Georgia SBDC- Small Business Blog

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?

 

Black Friday and Christmas 2008: Use Your Advantages

It is that time of the year again where shoppers trudge out of bed in the wee hours of the morning to receive the door busters from whatever chain store they decide to line up in front of.  Even though lines and sales are not expected to be as big this year, I am sure that many will still line up for the deals.  What are they looking to buy?  Look here.  After the door busters are over, they complete the rest of their shopping in the other stores and businesses.  As a small business owner, you probably don’t expect to have crowds banging down your doors at 5am, but you have a more important job when you open your doors.

Many of the shoppers will get are tired and grumpy as they have waited in lines and marched along in lines for hours.  This is the time that you have the advantage and you can outshine everyone.  Provide customer service, smile, and have a welcoming environment, doing this should make your regular and new customers happy.  The larger stores have done you a favor this Christmas; they have lowered consumer’s expectations for service.  When you the small business owner comes in with an ounce of energy and service, they should be happy with the result.

While they are there, try to make contact with the customers so that you can try to market to them in the future.  Ask if they would like to sign up for you newsletter or receive information about promotions. Ask them if they need anything in particular that you don’t have and special order it.  Always make sure to sincerely thank them and invite them back.

Use your advantages as a small business owner this year.  Make a memorable experience for your customers so they want to come back to you.

 

Time To Fix Your Problems

Don’t fix something that isn’t broken.  That is a saying that everyone has probably heard a thousand times in their life.  What if you do not know if what you have is broken?  For the longest time, the economy was looking good as sales were on the upswing.  Within the past few years, sales are leveling off for many and in some unfortunate cases sales are declining. Many small business owners are feeling the crunch and tightening their hold on their business.  As times get more hectic, the problems that you did not know you have will start to come out for you to see.

It is definitely time to get back to the basics in all areas of the business.  Entrepreneurs are cuttings costs and making sure that their spending is at a minimum.  Many businesses (small businesses included) are bracing for a slow holiday season that normally pulls companies out of the hole.  I was in a retail store before Halloween that was already offering 50% holiday discounts!!  This was certainly not a good sign of the times.

One thing I ask you to do though is focus on your customers too.  When I say that, I mean the right customers.  Marketing and advertising dollars are close to an all time low as many companies just do not have the time or sometimes energy to market.  Here are a few ways to help you find your market and customers. When you do advertise, make sure you do it to the customers who will eventually buy from you.  I know that sounds easy to say but hard to do.  Hopefully for the past few years when times were good, you were tracking where all your sales were coming from.  Did you notice that maybe you sell to one type of industry or set of customers more than others?  If you did, do you know why?  Once you find out who buys the most from you, try to sell to that industry or customer.  That customer group must have a need for what you are trying to sell, or maybe you have a reputation in that industry that may lend to helping you find similar customers.  It is always easier to sell to someone if you have expertise selling to a group similar to them.

Make sure that you are also being efficient in your communication; I have clients who use Google Talk to communicate with their customers if they need immediate help.  Other forms of technology can also aid your customers in being able to reach you, or for you to remind them that you are out there.  Your time is valuable, and you need to make sure that you and your employees are being not only effective, but efficient in your efforts.

Start focusing on the basics again; focus on a group of customers that you know will buy from you.  Track where your sales come from, this would be a good way to find your niche if you did not know it already.  Make communication an essential part of your mix that is beneficial for you and your customers. Streamline communication, but make it easy for your customer to get in touch with you.  Frustration by the customer will just lead them to go the competition that needs the sales just as much as you do.

When you make it through these rough times, you will be even stronger and you will have processes that will hopefully lead to growth down the road.

Christmas Shopping 2008-- How will it be?

