Welcome to Rick Segel's Blog

Marketing Your Business, Part Two - Written by Rick Segel

Tue, 22 May 2012 06:00:00 GMT

Last week, I listed 18 different ways to market your business and I promised that I would describe them in depth over the next couple of weeks. So this is the first installment of ways to consider for maintaining and growing your business. I almost wrote during difficult times. WRONG! Times are always difficult and challenging. When the economy is bad you have fewer competitors that are less aggressive. When conditions change, you have more competitors that are willing to give things away. So these ideas work ALL of the time.

Slow Drip Marketing -  This is the long term, and consistent, marketing and advertising approach that keeps your name in front of potential customers. This method has been adopted by Coca Cola and is used in any business that opts for small, long-term, consistent advertising. This is sometimes referred to as “keep in touch marketing.” But that's only one part of the slow drip:

Use this type of marketing when you want to establish your store as THE resource for a particular type of merchandise. It might be a specialty that you have and your advertising is just letting potential customers know you make a market in it. The best example of that type of approach was from my store. We specialized in Mother of the Bride/Groom dresses. WE WERE NOT A BRIDAL SHOP. So we would take out small space ads with the headline “Mothers Are Our Specialty”. It was a one column by four-inch ad. But we ran that ad in every bridal section of every newspaper in the area. Year after year. It established us as the leader in the field. It worked. A slow but consistent drip.
The other obvious application of the Slow Drip is just keeping in touch with existing customers. Announcing events, both sale and non-sale events. Regular coupons (this is so powerful today) or educational tips that will put your store in the “Top of the Mind” position. The best source of this type of advertising is the “text message.” It’s short and sweet and you know that people are looking at them with an average 97% open rate. Let’s not forget the goal. It's a slow drip and a reminder that “we are still here and want to serve you.”

The Blitz, which is the complete opposite of the Slow Drip is when you pull out all the stops to establish a business. The Grand Opening event is a great example. The Blitz means you are going to spend all of your money and efforts during a short period of time. It can last up to a month but everything should be coordinated to hit in a 48 to 72 hour period. That means that all public relations (PR) efforts hit at the same time as your advertising. NEVER have a major event without the blitz because if you don’t make it a big thing, your customers won’t look at it as a big thing either.

PR Marketing is manufactured word of mouth advertising. The goal is to create a buzz. It’s when we get people talking about our business. After all, word of mouth is the best form of advertising. The question is, “How do we do it?” Here are five of my Ten Commandments for making PR Marketing work for you.

Give people and the press something to talk about. They don’t care if you have been in business for 96 years -- that’s not news. The media looks for interesting story lines.
Service, selection, or price are also not necessarily newsworthy unless you do something different and unusual in servicing your customer, or the type of selection you carry is different, or you price things differently. An example would be stores that run a sale and say everything you can fit into the bag will cost you a set amount. That is newsworthy, as opposed to “cheapest in the county” which is a statement that can’t be proved.
Do a fun and unusual video on YouTube. The more outrageous the better it is. YouTube is now the second biggest search site besides Google.
Supply your industry trends to the media. Send out bulletins as news hits and send out regular updates on a monthly basis. Become their source for your industry information.
Write a book about what you do, or be a part of group of like stores that share in the authorship. Contact me for more information about this type of marketing and look for more on this from me very soon. It’s not about selling books. It’s about positioning your business as the expert. Press releases for books are easy to get placed in the best of publications. That is what PR is all about -- Getting Placed. It can turn a business around faster than any other vehicle.

Next, we will look at marketing vehicles that can take your business to the next level.

How Many Ways Can We Market Our Businesses?

Wed, 16 May 2012 06:00:00 GMT

Faster than a speeding bullet, more powerful than a locomotive, able to leap tall buildings in a single bound, it's a bird, it's a plane, NO IT’S SUPERMAN.

That is the new found respect that we have for Marketing Professionals and the Marketing Manager. The reason for that is the amount of choices we all have in marketing our businesses today. Many years ago, when I went to college, I was crazy enough to major in marketing. Why crazy? Because for the next 40 years I have spent time explaining the difference between Marketing and Advertising. Actually, many people referred to our major as Marketing and Advertising, which of course it was NOT. Advertising is a tool for marketing--just one of many important tools.

So, have my years of explaining paid off and are those explanations part of the reason for our new found success? I wish, but NO. The reason for this new image that marketing people have is because of the confusion and fear businesses and the people that own them have in selecting or making the right marketing choices. After all, it has been proven time and again that the best product isn’t always the best seller. Give me a good product or service with a compelling marketing message and I’ll show you a winner.

Years ago, it was much simpler and back then you could justify why the word adverting was used. The marketing manager’s job almost always revolved around adverting. That is no longer the case. The purpose of this article is to create a list of marketing options, or tools you can employ, to build your business. One word of caution: the goal is to get the best value for our marketing dollars. There are thousands of ways to market a business and thousands of ways to spend money. The goal is to get the highest and most profitable sales volume while spending the least amount of money. I’m not talking about cutting corners--I’m talking about the basic philosophy.

Let’s first define what marketing is. It is the way your product, service, or store is positioned and promoted to the eyes of your customer.

When considering marketing tactics or tools there are 3 criteria to consider:

Cost
Time
Contacts

Here are some more popular marketing concepts:

SLOW DRIP Marketing
This is the long term & consistent marketing and advertising approach which keeps your name in front of potential customers. This method has been adopted by Coca Cola and is used in any business that opts for small, long-term, consistent advertising.

The Blitz
The Blitz means you are going to spend all of your money and efforts during a short 1-2 month push. We are exposed to this type of marketing on an ongoing basis.

The Marketing Plan
Know where you are going, how you are going to get there, and how to evaluate your results.

PR Marketing
1. Creating the Buzz
2. You Tube
3. The event
4. Electronic Pay per Click

Inbound Marketing
Positioning your business, as where people seek you out as opposed to you seeking them.

Educational Marketing
Teaching your customers as you subtly sell them.

