Let’s face it. All marketing is relationship marketing.
In fact, the term relationship marketing is a bit redundant. It’s like saying cleansing shampoo. Or lubricating motor oil.
Companies big and small must create relationships with customers to generate purchase activity and ensure a positive brand experience. All marketing must focus on developing and nurturing a relationship. All marketing is therefore relationship marketing.
So here are 7 ways to get the most out of your relationship marketing—er, I mean—marketing.
1) Think Long Term: it generally takes 12 customer touchpoints to close a sale. Focus on the long term and you will acquire more customers and you will hold onto customers longer.
2) Refer, Refer, Refer: the fastest way to build a customer base is to help other businesses build their customer base. Join a networking group and make it a point to find customers for other businesses. Return on this investment will exceed your wildest expectations and continually fill your sales funnel.
3) Give to Give: don’t give to get. Give to give. The Law of Attraction is powerful. Offer your services generously—dare I say, free?—and it will come back to you tenfold.
4) Build Your List: if you can develop a list of contacts that welcome your marketing messages, the hardest part of the battle is over. Once you have a captive audience, selling your products and services is surprisingly easy.
5) Leverage Different Communication Mediums: don’t rely on only one marketing channel. Relationships are built across a number of methods and people respond uniquely to different communications. At a minimum, incorporate a direct mail program, an e-mail program, events or personal appearances and personal phone calls. But explore channels beyond these like social media, sponsorships, article marketing and more. Think of it this way: one may as well be none but four or more is sure to score.
6) Outsource Everything Except Relationship Building: you can always hire people to perform the necessary activities to build and run a business. But don’t hire someone to build and run your relationships. Only you can do that best.
7) Don’t Worry About Scale: too many clients tell me that one-to-one relationship marketing takes too much time and growth is slow. My response to that: one-to-one becomes one-to-many when word spreads. Scale will come. Your network will build scale. Focus on each individual relationship and let your network do the rest.
Remember, the core of all marketing is the relationship your product, service or brand creates and nurtures with customers and prospects. All shampoo is cleansing, all motor oil is lubricating and all marketing is relationship building.
What Twitter Teaches That You Already Know
The Twitter buzz is still building. Clearly an excellent channel for affiliate and web marketing, Twitter is now a major marketing channel for more traditional companies and brands.
In fact, some of the most well-known brands are slated to present their strategies and success stories with social media at the upcoming BlogWell event. McDonald's, Ford, General Mills and other major corporations will share what has worked with Twitter, Facebook, del.icio.us, blogs and other on-line social platforms.
My prediction is that the ultimate conclusion of all of the presentations will be quite obvious. In fact, they will conclude what we already know. All of these major brands with their huge marketing budgets will state that they only way to succeed in these marketing channels is to provide value.
Sure there will be some cool presentations about good campaigns and how to drive traffic. But behind successful campaigns will be the underlying foundation of providing value. Value, love and buzz is the way to create brand awareness, regardless of the medium.
Andy Sernovitz is a marketing expert who focuses on word-of-mouth marketing. He touts that companies and brands must send out love into the social media atmosphere. Love, he says, will create brand advocates. Brand advocates, in turn, spread the word. Spread the word, build a fan base and the money follows.
This is the same "give to get" concept from Dale Carnegie in his book How to Win Friends and Influence People (which was first published in...wait for it...1936).
So don't get lost in the buzz behind the social media wave. And don't get overwhelmed. Just apply the value add principle that should be the basis of your Marketing DNA.
Lastly, don't be afraid. There is a lot to leverage with social media. But if you choose early on that your strategy is to give value and send out love, you are sure to gain followers and drive business.
After all, the media may be new but the message shouldn't change: it's all about value. But you already knew that.
In fact, some of the most well-known brands are slated to present their strategies and success stories with social media at the upcoming BlogWell event. McDonald's, Ford, General Mills and other major corporations will share what has worked with Twitter, Facebook, del.icio.us, blogs and other on-line social platforms.
My prediction is that the ultimate conclusion of all of the presentations will be quite obvious. In fact, they will conclude what we already know. All of these major brands with their huge marketing budgets will state that they only way to succeed in these marketing channels is to provide value.
Sure there will be some cool presentations about good campaigns and how to drive traffic. But behind successful campaigns will be the underlying foundation of providing value. Value, love and buzz is the way to create brand awareness, regardless of the medium.
Andy Sernovitz is a marketing expert who focuses on word-of-mouth marketing. He touts that companies and brands must send out love into the social media atmosphere. Love, he says, will create brand advocates. Brand advocates, in turn, spread the word. Spread the word, build a fan base and the money follows.
