Profitable Marketing Insight

An Inspiring Entrepreneur

2018-05-27T23:40:00.000-07:00

I get very excited about the success of innovative entrepreneurs. I recently heard about one and want to share his story with you. Bren Smith was a fisherman on the east coast of the United States. After cod stocks crashed, he found making a living from fishing increasingly in peril so he looked for a different way to work with the sea. He tried cultivating oysters on Long Island Sound, but hurricanes devastated his beds two years in a row. “He was on the verge of bankruptcy,” stated Charlie Yarish, a professor of marine biology at the University of Connecticut.

Dr. Yarish recommended to Bren that he plant beds of sugar kelp, a local seaweed that was planted after hurricane season was past, had a mild flavor, and was often used for animal feed and fertilizer. While several thousand varieties of seaweed exist, not all are edible. “Only twenty globally are actually farmed. Some are quite toxic,” noted Dr. Yarish.

That gave Bren an epiphany. “We can create jobs here from this. We can protect and improve the environment. We don’t have to choose between the two.”

He now operates one of the largest seaweed hatcheries in the United States. He has tanks full of developing kelp spores and a harvesting room heavily used in the spring when his team brings in the seaweed and processes it to sell. After blanching the seaweed in 170 degree water, the kelp turns a vivid green. Bren sells it fresh and frozen, sometimes in the form of noodles. His customers include Google cafeteria, Yale University, restaurants, and wholesalers. He has sold out his crop the last four years.

Bren didn’t stop there.

He has added additional crops to what he calls his “3D ocean farm.” “We call it that because we're using the entire water column,” he explains. “If you can stack crops on top of each other it's just really efficient. You don't use large plots of ocean. But you get so much food.”

Underneath the seaweed, he loaded baby mussels into netting. “Off those same lines we have scallops and below the whole system we have cages with oysters in them,” he adds.

Bren has turned from a fisherman to a farmer. He’s encouraging other fishermen to follow his lead. “We have to make a transition, that heartbreaking move, from being a hunter to a farmer,” he states, “but you get to own your boat, succeed or fail on your terms, and have the pride of feeding our country.”

He has extended the reach of his passion by starting a non-profit organization named Greenwave which helps others get into ocean farming. Those getting into the business learn on Bren’s farm, are helped in getting the permit for a plot of ocean to farm, and receive Bren’s personal supervision in the planting of their initial crop. Greenwave provides the seed and guarantees to purchase 80% of their harvests for the first two years. With an initial investment of ten to twenty thousand dollars and a boat, these new farmers can receive a small profit the first year and make up to one hundred thousand dollars annually later, according to Bren‘s projections.

One of Bren’s challenges is having the public eat more seaweed. A big hurdle in that effort is the negative connotation of the word “seaweed.” Chef and author Barton Seaver, who has released an entire book on seaweed recipes, recommends throwing out the name seaweed and calling the food sea greens. That equates the food with something healthy that consumers know and like. Seavor has incorporated sea greens into well-cooked recipes and promotes it as tasty and rich in calcium, iron, fiber, and anti-oxidants.

The potential for ocean farming to change the lives of fisherman and consumers has motivated Bren. “The oceans are a blank slate. For my generation, this is an exciting moment. I can farm and grow food, but I can also soak up carbon and nitrogen with the seaweed while creating jobs and giving people the opportunity to start small businesses.”

He can do all this while living his dream of working on the water. Bren is an inspiring entrepreneur.

This week's marketing trivia challenge is What inspiring entrepreneur story have you heard lately? E-mail me your answer.

A Real Customer Bonus

2018-05-21T10:09:00.000-07:00

Yesterday I attended one of the Spring Shred Days event hosted by Royal Credit Union, the financial institution with which I do business. During the hour and a half time frame of a Shred Day at a designated branch, each Royal Credit Union member and member of the general public has the opportunity to bring up to two file-size boxes of papers to shred. The papers are taken from the person and immediately placed in one of the trucks of a local shredding company to be professionally shredded.

Royal Credit Union does an excellent job promoting, preparing, and executing the event. Arriving forty-five minutes into yesterday’s event, I found a long line that kept increasing. Despite that, I moved through the process in ten minutes. The event was well-staffed, and those working were quick and knew precisely what to do. As the guy who helped me closed my car door I complimented, “You guys are doing an excellent job!”

“Thanks,” he replied. “We’re trying.”

As I drove away, I thought about how businesses are constantly searching for “extras” to give customers. In doing so, the business’s goals are to differentiate itself to the customer and strengthen its relationship with the customer by giving something customers do not receive at other businesses. Whether management knows it or not, many businesses offer expertise that their customers value. Some businesses give away items or food to achieve these goals. Most businesses end up giving a reduced price, thinking that means the most to their customers.

While customers want to save money, that’s not what strengthens a relationship with a business or differentiates a business in their minds. After all, price is something that any business can affect. However, not all businesses can give expert advice. Not all businesses take the time to be certain their customers are satisfied and had their problems solved. Not all businesses offer Shred Days.

Shred Days is a unique event because identity theft is a major concern these days. Shredding papers that contain identity information is a step in avoiding identity theft. For most people, taking the time to shred these papers or contact a professional shredding service is likely not going to happen. Just having to show up with your papers to be shredded is much easier. Royal Credit Union adds to that ease by offering Shred Days five different days at five different branch locations. In order not to interfere with normal business, the times are either before or after the day’s business hours.

The event strengthens Royal Credit Union’s relationship with its customers because its shows concern for customers’ identity through Shred Days. The organization makes it easy for customers to shred sensitive papers. Its staff handles the documents and hires the professional company to do the shredding. The business does something that no other business is offering, shredding, and it gives all of this for free.

That’s a real customer bonus.

This week's marketing trivia challenge is What real customer bonus have you encountered? E-mail me your answer.

A Major Concern

2018-02-21T21:22:00.000-08:00

On two separate days last week I took my two German Shepherds into emBark for a bath and nail trim. Heather, the owner and founder of the business, is a client of mine. As I drove away the second day, I realized that I wanted to share with you what I had encountered.

That day I had my young Shepherd who is almost two. Stephanie, who was to give him a bath, said, “I love Shepherds and have two of my own. My older one is four and the young one will be two in April.”

“So you know how long it takes a Shepherd to mature?” I quizzed.

“Oh, yes, my young guy is still quite a puppy,” she replied.

Our conversation was much longer, but I won’t bore you with all the details. I am giving you this excerpt to show how she and Alana, the second employee who was helping me get checked in, enjoy talking about dogs in general and, of course, their dogs in particular.

Their love of dogs showed in their interactions with mine. They treated them as they would treat their own dogs, with loving kindness. They gently encouraged the dog they were handling down the hall to the grooming room. They spoke to the dogs in positive tones.

When dealing with me, they asked questions to clarify exactly what I wanted them to do with each dog, how to reach me when the bath and nail trim were done, and how I wanted to pay for the service.

As I drove home with my dog the second day, I thought about one of my major concerns for entrepreneurs such as Heather who owns emBark. That concern is for the entrepreneur to make the transition from working in the business to working on the business. An indicator of this is the owner hiring and training staff that handle customers the same way the owner does. The staff are an extension of the owner’s enthusiasm for the business and its customers. In this case, that enthusiasm is for dogs and dog owners.

Her staff embody the business’s tag line, “Owning a dog is a journey…Are you ready to emBARK?”

Why is this so important?

A business’s staff are its most important marketing tool. They are the ones who ensure that what the business wants to achieve with its customers actually happens. If they do not deliver the product or service as the business owner intends, the business is not fulfilling its promise to customers, and that likely causes them to be unhappy. When they do deliver it, customers are happy, and the business thrives.

That reinforces the owner’s actions to work on the business rather than in it and to hire and train people in the manner that she has been doing.

Are you working on your business or in it? Have you hired and trained your staff to treat customers as you want them to be treated?

This week's marketing trivia challenge is What example do you have of how you are working on your business? E-mail me your answer.

Are You Listening?

