My Customers Are Different

Why Sopa is a Bad Idea

2012-01-20T09:34:00.000-05:00

One of the best videos of the year....

http://www.ted.com/talks/defend_our_freedom_to_share_or_why_sopa_is_a_bad_idea.html

The legislation currently before Congress is in danger of disrupting your use of the internet. It pushes the enforcement of file sharing onto the legitimate users of the web. Punish the 99% to get at the 1% that is not following the rules.

Richard Buckminster Fuller was born at Milton, Massachusetts on this day in 1895

2011-07-12T08:02:00.000-05:00

We are called to be architects of the future, not its victims.

Sometimes I think we're alone. Sometimes I think we're not. In either case, the thought is staggering.

Every time man makes a new experiment he always learns more. He cannot learn less.

Human beings were given a left foot and a right foot to make a mistake first to the left, then to the right, left again and repeat.

In order to change an existing paradigm you do not struggle to try and change the problematic model. You create a new model and make the old one obsolete.

It is essential to release humanity from the false fixations of yesterday, which seem now to bind it to a rationale of action leading only to extinction.

Dare to be naive.
All from R. Buckminster Fuller, 1895 – 1983

Google+: What Does It Mean for Marketers?

2011-07-09T07:31:00.007-05:00

Another great article on Social Media... Written by Anna Maria Virzi, it raises some interesting questions. Google does not have a great track record whn it comes to social media. Google Wave bombed. Google Buzz ran into a "buzzsaw" with its privacy issues. Will Google + change the way we look at social media?

Google+: What Does It Mean for Marketers?

Will Google ever get social media right?

That question has marketers buzzing since the search giant last week rolled out Google+, its latest venture into social media and a potential Facebook competitor.

Marketers are divided over Google's chances for social success. Some contend that social media is not in the DNA of its tech saavy, performance-driven organization, while others counter that Google has enough money and talent to succeed in social – if not this time, maybe another time.

One thing's clear: Google has finally got people talking, rather than yawning, about its social strategy. Ford's Scott Monty helped to fuel that discussion when his team created two accounts on Google+ – Ford Motor Company and Ford Europe – to test the platform. Ford's plans included offering video and group chats with some of its followers on Google+.

However, brand marketers will have to wait out on the sidelines in the coming months. ClickZ Managing Editor Zachary Rodgers learned yesterday that Google told brands to hold off from using the service until it releases business profiles later this year.

"Interestingly, Google has chosen to use their old-fashioned limited test rollout to friends and insiders rather than a social media invite everyone-at-once approach," said Heidi Cohen, president, Riverside Marketing Strategies and ClickZ Experts contributor, in an email interview with me. Indeed, that strategy worked when Google introduced Gmail in 2004.

What exactly is Google+? It's an assortment of features with titles such as +Circles, +Sparks, +Hangouts, and +Mobile.

Consider +Circles: it is designed to give an individual more flexibility than Facebook to identify who they want to associate with in a particular group. Problem is, as Search Engine Watch Director Jonathan Allen points out, it can be tough to categorize relationships. "Personally speaking, it has already been a challenge to decide whether I differentiate professional friends from personal friends, or work on the basis that they are all ultimately friends," he wrote last week.

Google doesn't have recent history on its side either. Google Wave, promoted as a tool for use in "conversation and collaboration," was more like a ripple. And Google Buzz came under criticism for violating the privacy of Gmail users; it initially created a network of Buzz friends from a person's Gmail account. And once someone activated Buzz, those names were made public. (Google allocated $8.5 million to fund privacy education as part of a settlement to a class-action lawsuit brought by some Gmail users.)

Google+: The Promise for Marketers

The marriage of search and social holds great promise for many reasons. And Google's in a position to make that happen, says Bryan Eisenberg, managing partner at Eisenberg Holdings and ClickZ Experts contributor.

Consider this example: let's say Eisenberg wants to take his 6-year-old child to the movie, "Cars 2," and searches for movie reviews on Google. And if that search shows reviews from his preferred social circles, those reviews would be more relevant than one written by someone with different likes and interests. In addition, he said, people typically see only a small percentage of their friends' tweets and status updates on Twitter and Facebook.

