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Tag: growth

  • Five Ways Customer Research Can Build Your Business

    Five Ways Customer Research Can Build Your Business

    Most businesses we encounter in our practice appear from the outside to be “doing fine”, and its only after a few pointed key questions of the senior management do the challenges and problems surface. Most business owners feel that they “know their customers” and understand them sufficiently to serve them and sell to them.  Yet, when we initiate some customer insight research, we inevitably find that there are many facets to their customer base, some of whom are being served well (the Core), some of whom are being served peripherally (the Fringe), and some of whom are being completely ignored, if not disenfranchised (the Outliers). If our research is structured correctly, we can uncover areas of growth potential in all three groups, providing tremendous opportunities for most businesses to significantly move the needle on sales and revenue. These are five ways our results can be directed toward growth:

     

    • Tighten the focus on the Core. While these folks are generally repeat customers, long-terms clients and loyal to a fault, they can always increase their numbers, frequency and volume, often by tightening and focusing messaging, narrowing media choices to those that are most effective, and “clipping the menu” of benefits, product offerings and services to those that they frequently enjoy.
    • Uncover Opportunity Within The Fringe. Infrequent customers, on and off clients, low-volume buyers, those with a high browse-to-buy ratio, are where the greatest opportunities often lie. There is the largest potential for growth among this group, to bring them up to the level of the Core group and beyond, by tailoring the product, packaging, messaging, media selection, and benefit focus to their needs. Now you have to uncover those real needs and cater to them to beef up the volume and frequency of their behavior.
    • Learn About Off-Label Uses From the Fringe. Occasionally, our research will uncover a related, but not fully realized, use for a product or service, one that the product wasn’t designed for, but that customers saw as a functional substitute for something else. Sometimes this warrants a small product or packaging change to accommodate and expand upon before offering it to customers. Sometimes this reveals co-packaging, or co-marketing opportunities previously not realized, which lead to whole new revenue streams. These can also present opportunities to bring the Outliers in closer and boost their volume using the new product usage as a lever.
    • Call In The Outliers. Discovering the resistance points and friction points in doing business with you or buying your products often presents itself most readily when speaking with the Outliers. These folks bought from you or worked with you for one or a couple of several real reasons: you were the only game in town at the time; you were the least expensive; you were the most convenient to their current circumstances; they were pressed for time and didn’t want to make a conscious choice. These are targets of opportunity, but they will show up where your customer interface is weak, where there are barriers to convenience, obstacles to purchase, price sensitivity, weaknesses in package focus, product size, and a host of small deficiencies that these casual buyers won’t surmount to buy from you. Something as simple as a slightly smaller size for sale at convenience outlets, or a reduced service package for smaller customers, can boost sales noticeably at minimal cost, and keep margins intact.
    • Find A New Sector. Within each of the other sector targets there will be clues as to a new customer sector that’s out there being ignored or forgotten, and they will reveal themselves through the conversations with both Outliers and Fringe customers. They answer questions about current behaviors beginning with “Well, I used to do ____, but now . . .” They refer to a previous reason to buy that may or may not currently exist with the current product or service, or that existed with another brand they bought before switching, and that’s where the opportunity lies. Ferret out those differences, those “old” reasons and see if they still exist, you might have turned off a whole sector of customers and didn’t know it by making a change earlier that you can now revisit and capture them back.

     

    The name of the game is knowing your customer base better, segmenting your offering appropriately, and hunting for clues of things that turn them on and off and using that knowledge to your advantage in the marketplace to approach each group as efficiently and effectively as possible.

     

    If you think your business can benefit from knowing your customers better for any of the above reasons, or something entirely different, you owe it to yourself to investigate further. The costs are far outweighed by the benefits in both the short- and long-term.

     

  • Legacy VS Longevity – Brand Makes The Difference

    Legacy VS Longevity – Brand Makes The Difference

    Some brands seem to become well known, some nearly ubiquitous, in a short period of time, relatively speaking. Some businesses that have names that are around for decades and decades, and for generations, and their brand reach is only a few miles from their location with virtually no recognition beyond that, aside from existing customers, which only number in the hundreds. What makes the difference between the long-time brand, and the real legacy brand, that gains national exposure and stays in the forefront for years and years?