This is the same "give to get" concept from Dale Carnegie in his book How to Win Friends and Influence People (which was first published in...wait for it...1936).
So don't get lost in the buzz behind the social media wave. And don't get overwhelmed. Just apply the value add principle that should be the basis of your Marketing DNA.
Lastly, don't be afraid. There is a lot to leverage with social media. But if you choose early on that your strategy is to give value and send out love, you are sure to gain followers and drive business.
After all, the media may be new but the message shouldn't change: it's all about value. But you already knew that.
Dustin Hoffman = Expert Marketer
One of my favorite Hollywood stories involves Dustin Hoffman and Sir Laurence Olivier during the shooting of the international conspiracy thriller Marathon Man.
Apparently, Hoffman was preparing for a scene in which the character he portrayed hadn't slept for days. Ever the method actor, Hoffman deprived himself of sleep for a long period of time. He showed up to the set frazzled and tired.
Despite the obvious dedication to the role that Hoffman displayed, Olivier was surpised by his co-actor's methods. Olivier quickly deflated his counterpart's technique by blurting out, "why don't you just try acting!"
Olivier was the old guard of acting; Hoffman was shaking things up.
The fact that Hoffman shook things up does not make him an expert marketer. What really makes his approach special is the method he used to get into character.
Hoffman didn't just act. He put himself in his character's shoes, all the way down to sleep deprivation. He wanted to feel the pain and the confusion that sleep deprivation causes. He wanted to be as close to the role as possible.
You too should do the same. Take Hoffman's method acting and apply it to your customers. Put yourself in their shoes. Feel their pain and confusion. Live their world.
If you show up to the set knowing what your customers know and feeling what your customers feel, you will undoubtedly provide an award-winning performance (i.e. profit) that will create legions of fans (i.e. customers).
Apparently, Hoffman was preparing for a scene in which the character he portrayed hadn't slept for days. Ever the method actor, Hoffman deprived himself of sleep for a long period of time. He showed up to the set frazzled and tired.
Despite the obvious dedication to the role that Hoffman displayed, Olivier was surpised by his co-actor's methods. Olivier quickly deflated his counterpart's technique by blurting out, "why don't you just try acting!"
Olivier was the old guard of acting; Hoffman was shaking things up.
The fact that Hoffman shook things up does not make him an expert marketer. What really makes his approach special is the method he used to get into character.
Hoffman didn't just act. He put himself in his character's shoes, all the way down to sleep deprivation. He wanted to feel the pain and the confusion that sleep deprivation causes. He wanted to be as close to the role as possible.
You too should do the same. Take Hoffman's method acting and apply it to your customers. Put yourself in their shoes. Feel their pain and confusion. Live their world.
If you show up to the set knowing what your customers know and feeling what your customers feel, you will undoubtedly provide an award-winning performance (i.e. profit) that will create legions of fans (i.e. customers).
3 Most Important Words of Marketing
A restaurant's success is contigent upon location, location and location. A website's success is contingent upon traffic, traffic and traffic. But what about marketing?
The three most important words of marketing are perception, perception, perception. The perception of your brand, product or service is the number one determining factor between success and failure.
Recall that a business must create value. Value is the relationship between the perceived benefit and the price. We all know that a candy bar costs pennies to produce. Yet, we perceive that the taste and our satisfaction is equal to or greater than $1, so we purchase.
Similar story regarding rocks. Martin Lindstrom, author of buy-ology, likes to talk about value with regards to rocks.
Try and sell an old rock you pick up from the street. Very difficult. What if that same rock is actually a moon rock? Or a piece of the Berlin Wall? Or maybe even a diamond? All of a sudden, the perception of that rock has changed and the value has increased.
So what do you sell? Is it any old rock or is it a diamond?
Create powerful perception around your product or service. Use marketing to shape the perception and promote the value you provide.
The three most important words of marketing are perception, perception, perception. The perception of your brand, product or service is the number one determining factor between success and failure.
Recall that a business must create value. Value is the relationship between the perceived benefit and the price. We all know that a candy bar costs pennies to produce. Yet, we perceive that the taste and our satisfaction is equal to or greater than $1, so we purchase.
Similar story regarding rocks. Martin Lindstrom, author of buy-ology, likes to talk about value with regards to rocks.
Try and sell an old rock you pick up from the street. Very difficult. What if that same rock is actually a moon rock? Or a piece of the Berlin Wall? Or maybe even a diamond? All of a sudden, the perception of that rock has changed and the value has increased.
So what do you sell? Is it any old rock or is it a diamond?