Google also has had a relationship with Bazaarvoice to integrate customer reviews into search results, according to Eisenberg. So Google+ should be able to build upon those connections.

What about potential barriers to consumer adoption? Eisenberg doesn't believe that's an issue either. "Every single [Android] phone that's activated – there's one-half million a month now – comes with a Gmail address that's automatically set up by Google Buzz," he said.

Eisenberg says Google will triumph over Facebook because Google's efforts are built around an open network compared to Facebook, which is a closed network.

And if Google doesn't get it right this time, it has the resources to refine its approach. As of March 31, Google had $36.7 billion in cash on hand, according to its earnings report.

Google+: Out of Its Comfort Zone?

Not everyone is convinced that Google can and should compete with Facebook.

"In order to have a social network, you need a network - not just the technology to power it. Google has long had the largest user base online, but never the largest subscriber base, which means they have very little knowledge of who (or where) their end users are. And Google end users are very uptight about privacy, so trust is an issue for them," observed Mike Grehan, VP and global content director at Search Engine Watch, ClickZ, and the SES conference series.

Because Google has been an innovator in search, he finds it odd that it's giving so much attention to a non-core area of business. "Developing what is virtually a Facebook clone is certainly a departure, if not a lack of direction - certainly a lack of innovation. I doubt that Facebook has plans to launch a web crawler any time soon," he said.

Instead, Google may be in a better position to compete with LinkedIn and its business users. "With [Google's] presence in the online apps space/SaaS and the cloud (Google Docs, etc.) it may have been a better idea to develop a community around that," he said.

"Given that companies such as Facebook and Twitter have yet to show signs of substantial revenue generation, whereas Google is loaded, it does beg the question why they're doing this – just to keep up with Mark Zuckerberg? Just because they can?" Grehan asked.

What Does Google+ Mean for Marketers?

Google is discouraging businesses from setting up Google+ accounts right now, so there's not a lot that brand marketers can do today. However, marketers (you are human, after all) can try to get an account to better learn how the service works.

Riverside Marketing's Cohen said that while it's too early to forecast how Google+ will evolve, she identified three important marketing considerations to keep in mind. She advises:

Test it out. While it's too early to say how well it will perform when released to the public at large, every marketer should be clamoring to get onto Google+ to test what it does and doesn't do.
Review how Google+ works with other Google tools. Google+ builds upon the functions offered by other Google social and non-social applications and platforms. Of particular note is its integration with Google's Android operating system.
Watch for changes in Google's search algorithms. Since Google is the dominant player in the search space and social media has increasingly had an impact on search, Google+ will cause changes in search, especially real-time results.

Google Offers Versus Groupon: The Portland Throwdown

2011-07-05T07:17:00.003-05:00

Below is great article on Google's new Google Offers service. Written by Rocky Agrawal, here is a link to the original article.

Google Offers Versus Groupon: The Portland Throwdown

Google Offers just finished its first month. Google has been testing its Groupon compete in Portland and I’ve been closely tracking the results.

Doing a head-to-head comparison like this is a bit difficult because the two companies run deals differently. Groupon runs multiple deals each day. Many Groupon deals span multiple days, with some running for three days. Google Offers on weekends ran for two days. For each run, I picked a representative deal from Groupon and compared it with the deal from Google.

I looked at 24 deals from each company. For these deals, the median deal value for Google was $1,987 compared with $8,900 for Groupon. In its first month, Google grossed $129,000 compared with $331,000 for Groupon. Five of the Google Offers grossed less than $1,000; all of the Groupon offers exceeded this. This is to be expected given Groupon’s longstanding presence in the market; Google hasn’t had the time to build a large subscriber base. Actual Groupon revenue (across all deals) would be significantly higher.