Positioning not Promotion
These are the new buzz words of this millennium

Social Media Marketing
There is no silver bullet here. You have to establish yourself and become a credible source.

Infomercials
Late night TV

Partner Marketing
Ask what you can do for your partners and ask what they can do for you.

Keeping in Touch--Marketing to existing customers
This is the follow through that takes place after the sale.

Testimonial Marketing
As used in most infomercials, it’s merely a section of contacts.

Coupon Marketing

Website Marketing
Finding ways to bring more people to your website.

The Blog

The Expert Marketing
1. Board of Directors
2. Board of Advisors

Word of Mouth Advertising
1. Creating a Buzz
2. Getting people to talk about you

Creating Multiple Sales
1. The sales path
2. How to up-sell
3. Know which sales method you adopt
4. Multiple sales through brand building
5. Types of selling
6. Direct mail

Next week, I will start discussing all of these different techniques and initiatives and add some meat to the bone. This will make it easier for you to better understand the best tools to use in marketing your business.

Is the Web Working for You or Are You Working for the Web?

Wed, 09 May 2012 06:00:00 GMT

Let’s face it -- fewer and fewer people are just strolling in our front door. We have a new ritual in shopping and that is checking out stores and categories online. Years ago the Yellow Pages advertised “let your fingers do the walking.” Today, it is part of our culture.

You might have a great website, but if the category/categories or brand of merchandise doesn’t show up in a web search, then you don’t even exist in the mind of the customer. Then there is another scenario -- going to a site expecting to find what you are searching for and if you don’t see it in the first few seconds, you quickly click off. However, what is really frustrating for the retailer is knowing they have the merchandise but no one is seeing it.

So lets define the problem.

Showing up on a web search when:

Customer is searching for a specific category of merchandise.
Customer searches by brand name.

You get to the site but can’t find the merchandise or brand you are searching for.

Here are some remedies to these issues that might be the difference in making, or not making, a sale.

List the categories of merchandise you carry. Use lines like, “known for the best (or greatest) selection of wedding rings” or “the place to go for engagement rings”. Then list all of those categories together, etc.
The key is to use your key word or, as I like to call it, your DNA of business over and over again. If you are a muffler shop, keep using the word muffler over and over again.
Create a separate landing page just dedicated to specific categories of merchandise. These pages don’t have to be long but they must focus on one category and only one category of merchandise.
Another trick is to list the categories of merchandise you sell on every page of your website. It can be tucked away in the corner but it shows continuity.
Similar and even more effective than listing categories is to list the names of all of the vendors you carry in very small typeface on the bottom of every page you create. When I first saw this I hated it and fought it but the numbers don’t lie. This concept works extremely well.
Alternative Text also known as ALT Text are the few words that go behind the picture to explain the picture. Remember-- search engines can’t read pictures, they just read text. Many people manipulate the use of the Alt Text by using similar words to promote one idea, a piece of merchandise, or a category, which is exactly what the alt text does better than anything else. (You can always tell whether or not if you have a good web designer by their inclusion of alt text.) It should be an integral part of your marketing efforts.
Blog about the category or brand.
Tweet about the category or brand.
Use titles on all stories, articles, or even any information you write about on your website. Instead of just saying ABOUT US, use a catchy headline such as, “FROM A SIMPLE BEGINNING TO WHAT WE ARE TODAY.” It creates reader interest.
Lastly, use the sub-headline, or what I call paragraph identifiers. An example is in the ABOUT US section that has the headline “FROM A SIMPLE BEGINNING TO WHAT WE ARE TODAY”. Then the next paragraph might start off with, “FROM THE OUTSET QUALITY WAS IMPORTANT.” All you are doing here is making your website more user friendly. You are making it easier for readers to navigate your site which in turn allows them to stay on your site longer. And the longer someone stays, the better the chance they will buy or take some positive action, such as visit your store.

This list of 10 only scratches the surface of what the web can do for us when we use the tools available to make the web live up to its full potential.

Retailers pay a lot less in debit fees under new rule

Mon, 07 May 2012 13:48:00 GMT

Retailers are paying significantly less every time a customer swipes a debit card under a rule capping the fees that banks are allowed to charge.The Federal Reserve says in a report Tuesday that the average fee paid by merchants for debit card transactions covered by the rule was 24 cents in the fourth quarter of 2011. That compares with an average of 43 cents before the Fed's rule took effect Oct. 1.

The rule was mandated under the 2010 financial overhaul law. For most transactions, banks can charge merchants a maximum 21 cents for each debit card transaction plus an additional 0.05% of the purchase price to cover fraud protection costs.

Transactions using debit cards issued by banks with less than $10 billion in assets, as well as some prepaid debit cards, are exempt from the cap.

The average fee paid by merchants for those exempt transactions remained at 43 cents in the October-December quarter, the Fed found. Overall debit card fees — for transactions both covered and exempt from the cap — averaged 30 cents.

The Fed also said that as a result of the cap, the gap narrowed between fees on debit card transactions requiring customers to sign and those requiring a personal identification number. Fees on signature transactions covered by the rule averaged 24 cents in the fourth quarter, close to the average for PIN transactions of 23 cents. That compares with an average 59 cents for signature transactions and 34 cents for PIN transactions from Jan. 1 to Sept. 30, 2011.

The cap was the first limit ever on debit card fees, which banks traditionally had negotiated with merchants.

Before the Fed set its level last June, merchants had said that reduced fees would allow them to lower their prices for consumers. Banks, on the other hand, had warned that a limit on what they can charge retailers would force them to cut back on other services, such as free checking and rewards programs.

A coalition of retail groups sued the Fed in November, asserting that the regulator ignored the law by setting too high a cap on debit card fees.