What will holiday shopping and spending be this year?  What is popular?  What should you stock if you have not yet?  How will people shop?  It is the time of the year where I like to give shoppers and retailers the Holiday outlook.  Linda Bustos wrote an excellent posting that I would not change, so I included it here.  You can find the full link HERE.  It seems as if the holiday season is shorter this year.  I was in a store that had many holiday seasonal items at over 75% off.  Have a great christmas shopping season in October!! -Kyle How will the uncertain economy affect consumer spending this holiday season? Today’s post is a roundup of recent consumer research and forecasts on how much consumers expect to spend, what they’re looking for and where they plan to get it. It’s interesting but not surprising how some results really vary and even contradict each other (e.g. gift cards are hot, gift cards are not). This research can’t make decisions for you but it might help you think through your customer segments (and personas) and consider how different types of consumers (what motivates them in a tough economy) experience your site/email offers and messaging. For example, if you are Musician’s Friend and your customer typically buys music supplies for themselves — if gift givers love to give apparel and gift cards, you might market to your existing customer pushing those items along with an incentive like a gift card rebate to use for themselves in the new year. Will shoppers spend more or less this year? 26% of consumers plan to spend less, 11% expect to spend more, and 63% about the same. “For the first time I am predicting flat to declining sales for the holiday season,” stated Marshal Cohen, chief industry analyst, The NPD Group, Inc. NPD Group Holiday 2008 Survey 35% plan to spend less, 6% will spend more this year, 50% the same. Nielsen, October 2008 45% will buy less, up from 20% last year. Forrester Research, October 2008 59% will spend less, citing food prices (73%), energy prices (69%) the economy (61%) and job uncertainty (18%) as reasons. 11% are still paying off last year’s holiday purchases. Deloitte, October 2008 52% plan to buy fewer gifts, an average of 11-15 gifts compared to 16+ last year. e-tailing group, October 2008 Over 91% plan to purchase the same number or somewhat more gifts online; that’s equal to last year’s levels. e-tailing group, October 2008 How important is price? 83% of consumers report that price will influence their gift buying. e-tailing group, October 2008 60% say that lower prices, sales and special values will dictate where they shop (surveyed mid-September before the stock market’s major downturn). NPD Group, September 2008 70% will shop sale items more often and 53% have become less brand loyal in favor of less expensive brands. Morpace, October 2008 73% will shop where they can find the best value for their money. 72% will look for low prices. Convenient location, quality and selection of merchandise, and customer service/experience all ranked lower. Deloitte, October 2008 66% will use coupons and spend more time shopping around for bargains. Consumer Electronics Association How important is free shipping? Free shipping (95%) and sales/specials (83%) top of the list of what influences online gift buying. e-tailing group, October 2008 The No. 1 customer reason for not buying more online is the high cost of shipping (78%). e-tailing group, October 2008 75% prefer to shop with online retailers that offer free shipping. 58% claim that shipping prices deter them from shopping online. Forrester Research, October 2008 More than 40% of people who abandoned their online shopping carts said they did so because of high shipping costs, according to a recent survey by the online payment company PayPal. Nearly 60% of those polled by BIGresearch said free shipping was a “very important” factor in their decision to shop online. The National Retail Federation’s digital division, Shop.org, says eight out of 10 online retailers offered free shipping during the past two holiday seasons, up from about 60% in 2004. Source: Despite higher fuel costs, retailers cut shipping rates USA Today, September 2008 What items to shoppers want to give / receive? “[Sunglasses] are the most sought-after item by young adults and will surely be their most desired gift,” it says–particularly those with large logos. “Sunglasses will be this year’s handbag.” NPD Group, October 2008 Source: Outlook For US Online Holiday Sales, Forrester Research, October 2008 Consumer electronics comprise four of the top 10 items on adults’ holiday gift wish lists along with computers, televisions, video game systems and cell phones. Nearly 80% of adults and 84% of teens expressed interest in receiving a consumer electronics product as a gift. 28% of the total holiday budget is being allocated for CE purchases, an increase of 6% from last year’s holiday season. Consumer Electronics Association 66% plan to buy gift cards, the top gift purchase for the 5th straight year, slightly below last year’s 69% but will buy fewer cards on average: 5.3 cards compared to 5.5 in 2007, and will spend $28.43 per card this year vs. $36.18 last year. There’s a trend toward less store/product cards and more gasoline cards than last season. Deloitte, October 2008 24% of consumers plan to increase their spending on gift cards, the restaurant/fast food category outselling all others. 50% consider purchasing a gift card if it comes with a coupon/discount for themselves. Archstone Consulting, October 2008 There are few “must-have” gifts this year, compared to last year where many retailers used GPS systems as door-busters. NPD Group Holiday 2008 Survey Which categories are on the decline? Gift cards are losing popularity, 38% will purchase this year vs. 49% who did purchase last year. NPD Group Holiday 2008 Survey Department stores and retailers of electronics, toys, home improvement supplies, and office supplies are likely to feel the brunt of the economic slowdown as consumers shift their purchases to more value-oriented retailers. Nielsen, October 2008 Almost 25% expect to spend less at department stores than last year. Morpace, October 2008 Home improvements and home/holiday furnishings are most likely to decline from last year. Deloitte, October 2008 Will shoppers use the online channel? 27% expect to spend more online this holiday season than last year. Forrester Research, October 2008 Online retailers, dollar stores, grocery stores, supercenters, mass merchandisers, and club stores are expected to attract the lion’s share of holiday spending, as consumers seek to minimize the number of shopping trips they make — and find good values. Nielsen, October 2008 72% are planning to research products online prior to purchasing vs. 65% in 2007. e-tailing group, October 2008 49% of adults who shop online four or more times per year, spending at least $500 annually, will buy gifts online, compared with 44% who plan to do so in-store. e-tailing group, October 2008 Reasons for shopping online are saving time (88%), locating hard-to-find products (84%), greater selection (83%) avoiding crowds (83%) and saving money (80%). e-tailing group, October 2008 Reasons for shopping online: find unique products not available elsewhere (61%), comparison shopping (52%), find the best values and deals (48%), high gas prices (36% vs 22% last year). Forrester Research, October 2008