“Our Portland trial is going very well for us,” said Eric Rosenblum, director for Google Offers. “Our intention was to start learning how to source great deals, provide excellent merchant and customer service (including phone and email support), and deliver value to our customers, and we are certainly doing that. In terms of our commercial results, the majority of our deals in month one either outperformed or were in-line with our expectations while around a quarter underperformed. Our total units are above where we had projected, but we still need to get better about predicting performance.”

One significant difference was the median sale price. Google’s median sale price was $10; Groupon’s was 4 times that at $40. This was the result of Groupon having a higher percentage of services and activities such as rock climbing and screenprinting classes.

Cash sells best

An area of concern for deal companies is that the deals that generate the most revenue are the ones that are least sustainable for businesses.

The most popular deal in the month for Google Offers was an offer for $20 worth of merchandise at Powell’s Books for $10. 5,000 Powell’s vouchers sold out in a matter of hours. Powell’s is a Portland institution and the deal was the equivalent of selling cash for half off; there’s no reason not to buy one.

The next day, Google ran an offer for personal training and fitness classes. That deal sold 9 units. The worst performing deal over the course of the month was an acupuncture deal that sold 5 units over 2 days. Google grossed $300 on that deal.

Although Google would not comment on specific deals, I expect that the Powell’s deal was heavily subsidized by Google in order to build its mailing list. Rosenblum did say deal subsidies are something they would consider for appropriate merchants. I can’t think of a more appropriate merchant.

The worst performing Groupon that I tracked grossed $1,440 and the best performing deal grossed $44,000. Excluding the Powell’s deal, which grossed $50,000, the best Google Offer grossed a bit more than $23,000.

The closer a deal is to a cash equivalent for an everyday need, the more it will sell. 3 of the top 5 grossing Google deals were for restaurants; another was for 62% off GoKart racing. (That was the one deal that outperformed my expectations.)

Deals like dentists, guitar lessons and medical services (one Groupon offer for a breast exam sold 12 units) are more sustainable for businesses but are low frequency activities. Groupon has a large enough mailing list that it can still generate significant revenue off deals that are sustainable for businesses. But it also means that they will have to keep growing their list rapidly as people tire of such deals.

Offer restrictions

Google Offers generally had more restrictions than offers on Groupon. While this may sound like a bad thing, I believe it’s better for the ecosystem long term. An offer for Le Bistro Montage restricted the deal to weekend brunch. This is a new product offering for the restaurant, so it serves to expand awareness versus potentially displacing existing business. An offer for a Mediterranean cafe wasn’t valid for lunch.

A deal for a barber shop was “valid only for barbers Brian or Jennifer.”

In at least one case, I thought the restrictions went overboard. Here are some of the restrictions for a deal at an Italian restaurant:

Reservations required and subject to availability. 24-hour cancellation policy applies or you’ll forfeit your voucher. Not valid during holidays, on happy hour prices or at the Jade Lounge. Must mention Google Offers when making reservations.

Although the intent is to smooth demand, these are unusual restrictions and I worry they could create a bad customer-service dynamic as consumers who purchase the deals and don’t read the fine print try to redeem them.

The final deal of the month didn’t get a lot of traction because of its low value. It offered $6 worth of Vietnamese food for $3. The description noted that a small bowl of pho is $6.50, large is $7.50. For a deal seeker, that’s an unattractive deal because they would have to pay additional cash out of pocket. For many consumers, prepurchasing a voucher to save $3 hardly seems worth it.

Sales process

A common complaint about Groupon from merchants is that they weren’t made aware that they could cap a deal or that a cap was ignored. We published an email from a former Groupon employee who stated that some salespeople low-balled volume estimates to get merchants to run deals uncapped.

The feedback I’ve received from merchants about Google Offers in Portland indicates that Google sales tries to ensure that the deal structure is suitable to the business’s needs. (But then again, this was the launch of the service, so you’d expect Google to be extra vigilant). One merchant mentioned that Google asked if she wanted to restrict the deal to new customers only. (She opted not to.) Another merchant told me that while she wouldn’t consider running a Groupon, she was considering a run with Google Offers. She liked having the flexibility to restrict the offer to just breakfast, a time when most people aren’t aware that they’re open.