2018-02-10T08:17:00.000-08:00

A week ago Tuesday my roommate was rushed to the hospital in an ambulance. After hours in emergency, she spent three days in critical care and three days in intermediate care. She is currently in rehab. During some very tense hours, I had several conversations with medical personnel, some of which were helpful and some frustrating. Reflecting upon these interactions, I was reminded of the importance of listening. I wanted to share my thoughts with you on the parts of the conversations that were not helpful and those that were positive.

The most frustrating and least helpful part of these conversations was too much talking at me. Instead of taking time to listen, these people just kept pushing and reiterating what they wanted to say. They were consumed with stating their points of view. They did not seem interested in hearing what I had to say. If I had the audacity to question what they said, they dismissed me. Their message that they were right and anything I had to say was wrong came through loud and clear. Talking to them was not a two-way communication; it was like talking to a wall.

They made me remember a quote from Zig Ziglar. “We have two ears and one mouth. We ought to use them in that ratio. We should listen twice as much as we talk.”

Those who did listen asked questions. They used the questions to clarify what I had asked, reflect back what I had said, and gather additional information. All of these moved our communications forward and truly created an exchange. I felt engaged, not isolated. They gained information that could help my roommate.

As a result of these exchanges, they showed genuine interest in helping her and in speaking with me to do so.

In the hurried pace of our lives, sometimes we don’t intend not to show interest. We just neglect to take time to listen and ask questions. We may not intend to frustrate our customers.

But we do.

Being the recipient of not being heard prompted me to think about listening. I was reminded how much we like and respect those who take the time to listen. I realized how differently the customer feels when he or she thinks that a complaint is heard. While you as a businessperson may not be able to change a situation for various reasons, the customer will likely accept the result more easily when you have a two-way communication.

Take time to listen to your customers. Don’t pretend to listen. Actually engage your customers by asking questions and showing genuine interest. If you have truly listened, after every interaction you will be able to state what you learned.

End your conversations by asking yourself, “What do I know now that I didn’t know before that conversation?”

This week's marketing trivia challenge is What example do you have of how listening built a customer relationship? E-mail me your answer.

How Does Your Business’s Web Site Measure Up?

2018-01-28T14:11:00.000-08:00

“We just uploaded a new Web site,” Dave said as I walked to the door. “Take a look at it and let me know what you think.”

“I will,” I replied.

“And this site,” he added, “we can change ourselves instead of needing to contact someone else to do it.”

“That is great!” I heartily approved.

When I returned to my office, I set aside a few minutes and eagerly opened Dave’s site. I was impressed. The site accomplished my top three criteria for a Web site. First, the site immediately communicated Dave’s business‘s unique selling proposition. Using attractive, appealing, and inviting images and text, the site showed the beauty of Dave’s facility. From the time you drive into the parking lot and with each step you take throughout the building and the gardens, Dave’s place vibrates magnificence. Every bit is meticulously groomed. Dave’s staff members are alert to keeping both the gardens and the building looking their best all day long. The photos on the site accurately reflect this attention to detail and the resulting loveliness of the place.

Second, the site is very easy to navigate. A visitor can quickly find information on the facility, the gardens, and holding an event at the place. Whether the visitor wants to have a wedding, banquet, or meeting, examples of each, the availability of amenities, and how to reserve the space are right at the visitor’s fingertips. That gives the visitor what he or she needs to make a decision.

Finally, every business owner ought to be able to update the site in-house. The only time someone outside the business needs to touch a site is when a major upgrade is being done. Otherwise someone who works in the business, understands it, and has daily contact with the owner and/or manager is the one to do the changes. That gives the business more control, the ability to act quickly, and the maximum use of the site.

I clearly saw that the site had been designed by an outsider looking in, thinking through what a visitor would want to know, and approaching the site from the viewpoint of a customer. Since Dave has always been extremely customer-focused, that did not surprise me. His business’s new site now also reflects that attitude.

How does your Web site measure up with these three criteria? Does it project your business’s unique selling proposition? Is it easy to navigate? Can you make changes to it in-house?

Have a customer look at it and answer the first two questions. Let me know the answers to all three. Take a look at Dave’s business’s site at thefloriangardens.com.

This week's marketing trivia challenge is How does your Web site measure up with these three criteria? E-mail me your answer.

Who Comes First?

2018-01-20T22:26:00.000-08:00

The other day I was at the service counter to mail a book for my publishing company. I had handed the person behind the counter my package, and she had placed the package on the scale to weigh it when the phone rang. She answered the phone and listened to why the person was calling. She did not tell that person that she was in the process of helping another customer.

She continued her conversation for a time. Suddenly she hurried over to the computer in front of me, grabbed a post-it-note, and hastily wrote down a credit card number with expiration date. She input the credit card number she had written into the computer with an amount of $4.29. She thanked the person on the phone, finished her conversation, and hung up. Then she turned back to me, apologized, and told me the situation.

The person on phone had gotten home with an item that didn’t get rung up and, thus, had not paid for it. She was calling to pay the $4.29 for the item.

I think the lady behind the service counter had become quite flustered when the person on the phone had stated that she had not paid for all her items and wanted to do so. All the store employee could think of was getting the money as quickly as possible. She acted as if the customer might hang up and not pay if the transaction was not handled quickly.

I became a secondary concern.

As I am certain you are thinking, the store employee made an error after she answered the phone. When she realized what she needed to do for the customer on the phone, she ought to have told the customer that she was helping another customer. She should have asked the customer on the phone to wait and returned to help me. She also could have asked me if I would mind if she handled the customer on the phone before she finished processing my package. Either way, she was discourteous to me by leaving me waiting while she handled the phone customer.

She also erred in writing down the credit card number and expiration date in front of me on a post-it-note. That number could have been copied by me or someone behind me. I did not see her rip up post-it-note when she was finished with it, either. Her exposure of a credit card number with an expiration date left the store liable with the credit card company had someone stolen that information. A error of that nature could cost the store a great deal. She would have been smarter to input the credit card number directly into the computer without writing it down.

Reviewing this situation, I thought that the store’s management needs to check on the training of their personnel at the service counter, partly for liability issues and mostly for customer attention. The service counter employee definitely made me feel that I was not the most important customer even though she was into processing my package when the phone rang.

How are your employees handling customers? Who comes first? Are they exposing your company to liability unnecessarily?

Check on this. See what errors are being made. Correct them through training to keep customers happy and reduce your company’s risk.

This week's marketing trivia challenge is Who comes first with your employees? E-mail me your answer.

It’s Not Business as Usual, Anymore

2018-01-13T12:00:00.002-08:00

In a recent conversation, a customer of mine was telling me about some bold moves she was considering in her business. “These moves would better serve my profitable customers,” she stated. “They would also give my staff the opportunity to give their full attention to my customers.”

“You know your customers,” I agreed. “You also know what you and your staff need to do to give them your best efforts.”

“Remember that conference I recently attended?” she asked.

“I do. How did that go?” I wondered.

“We had one session where we shared what we were doing that was working well,” she responded. “When I told them about the changes I had already made in my business, they were shocked. None of them could believe that those changes wouldn’t hurt my bottom line. When I told them that since making the changes I have consistently had double-digit increases in sales and a stronger bottom line, they didn‘t know what to say.”

“I’m not surprised,” I offered. “Most businesspeople have not identified their target market. They take the customers who come in the door and don’t seek out the profitable ones. They haven’t pinpointed their profitable customers, either. They’ve never created a marketing plan and, thus, do not use their marketing efforts to cultivate more business with customers who will bring them profitable revenue.”

“That certainly was true with them,” she said.

We operate our businesses in such a dynamic environment today that if you are conducting your business as you always have done without stopping to take a look at what’s happening with your profitable customers, your business is likely headed for trouble. To find out how your business fares, answer these questions:

Who are your profitable customers?
What percentage of your customers are profitable?
What do your profitable customers want?
What can you do to transact more business with them?

Today knowing and catering to your profitable customers makes the difference in a business’s profit. If you are not tailoring your business activity to your profitable customers, your business will lose profit. Your being out of touch with your profitable customers will negatively affect your revenue and may be the demise of your enterprise.