Create powerful perception around your product or service. Use marketing to shape the perception and promote the value you provide.
Slash Your Marketing Budget
Slash your marketing budget. That’s right. Don’t just shave it. Cut it.
What? Cut your marketing budget? Isn’t that the last thing a marketing coach and consultant should recommend? Perhaps, but hear me out on this one.
Businesses, small and large, cut marketing expenses when things are tight. Nothing out of the ordinary.
In fact, it is something I hear from clients and prospective clients all the time. Just the other day, I initiated a conversation with a local surf shop owner and his exact words were “I can’t afford any marketing.” These words should come as no surprise.
The surprise, however, lies in my response. Most clients expect me to argue why they should increase their marketing expenses and invest in some initiatives. Instead, I floor them when I agree with their strategy.
You see, successful marketing—much like anything—requires a wise investment of resources.
Notice I say “resources” and not “money.” Marketing is more than throwing money at an ad or a website.
Marketing requires three resources: money, time and energy. If you cut out the money part, you still have to dedicate time and energy. So go ahead and cut the money part. Or significantly reduce it. Instead, focus your marketing investment on time and energy.
Get creative.
Think about marketing initiatives that do not require money. Partner with another local business to share resources, pay for event sponsorships in products or services, leverage social media to create some buzz. In other words, put the pocketbook away and instead spend time and energy to get your name out there.
After all, if you prescribe to the Seth Godin view that marketing is everything (which I do), you already invest significant time and energy into your marketing every day.
So do what most businesses are doing now and slash your marketing budget. Just be sure you compensate with more time and energy.
What? Cut your marketing budget? Isn’t that the last thing a marketing coach and consultant should recommend? Perhaps, but hear me out on this one.
Businesses, small and large, cut marketing expenses when things are tight. Nothing out of the ordinary.
In fact, it is something I hear from clients and prospective clients all the time. Just the other day, I initiated a conversation with a local surf shop owner and his exact words were “I can’t afford any marketing.” These words should come as no surprise.
The surprise, however, lies in my response. Most clients expect me to argue why they should increase their marketing expenses and invest in some initiatives. Instead, I floor them when I agree with their strategy.
You see, successful marketing—much like anything—requires a wise investment of resources.
Notice I say “resources” and not “money.” Marketing is more than throwing money at an ad or a website.
Marketing requires three resources: money, time and energy. If you cut out the money part, you still have to dedicate time and energy. So go ahead and cut the money part. Or significantly reduce it. Instead, focus your marketing investment on time and energy.
Get creative.
Think about marketing initiatives that do not require money. Partner with another local business to share resources, pay for event sponsorships in products or services, leverage social media to create some buzz. In other words, put the pocketbook away and instead spend time and energy to get your name out there.
After all, if you prescribe to the Seth Godin view that marketing is everything (which I do), you already invest significant time and energy into your marketing every day.
So do what most businesses are doing now and slash your marketing budget. Just be sure you compensate with more time and energy.
Marketing Survivor: What Do You Bring?
Forgive me, but I have never watched Survivor. However, I am familiar with the general platform.
What I understand is that contestants bring one item with them to an elimination event staged in the deep wilderness to help them “survive” the woods and the challenges.
This platform got me to thinking: what one thing would I bring on a marketing campaign? What essential item would I need to "survive" the marketing wilderness and its endless challenges?
The first thing I would be sure to have with me is a targeted list. Most successful marketing boils down to selecting the right market, the right target and the right niche. In fact, targeting the right niche should be part of your Marketing DNA.
The second thing I would want to have is a compelling offer. I wouldn’t leave home without an offer that would surely knock people over. The offer must attract attention and it must communicate tremendous value. Adding value is another key component to your Marketing DNA.
A compelling offer targeted to the right list is a recipe for a triumphant marketing victory.
Conversely, a marketing campaign without a specific target will fail and a marketing campaign without a remarkable offer will not produce the desired result.
If you are preparing for a marketing campaign, no matter how simple or how complex, ensure that you are packed with a targeted list and a valuable offer.
What I understand is that contestants bring one item with them to an elimination event staged in the deep wilderness to help them “survive” the woods and the challenges.
This platform got me to thinking: what one thing would I bring on a marketing campaign? What essential item would I need to "survive" the marketing wilderness and its endless challenges?
The first thing I would be sure to have with me is a targeted list. Most successful marketing boils down to selecting the right market, the right target and the right niche. In fact, targeting the right niche should be part of your Marketing DNA.
The second thing I would want to have is a compelling offer. I wouldn’t leave home without an offer that would surely knock people over. The offer must attract attention and it must communicate tremendous value. Adding value is another key component to your Marketing DNA.