The National Retail Federation and other groups said the Fed buckled under pressure from bank lobbyists when it set the cap, which is significantly higher than the Fed's initial proposal of 12 cents.

http://www.usatoday.com/money/industries/retail/story/2012-05-01/retailers-see-big-drop-in-debit-card-fees/54661640/1

Businesses That Are Driving Profits With Foursquare

Fri, 04 May 2012 14:21:00 GMT

The use of location-based services like Foursquare, SCVNGR and Gowalla has increased dramatically with the adoption of smartphones and mobile connectivity. By downloading an app that identifies where users are geographically, users can earn rewards and social recognition the more they check-in at registered locations. For local business owners, this can mean free advertising from customers eager to share their whereabouts with other users in return for discounts and rewards.

Here are five examples of businesses that have shown how beneficial this can be with their innovative use of location-based services.

1. AJ Bombers

The social-media-savvy burger joint AJ Bombers with locations in both Milwaukee and Madison, Wis., uses a range of services to promote itself including Twitter, You Tube and Facebook to interact with fans, run promotions and publicize news stories. One of its most popular deals is giving new Foursquare Mayors a free burger and fries, which has encouraged repeat visits and check-ins. The company also organizes events, one of which earned them the Midwest’s first Swarm Badge (when 50 or more Foursquare users check in at the same time at the same place). The event saw Bombers' revenue double from the same day the previous week.

2. Strange Brew Coffee House

Shane Reed of the Strange Brew Coffee House in Starkville, Miss. saw sales of his signature coffee drinks increase 34 percent in a year, thanks to his adoption of Gowalla and other social media sites. Strange Brew’s biggest challenge is that it's not located in an urban center, so it doesn't get many passers by. But using location-based services has helped drive customers to his coffee shop, especially after local sporting events. Customers receive a 10 percent discount when they check in with Gowalla, and their check-ins help to boost his business by upping his rank on local searches.

3. Fajitas & 'Ritas

Brad Fredericks, owner of Fajitas & 'Ritas in Boston, created a loyalty program for repeat customers using SCVNGR and its partner, LevelUp, and paired them with social advertising company LocalResponse (which picks up on local check-ins and contacts customers through Twitter to offer them coupons for future visits). He saw more opportunities for growing his business using these platforms as opposed to using a service like Groupon because of the potential for repeat business and word-of-mouth on social media, rather than one-off deals that didn’t encourage loyalty.

SCVNGR lets customers earn points that they can redeem for menu items by checking in and taking photos. Customers can also use LevelUp to pay using their mobile phones by signing up to their loyalty scheme. Two months after launching with LevelUp, Fajitas saw 15 to 20 customers a week using it to pay. Customers are also rewarded for loyalty through LoyalResponse. This combination of services has good potential for growing a loyal, local following.

4. Southern Hospitality BBQ

The Southern Hospitality BBQ, which despite its name has two locations in New York City, has been using Foursquare since 2009, and has since received over 7,000 check-ins and given away over 5,500 pints of free beer. The restaurant takes its use of social media seriously: Foursquare Mayors receive 50 percent off their bills and the team members take note of customers’ tips and provide feedback, as well as let them know about specials and discounts. The result? The Southern Hospitality BBQ attributes 4,000 new customers to its use of Foursquare and other social media.

Is your business benefiting from location-based services? If not, get started with these tips.

Don't give away the farm. Only offer promotions, freebies and discounts you can afford.
Get the demographics. Try and learn something about your customers from looking at who’s active on Facebook and Twitter. This can help find out your customers' age, gender and so on, as well as see which products they are talking about.
Use analytics. The surfing data provided on many of these services will help you analyze what works best in terms of customer usage.

How does your business use location-based services?

http://www.openforum.com/articles/businesses-that-are-driving-profits-with-foursquare?extlink=em-openf-SBdaily

Is Technology Pushing You–and Your Customers–Over the Edge?

Thu, 03 May 2012 18:40:00 GMT

Do you ever feel like you’re spending your whole day with your head buried in your laptop, cell phone or tablet? Do your thumbs hurt from constantly e-mailing, texting or updating your status, yet you oddly feel like you never really communicate with anyone? Do you secretly think if one more “must-do” social network pops up, you’re going to lose it? Turns out you’re not alone.

A major global study by Euro RSCG Worldwide recently polled consumers worldwide to understand how people are handling modern life and technology. The answer? Not so well. Here’s some of what the study, titled This Digital Life found:

Fifty percent worry that digital technology and multitasking impair their abilities to think deeply and concentrate on one task at a time.
More than half think constant digital communication weakens their bonds with other people.
Sixty percent think people shouldn’t share so many personal thoughts and experiences online.

Think these findings apply only to old fuddy-duddies who can barely work the TV remote? Far from it:

Thirty-three percent of Millennials say social networking makes them less satisfied with their own lives. (That’s more than the percentage of respondents overall who felt that way.)
Sixty-seven percent of Millennials believe their generation has no sense of personal privacy.

At the same time they’re worried about digital overload, survey respondents are also concerned about the conspicuous consumption that’s become part of daily life.

Nearly two-thirds think society has become shallow and that we focus too much on things that don't matter.
The majority is tired of conspicuous consumption and wants to scale back; 40 percent would be happier if they owned less “stuff.”
Almost 75 percent are “moderately to extremely worried” about the growing gap between rich and poor.

What do these concerns mean to your business? Are we fast approaching overload? As busy business owners, technology is both a blessing and a curse. The same is true for our customers and clients. Here are some takeaways I think are important.

Don’t overload your customers. Is the information you’re providing to clients on social media truly worthwhile, or are you just tweeting, Facebooking and Pinning things to keep up with the pack? Focus on offering fewer, but more valuable, bits of information.
Keep it simple. Streamline your website, order forms and processes. Make it easy to get information, buy from you or deal with you in a few clicks. Set up systems that are intuitive for customers to follow.
Protect privacy. Privacy is a big deal, even to Millennials, who might be expected to feel otherwise. Make it clear how you protect customers’ personal data.
Get real. There’s no substitute for face-to-face interaction. Get your nose out of the laptop, step out of your office and talk to customers in your store, restaurant or office.