Do you use email marketing?

This is an oldy but definately a good one from Seth Godin from back in June.  I was talking about this to someone and thought it was a good reminder.  He has a great blog, go to www.sethgodin.com and click on his head!!

Email checklist

Before you hit send on that next email, perhaps you should run down this list, just to be sure:

1. Is it going to just one person? (If yes, jump to #10)
2. Since it's going to a group, have I thought about who is on my list?
3. Are they blind copied?
4. Did every person on the list really and truly opt in? Not like sort of, but really ask for it?
5. So that means that if I didn't send it to them, they'd complain about not getting it?
6. See #5. If they wouldn't complain, take them off!
7. That means, for example, that sending bulk email to a list of bloggers just cause they have blogs is not okay.
8. Aside: the definition of permission marketing: Anticipated, personal and relevant messages delivered to people who actually want to get them. Nowhere does it say anything about you and your needs as a sender. Probably none of my business, but I'm just letting you know how I feel. (And how your prospects feel).
9. Is the email from a real person? If it is, will hitting reply get a note back to that person? (if not, change it please).
10. Have I corresponded with this person before?
11. Really? They've written back? (if no, reconsider email).
12. If it is a cold-call email, and I'm sure it's welcome, and I'm sure it's not spam, then don't apologize. If I need to apologize, then yes, it's spam, and I'll get the brand-hurt I deserve.
13. Am I angry? (If so, save as draft and come back to the note in one hour).
14. Could I do this note better with a phone call?
15. Am I blind-ccing my boss? If so, what will happen if the recipient finds out?
16. Is there anything in this email I don't want the attorney general, the media or my boss seeing? (If so, hit delete).
17. Is any portion of the email in all caps? (If so, consider changing it.)
18. Is it in black type at a normal size?
19. Do I have my contact info at the bottom? (If not, consider adding it).
20. Have I included the line, "Please save the planet. Don't print this email"? (If so, please delete the line and consider a job as a forest ranger or flight attendant).
21. Could this email be shorter?
22. Is there anyone copied on this email who could be left off the list?
23. Have I attached any files that are very big? (If so, google something like 'send big files' and consider your options.)
24. Have I attached any files that would work better in PDF format?
25. Are there any :-) or other emoticons involved? (If so, reconsider).
26. Am I forwarding someone else's mail? (If so, will they be happy when they find out?)
27. Am I forwarding something about religion (mine or someone else's)? (If so, delete).
28. Am I forwarding something about a virus or worldwide charity effort or other potential hoax? (If so, visit snopes and check to see if it's 'actually true).
29. Did I hit 'reply all'? If so, am I glad I did? Does every person on the list need to see it?
30. Am I quoting back the original text in a helpful way? (Sending an email that says, in its entirety, "yes," is not helpful).
31. If this email is to someone like Seth, did I check to make sure I know the difference between its and it's? Just wondering.
32. If this is a press release, am I really sure that the recipient is going to be delighted to get it? Or am I taking advantage of the asymmetrical nature of email--free to send, expensive investment of time to read or delete?
33. Are there any little animated creatures in the footer of this email? Adorable kittens? Endangered species of any kind?
34. Bonus: Is there a long legal disclaimer at the bottom of my email? Why?
35. Bonus: Does the subject line make it easy to understand what's to come and likely it will get filed properly?
36. If I had to pay 42 cents to send this email, would I?