    Clearly just sticking around for decades should count for something, right? Growing a business is not for the faint of heart, and it’s a lot of hard work over years to become established and known for what you do. Yet some seem to climb that mountain fairly quickly and become almost household names in just a short period, taking a large stake in market share for their category, while others simply continue day by day, seemingly doing a good job, gaining customers, but they never reach prominence either in their category or industry beyond the small local area.

    The difference can likely be attributed to three factors:

    • Paid or Earned Exposure – is there an advertising program on a large scale, is there some press and PR activity on the schedule, have you told the story to the media and let their network and their imagination do some work for you in spreading the word? If not, that may be a significant determiner of your reach and market share – someone once said that “a business that doesn’t advertise is like a nerd kissing a girl in the dark – you know it’s happening, but no one else knows you’re there.” Craft a credible, succinct brand story, and amplify it as far as wide as possible.
    • Industry Participation – Are you a member in good standing of the business and professional trade associations that cover your vertical and your business activities? Are you active and engaged in those groups? If not you’re missing a huge opportunity. Those organizations not only represent you and the other members to the general public, but they allow you to be known within your industry as an expert, a specialist, a provider of solid standing and credible ability – they all publish multiple vehicles, from websites, to magazines and newsletters and blogs that can be used to showcase your business to industry colleagues.
    • Differentiation – what is it that you do better, faster, cheaper, differently than your competitors? Do you use different or better procedures, superior materials, alternate parts or components, better product designs, respond to customers in a spectacular way, do you offer a full refund no questions asked no matter what? Free shipping on returns, multiple access points, 24/7 service, faster turnaround? Something gives you distance from your competitors. Use that to stand out from the pack, and spread the word nationally that you’re the one that can provide “X” when no other can.

    With those three pillars in place, if the product is of good quality, if you’re telling the right people, at the right time, often enough to “stick” in their minds when purchasing time comes, then your brand should be established, and spread as far as you can push it out.

    None of the three things listed above are terribly expensive, from a business standpoint. It is certainly possible to spend yourself into a sizeable hole on advertising that doesn’t work or that is misplaced, but there are scores of professionals out there to assist you in determining the appropriate spending levels and media selections so that this doesn’t happen. The industry participation is relatively inexpensive but can be time-consuming – almost always well worth the time to establish yourself as an industry player, which brings dividends for years. Differentiation is more an introspective exercise, and should be part of all your marketing planning, along with reiterating your brand characteristics and pillars of internal strength for the brand, to help keep the brand story consistent and on track over the years.

    Are you a local presence, or a national brand on the rise? The choice is really yours to make . . .

  • Sometimes, a Frontal Assault Loses The Sales Battle

    Sometimes, a Frontal Assault Loses The Sales Battle

    I was speaking with a top marketer and high-powered sales professional (yes, the two skills are not mutually exclusive), and the conversation drifted to how he made approaches to prospective clients and how HE liked to be approached. The two were the same, and clearly it’s lead him to experience fantastic success, based upon his story and current situation.

    He shared with me that “once I discovered this secret, I quit “selling” and just had a conversation.” He related how he had been approaching clients with qualifying questions, asking them about their business, and subsequently telling them and showing them how his expertise could provide solutions, how they had helped others in similar situations, and here were the reasons why. The is a common approach, one most sales people take to generated leads, warm calls, those they have no real personal relationship with prior to the initial conversation. It’s a frontal assault, based on the ABC (Always Be Closing) school of sales, which works great for high volume, turn-and-burn, broad-based consumer sales. It’s high-pressure, high speed, high-volume approach that will, with some minor tweaks, meet the numbers goal almost every time if enough approaches are made. But it doesn’t usually lead to the most loyal clients, or the most profitable, and certainly not the longest term clients, those who provide life-time value which is 10-20 times higher than the initial transaction value.

    For long-term, relationship-based, loyalty-rewarded business-to-business sales, this type of approach is less successful, and can be annoying and offensive to the executive to whom it is directed – it’s disrespectful to think that such an individual is going to make a quick, ill-considered purchasing decision, on his own, without due diligence, without internal consultation, right in front of the salesperson. Not happening.

    Sometimes a more subtle, staged approach is more appropriate – and more successful! This is not a style issue, it’s a functional reality. People want to do business with those they trust, and to come straight at someone without knowing anything substantive about them, and put pressure on them to make a purchasing decision, on what usually is a fairly high-ticket spend, does not inspire trust – someone worthy of my trust would know better . . .