Euro RSCG concludes that customers are ambivalent about the digital future, and will respond by searching for a “hybrid” way of life that combines modern conveniences with traditional values: “Whether [by] spending time digging in the garden, immersing oneself in literary classics or purchasing artisan-made products, people will seek to temper the new with the old, the artificial with the natural, the digital with the analog.”

http://www.openforum.com/articles/is-technology-pushing-youand-your-customersover-the-edge?extlink=em-openf-SBdaily

7 Tips to Sell Your Ideas Like a Motivational Speaker

Wed, 02 May 2012 15:19:00 GMT

“You don’t listen!”

All of us have likely heard these words spat at us in frustration at some point in our lives. And guess what, it’s true! The fact is that no one listens.

In a previous OPEN Forum article, I wrote on how to more effectively hear what others are really trying to say. By recognizing how you listen (or more accurately, don’t), you can then better understand the way others listen. This in turn arms you with the ability to speak in a way that will have you be heard.

Effective innovators and business leaders need to “sell” their ideas to others. But too often we fall into unproductive behaviors that prevent our message from coming across.

What are these barriers and how can you conquer them? Having given hundreds of speeches in 43 countries, I have learned a few tricks on how to be heard more effectively, whether you're speaking to a big audience or just one client or employee.

1. To be heard, first hear. While speaking on Capitol Hill in Washington D.C., I became painfully aware that everyone was more interested in being heard than hearing the perspectives of others. How can you be heard in this environment? Listen. Appreciate their point of view, even if you don’t agree with it. People can sense when you are not open to what they are saying and will thus be less inclined to hear you. Acknowledge differences in opinion and appreciate others' perspectives.

2. Build an emotional connection. When starting a speech, you want to connect with the audience emotionally. Why should the audience care about what I am going to say? What’s in it for them? What benefit will come from listening? Buy-in is rarely done on an intellectual level. People are more likely to listen if they can relate to you and your message on an emotion level. Does what you offer—your product, service or idea—solve a problem? Can you speak to a pain they have?

3. Know your audience’s style. I’ve found that although American audiences typically like my speaking style, people in other countries are sometimes put off by it. For example, if I use my high-energy style in England, I can be viewed as overly enthusiastic and not taken as seriously. I find that a more professorial approach works there. Equally, when speaking to scientists, I use a different style than when speaking to advertising agencies. In order to be heard, match your style to that of the audience.

4. Avoid a one-size-fits-all approach. Everyone makes decisions in different ways. Even though I may be interested in the novelty/coolness factor, others want to know the scientific evidence and facts. Some are more interested in the practicality of your solution while others are more concerned with the impact on others and are driven by emotions. When speaking to larger groups, you need to address all of these styles. But when talking to someone one-on-one, speak to the style of the individual.

5. Don’t preach. Coach. It is fine to be passionate about your topic, but being dogmatic and closed-minded prevents others from being interested in your point of view. Therefore, instead of dictating solutions, be a coach. Have others “try on your perspective for size.” Let them know that if it doesn’t fit, they don’t have to wear it. This gives them the freedom to listen without obligation. If they come to your conclusion on their own, there will be greater buy-in.

6. Be yourself. Though it is good to tailor your style to that of your audience, do not lose your individuality. Mikki Williams is a successful motivational speaker. Her first major presentation was to a large corporate audience. The other speakers were CEOs while her background was aerobics. Although many tried to convince her to dress for the audience, she chose to wear something that felt right for her; something very non-corporate. She was such a smash that she landed on the front-page of the Wall Street Journal in an article on how to stand out. People are often more interested in your being genuine than your fitting in.

7. Establish credibility. Have you ever noticed that professional speakers get well-respected executives to introduce them? The reason is credibility building. Before people will listen to you, they have to know that you are a credible resource. During my speeches, I subtly weave in stories of my work with recognizable companies in order to reinforce that credibility. Social proof is a great way of establishing yourself as an authority.

Regardless of which tips you apply, it is important to never use these (or other) concepts as manipulative techniques. If an approach is not natural for you, people will see through it and trust you even less. Authenticity is key.

Professional speakers have honed their craft to be heard by the audience. And you and your business can use these same tips in any communication. By identifying these common barriers to communication, you can skillfully work around them to more effectively deliver your message.

http://www.openforum.com/articles/7-tips-to-sell-your-ideas-like-a-motivational-speaker?extlink=em-openf-SBdaily

Trust and Temptation

Tue, 01 May 2012 06:00:00 GMT

Trust is one of the hardest things to earn in business and one of the easiest things to lose. Trust means having confidence in the business or salesperson. Trust comes from honesty and integrity. When we trust a company and their policies, we are willing to pay more for the product because we TRUST them.

Lie to a customer and you lose that customer for life. Trust management is what is really called Brand Management. A brand is what a customer thinks about us. It is trust in a graphic. A brand is the customer’s level of confidence. It’s what we associate with when we think about a company.

Let me give you some examples of the effects of trust, but first, let me share the inspiration for this article. I was recently chatting to a retired sales professional. He went from sales to sales management and beyond. Speaking about his favorite topic… sales.

So I asked him what were the three most important things someone should know about selling. He didn’t hesitate for an instant and answered:

Honesty
Integrity
Trust

He said it's the difference in making your job easy or hard. If you have those three elements, your sales increase naturally. He is right on target. Let me prove it.

I recently needed to hire a flooring company to install and remodel an outside patio floor. I had a good conversation with the company on the phone. We set up an appointment and he gave us three names of his most recent jobs in my area. We called the people up to see his work.

The workmanship was great but all three references raved about their professionalism and the work crew that actually did the work. By the time the salesman got to the house I WAS A SLAM DUNK for him.

WHY? Because I trusted him. I had confidence in him. I am sure I paid more and I don’t care. I am a very happy customer and he really hasn’t done anything other than show up.

The next story is not as happy as the first one. I was negotiating with another publisher to merge a part of my business. I liked him and trusted him until he sent me a copy of the preliminary agreement.

I got an agreement that referred to putting my business in a religious trust. My first reaction was that was not ethical and I wanted nothing to do with it. I did research online about tax-exempt companies like that and I just wanted to run away from any type of deal because it just isn’t right.

