Which Sign is More Effective?

For many small businesses, signage is one of the most important marketing channels. Yet too many businesses miss the mark with their signs.

A poor sign is overcrowded, lacks visibility or otherwise fails to move the reader to the next level of the sales funnel.

So what makes a good sign?

A good sign is both simple and memorable. To achieve this, start with the objective of the sign. What do you want the reader to understand? What action do you want them to take?

Now focus on that specific objective and make a simple yet memorable sign. Good signage communicates one simple message that can clearly be remembered.

Take these two signs for example. Located on a busy street less than one block from each other, both these signs offer the same deal.

So which is more effective?

Well, the only way to really know is to document traffic counts. You should track traffic with your own signs particularly if you have a storefront. Put up a sign one day and count the number of people that enter based on that sign. Put up a different message the next day and count again. Repeat this and optimize your messages over time. You may find that "2 for 1" draws more business than "Clearance" or something along those lines.

Without the ability to track these signs, I would argue that the second sign is better. Yes, it is crude, unprofessional and incorrectly written. Hardly what many brands want to communicate. But the message is loud and clear.

Simple and memorable.

Move your business to the next level with simple and memorable signage. Proffesionalism is nice as you want your signs aligned with your brand, but if your message is not simple and memorable your sign will miss the mark.

Marketing Metrics 101

If you still subscribe to the "50% of my marketing works but I'm not sure which 50%" axiom, it's time to move your business to the next level.

Marketing must be measured. Just like any investment of time, energy or money you need to know what level of return you can expect.

Sure marketing is both an art and a science, so you can't measure everything. But you have to start somewhere.

Here are some very simple metrics that you should track:

Response Rate: the number of responders divided by the number of recipients. This metric can be used for email, direct mail, calling and event campaigns. When measuring response rates, keep this number in the back of your pocket: 1% is the industry average for direct mail response rates.

Conversion Rate: the way to calculate conversion varies by industry but it is essentially the number of new, paying customers divided by total prospects. For example, let's say you email your database about a new product or service. Responders will just call you or email you back for more information. Conversions, on the other hand, are those that actually purchase.

Traffic: if you have a retail shop, measure how the amount of foot traffic for your center, your shop and even particular areas of your store. Test how traffic changes by varying your signage and in-store messages. If you don't have a retail presence, measure your web traffic and how that changes based on your marketing efforts.

Percentage of Repeat Purchases: how many of your customers are repeat business? This is a key metric to understand since it is more costly to sell to new customers than to sell to existing customers.

Sales: measuring sales goes without saying. You should always know your sales cycle and how that is impacted by controllable (marketing) and uncontrollable (weather) circumstances. Also be sure to measure sales against all marketing initiatives so you can track how an initiative impacts sales.

The above metrics are just the tip of the iceberg when it comes to measuring marketing, especially if your business is online. Really you should be able to measure every advancement of the Sales Funnel, from Stranger to Advocate.

Most importantly, be sure you track your metrics consistently and over periods of time. This allows for direct comparisons.

Finally, make sure the data you track becomes actionable. As always, think with the end in mind. Ask yourself what you would do with the data when the measuring is complete.

To move your business to the next level, the marketing you measure should ultimately enable you to allocate your resources in a more informed manner.

140 Characters: Not Just For Tweets

At first glance, 140 characters is extremely limiting. What can you possible say in 140 characters that delivers meaning and generates response?

A whole heck of a lot, that's what.

In fact, I encourage my clients to think like tweeters even if they are not using Twitter. Limiting your marketing message to the core basics will get you to think like a savvy marketer.

In the marketing world, less is more. The less you need to state, the more powerful the messages.

Just as Nike, Google, Jiffy Lube or any other business you can think of that communicates their core message briefly and succinctly. Efficiency is very effective.

Remember, a marketing message does not need to communicate anything and everything about the business. It simply needs to move the audience through the next level of the Sales Funnel and advance prospective consumers through the Buyer Decision-Making process.

So when you are creating your next marketing piece, think like a tweeter and truly limit your message. Dig down into the core of what you want your audience to do.

Communicate the essence--and nothing more--and you can move your business to the next level.

6 Levels of the Sales Funnel

Good marketers know that steering a potential customer towards a purchase takes considerable effort. Few purchase decisions happen after just one contact. In fact, it may take 10-12 marketing touchpoints to convert someone into a customer.

For this reason, it is crucial to understand the Sales Funnel. Perhaps just as important as the Buyer Decision-Making Model, the Sales Funnel demonstrates that a concerted effort is required to create a customer.

Since much has been documented about the Sales Funnel, I don't feel the need to go into great detail. However, it is important to understand Sales Funnel basics. Sales Funnel basics boils down to the six levels of the funnel outlined here:

1) Strangers: these are people that have no idea about your business. They represent the mass of potential Contacts that have no awareness and thus float around your Sales Funnel. The best Strangers are identified as your niche, or your target market.