It’s not business as usual, anymore.

This week's marketing trivia challenge is Who are your profitable customers? E-mail me your answer.

“We Treat You Like Family”

2017-12-03T22:56:00.000-08:00

Lately I’ve noticed several businesses using some form of the tag line “We treat you like family.” This is a great example of Junk Food Marketing. With the idea that family is treasured, some businessperson thought it was a nice touch to say in the business’s marketing that customers are like family to that business. Always on the lookout for marketing ideas, some other businesspeople thought, Yeah, we feel that way, too, and promptly started using the a similar theme in their marketing.

That’s Junk Food Marketing: Copying another business’s marketing idea without putting it through the filter of your own marketing plan. Like 90% of businesses, these businesses do not have a marketing plan.

I know these businesses do not have a marketing plan because, if they did, management would have thought twice before using the phrase, “We treat you like family.”

Why do I say that? Think a minute. As much as you love your family, what kind of treatment do you receive from them? Do family members always show you their best side? Do family members always serve you their best meals? Do family members always wear their best attire to greet you?

I think not. We are not necessarily on our best behavior with family members. We are often not the best dressed in their presence. We don’t prepare holiday level meals every day for them. We are relaxed with family. We are at home. We are not at our best.

When I am transacting business with a company, I want the personnel to be at their best. I want them to treat me courteously. I want them to view me as a respected guest. I don’t want to be treated as family.

How do you want to be treated?

Better yet, how does your customer want to be treated?

Think about that before you offer a marketing message. Find out from your customer how he/she wants to be treated. Use that information in developing your marketing plan. Do create a marketing plan and use it. Do not practice Junk Food Marketing by copying another business’s marketing before you put it through the filter of your marketing plan.

Discover your own way to communicate how your company treats customers.

This week's marketing trivia challenge is What did you discover when you created your marketing plan? E-mail me your answer.

What You Call Something Affects Perception

2017-11-15T22:47:00.000-08:00

I read a story recently about the challenges staff at an animal shelter face in acquainting prospective adopters with the shelter’s dogs. I wanted to share the story with you because it offers a lesson in customer perception.

Shelter staff have found that people looking for a dog pigeonhole each one by determining its breed or breed background. Then they select the animal by the breed they want. However, mixed breeds are difficult to judge because which breed traits are dominant is unknown. Thus, breed information is truly not helpful in getting to know the mixed-breed dog. Shelter personnel have long recognized this situation and have been grappling with how to address it. “We have to get people to think about what they really want in a dog, what really fits with their lives instead of having them just walk in and say, ‘I want a golden retriever puppy,’” notes Stephen Bardy, executive direction of the Pet Alliance of Greater Orlando.

The Pet Alliance spanned this knowledge gap about the dogs by referencing Harry Potter and the four houses of Hogwarts. The organization set up four groups of dogs at this shelter. Dubbing it “Pawworts” Kennel, the staff assigned dogs to a group by the traits they expressed, including the toys they picked up and how they behaved in play groups. “Hufflepuff” dogs consider everyone a friend, wag their tails a great deal, and are excited to see you. “Gryffindor” dogs like to chase balls and fetch sticks. “Ravenclaw” dogs pick up tricks fast and enjoy puzzle-type toys. “Slytherin” are ambitious and fearless. Now each dog is described by its personality, not its breed. This new system “allows us to start talking about the dogs in a very different way,” says Bardy.

How is this working? Diane Anderson, a behaviorist who did most of the sorting, states that “though it’s too early to say whether it will impact adoption rates and trends, the feedback has been enthusiastic in the first couple of weeks.”

The result will be to better match people with a dog that has traits they really want rather than the ones people thought the dog had.

Similar to those looking for a pet at the shelter, customers form their perception of a product or service before they contact your business. These may have come from past experiences, word of mouth, or articles. Whatever the origin of their perceptions, your and your staff are wise to discover this and assess if the perception regarding what you offer is accurate.

You may want to take the customer out of her comfort level by re-labeling your products like the “Pawworts” shelter did with the dogs. When we as businesspeople shake that comfort level by offering something with which our customers are not familiar, we have a chance to engage, educate, and explain the difference of our product or service. With that, we create an opportunity to show how what we offer will bring customers what they want.

What perceptions do your customers have that limit your business with them? How can you change those perceptions? What can you re-label to address that?

This week's marketing trivia challenge is How have labels affected your customers‘ perception? E-mail me your answer.

What Creates Frustrating Customers?

2017-10-29T23:07:00.000-07:00

Customers can be frustrating. Depending upon your recent interactions with customers, you may be thinking, Can be? You might say, “Customers are frustrating!”

What often generates frustration with customers is satisfying their requests. They contact your business and state what they want. You and your staff give them what they want, and sometimes they aren’t happy. At times they complain about little things that aren’t quite right. You fix one of those complaints, and another pops up. Each one annoys you and your staff further until you do not want to have anything else to do with those customers. At that point, you are willing to do whatever it takes to get those customers off your back.

Your problem with these customers began when they first contacted your business.

“Tell me about it!” you say.

No, I’m not being sarcastic. When they told you what they wanted, you took them at their word and helped them get it. You didn’t ask questions to find out if they actually knew what they were talking about. In this day and age of customers researching online before they buy, customers contact us with what they want. However that doesn’t mean they know what they really need.

Today more than ever customers want to be educated. They want to understand. That’s why they research online. As businesspeople, we can help them immensely by giving them the benefit of our expertise, which only comes from experience. We know our products and services better than customers do. We know what has worked and not worked for other customers. We know information that they cannot find online or anywhere else.

How do you share your information with them?

Ask questions. Rather than fulfilling their requests immediately when they contact you, take time to ask them questions. Use these to clarify what they want. While they may think they know what they want, when you ask them questions you may discover that they want something else. What they really want may not be satisfied by what they think they want to buy.

If you find that to be the case, direct them to what will truly satisfy their wants. Tell them why you recommend it. Display your expertise and credibility in the process. They will respect you for it. They will appreciate your telling the truth and sharing your knowledge. They will discern that you have their interests in mind. As a result, your will sell them what they really want.

Best of all, you will create a truly satisfied customer and avoid future frustrations.

This week's marketing trivia challenge is What have you done to deal with frustrating customers? E-mail me your answer.

A Little Known Way to Increase Customer Interactivity

2017-10-07T21:13:00.000-07:00

Gene stopped me as I walked past him. “I’ll be a little late getting to the bus,” he began. “I’m waiting to talk to the manager about my waitress. She was just superb!”

“That’s wonderful,” I replied.

“Our dessert was so delicious that I asked her if she could bring me another,” he volunteered. “She didn’t just bring me one. She brought me two!”

I smiled broadly. “I’m glad you are taking the time to praise her to her boss. Don’t worry. We’ll hold the bus for you.”

As I continued toward the bus, I thought about how little it takes to make a customer happy. Since a couple of people had not been able to make the trip but had paid for the meal, I knew the restaurant had extra desserts. The waitress didn’t have to make more to fulfill Gene’s request. She had extras right at her fingertips.

The dessert was a very rich decadent small piece of brownie in a shooter glass topped by raspberry sauce and brandy whipped cream. While it may have been small, its impact on me had been filling. An hour later, I wondered how Gene felt.

This incident has stuck with me. I have been mulling over an additional lesson from it that I want to share with you. Giving employees feedback on their work, both positive and negative, is critical to having them understand their jobs and perform their work well. Since customers’ interactions are varied, teaching employees the parameters, understanding, and responsibility to handle customer requests on the spot is important. As shown by Gene, this immediate response can make or break the customer’s attitude toward the experience at that restaurant. What would Gene have thought if the waitress had politely said, “I’m sorry, sir; I cannot do that.”

At the very least he would have been disappointed. He certainly would not have been praising the experience. He may even have complained to the manager.

Some days do you feel that all you hear are complaints? How do you get the customers who have positive experiences to praise employees to their faces and to yours? How do you stimulate more customers to have Gene’s reaction? How do you increase customers’ interactions with your employees that leave a lasting impression on both the employees and the customers?