    Now, for the secret my colleague imparted. His conversations don’t revolve around benefits, features, cost, product production schedules, arcane back-office technology, or even specific results. His conversations center around discovering the nature and often the source of the problem, the pain point the prospect is suffering from. Once that is established, no promises of a solution are made, but a commitment is asked of the prospect to explore a couple of ideas further, and see if the relationship is likely to work. That way they can both see that the steps recommended are sensible and effective, but also that each side has at least an emotional skin in the game, they’ve both committed to give TIME and EFFORT to solving the problem. Cost is not the central focus, indeed it may not even be mentioned.

    In a nutshell, the secret is to solve problems that both parties have agreed are problems and have agreed to work together to solve. It’s a common path, not a push-down strategy, and it works to “knock down walls” and reduce resistance, and craft a reasonable, fair and honest business relationship.

    Try this with your next solid prospect, and see what the results are. We all have to give to get, and with this simple secret, you get both.

  • Brand Effectiveness Key to Membership Growth, Part II

    Brand Effectiveness Key to Membership Growth, Part II

    Here’s part II of yesterday’s post . . .

    Brand Effectiveness Key to Membership Growth – Part 2

    In Part One, we discussed using in-depth member survey work to boost the visibility, awareness and effectiveness of your organization’s brand, and how it can directly impact your ability to recruit and retain members. If your organization isn’t the first thing member prospects think of when they turn to industry issues, there’s work to be done.

    Your survey may provide mixed results that don’t show a clear direction. Often this is an indication that there is a disconnect between the brand you put out to the external world, and the one you use to craft the questions! That alone tells you something, and a series of follow-up interviews with the same basic set of queries to the external and internal groups should help clear up the discrepancy.

    Other sources of data can help you check your brand effectiveness as well. Interviews with those alternate stake holders should be couched slightly differently, and can use more “insider jargon” in the questions, as their awareness starts off at a higher level. They can give you a median read, between the internal and the external, and this can often help you reconcile the disparate results mentioned above.

    Take Stock

    An inventory can be helpful in analyzing your brand’s effectiveness. Simply create a list of all the places where your brand appears, in what context, what medium, attached to what product, message or outreach vehicle, and see if they seem to have an obvious pattern, if they are aligned. Often pulling samples from the archives and lining them all up together can be very enlightening. You may be unaware of a brand shift that may have occurred over time, small miscues that send a less the consolidated message to the recipient. One example of this is when an outsource vendor or contractor uses your brand in their program, and it doesn’t match your normal set of brand characteristics. If you are seen as a very sophisticated, august and professionally ethical branded organization, and an outsider puts your logo as a sponsor on a ticket giveaway coupon for a concert, that would be a brand slip or miscue. If several of these items have crept into your inventory, it may be time to put some tighter controls on the use of your brand, and provide some increased education within the organization about the importance of protecting the brand and how to use it properly.

    Top of Mind

    Keeping memorability high is another positive effect of a well –aligned and effective brand. If your brand is consistent with individual experience, that experience will be more memorable. L.L. Bean shows a great example of this. Their “Return any time, no questions asked” return policy has been with them since virtually the beginning of the company. They were so confident in the quality of their products, they couldn’t dream of anyone sending them back, and thus the perceived risk of such a policy was low. That policy became part of their brand, and is now a deeply embedded positive characteristic, so much so that there was near revolt when a senior staffer proposed eliminating it to help save money. As it turns out, their return rate is notably lower than their competitors, and the savings realized would have been more than offset by the damage to their brand as a trusted, honorable retailer of fine outdoor merchandise. As a result, when you get an L. L. Bean catalog in the mail, you instantly put in the back of your mind that the purchase from there is of lower risk, and therefore a greater possibility, as a result of that policy. That gives them a competitive advantage, and keeps their customer retention high and their loyalty even higher, due to the memorability of that policy.