One complaint about Google Offers that was reported by Business Insider is that Google sales reps have implied that running an offer would make them #1 in Google search results. Google spokeswoman Jeannie Hornung said, “We have a training process in place for sales people that has made and continues to make it very clear that Offers has nothing to do with search. As we said before there was clearly a misunderstanding.”

I believe that Google won’t let Offers influence search results. I’m equally certain that when you build a large sales organization, some people will try to close deals by implying things that aren’t true. Google’s reputation in search is too important to damage. Any perception of such tying would also raise antitrust concerns. Google would be well served to make it very clear in its merchant help center and its merchant agreement that search results are not helped by running an offer. If it were my product, I would have merchants specifically acknowledge that they understand that Offers doesn’t generate an SEO benefit.

Conclusion

It’s still the early days of the daily deal business and Google has put out a very credible beta in Portland. Thirty days in, I stand by my claim that there’s not much that is original here.

I believe that they’re striking a better balance between merchant and consumer value than Groupon. The additional restrictions mean that merchants aren’t just selling cash at a substantial discount. Another key differentiator for merchants is more generous payment terms. Google pays out 80% of the merchant’s share in about 4 days and the remainder (subject to chargebacks) in about 90 days. Groupon pays out 1/3 in 5 days, 1/3 in 30 days and 1/3 in 90 days.

Hungry or Bored?

2011-06-02T07:34:00.007-05:00

"Groupon just introduced a smartphone application for Chicago users called Groupon Now, which offers deals near where the person happens to be. The application has two buttons, one if you’re hungry, the other if you’re bored. Any publication, Web site or marketer that can control where people go when they ask themselves these questions on a dull Saturday night has a shot at dominance. "

I saw this in an interesting article from David Streitfeld in the NY Times.

I have often wondered whether or not Groupon is a long term player or a simple fad. The competition for the "half price" model is fierce and it seems like every week another company launches their version. Low start up costs make this play an easy business feild to enter.

But the idea of Groupon Now shows that Groupon is not resting on past success. In much the same way they innovated the original concept of "paid couponing", they continue to redefine the marketplace.

"It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change."

-- Charles Darwin

White Hat / Black Hat - Which SEO Program is Right for You?

2011-05-25T14:45:00.020-05:00

The Dirty Little Secrets of Search

I am amazed that I still come across ads for SEO that programs that promise "the number one position on organic search results within 3 days!". If this were possible, wouldn't everyone be in the number one position?

A great article recently in the NY Times highlights some of the differences between White Hat (good) and Black Hat (bad) marketing.

All search engines use a proprietary formula to rank web sites. Black Hat marketing refers to the process of using shortcuts to circumvent and manipulate the ranking system used by search engines.

This is important to search engines. Contrary to popular opinion, search engines do not care where "our site" ranks in their results. Their primary purpose is to deliver the most accurate results to their visitor. If I am searching for "used cars", the search engine takes a multitude of factors into consideration prior to displaying the results that they compute are the most salient to the search I conducted. They maintain traffic to their site by producing the best results for their users.

And no one knows the "magic formula" for rankings, but we do know that factors like pertinent content married to keywords is one important factor. And much like high school, the more popular you are (traffic), the more traffic the search engines want to send you. Another key factor that increases your rankings is links to and from other web sites. In the NY Times piece, they noticed that a large national retailer, J.C. Penney consistently placed at the top of rankings in a extraordinary number of product categories.

The New York Times asked an expert in online search, Doug Pierce of Blue Fountain Media in New York, to study this question, as well as Penney’s astoundingly strong search-term performance in recent months. What he found suggests that the digital age’s most mundane act, the Google search, often represents layer upon layer of intrigue. And the intrigue starts in the sprawling, subterranean world of “black hat” optimization, the dark art of raising the profile of a Web site with methods that Google considers tantamount to cheating.

Despite the cowboy outlaw connotations, black-hat services are not illegal, but trafficking in them risks the wrath of Google. The company draws a pretty thick line between techniques it considers deceptive and “white hat” approaches, which are offered by hundreds of consulting firms and are legitimate ways to increase a site’s visibility. Penney’s results were derived from methods on the wrong side of that line, says Mr. Pierce. He described the optimization as the most ambitious attempt to game Google’s search results that he has ever seen.