Encourage customers to praise employees. Make it a priority. Print this encouragement on materials that go on the table, doors, and bathroom stalls. Create buttons for all personnel that prompt customers to praise employees. Celebrate the stories of customer praising in your staff meetings, at the entrance of your business, and on your Web site. Show that interactivity with your customers and that their praise is important to your organization.

This week's marketing trivia challenge is How have you celebrated customer praise? E-mail me your answer.

The Lesson in Best Buy’s New Service

2017-09-04T23:24:00.001-07:00

In reaction to increasing competition online, Best Buy is kicking off a new service this month. Designed to unlock latent consumer demand, the service features Best Buy personnel meeting with customers in their homes to answer their questions, assess their situations, and recommend what devices and technology fit their lifestyles. “This is Best Buy looking at a long-term user-based strategy rather than a one-off, shopper-based strategy,” stated Carol Spiecherman, an expert on retail and brand positioning. “Something like this is truly solving a need vs. attempting to come up with shiny objects that will appeal to an emerging generation.”

Jeff Shelman, Best Buy spokesman, further clarified the firm’s positions. “We know that consumers love technology but frequently need help getting the most out of it. We feel uniquely positioned to serve consumers by offering products, services, and support wherever the customer wants it, including our 1,000 stores, on BestBuy.com, and in homes millions of times a year.”

In researching what Best Buy can do to better compete with online stores such as Amazon, company personnel discovered two important factors. Shoppers are spending more time at home than in stores, and they are uncertain as to how to use emerging technology. From this information, management decided to roll out this new service.

Best Buy has tested this service in five markets, assigning it different names to check on different target markets. In the Twin Cities, the service was called Assured Living and aimed at assisting adult children in setting up technology in the homes of their aging parents. The monitors and devices they had installed in their parents’ homes allowed them to keep track of their parents. The intent was to keep their parents’ independent and provide peace of mind to the children.

The national roll out of the new service is not so narrowly focused. With it, Best Buy is offering in-home consultation to anyone who walks into the company’s stores and talks to a sales associate about the store’s products. The associates are now trained to suggest an in-home visit to customers. The person doing the visit will be a sales associate who is not paid by the results of the visit but by the hour. While Best Buy is promoting this service as a way to help customers, skeptics are concerned that these consultations will encourage customers to buy unnecessary products.

If Best Buy management is wise, that will not be the result. However, one aspect of this service points to that happening. The service is free. Now you may think, Isn’t free a good idea? That’s a way to help customers and get them to purchase what they need. It’s also a way to differentiate Best Buy from online competitors who cannot from a distance have that person-to-person contact. It’s a showcase of Best Buy personnel’s expertise, an extension of the Geek Squad.

While that may all be true, here’s the challenge. Unlike the Geek Squad whose work can be directly assigned to the revenue generated, these “free” consultations will not be directly assigned to revenue. The sales associates performing the consultations will be taken off the floor to visit homes. In doing so, they will not be able to cover the floor. That means additional personnel will need to be hired to cover those floor hours. This could increase floor payroll substantially. If these visits do not result in corresponding revenue gains, management will deem the visits too expensive and likely discontinue them.

Unfortunately, Best Buy management discovered an opportunity and acted on it without thinking it through. That may herald the demise of the new service. Had they thought it through, they would have realized that customers who want assistance with technology would pay for these visits. Rather than treat these visits as come-ons for more business, management would have seen them as new streams of revenue. Instead they may disappear because they either will not generate enough revenue to support the additional payroll, or they will push unnecessary product onto customers and further deteriorate the Best Buy brand.

When you find an opportunity for more revenue, think it through before implementing it. Look at it from all angles. Get input from your customers. Consider how it can generate revenue. Will customers pay for it? Give it the best chance to be successful.

This week's marketing trivia challenge is How did you think through a new opportunity? E-mail me your answer.

Never Use This Phrase in Your Marketing

2017-08-20T16:32:00.000-07:00

I very seldom use the word never, but I am using it today because I feel so strongly about this phrase. After hearing it this morning, I was prompted to write about it today. The phrase is “We have everything you need.” You may have heard other versions such as “For all your (fill-in-the-blank) needs,” “The only store you need,” or “Your one stop shop for (fill-in-the-blank).” Any version has the same impact.

None.

I understand why businesspeople use these words. They want to communicate that their business has an extensive selection, and, therefore, the customer can find “everything” at their stores. They want customers to shop only their stores and think that making this statement will help accomplish that goal.

In truth, they are just wasting words. The word everything indicates too much. What store has everything? That is not possible and, thus, unbelievable. Everything is also vague and general. Everything of what? Oh, that’s right. Everything I need. How does that store know what I need to say nothing of everything that I need? Again, that is unbelievable. I don’t even know everything I need. If I hear of something new tomorrow, I may feel that now I need that item. Yesterday, I didn’t think that I needed it. I didn’t even know it existed. How did the store’s management know?

Did the store’s management add the item to the store’s stock because of me?

Of course not.

Actually, what the store’s management did in using the phrase is lose an opportunity. They used meaningless words, “Everything you need,” instead of specific words that tell customers exactly what they can find at the store. All target markets have particular items that attract them. Citing those items communicates clearly to customers that the store has what they want. They get the message and react positively to it.

Meaningless words do not get a reaction. They do not encourage customers to frequent the store. They also indicate that management has not thought through the message that they want to convey to get customers into the store. Instead of identifying the store’s market and thinking through what the store offers that market, management is merely throwing out some words to create an ad.

Management is not placing value on the words employed in communications with customers. I call these $100 words. However, these words may be worth much more than $100 because of the revenue they generate. Specific words in a message prompt customers to contact the business. These words are priceless.

Seek them out and use them wisely.

This week's marketing trivia challenge is What specific words have helped you generate revenue? E-mail me your answer.

A Cautionary Tale

2017-08-12T11:27:00.001-07:00

A couple weeks ago I wrote about a regional grocery chain that had expanded rapidly and was exhibiting empty shelves. Sadly, the chain is falling apart. Several stores have been closed with hours’ notice. A couple have been sold to another regional chain. Every week more stores are dropping from the chain.

Of course, that is very bad for the chain in many ways. One way is the vicious cycle of the announcements of closings. These further discourage customers from shopping the remaining stores and subsequently weaken the rest, whether they are healthy or not. How this cycle ends is unknown. Interestingly, the chain started from the success of one local store.

That success grew from the efforts of the founder. Likely, he ran the store by the seat of his pants. He followed changes that were happening in the industry and implemented them, probably after they had been proven effective by other stores. He is a nice man and a strong part of his community, which endeared him to the residents and prompted their patronage. His efforts worked for his business in a less competitive environment.

Just like most small businesses, I suspect that he never had a written marketing plan. If one had been suggested to him, he probably would have said, “Why do I need one? My store is doing fine.”

What he didn’t know was the revenue a marketing plan would have generated.

He also didn’t realize that the lack of a marketing plan was a weakness. Evidently, his sons thought the same way when they rapidly expanded the business into a regional chain. Like their father and countless other small business people, they didn’t understand that planning is the most important function of management. It requires 90% of management’s efforts and is the foundation of the other functions of management, organizing, leading, and controlling.

Think about it. How can you organize anything within your organization if you are not following a plan? How can you lead your organization if you do not know where your organization is going? How can you control any facet of your organization if you haven’t set a basis for where your organization ought to be via a plan?

A marketing plan uncovers weaknesses in reaching your objectives. It helps you think through what you want to accomplish. It identifies your customers. It defines what you offer. It reveals what you will have to do to make the product or service available to the customers you seek in order to attain your objectives.

The failure of this chain’s expansion loudly proclaims the a lack of a marketing plan. Had managers completed a written marketing plan, they would not have expanded more quickly than they could handle. They would not be closing stores now. They would not have severely damaged the good name of their brand. They would not be under the threat of the business’s complete demise.

Please learn a valuable lesson from this company. Take the time to think through and write down a marketing plan. Follow it. Check it regularly to stay on track. Update it at least annually.