I wrote back immediately saying to end all of the negotiations only to find out he used a legal template that happened to be a religious one. It was all one big misunderstanding and embarrassment from the other party.

The problem is that the trust that was built up during negotiations was thrown out the window with an error like that. I now have to check and recheck everything he sends because that trust was seriously tarnished.

Finally, we do business with a nursery and landscape company that we LOVE. He is creative, innovative, price competitive and very personable, BUT I can never refer anyone to him again.

WHY?

Because he doesn’t return a phone call and NEVER follows up on a new lead. I can’t trust him anymore. It is just a matter of trust. That’s all.

So, are you trustworthy? Do you try to take shortcuts? What would your customers say about you? After all isn’t that where word of mouth advertising begins? Have them trust you first. (Of course being liked is equally as important. But let’s save that for another day.)

Retail Sales and Dealing with 4 Different Customer Personalities

Mon, 30 Apr 2012 14:38:00 GMT

Article Overview: As retailers, we deal with many different personality types on a daily basis. Of course each customer is unique, but there is universal agreement that there are four basic personality types - Director, Analytical, Relater and Socializer. Knowing each style and their buying habits will allow you to drastically increase sales and repeat business.

As retailers, we deal with many different personality types on a daily basis. Of course each customer is unique, but there is universal agreement that there are four basic personality types. These are the main customer personalities specific to the retail environment. The Director

As the name implies, this personality is generally associated with demanding people. They are the take-charge types. They want what they want when they want it - and they want it now! In extreme cases they can be intimidating know-it-all's. Directors are generally not into small talk; they want the facts in order to make a decision as quickly as possible.

If you try to get in the way of their goal they will plow through you and, as the expression goes, "take no prisoners." They don't care about anyone's interest other than their own. Their goals are very clear. They want the best possible product at the lowest possible price delivered when they want it - which is usually immediately.

How to Deal with a Director

Eliminate as much small talk as possible, lay out the facts, give your reasons why they should purchase something and make it brief and to the point. Generally these personality types have high self-esteem, almost to the point of being obnoxious about it.

One of the most valuable tools you can use here is to compliment their direct style and decisiveness. The one thing you never want to do is to tell this personality type they are wrong or they are not listening to you. You must let them make their own decision. You can try to make suggestions, but make sure they are short and to the point. Remember, the Director gets turned off when you present yourself in any way as a roadblock to their goal.

Remember: Never confront the Director -- stay out of their way!

The Analytical Personality

These types usually have professions that require accuracy and analysis. These would include jobs such as accountants, engineers or scientists, whereby they conduct research and analyze all the possibilities before making a decision.

What motivates this type of personality when they come into a retail store to buy? Facts, details, product descriptions, Consumer Reports information....They want data. Analyticals read manuals, directions and the fine print. Like the Director type they are unaffected by small talk or the niceties that can accompany aretail store visit.

How to Deal with an Analytical

Give them facts and data. Do not make a statement unless you can back it up with pertinent information. If the product has detailed labeling, give it to them. There is one major advantage when it comes to dealing with the analytical personality: They have done their homework and/or comparative research. In many cases they will actually know more than a salesperson or owner, which makes them a valuable source of information.

Don't be afraid to ask them why they came into your store, because there IS a reason. The biggest asset they have is all the research they have done about the product you are selling. And they have it neatly filed away in their iPad or Smart Phone so it can be easily referenced in seconds.

Remember: Asking someone's opinion is considered the silent compliment.

The Relater (or Belonging) Personality Type

The Relater/Belonging personality type has a strong need to feel part of a group. I like to use the "my" test on this personality type. This means when a customer refers to "my accountant," "my doctor," "my garage," "my electrician," "my lawyer," or "my store," your store becomes part of their network. These people are usually three calls away from getting anything they want. They always know someone who knows someone who knows someone - the classic example of "three degrees of separation."

How to Deal with a Relater

The reason we refer to the Relater shopper as "Belonging Type" is because they take an ownership position in anything they do. The easiest way to sell to this personality type is to simply ask them, "What is your opinion of this product and do you think we should carry it?" Their response might be something like, "I think it looks good and I think you should carry it. I might like something like that. Let me see it." The bottom line is to include them in any way you possibly can, because they want to feel a part of the decision making process.

A word of caution: The Relater can come into the store when the owner is not there and report back to the owner if someone isn't doing their job. On the plus side, they are wonderful customers to have and a sensational source of never-ending referrals.

Remember: Inclusion is the name of the game with the Relater customer.

The Socializer

Socializers are exactly as the name implies. They are outgoing, love to talk and love to make new friends. The Socializer wants to build a relationship with people who work in the store. This personality type places likeability as one of the most important buying criteria. If they don't like you they are not going to do businesswith you. Socializers want to build friendships. If you talk to them like an Analytical, with facts and figures, they will shut right down.

As similar as they might be to the Relater, loyalty isn't as important to the Socializer. If they can develop friendships in several different stores then they will go to several different stores.

Socializers love to receive and give compliments. However, they tend to be self-centered. They want to go to a store where they are made to feel important. This is the one group that retailers, owners, managers and salespeople relate to the most, because the majority of retailers will fit in this category!

How to Deal with a Socializer

The most important thing to remember is that it's not all about the merchandise; it is about the relationship. Always remember that the first thing you are selling is yourself. You can be giving merchandise away, but the Socializer won't care if they don't like you. Use compliments liberally. Do whatever you have to do to remember the names of these people. Don't lose sight of the fact that although they look at the shopping experience as a fun, social event, your goal is still to sell them merchandise.

Remember: Keep the Socializer focused, yet be light enough to make their shopping experience fun and entertaining.

The next time someone walks into your store, size them up and put them into one of these four personality categories (it's a lot easier than you think once you get the hang of it). You will then be better prepared to interact with each customer on a higher level, and increase your sales drastically.