Before you hit send on that next email, perhaps you should run down this list, just to be sure:

1. Is it going to just one person? (If yes, jump to #10)
2. Since it's going to a group, have I thought about who is on my list?
3. Are they blind copied?
4. Did every person on the list really and truly opt in? Not like sort of, but really ask for it?
5. So that means that if I didn't send it to them, they'd complain about not getting it?
6. See #5. If they wouldn't complain, take them off!
7. That means, for example, that sending bulk email to a list of bloggers just cause they have blogs is not okay.
8. Aside: the definition of permission marketing: Anticipated, personal and relevant messages delivered to people who actually want to get them. Nowhere does it say anything about you and your needs as a sender. Probably none of my business, but I'm just letting you know how I feel. (And how your prospects feel).
9. Is the email from a real person? If it is, will hitting reply get a note back to that person? (if not, change it please).
10. Have I corresponded with this person before?
11. Really? They've written back? (if no, reconsider email).
12. If it is a cold-call email, and I'm sure it's welcome, and I'm sure it's not spam, then don't apologize. If I need to apologize, then yes, it's spam, and I'll get the brand-hurt I deserve.
13. Am I angry? (If so, save as draft and come back to the note in one hour).
14. Could I do this note better with a phone call?
15. Am I blind-ccing my boss? If so, what will happen if the recipient finds out?
16. Is there anything in this email I don't want the attorney general, the media or my boss seeing? (If so, hit delete).
17. Is any portion of the email in all caps? (If so, consider changing it.)
18. Is it in black type at a normal size?
19. Do I have my contact info at the bottom? (If not, consider adding it).
20. Have I included the line, "Please save the planet. Don't print this email"? (If so, please delete the line and consider a job as a forest ranger or flight attendant).
21. Could this email be shorter?
22. Is there anyone copied on this email who could be left off the list?
23. Have I attached any files that are very big? (If so, google something like 'send big files' and consider your options.)
24. Have I attached any files that would work better in PDF format?
25. Are there any :-) or other emoticons involved? (If so, reconsider).
26. Am I forwarding someone else's mail? (If so, will they be happy when they find out?)
27. Am I forwarding something about religion (mine or someone else's)? (If so, delete).
28. Am I forwarding something about a virus or worldwide charity effort or other potential hoax? (If so, visit snopes and check to see if it's 'actually true).
29. Did I hit 'reply all'? If so, am I glad I did? Does every person on the list need to see it?
30. Am I quoting back the original text in a helpful way? (Sending an email that says, in its entirety, "yes," is not helpful).
31. If this email is to someone like Seth, did I check to make sure I know the difference between its and it's? Just wondering.
32. If this is a press release, am I really sure that the recipient is going to be delighted to get it? Or am I taking advantage of the asymmetrical nature of email--free to send, expensive investment of time to read or delete?
33. Are there any little animated creatures in the footer of this email? Adorable kittens? Endangered species of any kind?
34. Bonus: Is there a long legal disclaimer at the bottom of my email? Why?
35. Bonus: Does the subject line make it easy to understand what's to come and likely it will get filed properly?
36. If I had to pay 42 cents to send this email, would I?