Do it for the health of your business.

This week's marketing trivia challenge is How has a written marketing plan helped your business? E-mail me your answer.

The Dangers of Change

2017-08-06T13:24:00.003-07:00

I had an experience recently that reminded me of the dangers of change. Months ago, I booked a cruise and meal for a tour group. I wanted to reserve the date and solidify the cost so that I could include it in a booklet which was sent to prospects for the event. In discussing the event with the representative from the cruise, we estimated the number of participants with the stipulation that I could adjust the number closer to the date. After the representative from the cruise company gave me the quote, I added a couple dollars more to the price just in case it went up when we got closer.

Three weeks before the event, I was contacted by a different representative than the one with whom I had been working. She sent an e-mail stating the balance due and wondering when it would be sent. We had not yet finalized the count. Thus, the bill was not final. I called the second representative and asked what happened to the first one. “She left,” the representative replied.

I started to tell her that we needed to finalize the count and that once I had that count we could determine the final amount, but she cut me off. “I’m new and don’t know what to do so I’m turning you over to one of the owners,” she declared.

I reviewed the situation with him, and he said that he would send me a new invoice based on my current count. The invoice he sent me was seven dollars more per person than the original agreement, four dollars more than I had charged. The additional amount he had added was a service charge that had not been on the original quote.

I called him back and said that I did not want to short him, but I had only the money I had collected to pay him. I offered him a couple of options of what I could do to make up as much of the difference as possible. One option was that I could ask every participant to give a tip of at least four dollars. The other was that, once I reached the number of participants to pay for the bus, I could give the bus fee for each of the additional participants to the cruise along with their cruise fee. He did not tell me which option to exercise but that he would work with me.

I was partially relieved but determined to get as many additional participants as possible. I added twelve. I sent the co-owner a couple of e-mails asking which option he wanted and never received a reply. The new representative sent me a couple more e-mails asking for the balance due. My responses to her were to talk to the co-owner.

Our bus was delayed about five minutes in arriving at the dock to board the boat. When we were about a block away, my cell rang. In a interrogating tone, the new representative stated, “You booked a cruise today, and you are not at the boat.”

“We are a block away,” I said.

Once we were aboard, the boat had to wait about fifteen minutes to depart because the two vegetarian meals the co-owner had assured me we would have had not been sent. While this didn’t bother my group, I found it interesting.

When our cruise was almost finished, I offered the person in charge a check for the amount that I had available from the second option. “Does that take care of your bill?” she wondered.

“I have no idea,” I replied and told her the story.

The next day I received an invoice with a zero balance.

I’m sharing this lengthy example with you because as I mulled it over I realized the lessons in it. Every time a person who has been dealing with customers leaves, the company is in danger from the change. The danger involves misunderstanding and miscommunication between the new and/or other staff and the customer. This risks business with that customer and may affect business with other customers, too, either because of the change or bad word-of-mouth. I have read that a company losses thousands of dollars with each turnover of a salesperson.

How do you ensure a smooth transition with minimal loss of customer relationships and revenue?

I have experienced being assigned a customer as a new salesperson and not knowing the situation, and I have suggestions on how to continue a relationship instead of causing problems.

First, talk to the customer to find out about current or recent transactions. Talk, don’t text or e-mail. Your initial contact needs to be a two-way conversation so that you can understand the situation.

Second, during that conversation, ask questions to understand. Before the conversation, make a list of questions. That helps you to stay on track and cover what you want to know.

Third, during the conversation, listen actively. As you hear the customer tell you what he/she wants, clarify by asking the questions that come to mind. Get a thorough picture of what needs to be done.

Fourth, once you find out what needs to be done, do it and do it promptly. Wow the customer with your quick response. If nothing needs to be done immediately, send a handwritten thank you. Follow this step, and you will make a lasting positive impression. Take every action you can to set up a positive relationship from the start. Don’t be “Just the facts, ma’m.” Do not send an invoice out of the blue and ask when payment will be sent.

Fifth, as an owner or manager, don’t put handling the situation on your back. Train your new person to do it. You have your own duties and responsibilities. Taking on others’ jobs will likely lead to problems. You may not respond to e-mails as you intended. You may not communicate that vegetarian dishes were promised. You may leave the customer quite unhappy, and that may not have been your intent.

Sixth, send e-mails that clearly come from you at your company. Do not send an e-mail from “Events” or an unknown person. The customer may not open the e-mail because he/she does not recognize the sender.

Follow these steps and your customer relationships and revenue will not suffer from the dangers of change.

This week's marketing trivia challenge is How have you handled the dangers of change successfully? E-mail me your answer

Vicious Cycle

2017-07-22T23:33:00.002-07:00

Six months ago a grocery store near my home changed hands. The company that acquired it is a local chain that has been adding many locations in the last couple of years. At first, the acquiring company redid the interior, opening up the space by taking down dividers, adding refrigerated frozen food units, and expanding the liquor department with a second access from inside the store. From a consumer’s perspective, these changes looked positive.

When a store is being re-merchandised, having bare shelves for a few days is normal. Deliveries may not arrive on time. The construction and reset of shelving may not happen on schedule. Orders may not be processed in the anticipated time frame. Consumers tolerate these bare shelves as par for the course in store resets.

However, the bare shelves at this store have not been filled. In fact, more and more shelves are completely bare or have a single item facing on the edge of a deep shelf. The magazine holders by the checkouts are completely empty. The last time I shopped at the store I mumbled to myself, If I didn’t know better, I’d think this store was going out of business.

Then I thought, How do I know it is not?

I based my assumption that the store is not going out of business on the recent acquisition of the location and all the time and money invested in the reset. Management usually does not risk more money if it is uncertain as to the store’s status. I also noted that the dated items including produce, bakery, meats, and dairy are all fresh. The bare shelves house non-perishables such as groceries and liquor.

I’d read an article in the paper that the company had a dispute with a vendor. In the course of doing business, that can happen to any company. Thus, I didn’t know if that was an isolated incident or indicated a more pervasive problem.

From a marketing vantage point, continuous and increasingly bare shelves do not look good to consumers. They made me feel that I could not find what I wanted, whether that was true or not. I felt that I was missing something. I also felt that I would have used my time more wisely shopping elsewhere.

I’m not the only one with those thoughts. On at least two occasions, others have commented, “I heard that store’s going out of business.”

To which I responded, “I don’t think so. It just changed hands.”

The reality is that I don’t know. I just don’t think so.

Store management has not said that the store is closing. Management has said nothing. That silence has created a vacuum that is leading to speculation on the part of consumers. Since the bare shelves look like a store that is closing, consumers have come to that conclusion and are spreading it around via word of mouth. As we know, word of mouth is powerful marketing, whether it is good or bad for the business.

When a business has a problem, it needs to be addressed. While problems happen that management cannot control, management can control communication with customers, and customers want to know what is going on. They want the truth. If they don’t get it, they will create their own explanations and spread them around via word of mouth. The result will impact the business negatively and create a vicious cycle of customers going elsewhere. Doing that could weaken the business enough to cause it to close.

If you have a situation at your business that affects your customers negatively, tell them the truth. Do it as soon as possible.

This week's marketing trivia challenge is What situation have your explained to your customers?
E-mail me your answer.

No, You Don’t Have to Advertise

2017-07-08T10:33:00.000-07:00

“You have to advertise!” an advertising salesperson exclaimed.

“No, I don’t,” my client replied.

She was right.

Businesspeople do not need to advertise. They need to market. If they have not created a marketing plan, advertising is likely not productive. The marketing plan details their objectives, targets their market, and prepares the company for the business advertising is intended to stimulate.

The marketing plan is the foundation and structure of the business’ marketing. Advertising is the paint job. To use another analogy, marketing is the cake while advertising is the sprinkles, chips, nuts, or coconut atop the cake. A paint job or cake toppings are optional. Similarly, a marketing plan may or may not indicate the use of advertising.

The advertising salesperson expressed, “You need to advertise!” in desperation. Sadly, some businesspeople respond to that line by thinking, Yeah, I do, and I don’t know what to buy. Oh, well, maybe this will work.

