct mail campaigns continue to generate new business, retain existing customers and build brand awareness. Old-fashioned direct mail delivered to your customer’s and prospect’s doors can truly differentiate your product or service offering. More importantly, if it is done well, your direct mail will not be seen as intrusive clutter. Instead, it can genuinely add value and promote your business.
So how do you do it well? Here are four strategies that you MUST implement with Direct Mail:
1) UTILIZE THE RIGHT LIST: The most important success factor in direct mail is your list. Make sure the database you use is representative of your target market. It’s not about the “quantity” of leads on the list; it’s about the “quality” of the leads.
The best place to start is your current and past customer base. These are your advocates for your products or services. If you continue to stay top-of-mind with these people, they will continue to recommend your business. Referrals are the easiest way to build a successful business. Mail past and current customers consistently. You can even offer incentives for referrals.
If you mail to prospects, ensure you hit your target market. Target demographics like income, age, gender, education level, etc. Consult your local print and mail shop or check out www.srds.com for more resources on the right list.
2)OFFER SOMETHING IRRESISTIBLE: Drive response with an offer that people cannot refuse. For example, “Mention this postcard and get 25% off your next order!” Offer value-add items that convert mail-recipients into paying customers. These types of offers are most successful when tied to a deadline, like “this month only.” Deadlines will create a sense of urgency and will motivate responders to follow up.
3) TRACK AND MEASURE YOUR CAMPAIGNS: Unless you track and measure the response to your campaigns, you will never know if it works. You can track your campaign by measuring responses to your offer. Some simple math can go a long way: count all of the responses to your direct mail piece and divide by the number of mail pieces you sent out to give you a “Response Rate” (responders as a percentage of pieces mailed). 1% is the industry average for direct mail, but the right offer to the right list can generate as much as 10-15% in response. Track a campaign, learn why or why not it was successful, and apply what you learned to the next campaign.
4) REPEAT, REPEAT AND REPEAT: You will never generate much business with only one direct mail piece. Sending only one piece to your list is a waste of money. You must repeat, repeat and repeat your campaigns. Repetition of a consistent message will build brand awareness. When planning direct mail, plan for three or more touch points. It’s okay to mail the same piece over and over. If you’re not mailing the same piece, make sure you use the same logo, branding, image and message in all of your pieces to reinforce a consistent brand and image.
Direct mail continues to be a very effective and efficient way to generate business and it should be a component of your marketing plan. If it is done well, it can truly move your business to the next level.
So how do you do it well? Here are four strategies that you MUST implement with Direct Mail:
1) UTILIZE THE RIGHT LIST: The most important success factor in direct mail is your list. Make sure the database you use is representative of your target market. It’s not about the “quantity” of leads on the list; it’s about the “quality” of the leads.
The best place to start is your current and past customer base. These are your advocates for your products or services. If you continue to stay top-of-mind with these people, they will continue to recommend your business. Referrals are the easiest way to build a successful business. Mail past and current customers consistently. You can even offer incentives for referrals.
If you mail to prospects, ensure you hit your target market. Target demographics like income, age, gender, education level, etc. Consult your local print and mail shop or check out www.srds.com for more resources on the right list.
2)OFFER SOMETHING IRRESISTIBLE: Drive response with an offer that people cannot refuse. For example, “Mention this postcard and get 25% off your next order!” Offer value-add items that convert mail-recipients into paying customers. These types of offers are most successful when tied to a deadline, like “this month only.” Deadlines will create a sense of urgency and will motivate responders to follow up.
3) TRACK AND MEASURE YOUR CAMPAIGNS: Unless you track and measure the response to your campaigns, you will never know if it works. You can track your campaign by measuring responses to your offer. Some simple math can go a long way: count all of the responses to your direct mail piece and divide by the number of mail pieces you sent out to give you a “Response Rate” (responders as a percentage of pieces mailed). 1% is the industry average for direct mail, but the right offer to the right list can generate as much as 10-15% in response. Track a campaign, learn why or why not it was successful, and apply what you learned to the next campaign.