What is your Marketing ROI?

What is your return on investment in marketing?  Do you know?  Have you ever measured what return you are getting with your marketing tactics and strategies?  Well, you should.  How do you know it works?  If you are spending money on something that does not work, is that a problem?  I know there are several businesses out there right now that could use some extra money.

What ROI should you be making?  Well that is completely up to you and your personal requirements or the requirements of the people who are lending to you. Please keep in mind that your time is also important and you should be able include that in your calculation of ROI.  What is your time truly worth?  Have you put a dollar figure on it?

Make sure to track what you are spending and where it comes from.  Don't be afraid to ask your customers where they have heard from you.  Make sure to track all spending.  Make sure that all marketing that you do, is helping you in some way, shape or form.  Not all marketing is good marketing!!

A Note on Newsletters...

Whether on line, email, mailed, or handed out, there is just something about newsletters.  Everybody seems to want to make one for their business.  I always want to know why!  How many things do you read on an everyday basis?  I think that I read enough some days and my brain needs a break from newsletters.  Now not all of them are bad, but make sure that your news is worth writing a newsletter about.  Here are some rules that I have gathered from other places as well as from the top of my head:

• Make sure the newsletter is not about you!!!  I do not want to hear about how great you are.  This is not like the newsletter that relatives will send out every Christmas.  Talk about your customers and how you helped them, just not about you!  Stories sell, facts don't.
• Do not send out to many, paper newsletters get expensive to print.  Emails if sent too often get sent directly to the deleted box.  The more you send, the more annoying.

Make sure to use real people and their stories.  Give your customer's name as it is a testimonial and reference to you.  Try to use someone who others would recognize.  Do not use the presidential election jargon where you hear, "John Doe from Sarasota, FL told me he had a problem.  Real people who love your business and want to tell others is newsletter worthy.

• Talk about more than just one thing.  Discuss the industry, your customers, community involvement or anything that will interest your clients.  The key word is to interest your clients.

If you don't have a good newsletter during a set period of time, do not send it!!  Wait until you have good information to tell your clients.

Be responsible when making a newsletter, write as you would want to read.  Not everyone is as enthusiastic about your new features or the bells and whistles of your new machine.  Customers want to know how it affects them as your customer.   

3 Marketing Tricks for Under $1

From the Marketing Blog.  This is marketing at its least expensive point.  One of these things costs alot more than the others as it takes a lot of time, but very effective.  He mentioned to use pain points, this is the same as I say to hit them where it hurts and try to evoke pain.  I promise not to do this many more times, I just really liked his posting.  Short and to the point!!

A colleague recently asked me how he can market his small business with little or no money. Sound impossible? Not at all. Keep in mind that marketing isn't just about advertising and trade shows... it's about communicating your message - brand, product benefits, etc. - in all you do.

I suggested three things that could be done immediately to being marketing without money.

1. Change your voicemail. Add you company tag line, mention a new product, or let your caller know about a recent offer. This can be done at zero cost and helps to market your company, products and services.

2. Ask for a Referral. The purpose of marketing is to sell. Why not cut to the chase? After each sale, ask for a referral. Your customer usually knows at least one other person who can benefit from your service.

3. Write a letter. Do you have a short list of prospects that you've been trying to reach but no marketing materials? No matter.... generate a handwritten not that specifically addresses your prospect's pain points and how you and your business can alleviate them. For less than 50 cents, you've created a powerful marketing piece that can generate significant results.