    Brands Aren’t Built In A Day

    If you’ve launched a new product, are a new organization or subgroup within a larger organization, you know the difficulty of setting the stage for a lasting brand. It takes many, many customer touches to build a brand effectively, and with non-profit, member driven organizations, the rate of touch is often affected by budgetary constraints. That puts the building process on the slow track, as the mailings, e-mails, directories, guides, meetings and other activities slowly mount up in the member’s mind. Each piece of the building process must be consistent, and have relevance and meaning for the recipient, or you undo much of the positive work up until then. Be patient. It can take years for an organization to reach a highly memorable, effective state with its brand, and many a good program has been discontinued by impatient senior staffers with a more cautious eye on the bottom line than knowledge of the branding process and its benefits.

    If your brand message aligns with expectations, your touch rate is predictable and rising, and your organization has shown relevance for the audience it wishes to serve, you’re on your way to a highly effective brand.

    If you’re concerned about your brand’s health, effectiveness or strength, and would like to take advantage of our expertise on these topics, be sure and subscribe to this blog, and pick up a copy of “The Marketing Doctor’s Survival Notes” 

     

  • Brand Effectiveness Key to Membership Growth

    Brand Effectiveness Key to Membership Growth

    The visibility, awareness and effectiveness of your organization’s brand directly impact your ability to recruit and retain members. If your organization isn’t the first thing member prospects think of when they turn to industry issues, there’s work to be done.

    But where to start?

    As popular wisdom has it, knowing and admitting you have a problem is half way to solving it. In this case, that means doing a little member research to determine how your members and prospective members view your organization through its brand. This can take one of several forms, including a quick poll on your website, a phone survey, an e-mail or electronic survey, or a paper/mail survey. Regardless of the format, the recipient list should be equal parts members and prospects, to get both perspectives and spot any disconnects between those that know the organization from the inside versus what the brand alone presents to the outside world. The included questions should be formulated so that the responses returned are actionable, and give you some indication of their perceptions of the brand and the organization behind it, based on their actual experience with you, as customers, as members, as industry participants.

    Reading the results in a timely fashion is important, as the cyclic nature of non-profit schedules creates peaks and valleys in the brand perception and awareness level, depending upon what time of the year it is, and how high the level of activity involving members is at the time you launch the survey. For organizations that have even more volatile years, it may be necessary to do two sets of surveys at different times of the year and compare the results to get a good reliable read on the level of awareness you can count on.

    The results of your survey are one source of data, but there are other sources that while less formal or quantifiable, are just as valid in getting a read on your brand awareness and effectiveness. These include interviews with Board members, committee members, volunteers, chapter presidents or directors, vendors, other related professionals, including members of related associations, and members of ASAE.

    Once all this data is collected, it needs to be interpreted accurately so that the actions you take drive your brand efforts in the most effective direction possible. Some items will be readily apparent if the surveys and interviews were constructed correctly. One good tool you can use to read your results is to retrieve the set of brand characteristics from the marketing archives, and see how many of your responses line up with those characteristics. If your responses, including the open-ended comments, use some of the terms and attributes that make up your organization’s brand, then you’ve got a good solid start on reading your data correctly and rating a good score on your brand effectiveness. Conversely, if very few or none of the responses include those attributes on the list, there’s a good chance there’s a disconnect between what you’re trying to convey with your brand, and how it’s being perceived by the various populations it’s designed to serve.

     

    Now that you’ve got a read on how well you’re doing, how do you go about improving? The answer, much as it’s been overused by too many of us in today’s litigious society – it depends. It depends upon what your data tells you, and every case is different. However there are some common scenarios and a few valuable remedies to match them.

    Scenario #1 – Our brand registers very low on the surveys for memorability.

    Typically this means that your customer base doesn’t remember your brand in response to a question designed to illicit a favorable response unprompted. Your organization isn’t top of mind for them as relates to your products or services, and someone else’s brand is. That could mean that your exposure frequency is too low, they don’t see enough from you to keep memorability high enough. It could be that a competitor has captured some key emotional connection to the customer that you have not, despite an inferior product or service – they’re not as good, but customers remember them because they’re “out there” more. This can be remedied with some increase in exposure to key audiences – your top buyers should hear more from you in a positive light to reassure them that you offer the product or services that give the best value. Putting your brand in front of them for positive reasons, like a price discount, a new offer that really saves money, rebate eligibility or other product or service related reason other than to sell them something should go a long way toward remedying this issue. It will boost memorability without seeming like you’re overselling them, a positive cognitive light that will cement the brand in the uppermost memory of the customer.