Why pulling advertising during a tough economy may backfire

Fri, 27 Apr 2012 14:17:00 GMT

According to Dr. Marianne Bickle, Professor and Department Chair for South Carolina University’s Department of Retailing and author of The Changing American Consumer, perception is reality for American consumers, and everything from political campaigns to pop culture plays a part in how we spend.

Working with over ten years of consumer research from BIGinsight, Dr. Bickle analyzed the consumer trends that emerged at the beginning of the 21st century conjured from the attacks on 9/11/2001, and how the economic events that followed formed a new kind of consumer. Read on for Bickle’s assessment of how retailers can use the socioeconomic lessons gleaned from recent research to refocus their strategies in an ever-changing marketplace.

Dr. Marianne Bickle, Author, The Changing American Consumer

A big theme in your book is how the events of 9/11 changed the nation’s perception of economic reality. What examples did you find of Americans evolving to the contemporary consumers retailers know today?

Perhaps the biggest change in consumers’ perception of economic reality is that it is not a guarantee that children will be better off financially than their parents. Grown children are moving back in with their parents. The growing national debt, foreclosures on houses across America, phenomenal credit card debt incurred by consumers and unemployment rocked consumers’ sense of stability. For the most part, consumers learned very valuable lessons: that a stable economy is not guaranteed, saving is everyone’s responsibility, and being fiscally wise in all purchasing matters is smart – not stingy. As a result, consumers have responded to retailers’ promotions, coupons and discounts. Value is more than just a word. Retailers are being challenged to provide more than products and services. Consumers are making retailers earn the respect of being one worthy of the consumer’s patronage.

The Washington Trifecta you describe as politics, national security, and taxes plays an important role in how Americans shop. How have you seen the retail industry adjust and react to opinions of the U.S. Government that have affected consumers shopping habits?

Politics, national security and taxes play a very important role in how Americans shop. As the nation continues to struggle through its political woes, challenges over national security and debates on taxes, consumers stated their opinion with their wallet. Beginning in 2008 consumers said, “No thank you,” to retailers. Consumers’ shopping habits slowed down dramatically. Things became a bit better for retailers in 2009 through 2010 as the Washington Trifecta calmed down. Still, retailers’ sales figures are not what they were 10 years ago. What we do know is that when national security spending and taxes rise, consumer spending declines. As for politics, consumers are very displeased with many of the men and women in office.

In the chapter “Let the Retailer Beware: Consumers are in the Driver’s Seat”, you discuss how technology has changed the shopping experience. Which were the most effective tactics you saw that retailers used to adapt to and meet consumer demands?

In 2008, retailers took a huge beating when the economy plummeted. Consumers learned to save, spend using cash and pay down debt. Retailers learned to become more competitive by coupons and promotional codes through the store’s website. Online retailers began offering free shipping with a minimum order.

With mobile usage on the rise, what new ways do you see retailers utilizing this medium to enhance socialization and virtual relationships with customers in the coming years?

Consumers of all ages use mobile devices to communicate. Phone calls, text messaging, the Internet, Facebook and YouTube have dramatically changed how we communicate, interact with one another and promote merchandise and services. Mobile devices, specifically smartphones, are increasingly being used to promote timely sales, coupons, and merchandise or service offerings. A few sentences via a text message can stimulate customer traffic with the simple phrase “sale 2 day – 50% off.” Mobile devices guarantee that the retailer’s message is delivered right to the consumer regardless of his or her location. This method of promotion serves two purposes: (1) It stimulates socialization and a relationship between the retailer and consumer, thereby instilling loyalty, and (2) encourages the mobile user to become a retail ambassador (i.e., forward news about the retailer).

What were some similarities and differences you found between catalog, TV and online shoppers?

The biggest similarity among consumers regardless of how they purchase is the desire to save, making coupons and discounts very important. Consumers are using the Internet to find out information on products and services. Men and women equally purchase through catalogs and the Internet. More men shop through TV than do women (67.1% vs. 32.9%). Over 40% of the consumers who shop at home are married.

You say that the sign of a real economic recovery is when consumers start spending similarly to how they spent prior to the recession. What, if anything, can the retail industry do to catalyze consumer confidence?

Oftentimes retailers cut back on advertising and/or promotion when hard economic times hit. This is a big mistake. Consumers must always have confidence in your company, your brand and your employees. The minute consumers see a weakness in the company’s product or service offerings they will probably start to shop elsewhere. It is critical to the financial success of any retail organization to show a strong front to its consumers. This means that retailers should:

Continue to promote the business during difficult times;
Conduct promotional events that bring consumers into the store (e.g., trunk shows, fashion shows, demonstrations);
Have a strong and constant social media presentation; and
Always maintain visual appearance of the store and website.

http://blog.nrf.com/2012/04/25/why-politics-national-security-and-tax-policy-play-a-significant-role-in-how-americans-shop/

Fighting for the Young Consumer's Attention

Thu, 26 Apr 2012 18:26:00 GMT

Do you want to reach younger American consumers? The challenge is that they switch between their media options so rapidly and reaching them is harder than you might think.

A new study finds that these "digital natives," who have grown up with constant access to the Internet, cell phones and television, switch media 27 times per hour. The study, commissioned by Time Inc. and conducted by Innerscope Research, found their older counterparts switch 17 times per hour, which is still a lot.

It’s no wonder that marketers are scratching their heads trying to figure out how to connect with this generation, as they jump from the computer to cell phone, check the newspaper, read a magazine article, switch to the tablet—changing about every two minutes.

Catching their interest is important: Their spending power is expanding, and will continue to do so in the coming years, as they move into higher-level corporate positions.

So what's a marketer to do?

Holding the attention span of young consumers is part of the challenge when they have an information and connectivity overload, moving rapidly from one topic to another. Now, this study shows that the channels they use to consume that media are also vying for their short attention span.

For an advertiser, determining where and how to place marketing messaging becomes a daunting task.

The solution is to move toward a marketing model that engages young consumers on their terms. Find ways to integrate your business offering into their lives without relying on a traditional advertising strategy that may go unnoticed during their multi-tasking.