2) Contacts: once awareness is established, Strangers become Contacts. They dip their toe in the funnel. You may know very little about them and they may know very little about you, but at least there is some awareness.

3) Leads: a Contact becomes a Lead once there is some exchange of contact information. The most successful way to convert a Contact into a Lead is via permission marketing. Permission marketing is when a Contact gives you permission to contact them. This can take many forms like web sign ups, emails or even personal calls or visits. The basic concept is that a Contact gives your their contact information and they seek some type of follow up.

4) Prospects: once a Lead has been contacted, they should be qualified. Qualified essentially means that they are either moving closer to the purchase or moving away from a purchase. Prospects are those that are moving closer to the purchase.

5) Customers: there are many ways to think about Customers. My tried and true definition of a Customer is one that pays for a product or service. Look at your database: the people that are paying you are your Customers. Treat Customers as gold because the ultimate goal of the Sales Funnel is to convert Strangers into Customers.

6) Advocates: Advocates are those that recommend your business to others. They might be the most important component to your Sales Funnel because they will fill your Sales Funnel for you. Most often Advocates are satisified Customers, but Advocates can come from just about any level of your Sales Funnel.

In all, it is important to recognize that your entire Sales Funnel requires investment, attention and much care. Successful businesses will invest in each and every level. Tending to one level at the expense of another is rarely a good idea. I've seen many businesses focus on Prospects or Customers alone and forget to fill the Sales Funnel with Contacts. Or vice versa: a business fills their funnel with Contacts but fails to convert them into Leads, Prospects or Customers. Either approach is a recipe for failure.

Focus on all levels of the Sales Funnel. Fill your funnel AND move people through your funnel at the same time.

I reommend the 80/20 Rule here: spend 80% of your efforts moving your Contacts through the Sales Funnel and spend 20% of your time filling your funnel with new Contacts. This formula should be part of your Marketing DNA and successful implementation will move your business to the next level.

What a Marketer Must Continually Ask

The first activity I generally do when giving a marketing workshop—particularly if the emphasis is on sales—is to review the Buyer Decision-Making Model.

It’s crucial that business owners and salespeople clearly grasp the consumer thought process during purchase decisions. Getting into the brain of the consumer is the key to successful selling.

In order to do that, a marketer or a salesperson must understand the six steps every consumer takes when deciding to buy. Here is a brief summary of the Buyer Decision-Making Model and the six steps:

1) Awareness: the consumer must have some awareness of your product or service. Without awareness, nothing more will happen.
2) Interest: awareness is the first step, but the real push towards a purchase comes when there is interest.
3) Understanding: the consumer must clearly comprehend how the product or service can fulfill needs.
4) Attitude: after understanding the product or service, the consumer will develop a positive or a negative attitude towards the offering.
5) Purchase: purchasing is predicated on the previous four steps. Note that the first four steps may take seconds to complete, but a purchase decision may take more time.
6) Repeat Purchase: create so much satisfaction that the consumer returns to buy again, or they recommend your product or service to others (which in turn creates awareness, interest, etc.)

In which step does a marketer most influence the buyer?

Each and every step.

Thus, the most important question a marketer should continually ask is if their marketing message, copy and collateral drive the target audience towards purchase and repeat purchase.

Strategically, this means that a marketer must understand in which step their target currently resides. Without awareness, a marketer must get the word out. If there is interest, the marketer must create understanding and shape attitudes. Each message must target the audience appropriately to move buyers to the next level.

Understand how to move buyers through their decision-making process and you will understand how to best market your product or service. This understanding alone will move your business to the next level.

4 No Cost Marketing Initiatives

Looking for ways to market your business on a limited budget?

You're not alone. An informal poll of my clients confirmed that most are looking for ways to market their businesses on the cheap.

I support this strategy. In fact, I recommend slashing your marketing budget and filling your sales funnel without spending on advertising.

There are many marketing initiatives that do not require a major financial committment. A lot can be accomplished with both time and energy.

Here are four ways to market your business at no, or little, financial cost:

1) Teach: to borrow a phrase from Brian Clark of Copyblogger, "teaching sells." Showcase your product or service. Host a presentation, seminar, conference call or a webinar. And do it for free. Show people what you can do. Magical things happen when you showcase your skills. Your sales funnel will fill up for you as you generate brand awareness and develop credibility.

2) Network: nowadays, there are many ways to network. There are leads groups, business associations, social networks and more. Some groups may cost money but there are many groups that you can join for free, particularly on-line. The key to successful networking is to give more than you receive. Dedicate quality time and energy to the network and the referrals you receive will grow exponentially.