The study went on to find that each of the pages on J.C. Penney were linked to an incredible number of web sites. Further investigation suggested that many of the links were to web sites that had nothing to do with the product being searched and in some cases the links were coming from web sites that appear to have been abandoned.

"Some of these sites seem all but abandoned, except for the links. The greeting at myflhomebuyer.com sounds like the saddest fortune cookie ever: “Sorry, but you are looking for something that isn’t here.”

The result? Google stepped in and enforced its rules and gave JCP a 90 day "timeout". The items being indexed by search results plummeted from first, second or third place to page three (70th place or worse). And since 95% of all searches end on page one of the results, it is hypothesized that sales dropped accordingly.

In other words, one moment Penney was the most visible online destination for living room furniture in the country.

The next it was essentially buried.

PENNEY reacted to this instant reversal of fortune by, among other things, firing its search engine consulting firm, SearchDex. Executives there did not return e-mail or phone calls.

In short, circumventing the rules imposed by search engines can mean the death of your web site if it relies on SEO results. For more information on how JCP weathered this storm, read 90 Days Later, J.C. Penney Regains Its Google Rankings.

BlackboardEats... A Twist on Groupon?

2011-05-20T07:27:00.003-05:00

BlackboardEats. Another Groupon clone?

I don't think so. It is more like an online Val Pak clone disguising itself as a social network. Unlike Groupon et al, you don't pay $10 to $20 for a $20 to $40 gift certificate. Instead you pay $0 to get a passcode (we used to call them coupons) for a restaurant deal.

Today it is for Aburiya Toranoko - : three-course prix fixe and a bottle of sake for $35.

Aburiya Toranoko

243 S. San Pedro St. (between E. 3rd St. and E. 2nd. St.), Los Angeles (Downtown), CA 90012; 213-621-9500 www.toranokola.com $$$

Jeffrey Davis

three-course prix fixe and a bottle of sake for $35*

*available daily during dinner; not every person in the party must purchase the prix fixe; max party: 6; dine-in only; not valid with any other discounts or promotions; please note: a passcode grants you access to this exclusive menu; meal must be paid for at the restaurant; see menu below review

2835jeffrey

June 17, 2011

Tips must be based on the pre-discount total.

Passcodes are good for one use, and only one can be applied per party.

You will also receive an email confirmation including this information.

Visit MyBlackboard to view your Passcode.

I like the fact that that it specifies "Tips must be based on the pre-discount total."

Currently offering deals in LA, NY,San Fran with Chicago coming soon.

I found BlackboardEats in an article by Tricia Duryee.

"... but unlike like the Groupon and LivingSocial sites, which are founded on being a platform for local businesses to advertise, BlackboardEats is based on editorial reviews.

Its staff of writers–who come from publications such as Food & Wine, Bon Appétit, Gourmet and DailyCandy–review establishments anonymously and don’t accept complimentary meals. In return for running the review, the site asks that the restaurants offer a discount to its readers.

“We aren’t a deal site,” she said. “We are more of an insider’s club for culinary enthusiasts. All of our content is handpicked by food editors…We send in reviewers anonymously and they [restaurants] don’t have approval rights. We don’t touch the revenue to ensure quality.”

Instead it makes money from advertising, which in addition to display units, also includes very clearly marked sponsored offers that are more similar to a Groupon offer."

Time will tell if the concept catches on. Good luck.

Google is the New Yellow Pages

2011-05-18T14:16:00.006-05:00

Is there any doubt that Google controls the market for search? And what was once the bastion of yellow page publishers, is now the domain of search engines... Consider the following:

Worldwide we conduct 88,000,000,000 searches on Google every month.