4) REPEAT, REPEAT AND REPEAT: You will never generate much business with only one direct mail piece. Sending only one piece to your list is a waste of money. You must repeat, repeat and repeat your campaigns. Repetition of a consistent message will build brand awareness. When planning direct mail, plan for three or more touch points. It’s okay to mail the same piece over and over. If you’re not mailing the same piece, make sure you use the same logo, branding, image and message in all of your pieces to reinforce a consistent brand and image.
Direct mail continues to be a very effective and efficient way to generate business and it should be a component of your marketing plan. If it is done well, it can truly move your business to the next level.
Choose Your Own Customers, Part II
For most things, quality is better than quantity.
Brett Sutton lives this mantra. He is a personal coach for triathletes. His athletes have won 15 world championships and 2 Olympic medals. Most recently, Sutton coached Chrissie Wellington to a Hawaii Ironman championship.
He is known for old-school techniques. He pushes his athletes beyond their limits and was once a trainer for horses and greyhounds. As if this is not controversial enough, he was also convicted of sexually assaulting a minor in 1997.
He was quoted in the October 2008 Outside Magazine as saying “If you want to be a civilian, be a civilian. My athletes are soldiers. This is the jungle. The lion gets up every day. If he doesn’t catch the gazelle, he doesn’t eat. If the gazelle doesn’t outrun the gazelle, he’s dead.”
Pretty intense stuff! You might expect that from a sport as demanding as the triathlon. In my athletic career (water polo, swimming) I certainly had some intense coaches, but nothing resembling Brett Sutton. Then again, I never intended on becoming a World Champion. (Beating Harvard was always a stretch goal for our team!)
But let’s not lose the business lesson that Sutton is teaching. Sutton’s program is not for everyone. At the time of the Outside Magazine article, Sutton was coaching 18 triathletes. Sutton admits that he prefers to work with a smaller group. “I know I could have 100 people here and make more money, but that’s not what I’m about. Coaching is sacred to me.”
The point here is that Sutton selectively chooses who to bring into his program. His platform is unique, different and perhaps unorthodox. That said, he attracts a unique, different and perhaps unorthodox clientele. The results speak for themselves, but Sutton’s means to an end are not intended for all triathletes.
Same goes for a successful small business. A successful small business will selectively choose its clients. A successful small business presents an exceptional platform (otherwise it is a commodity) that attracts only a unique client base. Success, for small businesses, is not about quantity. It’s about quality.
Sutton might say the same thing regarding his coaching. He looks for quality, not quantity. He has set up parameters to attract only those willing to work under his conditions. And he probably turns away a lot of potential customers. Imagine that! Turning away customers!
For your business, try an approach in which you truly choose your own customer. I suggest you write down the characteristics of your ideal customer. In other words, describe your target market in terms of their demographics and psychographics. This will really help you understand what marketing messages and channels to use.
Think about choosing quality customers, and not necessarily quantity. You’ll save money and energy and you’ll attract truly qualified leads.
Brett Sutton lives this mantra. He is a personal coach for triathletes. His athletes have won 15 world championships and 2 Olympic medals. Most recently, Sutton coached Chrissie Wellington to a Hawaii Ironman championship.
He is known for old-school techniques. He pushes his athletes beyond their limits and was once a trainer for horses and greyhounds. As if this is not controversial enough, he was also convicted of sexually assaulting a minor in 1997.
He was quoted in the October 2008 Outside Magazine as saying “If you want to be a civilian, be a civilian. My athletes are soldiers. This is the jungle. The lion gets up every day. If he doesn’t catch the gazelle, he doesn’t eat. If the gazelle doesn’t outrun the gazelle, he’s dead.”
Pretty intense stuff! You might expect that from a sport as demanding as the triathlon. In my athletic career (water polo, swimming) I certainly had some intense coaches, but nothing resembling Brett Sutton. Then again, I never intended on becoming a World Champion. (Beating Harvard was always a stretch goal for our team!)