A compelling offer targeted to the right list is a recipe for a triumphant marketing victory.
Conversely, a marketing campaign without a specific target will fail and a marketing campaign without a remarkable offer will not produce the desired result.
If you are preparing for a marketing campaign, no matter how simple or how complex, ensure that you are packed with a targeted list and a valuable offer.
Why Turn Away Paying Customers?
There is nothing more aggravating to me than a "cash only" business.
I see the rationale. I've been there as a business owner. Times are tough and dollars are tight. At the end of the month when preparing and reviewing financial statements, there is that "bank charge" that looms heavy for credit card processing.
"If I eliminate that expense," many business owners say, "my bottom line will improve."
Aaagghh! What these owners fail to realize is that this strategy will acutally shrink your bottom line!
You see, customers will buy more when they have a variety of payment options. "We only take cash" means "take your business somewhere else" for many consumers.
Just the other day, I walked out of three bakeries in a row because they did not take cash. And it worked out for me. Instead of $6 for a coffee and a pastry, I went to the grocery store and got a donut for $0.69. Three businesses missed out on my business. Moreover, I doubt I will go back even if I have cash just because my options as a consumer are limited!
Studies have shown again and again that the average check size increases when people use credit cards. In an internally circulated study several years ago, Yum! brands (Taco Bell, KFC, Pizza Hut, LJS, A&W, etc.) concluded that credit transactions boasted 30% greater average check size.
30% is more than enough to offset any credit card processing fees.
Make it easy for people to do business with you.
If you have to turn a paying customer away simply because you do not want to pay banks to process the credit cards, then your business has much deeper issues than its bottom line.
I see the rationale. I've been there as a business owner. Times are tough and dollars are tight. At the end of the month when preparing and reviewing financial statements, there is that "bank charge" that looms heavy for credit card processing.
"If I eliminate that expense," many business owners say, "my bottom line will improve."
Aaagghh! What these owners fail to realize is that this strategy will acutally shrink your bottom line!
You see, customers will buy more when they have a variety of payment options. "We only take cash" means "take your business somewhere else" for many consumers.
Just the other day, I walked out of three bakeries in a row because they did not take cash. And it worked out for me. Instead of $6 for a coffee and a pastry, I went to the grocery store and got a donut for $0.69. Three businesses missed out on my business. Moreover, I doubt I will go back even if I have cash just because my options as a consumer are limited!
Studies have shown again and again that the average check size increases when people use credit cards. In an internally circulated study several years ago, Yum! brands (Taco Bell, KFC, Pizza Hut, LJS, A&W, etc.) concluded that credit transactions boasted 30% greater average check size.
30% is more than enough to offset any credit card processing fees.
Make it easy for people to do business with you.
If you have to turn a paying customer away simply because you do not want to pay banks to process the credit cards, then your business has much deeper issues than its bottom line.
Catch the Big Mouth Syndrome
The Big Mouth Syndrome is a disease that is highly advantageous.
Those of us that suffer from the Big Mouth Syndrome have a hard time saying "no" to things. It seems that our big mouth frequently volunteers for things that we don't necessarily think through. A potentially dangerous situation, but one that I actually encourage.
Why? Because saying "yes" whenever you can is a terrific way to build relationships. Relationships, as noted previously, are the lifeblood of a small business. Cultivating relationships is the primary factor between long term success and failure.
Big Mouth Syndrome is most contagious with start up companies who are just getting some footing. But the syndrome is equally powerful when seeking new business or when navigating periods of unpredictable revenues.
Say "yes" whenever possible. If "yes" is not possible, tell the other party that you will think about it. Let the idea wade through your cranium and think what benefit might come from saying yes. If the benefit can be monetized, then plunge ahead. If there is another tangible benefit--like networking, reputation building, future business--then proceed.
If there is no perceived benefit, you've at least given it some consideration. Follow up with the other party and politely decline. This act in and of itself will help build relationships.
But your best bet is to find a way to "yes." The more you can get to "yes," the more relationships you will build. The more relationships you build, the deeper and wider your pool of prospects.
Today's economy requires creativity. "No" lacks vision and creativity. Embrace "yes" and your customers will embrace you.
Those of us that suffer from the Big Mouth Syndrome have a hard time saying "no" to things. It seems that our big mouth frequently volunteers for things that we don't necessarily think through. A potentially dangerous situation, but one that I actually encourage.
Why? Because saying "yes" whenever you can is a terrific way to build relationships. Relationships, as noted previously, are the lifeblood of a small business. Cultivating relationships is the primary factor between long term success and failure.