Focus on the elements of your offering that appeal to younger consumers. For example, they are very receptive to marketing for a cause, and they are more likely to purchase products that support a cause.

They also operate as social consumers at a much higher rate than previous generations. This means they spend an enormous amount of time online, reviewing products and services. In fact, 60 percent of young consumers rate products and services online. It used to be that only people who were extremely satisfied or extremely dissatisfied did reviews.

Now, as a marketer, you have an endless amount of customer feedback to inform you. That can help you improve your business without relying on less effective one-way marketing messages.

Bertucci’s, a brick-oven pizza restaurant, is doing a good job of adapting to the younger generation. In 2011, the company reported roughly $200 million revenue. A New York private equity firm based in Boston owns the chain.

The restaurant made its mark with baby boomer customers in the '80s and '90s. But to stay relevant and grow, it needed to adapt to the next generation of customers.

So, it made some physical changes. The music mix contains less classical Italian and more pop songs. It replaced booths with larger open-style seating because young people like to socialize while they dine out. It changed its menu to include smaller, cheaper options.

It also has a YouTube series that features the restaurant's executive head chef, Jeff Tenner.

All of this helps spread word-of-mouth interest in the restaurant. Viral marketing is still the most effective, especially with the advent of social networks.

What do you think? How can companies connect with younger consumers when they jump around from one media channel to another?

Dan Schawbel is the managing partner of Millennial Branding, a Gen-Y research and management consulting firm. Subscribe to his updates at Facebook.com/DanSchawbel.

http://www.openforum.com/articles/fighting-for-the-young-consumers-attention?extlink=em-openf-SBdaily

Design Your Business to Handle the Exception, Not for the Exception

Wed, 25 Apr 2012 14:42:00 GMT

While going through security at the airport the other day, I was reminded of an important design and innovation concept.

Things were going smoothly until a bag was flagged during the X-ray procedure. The luggage was held on the conveyor until an authority could conduct a manual inspection. At the same time, a similar problem arose on another line. Everything ground to a complete halt. Although it took only 5 minutes to get the lines moving again, during rush hour that was all it took for the queues to grow out of control.

Many years back, a supervisor shared with me a design principle I still use 25 years later: design to handle the exception, not for the exception. That is, don’t design your business model around the most complicated case. Instead, design it so that the exceptions can be addressed, even if their efficiency is impacted.

When designers try to make one process cover every situation, no matter how rare or unusual, the result is usually greatly increased complexity and diminishing returns for everyone.

Using my supervisor's mantra, this airport dilemma differently would be solved by pulling off the bags that need manual inspections (the exceptions) into a separate area. Even if those bags would have to wait longer to be processed, they wouldn’t impact the bulk of the customers and would significantly speed up average wait times. Those travelers with the exception bags may be more inconvenienced than they are today, but perhaps knowing that you will be significantly slowed may encourage people to be more careful with what they put in their luggage.

How can this be applied elsewhere?

A major life insurance company found that its claims handling was slow and expensive. What they discovered was that every claim was being processed using the same rigorous procedures.

But all claims did not need to be treated equally.

To improve efficiency, they scaled down the process and segmented claims according to their level of complexity. A simple version was used for straightforward cases. More robust versions were used for more complicated cases, while the full process was reserved only for the most difficult and time-consuming cases. The most skilled and expensive specialists would resolve these complex claims while generalists handled the easiest ones.

What they found was that 60 percent of their cases could be handled using the simplest process with the least expensive resources. Thirty percent received the mid-level procedure, while only 10 percent needed the original full treatment. The result? Processing costs were reduced by 40 percent while average processing time was greatly reduced. Service levels also increased.

So how does this apply to your business?

Look at your customers. Which customers account for the bulk of your business? Which customers account for the bulk of your profits? Design your business to meet their needs. If you have other, less frequent needs, find a way of handling them outside of your standard processes, even if the cost is greater (to you or the customer) and the convenience is lower.

If you run a restaurant and 80 percent of your customers order the same five menu items, make sure you can inexpensively and efficiently cook those meals. For patrons who want items less frequently ordered, maybe they can pay a premium or wait a bit longer. Additionally, instead of keeping perishable ingredients in house for those rarely ordered meals, maybe you can find a nearby store where you can buy them just-in-time when needed.

If you run a call center, handle the most frequent calls efficiently without hand-off. Have generalists address the bulk of your calls. For the more complicated and less frequent issues, forward the call to a specialist. Even if the customer has to wait or be called back, it will significantly improve your overall call processing time and costs.

If you run a supermarket and someone purchases alcohol, they need to be approved by someone who is 21. If the clerk is not of age and needs to call for backup, the lines will be slowed for all. Instead, you could require anyone buying alcohol to use special lines manned with cashiers who are all 21 or over, since they're the exception.

Figure out what happens most frequently. Design your business for those scenarios. Identify the less frequent occurrences and make sure you can handle them, recognizing that an increase in time and/or cost for these exceptions may be necessary.

Have you inadvertently fallen into a “one-size-fits-all” mentality? Instead, consider applying the “design to handle the exception, not for the exception” philosophy and keep your business running smoothly.

http://www.openforum.com/articles/design-your-business-to-handle-the-exception-not-for-the-exception?extlink=em-openf-SBdaily

Words That Make A Difference

Tue, 24 Apr 2012 06:00:00 GMT

Every week in my newsletter I include a joke and a quote. I am almost embarrassed to say that my jokes and quotes have become just as, and maybe even more, popular as the articles that I work so hard on.

So, at the encouragement of so many of you, I am just completing my collection of strong, clean business humor and quotes that can be used in multiple types of situations, from a meeting opening to the lighter side of a newsletter. I thought I would take this time to share some of my favorites quotes and promote the books a little (Very little, because they don't get released for another month!).

These quotes can be used, and are used, everyday. Some may even become the backbone of your persona and philosophy. I will point out my favorites and why. Some you may have heard before, while others might be brand new to you. So let’s begin with my MOST favorite in the world.

“Let’s not worry about the mule going blind—let’s just load the wagon.” I say this one to employees all of the time. WHY? Because they worry about stuff that may never come.
Another good employee quote is: “ Your mind is like a parachute. It only functions when it’s open.” So much for all those close-minded people.
This next one applies to both your vendors and your doctors. “If you only have a hammer, you tend to see every problem as a nail. “
This next one stings a little, be prepared. “ To know, and NOT do is NOT yet to know.” That hits all of the procrastinators over the head.
This one was an original from my mother who spoke thousands of these and I always wish I had written them down, “Always let the other guy feel like they are the most important. It’s smart, good business, and will make you wise and likeable.” That is easier to say than do. But you can carry that along even more. By saying, “Let the other guy feel more intelligent or (faster-brighter-agile- etc.) and it will pay huge dividends.”
For all of the people that have ever taken a class with me think about this one, “Learning is finding out what you already know.”
Next is one of my originals that I use quite often, “True intelligence is knowing what to say when you don’t know what to say.”
Another quote I have lived by, “The turtle only gets ahead when he sticks his neck out. “ Yes, it could get cut off.
You judge my best friend's quote. “The person who never makes a mistake, misses an awful lot of chances to win.” Truer words could never be spoken.
“We begin to see obstacles when we lose sight of goals.” When we first get started obstacles seem small.
“None of us are as smart of ALL OF us.” This is the battle cry for building strong teams.`
“Success in a retail category means a commitment to a retail category.” That is self-explanatory, not like this next one...
“You can’t dance at two weddings” I swear this one is written for me. It means we simply can’t be in two places at the same time.
I LOVE THIS NEXT ONE!! “It’s amazing what we can do –when we don’t know what we can’t do.” I hate the next one but I need to hear it again and again and then some more.
“When we fail to plan, we plan to fail.” ABSOLUTELTY!
This one will pick you up. “Begin the day with enthusiasm and you will end the day with satisfaction.” Isn’t that nice?
Last one and something I live by, “People rarely succeed in anything unless they have fun doing it.” Right on.

Have a good week—it’s time for some more fun!

What It Means to Really Listen

Mon, 23 Apr 2012 15:02:00 GMT

Last month, I was on a flight from Orlando to Boston that had a bit of a problem.

An hour before our scheduled landing in Boston, the pilot announced the main braking system was not functioning properly. Although the backup system would most likely work fine, the pilot and flight attendants were preparing us for the worst.

They carefully described the emergency procedures. They were very similar to the ones frequent travelers have heard many times before. But this time, you could hear a pin drop as they walked us through what would happen. Everyone was paying attention.

Although I am on nearly 100 flights a year, I was listening in a way I never had before. The truth is, I rarely pay attention to the emergency procedures when we are not in an emergency situation.

This got me thinking: Do I ever really listen?

The answer is no. And regrettably, I am not alone.

Unfortunately even when you are trying to listen, you are still likely not really hearing properly.

Psychologists call this “confirmation bias." We are naturally wired to filter and interpret information to conform to our underlying belief structures. And very simply put, these beliefs cloud how we hear. We only take in those pieces of information that align with our beliefs, and we disregard anything that contradicts them.

Understanding confirmation bias can have a significant impact on your ability to have effective relationships. And as a small business owner, it can have a profound impact on your success if you're not hearing the true meaning of what your customers and colleagues are saying.

In the corporate environment, I’ve seen brilliant ideas proposed by recent college graduates that were completely dismissed by more senior people. But when those senior people said the exact same things, others thought they were geniuses.

A friend of mine recently attended a weeklong training class. When asked about the class, he responded that he was less than impressed with the instructor. When I asked why, he said, “It’s hard to listen to him. He’s dressed like a slob. His hair was a mess and his shirt was never properly tucked in.” The instructor’s appearance impacted how he was heard. Amusingly, on the last day of the class, his perspective changed. When pressed to understand why, I discovered the instructor had gotten a haircut and was wearing a stylish suit and tie. The change in appearance impacted how my friend heard the instructor. He claimed the instructor now “sounded more intelligent.”

As you read this article, I can assure you that your judgments are impacting how you receive what you are reading. If you want to actually absorb the value of what someone is saying, you need to know your natural biases. This will impact your ability to innovate.

Listen better

The first step to listening better is to recognize the fact that you don’t. Ask yourself the following questions:

Are you really hearing what others are saying? Or are you only passively listening?
Are you focused on their words? Or are you thinking about what you will say next?
Are you putting yourself in the shoes of the other person? Or are you only interested in meeting your own objectives?
Do you ask a lot of questions? Or are you doing all of the talking?
Are you hearing what they are really saying? Or are you too colored by your own perceptions, judgments and filters?

This last question is critical. If you are honest, you will most likely begin to see that your filters are getting in the way of communication. By recognizing that you even possess these filters, you can become more aware when they begin to color your interpretations. This allows you the choice to set them aside so you can create an effective opening to listen.

Think about what your customers try to tell you. What are they really hoping to convey? What is the meaning behind the actual words they are saying? Are they angry and wish to be heard? Are they being quiet because they are scared of saying something that may offend? Are they just trying to help? If you can listen for their viewpoint, then you can better appreciate why they may be saying what they are saying so you can appropriately address their needs. This will lead to better service.

Your ability to listen effectively will impact your ability to innovate. Confirmation bias will reduce your ability to gather accurate insights about your customers and markets. In fact, numerous studies show confirmation bias drives companies to innovate on the wrong opportunity. A strongly held belief about what you think should be done to improve the business prevents you from hearing what really should be done.

When you recognize that you never really hear what is being said, you can begin to shift your listening. This will make you a better communicator and innovator.

Incidentally, our plane did not crash and the backup system worked perfectly. However, I am sure everyone who was on that plane will be listening more intently the next time the emergency procedures are read during takeoff. And maybe they will also listen to friends, colleagues and family members just a bit more carefully.

http://www.openforum.com/articles/what-it-means-to-really-listen?extlink=em-openf-SBdaily

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