Then they buy the advertising. They have no plan as to how to use it, what to expect, or what preparations to make in running it. All this leads to a lack of follow through and disappointment. The end result is frustration for the businessperson and the advertising salesperson. The businessperson doesn’t understand why advertising doesn’t work, and the salesperson doesn’t understand why the businessperson doesn’t make the most out of the advertising.

Laying out a marketing plan reveals the opportunities for advertising. It indicates where advertising money is best spent. It sets up the best potential to maximize profitable results.

My client didn’t need that advertising because she knows her objectives, has targeted her market, and knows what business she wants to stimulate. That advertising would not have helped her with any of those.

It wasn’t the paint job or the sprinkles she wanted.

This week's marketing trivia challenge is What advertising have you turned down and why? E-mail me your answer.

Check out my book Mistakes I Made Buying Advertising here.

Are You Drifting Away?

2017-06-06T13:47:00.000-07:00

A couple of weeks ago I heard a presentation about how Andrew Carnegie set up the Carnegie Library system and how many of the libraries survived. As I listened, I realized the story of Carnegie’s philanthropy offered a lesson for all business people.

Frequently called the “Patron Saint of Libraries,” Carnegie built 2,509 libraries in the late 19th and early 20th centuries worldwide with 1,679 in the United States.

Why did he spend $55 million on these buildings?

He had two reasons. He thought that in America anyone with access to books and the drive to learn could teach himself and be successful because of what he had learned. He also wanted to help fellow immigrants get the knowledge of the American culture that they needed to survive. He felt libraries offered the opportunity to address both of these situations.

Since Carnegie had arrived in America without an education, he stated that the first reason meant the most. Growing up in Pittsburgh, he did not have time to attend school since he worked long hours every day. He was very appreciative of Colonel Anderson, a retired merchant, who loaned books from his library to local boys.

Andrew took advantage of that opportunity and later cited the Colonel’s generosity as inspiring Canegie’s. “This is but a slight tribute and gives only a faint idea of the depth of gratitude which I feel for what he did for me and my companions. It was from my own early experience that I decided there was no use to which money could be applied so productive of good to boys and girls who have good within them and ability and ambition to develop it, as the founding of a public library in a community.

“Whatever agencies for good may rise or fall in the future, it seems certain that the Free Library is destined to stand and become a never-ceasing foundation of good to all the inhabitants.”

After achieving substantial wealth, Carnegie decided to offer communities across America that he would build each a library. His proposition was that he would design, pay for, and oversee the construction of the building, which was 90% of the project. He wisely stipulated that the community had to contribute the books, staff, and management of the facility, which was equal to 10% of the project.

At first glance, his plan seemed sound and generous. He gave 90% but assured the community’s interest by making it agree to give 10%, which included the all important books. That way, the community retained control of book selection, staff, and management. Carnegie put his stamp on the building with unique, stunning architectural designs and his name somewhere above the door.

Over time, however, the flaw in his plan has been revealed. While the communities met the initial contribution, maintaining the library over the long run proved challenging. As city governments were pressured with shrinking budgets and demands from other projects, setting aside monies for the library grew increasingly difficult. For half of the communities, this was too much, and the library was closed.

You might be thinking, times change. Libraries change. Carnegie could not have expected the libraries to continue forever. Perhaps he did. After all, he also established a foundation that is still well-run, well-funded, and going strong. Why wouldn’t he expect the libraries to do the same?

His error with the libraries was not thinking ahead and addressing the pitfalls of scarce funding. He changed his objective from offering materials for learning to building beautiful buildings with his name prominently displayed on them. To accomplish his original objective, he could have spent less on the construction and set up a small foundation with each building that would ensure the library’s future funding.

I know from experience that drifting away from your original objective happens. That is why you write down your objectives and read them weekly to check that you are on track.

This week's marketing trivia challenge is How often do you check your written objectives? E-mail me your answer.

What Is the Backbone of Your Marketing?

2017-05-21T22:09:00.000-07:00

A year ago I was impressed when I heard a story about Chobani setting up a program that gives 10% of the equity of the company to employees if the company goes public. That would make those who have worked for the company since its inception instant millionaires. That level of generosity is astounding, I thought.

Recently, I read a lengthy story about Hamdi Ulukaya, Chobani’s founder, and learned more about him and his company. I love his attitude about business, his drive, and his marketing. Most of all, I respect his view of his employees as vital to his company, and I want to share some of what I’ve learned with you.

In 1991 Hamdi enrolled in Ankara University’s prestigious Faculty of Political Science at Long Island, New York. He had grown up in eastern Turkey, working with his family raising sheep and goats and making Tulum cheese. At the age of eleven, he went to boarding school. What he learned there helped him earn high marks on a college entrance exam which gained his acceptance into the Ankara University.

As often happens, a seemingly unimportant assignment from his English teacher changed his life. He was to write on a subject he knew well, and his choice was making cheese. “You can make cheese?” his teacher inquired.

She had a farm in upstate New York and invited Hamdi to her farm to give her a lesson in cheese making. He recalls, “I didn’t know America had farms.”

The area reminded Hamdi of home. He fell in love with it and decided to stay, convincing his teacher to give him a regular job on her farm milking cows and shoveling manure and switching his enrollment to a nearly school. A few years later one of his brothers joined him and his father came for a visit. His father was not happy with the feta cheese in America and recommended his sons import the family cheese to the United States. They investigated that idea and discovered it was not feasible. Instead, they started their own feta cheese company which they built into a successful business in a couple of years.

One evening Hamdi was going through the junk mail on this desk and tossed a flyer from a real estate company advertising a “fully equipped yogurt plant for sale.” He mulled that over a few minutes, dug the flyer out of the garbage, and called the real estate company. He found out the price was $700,000 and thought that was a mistake. “I thought they had left a zero off,” he admits.

The next day he went to see the factory, which was in the process of shutting down. Kraft had built the factory in 1920 to produce Philadelphia cream cheese and in the 1980’s refitted the plant to make Breyers yogurt. The 55 employees at the plant were facing the loss of their jobs, and Hamdi noted that “the feeling was like somebody died.”

Hamdi had never liked the thin yogurts in America so he made his own thick yogurt like what had loved back in Turkey. Thinking about the situation, he wondered if he could turn that style of yogurt into a profitable business. Six months later he had bought the plant with an SBA loan and rehired a few of the employees. He wanted his business to be different. He insisted on placing his product in the dairy case with familiar American brands instead of the organic specialty section. He packaged the yogurt in tubs rather than tall cups and printed brightly colored sleeves that could be applied to the tubs at the factory.

Yet, his employees were the backbone of Hamdi’s marketing. Initially and consistently, they helped him produce and deliver an excellent product. The first order, a trial purchase of 150 cases by a kosher grocery store, took Hamdi and his small staff twelve hours straight to fill. For the next few years, they maintained a frantic pace, pulling all-nighters to complete orders and taking naps before starting the next one. Hamdi recalls, “For five years, I don’t remember anything I did-day or night-that wasn’t related to yogurt.”

Richard Lake, the lead product manager, gives Hamdi credit for keeping it all going. “He always had a vision of where he wants it to go. We just figure out a way and make it happen.”

Indeed they did. The number of employees grew from 30 in 2008 to 600 by 2012, putting out up to two million cases of yogurt per week and selling one billion dollars in product by 2012. In addition to tremendous expansion at the first plant, Chobani added a new second plant in Twin Falls, Idaho, to address the west coast market.

Through it all, Hamdi has rewarded his employees with above-average wages. He recently added a family leave policy that offers any new parent, including foster and adoptive parents, full pay. He regularly focuses on cultivating a spirit of warmth and enthusiasm in his plants. While most people wouldn’t associate that atmosphere with a factory, how his staff is treated and feels are of paramount importance to Hamdi.

He understands that marketing revolves around people and communication between them, which are marketing’s challenges and frustrations. These people aren’t just your customers outside the company. They are also your customers inside the company, your employees. The constant challenge is to keep them focused and happy so that they deliver your product or service in the same consistent, excellent manner.