But let’s not lose the business lesson that Sutton is teaching. Sutton’s program is not for everyone. At the time of the Outside Magazine article, Sutton was coaching 18 triathletes. Sutton admits that he prefers to work with a smaller group. “I know I could have 100 people here and make more money, but that’s not what I’m about. Coaching is sacred to me.”
The point here is that Sutton selectively chooses who to bring into his program. His platform is unique, different and perhaps unorthodox. That said, he attracts a unique, different and perhaps unorthodox clientele. The results speak for themselves, but Sutton’s means to an end are not intended for all triathletes.
Same goes for a successful small business. A successful small business will selectively choose its clients. A successful small business presents an exceptional platform (otherwise it is a commodity) that attracts only a unique client base. Success, for small businesses, is not about quantity. It’s about quality.
Sutton might say the same thing regarding his coaching. He looks for quality, not quantity. He has set up parameters to attract only those willing to work under his conditions. And he probably turns away a lot of potential customers. Imagine that! Turning away customers!
For your business, try an approach in which you truly choose your own customer. I suggest you write down the characteristics of your ideal customer. In other words, describe your target market in terms of their demographics and psychographics. This will really help you understand what marketing messages and channels to use.
Think about choosing quality customers, and not necessarily quantity. You’ll save money and energy and you’ll attract truly qualified leads.
Choose Your Own Customers, Part I
I recently met up with an acquaintance and we decided to catch up over a beer. He invited me to a local men's club. I had never visited this particular establishment previously, but it was truly a man's place: poker tables, big screen tv, lazy boys and of course a bar with several cronies playing Liar's Dice. The club hosts weekly "Stag Nights" during which ladies are not invited. The place oozed testosterone and you could tell it was exactly the type of place the "boys" went to get away from the home life.
My friend and I walked in fresh off a day of work. We both sported business casual and we each carried our planners in our hands. Nothing out of place for a Tuesday afternoon, I felt. However, upon entering the room, all the cronies turned to look at us and there was a cool silence. After the pregnant pause, one gentlemen blurted out "Is this a 7th-Day Adventist Convention?" This caused an uproar of laughter among the others. We smiled, scampered over the bar and did our best to fit in by ordering a couple of beers.
We were certainly out of place for a moment. Our business casual was not casual enough for this establishment and it showed. Perhaps if I were more religious I may have taken offense to the comment. We also could have felt of discrimination. However, my mind did not go in that direction. The first thought that went through my head was, "Genius! What other business gets customers to make fun of other customers, and survives?"
As I thought more, I realized that this was brilliant marketing strategy. There is a lesson in this private club for all businesses: be choosey with your customers; you cannot please everyone. So many businesses nowadays are going with the birdshot marketing strategy: blast as many messages out there in hopes of attracting as many folks as possible. This strategy only works if you truly have a product geared towards the masses, which very few businesses do. The best strategy is to avoid the birdshot and pick the one weapon that works for your market. In fact, as the men's club taught me, true success lies in the ability to be very selective in seeking customers.
The more a business can be selective in its target market, the easier the marketing investments become. Think about the hot night club with the velvet rope at the door. People line up hoping to get in. The club is so exclusive that it only lets in certain people. You may wait several hours, but if you don't fit the profile, you don't get in. Word builds and builds and soon everyone wants to get into that club. The line grows night after night mostly from word-of-mouth. Sure the club invests in some marketing like getting the right music, the right lighting, the right drinks, etc. But from an advertising perspective, exclusivity is maximum return on minimum investment...all it took was a velvet rope!
For your business, think about how you can choose your customers. The more selective you can become with your customers, the more you can focus on his or her specific needs. In turn, your business can then serve your customers better. Over the long run, success will come from servicing one niche very well. The men's club served one niche very well and has been in business for decades.
A club like that may not your cup of tea, but that is the whole point.
My friend and I walked in fresh off a day of work. We both sported business casual and we each carried our planners in our hands. Nothing out of place for a Tuesday afternoon, I felt. However, upon entering the room, all the cronies turned to look at us and there was a cool silence. After the pregnant pause, one gentlemen blurted out "Is this a 7th-Day Adventist Convention?" This caused an uproar of laughter among the others. We smiled, scampered over the bar and did our best to fit in by ordering a couple of beers.