3) Blog: a good blog takes commitment, but it is an excellent way to add value to your marketing. Even if you do not have many followers, the act of posting weekly entries about your product or service will force you to better communicate your key marketing messages. It's also an outstanding way to advance your target market through the sale funnel. Leads and prospects learn more about your product or service through a blog and thus take a step closer to becoming a customer.

4) Partner: this doesn't mean take on a business partner. Rather, partner with a resource that could potentially refer you consistent business. For example, a real estate agent might partner with an executive recruiter. Or a loan officer could partner with a bankruptcy lawyer. Maybe a restaurant partners with an event planner. The list is endless but requires some creative thinking on the part of the business owner.

There are other initiatives that produce an excellent return for little investment. Search-engine optimization, affiliate programs and other ways to leverage the power of the internet are areas to explore if they make sense for your business model.

That said, the four suggestions above are an excellent way to move your business to the next level without a lot of money.

In all--as long as you dedicate time and energy--there are many effective ways to market your business for no cost.

Marketing Motivates Action

When preparing marketing communication, be sure you can answer this question: what action do you want to your audience to take when they receive your marketing communication?

It's a simple question, but too often small business owners miss the mark on their marketing pieces. They forget that each marketing communcation must motivate some action. Each sign, ad, e-mail, web page, presentation, blog post, tweet or other marketing message should push its intended audience to do something.

The easiest way to think about how to use marketing to motivate action is to remember the sales funnel: contacts become prospects, prospects become leads, leads become customers, customers become advocates.

Each marketing communication needs to move your target through the sales funnel.

Here is one simple example:

1) Simple branding--like logos, signage or letterhead--should create awareness and generate more contacts.

2) A website, for example, might convert contacts into prospects with valuable content.

3) Prospects become leads once they complete an opt-in form on your website, or otherwise give you their follow up information.

4) Leads convert into customers with some strong sales calls using scripts.

5) And finally, customers become advocates after their experience with your product or service encourages them to tell others.

One thing is common in each step: the marketing is set up to encourage action. Each marketing communication motivates action to the next step.

To move your business to the next level--and to move your target market through the sales funnel--be sure that your marketing motivates action.

So next time you have to create some marketing--no matter what marketing you choose--ask yourself: does this piece encourage action and movement through the sales funnel in the best way possible?

The answer to that question may have you rethink how you communicate your message and how you market your small business.

Fill Your Sales Funnel With No Advertising

Many service professionals will remind you that “a referral is the highest compliment you can give me.” The reason this statement has become clichéd is that it heads the nail on the head. A business truly reaches success when its customers convert into advocates. Word-of-mouth is not only the least expensive form of advertising, it is also the most powerful.

In fact, the end goal to any marketing initiative should always be to get people talking about your product or service. There is no finish line to marketing; it’s a dynamic entity that continuously evolves. A marketer must test and learn to keep abreast of the changes and keep the product or service top-of-mind.

However, there is a finish line to advertising. The aim of advertising is to reach the point at which a business no longer needs to invest in advertising. At this point, customers become the marketers. No more expensive ads, campaigns or initiatives. Assuming the business can sustain the level of service that its customers promote, word-of-mouth now takes the driver’s seat and the road is wide open.

Here are five ways to ensure that word-of-mouth takes over your marketing:

1) Exceed Customer Expectations: you’ve probably heard this before. I certainly hope so. Customer service is by far the most effective and efficient marketing there is. Clients that are truly wowed will talk about it and others will want to share their experience.

2) Brand Yourself Consistently: the more people hear and see your consistent message, the more it will stick. If you’re message resonates well, and you back up your message with consistent service, word will spread.

3) Engage Your Customers: think long term for your customers, not just a quick sale. Engage them in your product or service. At a personal level, host special events for customers. Get customer input as to what type of customer appreciation they would enjoy. Imagine a customer appreciation event that the customers plan themselves! This same principle applies to non-personal interactions. Use your website or a blog to converse and share with customers on-line. Even your brochure should engage the customers. The longer a customer stays with you, the more they will buy.

4) Become an Expert: if you are the expert in a certain area, word will spread and your sales funnel will fill automatically.

5) Incent Your Customers: this is a short cut to word-of-mouth that many businesses pursue successfully. Consider referral programs or affiliate programs. This will require some investment because cash—either via refunds or direct payments—is the strongest motivator. However, there are programs or other ways to get your customers to refer business to you. Get creative, but find an easily implemented program that does not require significant maintenance. The simpler, the better.

The end goal of your advertising should be to create positive word-of-mouth. Your marketing efforts, no doubt, will continue to reinforce this. While marketing has no end, advertising certainly does. Imagine a world where word-of-mouth drives your marketing, and you sit along for the ride as customer after customer effortlessly fill into your sales funnel.