34,000 per second
2,00,000 per minute
121,000,000 per hour
3,000,000,000 per day

57% of internet users search the web every day
46% of daily searches are for info on products or services
20% of monthly Google searches are for local businesses

70% of the links search users clcik on are organic - not paid
60% of all organic clicks go to the top three organic search results
75% of users never scroll past the first page of search results

Bottom line: If Google can not find you, neither will anyone else.

For more information, visit HubSpot and download their +100 Awesome Marketing Charts.

100+ Awesome Marketing Charts

2011-05-18T09:43:00.013-05:00

Compliments of Hubspot

100 Awesome Marketing Charts

Here are a few of my favorites...

Charles Schulz's Viewpoint...

2011-05-17T19:55:00.024-05:00

A friend of mine, Bill Williams, has a terrific daily "Thought of the Day" column that he emails to anyone interested. And today's column re-enforces what I have taught for many years, in its own unique way.

People do business with people, not businesses.

The following is the philosophy of Charles Schulz, the creator of the 'Peanuts' comic strip. You don't have to actually answer the questions. Just ponder them.

Read the e-mail straight through, and you'll get the point.

1. Name the five wealthiest people in the world.
2. Name the last five Heisman trophy winners.
3. Name the last five winners of the Miss America pageant.
4 Name ten people who have won the Nobel or Pulitzer Prize.
5. Name the last half dozen Academy Award winners for best actor and actress.
6. Name the last decade's worth of World Series Winners.

How did you do?

The point is, none of us remember the headliners of yesterday.

These are no second-rate achievers.
They are the best in their fields.
But the applause dies..
Awards tarnish..
Achievements are forgotten.
Accolades and certificates are buried with their owners.

Here's another quiz. See how you do on this one:

1. List a few teachers who aided your journey through school.
2. Name three friends who have helped you through a difficult time.
3. Name five people who have taught you something worthwhile.
4. Think of a few people who have made you feel appreciated and special!!
5. Think of five people you enjoy spending time with.

Easier?

The lesson:
The people who make a difference in your life are not the ones with the most credentials

...the most money...or the most awards.

They simply are the ones who care the most.

And clients are the same way. They want to work with people who care the most. About them. About their business. Their success.

People do business with people.

'Don't worry about the world coming to an end today. It's already tomorrow in Australia!'

''Be Yourself. Everyone Else Is Taken!"

Thanks for reminding me Bill why I go to work every day.

The Consumer is Boss

2011-05-06T08:53:00.002-05:00

The Consumer is Boss: A Ten Year Perspective.

Interesting article by Bryan Eisenberg

On October 15, 2000, A.G. Lafley, president and CEO of Procter & Gamble Co., delivered a prophetic speech entitled "The Consumer is Boss!" to the Association of National Advertisers. In his presentation he emphasized three main points:

"We're moving away from the current mass marketing model, away from push and toward pull.
Consumers will only become more demanding.
They want to have a conversation, to dialogue, to participate, to be more in control."

These points may seem obvious to marketers and other business people today, but they still confound us. We only now begin to realize the implications. Recently, Rich Green, CTO at Nokia, said companies should stop trying to think of using social media for their own ends: "The big 'a-ha' moment is when enterprises finally realize that their digital existences are being defined by the consumer world, not the reverse. It is hubris to think that an enterprise can 'use' social media for its advantage."

There is no question that marketing has been completely redefined, and understanding the impact of social and mobile technologies on customer behavior is still unclear for many. While we know people are engaged with our social and media efforts, the return on investment is still hard to define. In fact, according to the just released Forrester/Shop.org's State of Retailing Online 2011 report (SORO 2011), 68 percent of retailers said if Facebook went away it wouldn't impact sales at all in 2011. Also, 62 percent of retailers agree that returns on social marketing strategies are unclear. There is some good news: 72 percent of retailers will increase their spend in social. However, 36 percent of retailers are pursuing a social media strategy mostly because their competitors are.

In IBM's State of Marketing 2011 study, we learned that 60 percent of marketers identified "turning data into action" as their top organizational issue. We suffer from data overload. It's unclear what a lot of this social data is telling us, because we can't directly correlate that data to sales in most cases. The true ROI of social media is unclear for many.