    Scenario #2 – Our brand rates favorably and has high memory retention among customers, but neither do as well among prospects.

    Usually, this indicates that your product or service has to be “seen to be believed” – it’s value is best seen at delivery or in the transaction, rather than prior to receiving it. This is a sticky problem that has to do as much with promotional direction and relevance as anything else. Your customers know you and have experienced your value, been satisfied with the product or service upon and after delivery and the reputation of the brand was reinforced positively. Prospects, on the other hand, only know you by your “public” face – advertising, packaging, direct marketing, sponsorship associations. The brand unfortunately has little carriage by word of mouth, based on the fact that satisfied customers are not waving your flag and passing on the good word to prospects themselves. Prospects only get a read based on what you tell them. Look to your research and find those key hot buttons of your best customers, and promote those attributes to prospects more heavily. Also, compare your reading on prospects versus customers in other areas of your brand – you may find another disconnect in their perceptions that could cause this effect, and you can remedy both with a shift in your promotional or creative approach to highlight those key elements more heavily. Align your creative with those highest ranking attributes of your best customers, and the prospects should get the best, most relevant perception of your product.

    These are just two of the possible outcomes to this type of analysis. In Part II, we’ll outline some additional outcomes and the directions they indicate you should make adjustments. Suffice to say that if you’re brand is aligned with your message and your audience, you’ve got a strong package for success.

    If you liked what you read here, and would like to read more, subscribe to this blog and watch your inbox for Part II, and be sure and pick up a copy of “The Marketing Doctor’s Survival Notes”

     

  • Marketing Leadership Means Asking the Right Questions

    Marketing Leadership Means Asking the Right Questions

    Ever wonder how market leading companies got that way? Ever wonder who lead the way and how they knew to veer in the direction they did? Based on our analysis of hundreds of business cases, we’ve determined that there are some key decisions that top marketing executives make in common with market leadership, the result of which is moving that company to the next level of market penetration.

    5) Select Partners Carefully. Ask yourself this question: Would i want to do business with this company regardless if I made a profit or not? If the answer is no, then it’s probably not a good fit. For a partnership to work, both sides have to support the mission equally and enthusiastically. If you don’t enjoy your interactions with the partner and they’re not tremendously fruitful, cut your losses and dissolve it before things get bad.

    4) Know When To Call it A Day. Ask yourself: Is this effort as effective as it was the week it started? If the answer is no, is it fatiguing and lagging due to lack of support, saturation, market shift or getting stale? It may be you’ve reached the point of diminishing returns, and the ROI of continuing it is no longer viable. If that’s the case, you’re throwing money away, just pull the plug and initiate another effort. Clinging to a failing program costs you more than you imagine in lost opportunity, time, and it’s negative effect on your audience, staff and company morale has a measurable value.

    3) Have a Purpose. Ask yourself: Why exactly are we doing this again? If the answer resembles something like “we did it last year”, or “our competitors tried it,” or “The Boss wants it that way” than it might be time to rethink the effort from the beginning. Legacy programs whose rationale have changed due to altered circumstances can be doing damage to your brand, losing you money, and wasting time. If the purpose no longer exists, don’t do it!

    2) Are We Winning, and If Not, Why Not? One thing most market leading companies use as a mantra is that they have to be in the top 1-2 positions in each market they compete in or changes need made. They feel a need to lead, and they do everything in their power to lead their particular category for every product or service they offer. A quick analysis of the leader will tell you what you’re doing wrong, and you have to make a decision whether to fix it or bail out. The Cost/Benefit analysis should be performed regularly, and a market scan produced quarterly with ruthless honesty.

    1) Where Do We Go From Here? Market leaders don’t often have to ask this question, because they think 8-9 moves ahead and plan strategically each move and have three contingencies based on research and market intelligence. They ask “where do we go” long before they get there! Draw the roadmap before you leave the barn, leave room to be flexible to respond to unforeseen challenges, and stay the course, and you’ll be surprised how far you’ll go. The control and discipline it requires to do this is what separates the men from the boys, but you can bet that market leading companies spend more time planning than executing, and spend significant time asking “What if?”

    If your company wants to be a leader in their market, it comes down to asking the right questions, and probing until you get an answer that satisfies your needs. Keep digging . . .

    For more great questions you should be asking, pick up a copy of “The Marketing Doctor’s Survival Notes”