Remember, the vital role your internal customers, your employees, play in the success of your business. Like Hamdi, make them the backbone of your marketing.

This week's marketing trivia challenge is How can you do that? E-mail me your answer.

The Secret to Change

2017-05-13T13:31:00.003-07:00

I was astonished a couple weeks ago when I heard that some of the farmers in Wisconsin would no longer be able to sell their milk to Grassland Cooperative as of May 1st. Grassland’s Canadian market had suddenly disappeared because Canadian farmers had found a loophole in NAFTA and were forcing United States milk out of Canada. The new Canadian policy was encouraging Canadian processors to use domestic milk instead of imported milk. That left Grassland without a place to sell much of the milk they had been taking. Thus the company informed Wisconsin and Minnesota farmers that their milk was not needed.

This was a shock to seventy farmers. Unfortunately, they didn’t have many other companies to contact to take their milk. Milk processors are small in number. Finding another company to take the milk was difficult, especially since the market had shrunk. They couldn’t stop milking their cows. That was a daily task. They couldn’t get rid of all their cows. They were the lifeblood of the farmers’ income. These farmers may have taken the only viable option and dumped their milk. The short notice change was a threat to the existence of many these farmers.

Thankfully, three processors stepped up and offered the farmers a contract. Initially, the one who signed the majority of the farmers suggested too low a price. After the farmers’ refusal, the processor came back with a second offer that was better, although it still did not equal what the farmers had been receiving for their milk. In desperation, most signed the six-month contract with the processor.

These farmers have been caught by the changing business environment. All businesses today operate in a dynamic environment which more than ever before can change abruptly. Those quick, unexpected changes are outside our control, which makes their occurrence even more upsetting. What do you do? How do you handle it? How can your business survive these changes?

While nothing can provide a guarantee of survival, you can take managerial measures to anticipate the problems. You can list these threats from outside your company that may arise from any environment - economic, social, political, legal, technological, competitive, and weather. List all you can imagine from the most threatening that could close your business to the least that would be an annoyance but not serious. This may take several sessions. After doing that, think through your options to respond to each situation. At first these solutions may seem hard to find and few in number. As you continue to think about and discuss them, you will discover more options and realize the result of taking each one.

This is akin to a fire or tornado drill for your business. You are creating the path to take if your business is threatened by the changing business environment. Successful people identify crisises and decide how to handle them before they occur. When you are in the middle of a crisis is no time to consider the situation. You are too consumed with the problem at hand. You are overwhelmed and tired. Your mind is paralyzed. Your nerves are frayed. If the situation is dire such as what the farmers were experiencing, you may not have time to consider options.

I remember an old adage that when you are in the middle of a rushing stream is not the time to discover a leak in the boat. My suggestions may seem monumental to address. Take them in small steps. Don’t think you will address all of them in one sitting. You may find yourself adding to the list as you proceed. Do make it an ongoing priority for you and your staff to update and discuss the threats and how to handle them. Since the business environment is continually changing, new potential problems are constantly showing up. Exercise your problem-solving skills regularly by identifying and considering how to handle them.

As Socrates noted, “The secret of change is to focus all of your energy not in fighting the old but in building the new.”

This week's marketing trivia challenge is What crisis have you seen a business handle by preparation? E-mail me your answer.

A Profitable Business Model

2017-05-07T11:47:00.001-07:00

Duluth Trading Company knows its target market of blue collar working men. The company has created products that these men will find helpful. After doing so, the company produced commercials that get the attention of the target market, are to-the-point, and contain humor. Some of this humor is quite colorful. I want to describe a couple of the commercials for you, but, to get the excellence of how well the company speaks to its target market about its products, I recommend you click here to check them out on YouTube. They will give you a laugh, too.

The first one I want to share is a commercial for Duluth Dry on the Fly pants that opens with a drawing of a blue collar working guy in a hat, t-shirt, and pants facing the viewer. The announcer says, “Wet Willy’s what they called him on the street.” A hose sprays the guy, rain pelts him, and a lama spits on him. Each of these are stated by the announcer as they are shown wetting the drawing of the guy. “Rogue hoses. Rain and juicy lamas soaked his pants waist to feet.” On screen, he guy’s pants get increasingly wet until finally they slip to his ankles.

This cuts to a full screen picture of the Duluth Dry on the Fry pants. The announcer voices, “Duluth Dry on the Fly pants saved the day!” The shots of the guy getting sprayed by the hose, dosed by the rain, and spit on by the lama are repeated, but the guy’s pants do not fall down. Instead, arrows and sound effects of a dryer show the water being blown off the pants. The announcer states, “All that water got whipped right away. He goes by Bill today.”

The second commercial I want to describe opens with writing on the screen and the announcer saying, “Average Work Pants vs a Grab-Happy Grizzly.” This cuts to a drawing on screen of a man and a grizzly standing next to each other facing the viewer. The grizzly swats at the figure of the guy and takes an equal chunk out of both of his legs, making the guy much shorter.   The grizzly bends to growl at the man who has a startled look on his face. The next frame has writing on the screen and an announcer saying, “Duluth Fire Hose Work Pants vs. a Grab-Happy Grizzly.” This cuts back to the man and grizzly standing side-by-side, and, once again, the grizzly swats at the guy. This time, however, the grizzly has no affect on the guy. Instead, the grizzly’s arm vibrates uncomfortably and the grizzly has a surprised look on this face.

The company has expanded into women’s clothing, too. While its focus on functionality, fit, and straight-forward talk are still important with that target market, its approach is not as colorful. It’s much softer, showing women in real life situations wearing the pants. They are “Built for women on a mission by women on a mission.” One of those women, Stephanie, a product developer, explains, “Being a woman helps me understand how to design women’s clothing.” Referring the the Duluth Fire Hose pants that were originally designed for men, she notes, “We listen to our customers. We redesigned these pants to fit a woman’s body with purposeful pockets and a new curve setter waistband, really trying to make these pants the most hard-working pants in their closet.”

Duluth Trading just came out with a tank for women that is called the “No-Yank” Tank. This commercial shows women pulling down their tanks in many different situations. The writing on the screen declares this a “Tug of War.” The female announcer says, “It’s about time someone declares war on the tug.” After that, a series of quick shots shows women doing hard work and their tanks staying in place rather than riding up. It ends with a woman walking into an orchard carrying a tall ladder. The announcer voices, “The Duluth No Yank Tank. Stop yanking and get cranking only at Duluth trading.com.”

Duluth Trading is an impressive company because it identifies its customers’ problems, designs clothing to address the problems, and communicates that to customers via its commercials. The company also chooses names that reflect the problem and its solution such as the No Yank tank and Dry on the Fly pants. The company not only knows its target market, its management uses that knowledge to market it products. This is a profitable model all businesses would be wise to follow.

This week's marketing trivia challenge is What example have you noticed of using knowledge of a target market? E-mail me your answer.

Why Target Your Market?

2017-04-22T21:12:00.002-07:00

I had the opportunity recently to offer for sale several book titles from my publishing company, Monarch Tree Publishing, to members of a fiction writing class. I was glad to take the time to do so because I know from past experience that writers are readers. At every book signing for one of Monarch Tree Publishing’s authors that has been held at a bookstore, I have witnessed authors being drawn to peruse through the books on the shelves. They always buy at least one.

Although the class had only a few members, they all expressed interest in the books. Within a short time I had sold almost all the copies I had brought. I likely could have sold a couple more copies of one book if I had had them with me. As I drove away, I said out loud, “That’s the result of target marketing.”

My thoughts drifted back to hours spent at crafts shows and fairs that had a general population target. I also mentally reviewed the number of books I had sold at book signings at bookstores. The sales to the general population were disappointing. You may be surprised to hear this, but the sales at bookstores were not great, either. After much thought, I have concluded that every title at a bookstore has a great deal of competition from all the other titles in the store. Titles from established authors sell well in bookstores, but new or not-well-known authors’ books have difficulty.