The study shows our frustration with social media:

"This year, social media is no longer the adorable baby everyone wants to hold, but the angst-filled adolescent – still immature yet no longer cute – who inspires mixed feelings. All things social continue to hold intense interest, with 53% of marketers currently applying it to their marketing efforts. But as tactics rise and fall, a more sophisticated approach is emerging."

As quoted in The Wall Street Journal, Jean-Philippe Courtois, president of Microsoft International, said: "The explosion of social networking with consumers has changed their (consumers) expectations about how they can and should connect with businesses. 'Real-time' is a new imperative, which is causing many businesses to rethink their customer relations strategies via digital marketing."

We have had 10-plus years of warnings about these changes and so few are prepared. Companies have totally missed the point. They don't really need to worry about keeping up with their competitors. Nevertheless, they must worry about how to keep up with their customers.

We have either entered or passed the year when mobile became a critical issue for business. The SORO 2011 reports that only 29 percent of retailers say they have a mobile strategy, are implementing it, and are already optimizing. Meanwhile, only 12 percent of the Internet Retailer Top 500 websites had mobile websites in a mid-2010 study, and only 7 percent had mobile apps.

I think every digital marketing executive should watch this video produced by Best Buy (be sure to replay the part from 1:20 to 1:30 many, many times):

Why Best Buy Loves Mobile.

Companies will continue to be slowed down by their slow corporate metabolisms. Their inability to collect the right data and act, analyze, react, and optimize based on the data continues to provide opportunity for those companies that have a faster metabolism. I no longer wonder how dinosaurs became extinct.

Where are your consumers headed? Where are they today? Will you truly serve them as they want to be served?

Flash Websites Still Stink

2011-01-06T15:08:00.003-05:00

Clients ask me all the time, "how can I improve my search results?" The first step is to keep track of what is important to search engines. What makes them tick?

Here is a great article by Steve Stauning...

Flash Websites Still Stink
January 03, 2011

The Flash website developers have been shouting it from the rooftops since Google first said it was so: Flash and SEO are finally compatible. Oh goodie.

Flash, in case you didn’t know, is a platform used to add animation, video, and interactivity to web pages. Flash is great for ads and games; and while Flash websites look really cool, in my experience they simply don’t convert as well as their HTML brethren. More importantly, not everyone plays nicey-nice with Flash websites.

Despite some search engines’ efforts to index Flash sites as perfectly as they do traditional HTML sites, it is still bad for dealers to rely solely on these non-user-friendly websites built primarily in Flash. These sites aren’t user-friendly because anyone on a slow connection, a non-smart phone, an iPhone, iTouch or iPad simply cannot see your Flash content.

Oh, and for those who can view your Flash content, because of the well-known (and quite numerous) security vulnerabilities (known as Common Vulnerabilities and Exposures: CVE) inherent in Flash and still not repaired by Adobe, they are opening themselves up to all sorts of fun from hackers. Take, for example the CVE Adobe identified in November 2010 where they wrote “… could potentially allow an attacker to take control of the affected system” (that is: take control of your computer). Wow, Flash and Fun go hand-in-hand, don’t they?

Add to all of that the fact that Google is not interested in slowing down the Web or even showing Flash sites in their new Google Preview and we are left wondering why anyone is still producing sites in this medium. And… you don’t want to get me started on the few SEO drawbacks that remain with Flash (like the lack of unique URLs and page titles)… suffice it to say that Flash websites still stink.

There, I said it.

Good selling!

Groupon Links

2010-11-12T09:43:00.045-05:00

As the press builds around Groupon marketing, I thought I would start a list of articles that I have come across on this interesting phenomenon. Make your own decision:

Is Groupon Ruining Retail? Jay Goltz

On the Media: Is Groupon Such a Deal? James Rainey

Depressing Thoughts About Groupon’s Model Jeff Bussgang

Is Groupon the Small Business Messiah? Paul Wallbank

Navy Pier Groupon Deal Shows Downside of Deal-a-Day Offers Chuck Sudo

What Happens if Your Groupon Goes Down? