Georgia SBDC- Small Business Blog

Word of Mouth can also be Word of Mouse

In the 15 years that I have been an SBDC consultant, I cannot count how many times a client has told me that "Word of Mouth" has been the best form of promotion for their firm.  I firmly believe that it is an excellent method for creating buzz about your product or service. 

With digital media becoming more and more prevalent, "Word of Mouth" has become "Word of Mouse."  Blogs, forums, rating systems, Facebook, Twitter, and texting have given WOM a platform to spread at the speed of light....literally.  So when it is good, it's very, very good like the old song goes.  But when it's bad, its oh, so bad! 

Case in point, Kyptonite bike locks.  When a complaint was posted on a bike forum maintaining that a Bic pen could pick the lock in 30 seconds, the WOM went viral.  Nearly 2 million blog readers read about it on the 7th day alone after the post.  By the 10th day, in order to stop the negative WOM, the company announced and exchange program that cost them $10 million.

The flip side is pretty nice to observe though.  Look at what has just happened to Susan Boyle, the Britain's Got Talent You Tube singing phenom.  In a matter of days an unknown lady from a small village in Scotland is known around the world.  Let's hope that great things will happen for her career because of it.

It is just incredible how fast the great and the awful WOM can spread.  Do you have a method for managing your online Word of Mouth?  If you do, please share it.  We would love to hear about your experiences.

Social Networks bigger than Email?

This article is a little old as it was from March, but I just find it amazing.  The article below was written by Dave Kaminski.  He talks about the use of social networking and social media.  Social Networking sites such as Facebook and Twitter are used more than email is.  It is important to consider though that most social network platforms have a message component built in.  So this could be replacing regualr email.

The stat that was shocking though, is that 1 out of every 11 minutes one spends online is on Facebook.  WOW!  This is starting to prove what many others have known all along that social networks are being used by consumers, and they need to be paid attention to my companies, organizations, or anyone who wants to reach out to individuals. 

So try some of the new media, it may work for you or may not work for you.  It is time that you stop ignoring it though!

 

Social Networking Becomes More Popular Than Email

According to new market research released by Nielsen this week, more people now use social networking sites like Facebook and Twitter…than they do email.

This puts social networking sites as the 4th most popular “tool” on the web, with 66.8 percent of Internet users visiting social networking sites in 2008 (up 5.4% from 2007).  By comparison, email use grew by only 2.7%, with 65.1 percent of users accessing it, landing it in 5th place.

Rounding out the top 3 user activities on the Internet were search engines at 85.9%, general interest portals at 85.2% and software sites at 73.4%.

But the most interesting statistic was the amount of time spent by user’s on social networking sites…where it grew at a rate of more than three times other sites.  Overall, total time spent on web sites grew by 18%…while the total time spent on social networking sites grew by 63%.

And of the social networking sites, Facebook was the runaway winner with a 566% increase in the amount of time user’s spent on-site.  Or to put it in more “real world” terms, social networking users now spend 1 out of every 11 minutes online…on Facebook.

In fact, while Facebook is just the ninth most popular “brand” on the Internet, it ranks 1st in user time spent on-site, with users spending an average of 3 hours and 10 minutes per month on Facebook.

So there’s your daily dose of web statistics.  Honestly, could there be a more compelling reason on why you should be using new media for your business?

Twitter for Business?

I have been getting a lot of questions about Twitter and how to use it to further your business.  People are even curious if Twitter even has a place in the  marketing mix.  So to answer like the true consultant that I am...  IT DEPENDS!!!

In my opinion, it works better in the B-to-B format where a company can mention what they are doing and the followers (if potential customers) can think, I could use that too.  I have not seen it as effective when marketing to consumers but that does not mean that it could not work. 

I have also noticed that it is a good way for people to stay in the news. The USA Today reported that Britney Spears is the "Queen of Twitter" due to her large amount of followers.  So this can be a great way for an already popular person to remain in the spotlight. 

For others, it is literally a way for friends to keep in touch with each other.  Every application of social media was not created for the particular purpose of solving the world's business problems.  It was probably created to be fun, make people's lives easier, and maybe even create a few extra dollars.  It is the marketers of the world that find a niche to further their business with it.  Again, there is nothing wrong with that, I am a marketer too.

So can Twitter fit into your marketing mix?  Sure!  Is it for everyone?  No!  Do what is right for your business but at least know what each medium is, and if it can benefit your business.  Do not be afraid to ask others if you don't understand how to implement it into your marketing.

Stretch Your Marketing Budget To Create Return

A post from the Marketing Blog on how to stretch your marketing budget.  This is good information even if we were not stretching our dollors.

Enjoy!

With marketing budgets under scrutiny, doing more with less is essential for creating a positive return on your investment. The fact is that marketing budgets are shrinking in today's difficult economic climate. This is the precise opposite of what should actually happen. When times are tough, its time to start marketing.

Do more with your shrinking marketing budget. This is easily done when you consider the power of viral marketing. The purpose of viral marketing is to leverage others - customers, prospects, friends, and connections to help you sell your products and services. Here are a few other ideas you can use to jump start your marketing.

Leverage all you do. Whenever you make a contact with browsers, prospects, customers, or friends, consider how you can communicate information about your products and services. Is there a way to use each interaction as a stepping stone to assess needs, offer solutions, and move individuals through the purchase decision process?

Make a conscious effort to ask for referrals. In many industries, referrals are the lifeblood of the business. Starting a referral campaign is easy and can be done simply by asking. You may also consider offering an incentive to individuals who pass along your name or encourage others to transact with your company.

Focus on creating a dialogue. If you are interacting via multiple media such as fliers, letters, emails, etc, make sure that you include valuable information and promotional offers. This can keep your business moving forward and is easy to implement. Think about adding a promotional postcard to your next package with an offer your customers can't refuse.

Keep testing new things. Especially in tough times, it is very important to dedicate a portion of your budget toward trying new marketing methods or ideas. Even if it is just ten percent of your budget, all it takes is one success idea to have a significant impact on your lead flow or revenue.

Improving marketing results does not have to cost you money. In fact, some of the best, most successful marketing ideas were started with little or no money. Think viral. How can you leverage the assets you already have? By taking what you have and making it better or expanding it, your results will often scale. To many people stop short of fully riding out their marketing campaigns and enjoying the results they can achieve if only they persist.

Offer a free download on your website. What can you do to attract more visitors and have them give you valuable information about themselves? The information you provide could be a free informational packet, checklist, or video. If people want free, you can give it to them but remember to ask them for something first. Be the master of get/give and you can build your list quickly.

Online Community for Business Owners

Do you think that online communitites are getting popular?  This was released by the Small Business Administration this morning.  It is a online community and forum for business owners.  Look it over and try it out.  This is a chance for business owners to connect.  This also shows all of the different uses of communities and their growth.  Check it out and enjoy.

 

 

 

Business.gov Launches First Government-Sponsored Online Community for Small Businesses

 

WASHINGTON – SBA’s Business Gateway Program announced today the launch of a new Web initiative – http://Community.Business.gov – the first government-sponsored online community built specifically for small businesses.

The objective of the Business.gov Community supports the White House’s mission to create a transparent and connected democracy, and aims to provide small business owners, bloggers, and the government with a place to discuss and share information about starting and running a successful business.

 

An extension of Business.gov, the Business.gov Community combines discussion forums, blogs, an idea exchange, and more, and offers advanced tools for navigating the labyrinth of government resources, policies, laws, and opportunities that impact the small business owner.

 

In addition to providing a “home” where users can share expertise and unique experiences, the site also provides a pioneering opportunity for small businesses to provide direct input into Business.gov and voice the ways government and the online community can better serve them.

 

“Over the past year, we have significantly expanded our efforts to engage with small business owners, by giving them easy access to the information they need to run their business,” said Nancy Sternberg, program manager of Business Gateway.  “The launch of the Business.gov Community represents a new milestone.  Through the application of Web 2.0 technologies, we hope to unite small business owners, industry experts and government, and take the program to a new level of collaborative knowledge-sharing and insight.”

 

Over the next few months, the Business.gov Community will expand to include additional features and resources that address specific user interests and provide access to the wider pool of government and Business.gov partner resources available to the small business owner.

 

About Business.gov

Business.gov is managed by the U.S. Small Business Administration in partnership with 21 other federal agencies.  This partnership, known as Business Gateway, provides innovative information services to the small business community that save time and money, engage citizens to participate, and enable collaboration across all key levels of government.  Launched in 2004, Business.gov provides a single access point to government services and information to help the nation’s businesses with their operations.

Any Publicity Good Publicity?

I have heard it many times before, any publicity is good publicity.  Is this a true statement?  Can publicity that is given your way hurt your business?  Ask Dell Computers what they think about publicity and a certain website that was created just for them.  Ask Iams pet food the feelings they have about negative publicity (Amazingly, I am a customer of both companies). Negative public relations and publicity can damage your company that you have worked so long and hard to create.  It can be extremely costly in the long run.  Word of mouth is still one of the most influential ways for people to buy products and services.

Many companies monitor what is being said about them on the streets as well as on the internet.  Because of blogging, micro blogging such as Twitter, and other forms of online avenues, it is extremely easy to receive publicity good and bad.  Comcast actually has employees who do nothing but monitor what people say about them.

The point I want to make is not that you should monitor yourself, but you should.  I think it is more important that you follow up on the publicity that you receive.  This needs to be the case when you receive good and bad publicity or word of mouth.  If someone is talking nice about your company, thank them!  Tell them that you appreciate that they are trying to spread the word about your company.  Sometimes it can be difficult to track down the people spreading positive word of mouth about you.  If you find out that someone is spreading negative things about you and your company, find out who they are, and try to remedy the situation.  They already like to talk, give them something to talk about in how they originally had a problem, but your company went out of its way to help them.

Word of mouth can help and hurt your business at the same time.  It should also not be your sole means of marketing your company.  Make sure to monitor it, and follow up on all forms of it.  Make sure that in everything you are doing with your company; provide the highest levels of customer service and products and services at all times.  In today’s times, it is easy to be found if you don’t, and that could cost you!

 

 

Increase Your Price? Marketing in Tough Times

This blog post is reposted from the Marketing Blog.  It is important for us to think about our customers and the pricing situation as everyone is struggling right now.  Enjoy!

Kyle

If you have ever worked for a company for more than one year, then you have no doubt experienced price increases. This is one of the fastest ways for companies to earn a few extra dollars and quite frankly one of the easiest.

As marketers, when we have to market and sell the same items at a new, higher price, we may find that the tradition campaigns become less effective. This is especially true when we hear objections from our customers. If there have been little or no changes to a given product, then it is next to impossible to overcome objections related to price.


One of the biggest concerns that marketers have about price increases is that of customer attrition. This is especially true in markets where your competitor is priced are lower or about the same as your offering. There is always someone else that your customer can buy from. A recent study I read indicated that even though price can be an obstacle to buying, current customers are less likely to leave you after a price increase.

There are a number of factors that explain why this is the case. Also, one must consider the cost to the customer to start from scratch. This has both and emotional as well as financial component.

Customers have been conditioned to find the sale or ask for a discount. When introducing a price increase, customers do not want to incur the full impact. This is why they will continue to ask for discounts even after a price increase has been stated. As noted above however, even with a price increase, customers are not necessarily going to leave you.

Here are some ways to overcome objections related to price increases:

Add value that is greater than or equal to your price increase. Customers do not want to pay more for the same old thing. When they do, their perception of value diminishes. Provide additional services, support, or terms to deliver additional value that is substantiated by price.

Focus on switching costs. If a customer has to leave you, there are direct and indirect costs associated with doing so. Make a list for yourself. By moving to a new vendor, does you customer have to pay a new fee of some sort? Will they lose money by canceling with you or your services? How much time and effort do they need to put into finding a new vendor?

Do not treat all customers equally. I know it is taboo today to say such a thing but not all customers are equal. Some have been with you a long time. Others are working with you for the first time. Your price increases should reflect the individuality of your customers and the impact you wish to have. Consider treating customers differently.

The final bit of advice I can give around price increases is that you should really understand your competition and what types of alternatives are available to your customer.

If you have a stronger package at a better price than you competitors, switching is not an issue. If your offering is less valuable and more expensive, then perhaps you need to reevaluate your pricing. As a marketer, your job is to create a perception of value or remedy for a given need. Identify that need and focus your messaging on meeting that need. When you do, price is rarely an issue.

For more free marketing advice, visit the marketing experts at Internet marketing expert at http://www.MarketingScoop.com

Is Your Business Feeling the Love in the Air?

Love is in the air because it is Valentine’s Day soon.  Many small business owners are not feeling the same passion in the air as sales are lower than people are expecting.  Many people are trying to save money for a rainy day or just to get by in today’s times.  Here are some of the things that you can try to get your customers to show you that same love (money) that they have given you in the past. 

·         Call Your Customers-  If you have some good customers, call them to thank them for their business over the past however long they have been a customer.  You don’t have to give them a sales pitch, just say thank you.  This will remind them that you are out there.

·         Survey Them- Use an online survey tool such as survey monkey or constant contact and send out a survey to your customers getting feedback on how your service is, or products that they would like to see in the store.  You may find out the products or services that your customers are willing to buy right now.  Please note not to change your business strategy.  Only offer these items or services if you can, and it fits what you sell.

·         Appreciate Them- Hold a customer appreciation day.  This can be at your office or store.  Bring them in to say thank you for the past and tell them of all the great things you are trying to do to serve the needs of your customers.

The goal is to stay in constant communication with them.  Every month or two or more depending on your sales cycle try a way to be in touch so that when the need arises to buy your product or service again, you will be on the top of the list.  The trick is to not do it to the point of annoyance.  You probably know the point to where your customer starts to consider your repetitive contact as just sales propaganda.  Be patient, but be proactive, do your part to help bring customers back to your business.  Just do not push your customers to the breaking point or they will not come back.

What are you trying to do to bring in customers?  What ideas would you try to help a small business?

 

Where Did Advertising Go?

This past weekend I went to the Techno Marketing Conference held by the American Marketing Association.  While there, we discussed a lot of the new tools used in marketing as well as the strategies to build them into your business.  The companies in attendance ranged from Fortune 500 companies, midsized business, non-profits, and consultants such as myself who were there learning things to help further the companies that they work with. 

Here are some startling stats that were given to us in the first 5 minutes of the event:

·         18%- The proportion of TV advertising campaigns generating a positive ROI

·         84%- Proportion of B2B marketing campaigns resulting in fallen sales

·         90%- The proportion of people who can skip TV ads who do skip TV ads

·         56%- Proportion of people who avoid buying products from companies who they think advertise too much

What happened to the way that we market to our customers?  The majority of people and businesses feel that they are marketed to too much.  For that reason, many of them just choose to avoid marketing altogether by way of skipping commercials or just choose to look the opposite way.  What are you putting in to your marketing campaigns?  Are you advertising too much?  Is your marketing effective, or just there?  Are you tracking your marketing and advertising dollars?

If you are not, maybe you should start to ask some of these questions and evaluate your marketing and advertising.  In these times, it is good to review all of your expenditures to make sure that you are receiving the return you need.  I am not saying to stop advertising, just evaluate it, to see its effectiveness.  While reviewing it, make sure that it is targeted towards the correct market and the niches that you are trying to focus on.  Those who are succeeding are focusing on small but profitable niches.

It is also a good idea to ask others for help or assistance when you need it.  Make sure to keep marketing and putting your business out there so that you can continue to do what you need to do to succeed.  What are effective ways for you to advertise to your market?

 

Waking Up To Snow

This morning I woke up to a white sky and beautiful snow falling all around me.  I am obviously not in Georgia right now. I went to a popular chain of quick serve restaurants to get what I require every morning, a very large cup of coffee.  When I walked to the building I was almost horrified to what I saw, at least 20 people in front of me all waiting for the same thing!

Now this has a happy ending.There were probably 9 people working, but more importantly, about 20 pots of coffee brewing at the same time!  I was in and out with a extra large coffee is less than 5 minutes, walking back to the hotel in the peaceful (for now) snow.  The store knew its peak times, and when they needed to be ready to serve their customers. They also knew when time was of the essence for their customers.

Make sure to know your customers and their schedules.  By knowing when they will need you, it will save them time and frustration.  Not to mention in my case it got me my cup of coffee a lot sooner!