We were certainly out of place for a moment. Our business casual was not casual enough for this establishment and it showed. Perhaps if I were more religious I may have taken offense to the comment. We also could have felt of discrimination. However, my mind did not go in that direction. The first thought that went through my head was, "Genius! What other business gets customers to make fun of other customers, and survives?"
As I thought more, I realized that this was brilliant marketing strategy. There is a lesson in this private club for all businesses: be choosey with your customers; you cannot please everyone. So many businesses nowadays are going with the birdshot marketing strategy: blast as many messages out there in hopes of attracting as many folks as possible. This strategy only works if you truly have a product geared towards the masses, which very few businesses do. The best strategy is to avoid the birdshot and pick the one weapon that works for your market. In fact, as the men's club taught me, true success lies in the ability to be very selective in seeking customers.
The more a business can be selective in its target market, the easier the marketing investments become. Think about the hot night club with the velvet rope at the door. People line up hoping to get in. The club is so exclusive that it only lets in certain people. You may wait several hours, but if you don't fit the profile, you don't get in. Word builds and builds and soon everyone wants to get into that club. The line grows night after night mostly from word-of-mouth. Sure the club invests in some marketing like getting the right music, the right lighting, the right drinks, etc. But from an advertising perspective, exclusivity is maximum return on minimum investment...all it took was a velvet rope!
For your business, think about how you can choose your customers. The more selective you can become with your customers, the more you can focus on his or her specific needs. In turn, your business can then serve your customers better. Over the long run, success will come from servicing one niche very well. The men's club served one niche very well and has been in business for decades.
A club like that may not your cup of tea, but that is the whole point.
3 Ways to Save the Economy
Carl Schramm, President and CEO of the Kauffman Foundation (www.kauffman.org), stated “more than 70% of voters say the health of the economy depends on the success of entrepreneurs.”
I’m no economist. I’m certainly not a politician. But I am an entrepreneur. Most of you reading this are also entrepreneurs. To say that global economic recovery rests on our shoulders is both overwhelming and intimidating.
Businesses are closing, banks are tightening their credit policies and spending is down. It’s truly enough to dishearten even the most optimistic entrepreneur.
However, there is no time for optimism and no time for pessimism. Only time for action. “Many a false step was made by standing still,” states the fortune cookie.
So try these three actions with your business:
1) Focus on Current Customers: Be proactive with your client base to ensure they don’t drop you. Work with them by offering affordable solutions. This strategy is working well with another business I own.
2) Generate Additional Sources of Revenue: Dig deep to find more revenue sources. Value-add services, presentations and informational products can be inexpensive ways to increase cash flow.
3) Start a New Business: With a little hard work and a website you can launch a business. I have done just that: www.MoveYourBusinessToTheNextLevel.com. (Check out my site for more business tips.)
If so many voters hope entrepreneurs will right the ship, then there must be lot of passengers in need of products and services!
I’m no economist. I’m certainly not a politician. But I am an entrepreneur. Most of you reading this are also entrepreneurs. To say that global economic recovery rests on our shoulders is both overwhelming and intimidating.
Businesses are closing, banks are tightening their credit policies and spending is down. It’s truly enough to dishearten even the most optimistic entrepreneur.
However, there is no time for optimism and no time for pessimism. Only time for action. “Many a false step was made by standing still,” states the fortune cookie.
So try these three actions with your business:
1) Focus on Current Customers: Be proactive with your client base to ensure they don’t drop you. Work with them by offering affordable solutions. This strategy is working well with another business I own.
2) Generate Additional Sources of Revenue: Dig deep to find more revenue sources. Value-add services, presentations and informational products can be inexpensive ways to increase cash flow.
3) Start a New Business: With a little hard work and a website you can launch a business. I have done just that: www.MoveYourBusinessToTheNextLevel.com. (Check out my site for more business tips.)
If so many voters hope entrepreneurs will right the ship, then there must be lot of passengers in need of products and services!
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