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Ideas about marketing have changed dramatically during the past
several years. In contrast to the 1980s approach of creating
aggressive strategies to compel sales, the new style focuses on
developing a service-oriented business dedicated to solving
customers' problems.
It's sometimes called "customer-centered" marketing, and
it's not as simple as it sounds. For one thing, providing
customers with real solutions requires a good deal of research
and insight. Yet businesses too often adopt a quick-fix response
convenient for them and call it customer-centered. For example,
24-hour service lines are easily set up and seem customer-
focused, but research might show that what a firm's customers
actually need is a toll-free fax line for describing operating
problems to technicians. In short, mere lip service to customer
support is not enough. Companies must truly look beyond their
internal considerations to focus squarely on their target
audience.
The other challenge in customer-centered marketing is that
it must also be competition-centered. The reason, say Al Ries and
Jack Trout in Bottom-Up Marketing, is that the only way to "pry
customers loose" from your competitors is to offer better
solutions than they do - and exploit new markets or new
opportunities your competitors haven't thought of. And that means
being constantly aware of what the competition is doing.
A further hurdle is that many firms are simply not
marketing-oriented to start with. Where does your company stand?
According to John Graham, president of Graham Communications in
Quincy, Massachusetts, a key sign of problems is that businesses
have no established marketing plan, taking action only when sales
lag. Moreover, they balk at spending money for marketing yet
expect big results from small-budget, amateurly-produced
advertising materials that simply imitate the competition.
Marketing-oriented companies, on the other hand, says
business development consultant Jack Harms, see their primary job
as attracting and keeping customers by satisfying customer needs.
They're externally focused, concentrating more on customers than
on internal benchmarks such as productivity. They measure success
in terms of increased gross revenues and market share, not profit
margins. In addition, they move quickly to provide new products
and services once the need for them has been identified.
All told, the way to success is clear. Go the extra mile to
give your customers high-quality, competitive products and
services. Spend money to make money. Work to attract and, more
important, retain your customers with every well-produced
marketing device appropriate to your business: newspaper and
Yellow Pages ads, brochures, direct mail, TV and radio spots,
newsletters, telemarketing, public relations, community
sponsorships, trade shows, billboards, special events and more.
Start by considering the 12 fast, low-cost, easy-to-
implement marketing ideas outlined below.
Survey Your Customers.
Salespeople can tell you a lot about your customers, which is why
they're the source of customer intelligence for many companies.
Yet because their job is to sell existing products or services,
as opposed to perceiving and addressing unmet needs, there are
limits to what salespeople can offer. So get your own firsthand
view as well by taking a shift on the sales floor or with a
service crew.
Better yet, survey your customers directly. What you need to
learn from them, says Joan Koob Cannie, author with Donald Caplin
of Keeping Customers for Life, can be summed up in five points:
* Why they buy from you.
* How they use your product or service.
* What they like and dislike about doing business with you.
* How you compare to the competition.
* What you do that "annoys, infuriates or delights" them.
Put these points into a short questionnaire and ask
customers to return it, anonymously, in the stamped self-
addressed envelopes you provide. Ideally, survey all customers
during the course of three or four weeks, so that even a small
rate of return will give you a meaningful sampling of opinions.
Above all, be prepared to change to solve what customers
identify as problems. If they complain of delayed order-
processing during peak season, for example, offering apologies or
recommending pre-season ordering is the response of an
internally-centered company. The customer-centered company, by
contrast, hires more staff.
Follow Up On Every Sale.
Don't stop with a one-time customer survey, however. Regularly
evaluate all your transactions with customers to monitor the
quality of your products and services, and ask customers how you
can improve it. Fortunately you can do this easily, again using a
questionnaire.
Keep questionnaires short, advises business writer Jacquelyn
Lynn, and make sure each question concerns only one issue (e.g.,
"Was the delivery crew prompt and courteous?" is two questions,
not one). In addition, try to avoid yes-no questions and offer
check-off ratings in no more than four questions, ensuring that
customers are putting their ideas into short answers more often
than mechanically checking boxes.
To keep the questionnaire well-focused and concise, stick to
the big issues or the critical points. Begin constructing your
questionnaire by writing out every potential question you can
think of; then narrow it down to the six to 12 that matter most.