Marketing doesn't have to cost a lot, or anything for that matter. Keep it simple and think about those ways in which you're currently communicating with your prospects and customers. Can you turn these communications into marketing opportunities?

How Do You Get Sales Leads?

According to the Marketing Blog:

According to the survey results by the Chief Marketing Officer Council, most valued source of leads is from customer referrals.

54% Customer Referrals

14% E-Mail or Direct Marketing

8% Internet

7% Events

7% Leads from Vendors

3% Third Party Lead Generation Organizations

8% Other

Would you agree that the best leads come from the referrals of satisfied customers? Is it surprising that customer referrals were ranked as four times more powerful and valuable than E-Mail or Direct Marketing campaigns? Customer referrals were ranked nearly seven times more likely to result in sales and new business than leads derived the Internet.

Customer referrals are a means of providing immediate credibility. With the increasing ability for consumers to share personal expression on the Internet, Blogs, E-mail, and word of mouth, the ability to communicate has enhanced the voice of the customer. In business-to-business transactions, a customer referral is more likely to lead to an appropriate contact with a relevant message, which is far more powerful and likely to result in success than a cold call from a third party lead generation. Events and trade shows can be a powerful platform to market a brand, but fall short in delivering valuable leads.

Note from Kyle:  As I have said many times, customer referrals and testimonials are great, as long as they are from a trusted source!  Just because someone wrote for you does not mean it is credible.  This blog is in no way saying that, I just thought I would put my 2 cents in!

With all of this insight, how did the same channel executives, distributors, resellers, and channel representatives respond to the survey by Chief Marketing Officer Council with regards to tactics for generating new leads in the coming year?

14% Plan to use Direct Marketing and E-mail campaigns

13% Plan to use Sales Brochures and collateral

10% Plan to focus on Tradeshows for lead generation

8% Will use Seminars to generate leads

7% Will rely on Print Advertising

7% Plan to use Public Relations and Article Placement

7% Plan to use the Internet and Online Advertising

 

6% Will revert to Telemarketing

6% Plan to invest in Internet Search Engine Marketing

5% Plan to engage customers in User Group Gatherings

4% Plan to rely on Yellow Page Advertising

4% Will experiment on the Internet with Blogs and Social Networking

3% Will use Online Directories

Are these things what you are planning to do reach customers?  What do you want to do?

I Have Really Good Competition!

I have some good competition!  You know what, I do not think I have heard those words get mentioned from either a small business owner or someone trying to start a small business.  I usually hear that the owner was treated badly so therefore they want to open and start a small business.  Is this truly the correct way to go? This normally starts an internal battle that you always want to beat that person.  A personal vendetta against the company I guess is a good way to say it. 

I would rather hear someone say, I think the competition is good, but I can do it better, and here is how I am planning on doing it.  You can learn a lot from your competition.  Yes, you can learn a lot about how not to do things....but you can also learn to do things better.  You can find markets that are being under served.  Sometimes the competition has to many customers and they will refer business to you.  Take the time to know your competitors and know their strengths and weaknesses.  One of the more powerful things a business owner can do is evaluate the strengths, weaknesses, opportunities and threats (SWOT) for their company.  This is done for a snapshot of time.  SWOTs can change overnight depending on many factors including the weather (does anyone remember Hurricane Katrina), the economy, war, and so many other factors to even start to name.  These need to be continually changed as part of your strategic planning.  You don't do strategic planning for your company?  Maybe you should start.  For growing businesses, strategic planning is important for your sustainability.  Taking a course such as Fast Trac Growth Venture or even creating an advisory board are some great steps to your continued growth.  This applies to all companies whether it be a Fortune 500 company, a blog, a bookstore or even a restaurant. 

So know what your competition is great at!  Know what they are not so good at.  Knowledge of your competition is key.  Once you have the competition, do strategic planning for your company!  PLAN PLAN PLAN!