Big Mouth Syndrome is most contagious with start up companies who are just getting some footing. But the syndrome is equally powerful when seeking new business or when navigating periods of unpredictable revenues.
Say "yes" whenever possible. If "yes" is not possible, tell the other party that you will think about it. Let the idea wade through your cranium and think what benefit might come from saying yes. If the benefit can be monetized, then plunge ahead. If there is another tangible benefit--like networking, reputation building, future business--then proceed.
If there is no perceived benefit, you've at least given it some consideration. Follow up with the other party and politely decline. This act in and of itself will help build relationships.
But your best bet is to find a way to "yes." The more you can get to "yes," the more relationships you will build. The more relationships you build, the deeper and wider your pool of prospects.
Today's economy requires creativity. "No" lacks vision and creativity. Embrace "yes" and your customers will embrace you.
Millions of Dollars for an Obvious Conclusion
It’s called “branded entertainment” and it’s the new wave in marketing for major brands. Well-known brands--like Suave, Adobe, Corona and Verizon--are allocating massive marketing dollars to entice consumers to experience the brand.
Branded entertainment is more than just advertising. It involves providing various communication outlets for consumers to interact and follow a brand. It’s a website with puzzles, games and webisodes. There are multiple touchpoints like emails, text messages or postings on social media sites.
The objective is understandable: marketers want to create relationships with their consumers. Experts remind us that people don’t necessarily buy products or services, they buy relationships. Create a lasting bond with a brand, and the user will consume more content and more products.
A perfect example of branded entertainment was the web-scavenger hunt launched before the release of Batman: The Dark Knight. There were a series of on-line clues that led consumers from city to city. The campaign also offered free copies of a fictional Gotham Times to those people that sent in a picture of themselves as the Joker.
What baffles me about this whole thing is what the experts are claiming!
These experts get paid outrageous sums of money and their enlightened conclusion is that you need to build relationships to sell more? Isn’t this something we already know!
Small businesses have long understood that marketing is mostly about relationships. For a small business, every marketing touchpoint is an interaction with the consumer. More important, each touchpoint is real. No virtual reality with small businesses!
Relationship marketing is the foundation of any marketing plan. It should be the first component of the marketing plan for your business. It encompasses customer service, community outreach and the creation of a positive and lasting image of your brand.
In fact, it’s such a crucial subject that I intend to dedicate many more posts about relationship marketing.
For now, I simply smile when I realize that major corporations are investing tremendous marketing dollars with the same objective that I both pursue and recommend.
Sure, they may have million dollar budgets. Their agencies boast some of the most creative, artistic and intelligent people around. They employ data tracking software, customer segmentation models and statistical analysis.
But in the end, all those resources are dedicated to the same thing small businesses seek everyday: a platform to interact with a customer to ensure a positive experience and repeat purchases.
Maybe small businesses need to teach big businesses how to market.
Branded entertainment is more than just advertising. It involves providing various communication outlets for consumers to interact and follow a brand. It’s a website with puzzles, games and webisodes. There are multiple touchpoints like emails, text messages or postings on social media sites.
The objective is understandable: marketers want to create relationships with their consumers. Experts remind us that people don’t necessarily buy products or services, they buy relationships. Create a lasting bond with a brand, and the user will consume more content and more products.
A perfect example of branded entertainment was the web-scavenger hunt launched before the release of Batman: The Dark Knight. There were a series of on-line clues that led consumers from city to city. The campaign also offered free copies of a fictional Gotham Times to those people that sent in a picture of themselves as the Joker.
What baffles me about this whole thing is what the experts are claiming!
These experts get paid outrageous sums of money and their enlightened conclusion is that you need to build relationships to sell more? Isn’t this something we already know!
Small businesses have long understood that marketing is mostly about relationships. For a small business, every marketing touchpoint is an interaction with the consumer. More important, each touchpoint is real. No virtual reality with small businesses!
Relationship marketing is the foundation of any marketing plan. It should be the first component of the marketing plan for your business. It encompasses customer service, community outreach and the creation of a positive and lasting image of your brand.
In fact, it’s such a crucial subject that I intend to dedicate many more posts about relationship marketing.
For now, I simply smile when I realize that major corporations are investing tremendous marketing dollars with the same objective that I both pursue and recommend.
Sure, they may have million dollar budgets. Their agencies boast some of the most creative, artistic and intelligent people around. They employ data tracking software, customer segmentation models and statistical analysis.
But in the end, all those resources are dedicated to the same thing small businesses seek everyday: a platform to interact with a customer to ensure a positive experience and repeat purchases.
Maybe small businesses need to teach big businesses how to market.
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