An even more important part of follow-up than questionnaires
is to thank customers for their business - which you can do in a
short note - and put their names on a mailing list. Then send them
any of a variety of useful mailers: notices of new products or
services, information about products and services related to
recent purchases, sales notices, special promotions and
newsletters.
Whatever else you may include as part of your marketing
plan, don't skimp on follow-up. For follow-up, emphasizes
marketing guru Jay Conrad Levinson, is "the key to loyal
customers."
Use Your Database To Write Customers a Personal Letter.
Database marketing, explains business writer Mark Hendricks, aims
"not to make the sale, but keep the customer." The underlying
technique is to use database records of customers' latest
purchases, and frequency and amount of past purchases, to create
targeted mailers that let you stay in touch with your customers.
The most popular of these mailers are listed above. But
another type of mailer, fast and inexpensive to produce,
sometimes proves the most powerful of all: personal letters.
A personal letter, as advocated by Jay Levinson, is a one-
page letter that recaps what a customer has just purchased and
then describes new products or services the customer might need -
or simply provides helpful professional information. It conveys,
in short, what you can do for that customer in the way of
service, attention and expertise.
Take the time to concentrate on customers individually by
writing them letters personally tailored to their specific
situation. Mention that you'll phone in a week to follow up on
the matters you've broached. And add a handwritten P.S. recapping
your main message.
Try Niche Marketing.
Many of today's most successful companies have stopped marketing
to the broad, some say meaninglessly broad, customer categories
of the 1980s (e.g., "heavy users" or "women aged 25-49"). Instead
they reach out to narrowly-focused groups, using a strategy
called "niche marketing."
Niche marketing gained wide popularity through Donald K.
Clifford, Jr. and Richard E. Cavanaugh's The Winning Performance,
which studied 6,117 small companies that had grown four times
faster than the Fortune 250. Ninety percent of these firms, the
authors found, competed in small market niches. All were
customer- rather than sales-driven. All developed new products
with the end-user in mind. And all concentrated on advertising
to - and generating repeat sales from - not just any customer,
but a small, credit-worthy, qualified group.
Clifford and Cavanaugh present a series of steps companies
can take to adopt niche marketing for themselves:
* Compile a comprehensive list of your prospects and customers.
* Narrow the list to a profitable group you believe you can serve
better than the competition.
* Create a profile of the traits common to these customers, such
as sales volume or location.
* Use this profile to tailor products, services and advertising
to your niche market and qualify new prospects.
* Be prepared to experiment with several niches before finding
the one that fits your company best.
Distribute Free Samples.
Free samples are always welcome. Food and beverages are natural
candidates, as are free trials of non-consumables like furniture
or office equipment. In fact, anything customers must try in
order to appreciate lends itself to sampling. Sampling has
historically produced great successes, from the free nibbles that
have launched cookie stores to the mass mailings and giveaways
that have introduced products ranging from cereals to Post-it
notes.
When distributing free samples, be sure you have an adequate
supply, advises writer Jacquelyn Lynn. And try to combine free
samples with coupons or other marketing techniques.
Present Free Demonstrations, Consultations & Seminars.
An analog to free samples is free demonstrations or
consultations, which can take place on your premises or that of
your customers, or at homes, community centers, rented conference
rooms, trade fairs, festivals or other events. When staging
demonstrations, talk for no more than 15 minutes, recommends Jay
Levinson, and end by closing the sale. When doing consultations,
determine how much information you must impart to prove expertise
without giving away too much; end again by closing the sale.
Levinson suggests extending demonstrations and consultations
into free seminars. Promoted through signs, circulars, media ads
and other publicity, these one-hour lectures should concern a
topic related to your business and comprise 75 percent
information, 25 percent sell. Give participants an easy,
compelling way to sign up for your services before they leave.
Hand Out Free Gifts.
If you want guaranteed attention, offer a free gift. A free gift
for a particular amount or item of purchase. A free gift for
responding to a direct-mail solicitation. A free gift of a second
item with the purchase of a first - a more tantalizing and
successful version of the two-for-one sale.