The best way to sell these titles is personal interaction. Approaching someone who is a reader and has a reason to have an interest in the book’s contents targets the market. Two of Monarch Tree’s authors were members of the class. That piqued the interest of the remaining members. Both had written fiction, which was related to the topic of the class. I brought one of the titles specifically for a class member who I thought was Finnish because the book’s story was centered around the Finnish integration into American society. She informed me that only her husband was Finnish, but she purchased the book so that they both could read it.

Can you see how I easily sold several books in just a few minutes?

If we businesspeople targeted our markets better, we could save a great deal of time, effort, and frustration by not attempting to sell to just anyone. Rather than spending hours at a trade show that has a general population target, placing an ad in a media that does not specifically target our market, or talking to someone who we have not qualified as a prospect, we would sell more at better prices and take less time accomplishing the transaction if we specifically targeted our market. Using past experience, knowing of our market, and taking time to think before we implement marketing actions will make our efforts profitable.

How well do you target your market? Have you used what you know to make your targeting specific? Do you think through how to reach your target before acting?

This week's marketing trivia challenge is What is your best target market? How do you know? E-mail me your answer.

Take the Time

2017-04-15T08:59:00.000-07:00

I stopped at Culver’s for lunch Friday. Employees were handling a long line at the drive up, and, after I placed my order, I was instructed to pull over to the right behind two cars already filling the two wait spaces on the right. That meant my car was in a “non-wait space” near the route that cars took to exit the parking lot. Shortly thereafter, an employee delivered an order to the driver of the car in the first space. After that car pulled out, the driver of the second car moved forward. Greatly relieved, I followed suit and moved into the second space. Moments later another car maneuvered into the “non-wait space” behind my car.

Distracted by my car’s tight parking situation of being trapped between two cars, I was surprised when I heard Michael, the general manager of the restaurant, at my window. “I have your order.” He handed it to me, stepped back slightly, and continued, “The car behind yours is about a foot away. I will stand here and help you get out of this space safely.”

Before I could react to his offer, the person in the car behind me backed her car away to give me lots of room. “Thank you,” Michael called to her.

As I pulled out, he walked over to her car and thanked her again.

Driving back to my office, I thought about Michael’s actions. He took the time to notice that I had a problem. Then he acted on what he had seen by offering to help me maneuver out of the parking space. Finally he made a point to thank the customer behind me, doing so twice to be certain she had received the message.

His actions had even more impact because they came from the general manager. He set an example to all the employees of how to treat customers. Whether employees noticed this particular situation or not, they are exposed to Michael leading by example in situations such as this all day long everyday. They mirror his lead, and that is why the employees at that Culver’s are courteous, friendly, and customer-focused.

I reflected how this situation compared to the disastrous United Airlines episode this week. The first time I saw the news story, I said out loud, “The lack of customer focus starts at the top. Management doesn’t have an emphasis on treating customers well and, consequently, doesn’t train employees to do so.”

Thinking about Michael, I’m also certain United Airlines management doesn’t lead by example in customer treatment, either.

How customers are treated starts at the top. General managers set the example and decide the training for customer service. How are you or your general manager doing in this regard? Are you taking the time to give customers attention?

This week's marketing trivia challenge is What good customer service have you experienced? E-mail me your answer.

The Most Undervalued Part of Marketing

2017-03-28T14:15:00.000-07:00

I saw a feature on NBC’s Inspiring America series that prompted me to think about the most undervalued part of marketing. The story focused on the Rising Tide Carwash in Parkland, Florida, which has experienced a monumental increase in business from 40,000 to 160,000 carwashes in just under three years. Owner John D’Eri stated, “You can’t do that without a great staff.“

Rising Tide’s staff is mostly on the autism spectrum, including his son Andrew. They pay meticulous attention to detail. John notes, “Their attitude is strong, and you can’t beat that.”

Managing the staff is not easy; the leaning curve is constant. Supervisors use both verbal praise and a white board with written compliments. “We want to reinforce positive behavior over the course of the day.”

The workers have gained rewards beyond the normal compensation. They have formed a community and regularly hang out together on Friday nights. Referring to his son and other workers, John commented, “He’s motivated. Motivation is something he never had, but motivation is key to a life, right?”

Business has been so brisk that John has a second carwash under construction four miles down the road. The word about his business has spread locally. Without an ad, he has received over 700 job applications so far for the new location.

“I set out to help my son and others like him have a life,” John admits. His business has done much more. He and his other son Tom have been spreading the word about autism with a TED talk, lectures in a dozen cities, and even testimony before the UN.

While these extra efforts are admirable, what John has done for his business is even more impressive. He has valued the most undervalued part of marketing. He has hired and overseen a motivated staff that gives customers what they want, careful attention to detail.

Making certain customers are pleased is critical to profitable marketing. That only happens if employees are motivated, happy, and well-trained. What fosters those feelings is supervision that reinforces behavior which satisfies customers. The result is consistent excellent delivery of a service or product. That leads to repeat and referral business which adds to the bottom line.

Unfortunately, most employers do not connect employees’ behavior with marketing. They designate that as human resources or customer service. They do not value employees’ part in marketing.

Your employees need to know how they contribute and what actions they take to create customer satisfaction. These need to be reinforced regularly. More than any other communication, your employees deliver your marketing message through their actions . Do they know that message? Are they delivering the message you want?

This week's marketing trivia challenge is How do you ensure that employees deliver the message you want? E-mail me your answer.

The Most Important Part of Your Marketing

2017-03-01T13:55:00.002-08:00

Friday I watched an episode of Last Man Standing that featured marketing. Tim Allen plays the main character who works for a retail chain called Outdoor Man. He prides himself on being a marketer. The focus of the episode was not the store, however, but getting his three adult daughters to attend church. After much effort, he and his wife persuaded the daughters to accompany them. Following the service, they asked the daughters about attending the next week.

“That’s enough for a while,” one said.

“Yeah,” agreed another. “The pastor is too boring.”

The parents were both disappointed, but the marketer in the husband uttered, “You know what the church needs? Better marketing. We need to start with the pastor and his sermon. The girls are right; he is boring. I’m calling him tomorrow to help him give a better sermon.”

He followed up and called the pastor who admitted that he had never felt comfortable with giving a sermon. Tim gave the pastor pointers of starting with a joke or using a story that related to people’s lives. He recommended that the pastor conclude with a surprise. The pastor took Tim’s advice to heart and delivered a sermon the next Sunday that kept churchgoers’ attention. He ended by abruptly leaving through a door behind him and, before the stunned parishioners knew what to do, he reappeared down the main aisle, giving his finale.

The daughters still were not convinced to return to church. Tim had another brainstorm and asked the one who is a fashion designer how she would improve the choir robes. She instantly drew a design for new ones. “How would we get these done?” he wondered.

She took the bait, immediately standing. “I’ll get on them right now,” she said as she left the room.

Then he turned to another daughter who is musically talented and questioned, “What did you think of the music?”

She knew what he was up to and replied, “I get it. I’ll bring my guitar next week.”

At the next service, the pastor gave an engaging sermon, the choir sported new robes, and the music was contemporary and up tempo.

I was impressed by his marketing. Rather than use enticing words to get people to attend church, he addressed the experience they received. He knew that words would ring hollow if people weren’t satisfied with what they encountered. He also knew that they would be unlikely to return. As he demonstrated with his daughters, his goal was to get people attending church regularly, not sporadically. He also knew that the sermon was the main event of the service. Thus, his first step was to help the pastor improve the sermon. The most important part of any marketing is the delivery of the service and the use of the product. If the customer is not happy with the service, product, or information, all other marketing efforts are fruitless.

Tim also addressed the effectiveness of involving the customer. He did this with his daughters by offering opportunities to use their talents of designing and singing. They, in turn, helped other parishioners enjoy their involvement with new choir robes and joining in contemporary, upbeat music.

I recommend that all business owners make their customers’ experience the most important part of their business’s marketing. Involving customers increase their positive response and commitment to the business, too.

This week's marketing trivia challenge is How have you made your customers’ experience the most important part of your marketing? E-mail me your answer.