Also consider handing out specialty gifts to prospects and
customers: free pens, scratchpads, mugs, T-shirts and other items
printed with your company name, address, phone number and
business slogan. To explore the range of gifts available, consult
some of the "Advertising Specialties" firms listed in the Yellow
Pages. Ask the reps to suggest gifts that have been used
successfully in your industry and pay special attention to new,
just-introduced items whose advanced design or technology may
appeal strongly to your customers. Select gifts based on their
appropriateness to your customers and your business, quality of
construction and tastefulness of design.
Use Coupons As An Advertising Vehicle.
Coupons offer a proven method of generating trial. Enclose them
in invoices. Hand them out at the cash register. Distribute them
through your sales force. Include them in a coupon pack prepared
by a direct-mail advertising house.
If you decide to produce your own coupon, study samples
around you to see how they're written and designed to specify the
product and trumpet the savings boldly and unequivocally. If you
give your coupon an expiration date, which you should do to
encourage prompt use, make sure it's conspicuous.
Like all other forms of advertising, coupons work best with
repetition. You'll need to try four or five, issued on a regular
basis, to know how well they're working; measure their
effectiveness simply by counting the number redeemed.
Build Awareness Through Sweepstakes or Contests.
Sweepstakes and contests provide exciting ways to build
awareness of your products, services and company, as well as
produce the goodwill that giveaways naturally inspire. Whether
entrants will win a free lunch at your restaurant or a free week
in Paris (perhaps co-sponsored by a local travel agent), you must
check the legalities with your lawyer before you start.
Then plan out your promotion step by step, from how
customers will enter and how entries will be handled to whether
you'll award prizes below the grand-prize category. For example,
will everyone win something just for entering?
Finally, create an entry form and eye-catching collection
box and advertise with flyers, mailers, banners, store signs,
newspaper ads or radio spots, as appropriate. If you'll collect
entries in your store, place the box at the back of the premises
so everybody must pass through your merchandise to reach it.
Afterwards, generate publicity about the winners - and
display photocopies of all resulting news stories at your
business.
Be Creative With Telephone-hold Marketing.
In most businesses, callers will at some point be placed on hold.
So play a telephone-hold audiotape that, over background music,
talks about your products, services or even your company itself.
Besides helping the time pass faster, tapes can answer callers'
questions and even inform them of products or services they need
but didn't know you provide.
To find a company to produce your telephone-hold tape, check
the Yellow Pages under "Telecommunications-Telephone Equipment,
Services & Systems." Most firms provide everything you need -
produced tape, hookups and phone equipment - for a monthly fee.
Sell With Store Signs.
Use interior signs to tell customers about the goods and services
you offer, such as free delivery, free alterations or free
trials. If you stock a specialty line, like environmentally-safe
products, point it out. If you've just received merchandise with
a high-demand feature, let customers know.
Signs also provide an easy way to answer customers' most
commonly-asked questions. Post explanatory labels to help
customers differentiate among various models. Write out shelf
signs describing special features that make products outstanding
values or unique in their field, or telling customers where to
find accessories.
Use signs, in short, to tout your company's competitive
advantages and to make shopping easier, more informative and more
motivating for your customers.
Act Now to Extend Your Seasonal Sales.
Is your business seasonal? If so, suggests business writer Carol
June, utilize year-round marketing to improve your sales. Before
the season, stimulate repeat sales by sending coupons to current
customers for upcoming purchases or offering special deals on
early orders. After the season, use follow-up mailings or phone
calls to stay in touch with customers and encourage their
loyalty. Or maintain interest with an end-of-season or off-season
sale of leftover merchandise.
In the longer term, consider a second-season business or
product line that would both be a logical extension of your
current operation and appeal to your customers. A holiday
fruitcake company, for example, might branch out into year-round
baked goods; a ski shop, into camping gear. Or, if you're a
retail firm, expand not your season but your customer base by
adding a catalog or direct-mail wholesale operation.
To sum up, marketing is a 365-day-a-year job. It demands
persistent attention on satisfying customers' needs. Equally
important, it requires a constant program of efforts to develop
your customer base and stimulate sales - a program initiated and
implemented most effectively by putting your own twist on direct,
hard-working, tried-and-true ideas such as the 12 described
above. For it doesn't take novelty or large sums of money to
succeed in marketing; first and foremost, it takes action.
You've Got to Put the WOW Back in Business
As a private ticket agency now selling 250,000 tickets a year to
theater, sports and concert events throughout the U.S. and
abroad, Ticket City in Austin, Texas has grown explosively since
Randy Cohen (above) founded it in 1990.
"You've got to put the wow back in business," says Cohen of
his marketing methods. "You've got to plan your work and work
your plan."
That means promoting the customer's interests and
encouraging repeat business right from the start. For example,
Ticket City doesn't sell just "tickets," but the "best seats"
available. Staffers call back every single customer to say, "I
want to make sure you had a fantastic time" at whatever event the
customer bought tickets for. They may also phone to offer
discount tickets to this year's version of events that customers
attended last year.
Though he advertises widely, usually in exchange for
complimentary tickets, Cohen depends most on his telephone staff,
making sure all are friendly, engaging and energetic - as well as
deftly assertive about asking for the sale.
We Put the Money into the Quality
Since 1983, when he and his mother founded Gimmee Jimmy's
Cookies, Inc. in West Orange, New Jersey, James Libman (at right)
has been uncompromising about the quality of cookie preparation
and ingredients. He believes that once customers taste them,
Gimmee Jimmy's cookies sell themselves.
Accordingly, Libman's marketing strategy has always centered
on free samples. He launched Gimmee Jimmy's with the help of
extensive sampling, including his mother's all-weather stints
outside supermarkets until a large regional chain began carrying
the line. Currently, he also sends out cookies as thank-you
customer gifts from dozens of New Jersey auto dealers, banks,
brokerages and other businesses.
The company works actively in the community. Besides
belonging to several chambers of commerce, the firm donates its
seconds to churches and schools - especially schools for the
deaf, where Libman, who is deaf, often lectures to enraptured
students.
Revenues have grown from $25,000 to $1 million, generated by
sales in supermarkets and over CompuServe and fueled by
inexpensive sampling. "We put the money into the quality,"
explains office manager Fran Stack. "And," she adds, "it shows."
It All Starts at the Grassroots Level
"It all starts at the grassroots level with the employees," says
Allen), explaining Petersen Farms' success since 1992, when he
and cousin Raymond Petersen took over the ailing family-run ice
cream and restaurant chain in West Hartford, Connecticut.
Believing that no marketing plan could succeed until
employees were working together for the same goals, Petersen
focused first on improving morale. He revived the old company
newsletter and ran a newsletter-naming contest - won by the entry
"Monthly Moos." He invited employees to repaint the plant to
their taste, which produced a pink, purple and cow-spotted decor.
When it came to marketing, in-house creativity also
prevailed, resulting in colorful, high-profile special events.
For example, Petersen Farms transported the "world's largest ice
cream sandwich" to downtown Hartford and distributed free tastes.
It developed a menu of items named for local radio personalities
and donated 10 percent of revenues to charities. It organized a
hospital fund raiser in which hospital teams raced to assemble
chocolate-covered ice cream sandwiches; the chocolate flew.
"Use your imagination," advises Petersen, "and you can do
everything big companies can do, but on a far more economical
scale."
Your Best Customers Are Your Existing Customers
Steve and Maryellen Stofelano (above), owners of Mansion Hill Inn
in Albany, New York's inner-city Mansion District, have taken on
two tasks: renewing their neighborhood and promoting their inn.
In the neighborhood, the couple's efforts at reviving their
street and hiring local residents have raised property values,
won them a municipal award and made Mansion Hill Inn a place
where guests can feel safe.
As for the inn itself, they've focused their marketing on
their award-winning dining room. The Stofelanos serve only New
York State wines, for example - a move that, in the state
capital, has brought them notice and acclaim. The couple also
offers numerous special-event dinners: wine-tasting dinners,
cigar-smokers-only dinners and "Mansion suppers" featuring the
cuisine's of their Polish-, German-, Italian- and African-
American neighborhood.
In addition, using a mailing list of diners who sign up on
comment cards that accompany dinner checks, the Stofelanos stay
in touch with guests by sending notices of dinners or promotions
like summertime room discounts for Albany residents. "Never
forget," comments Steve, "that your best customers are your
existing customers."
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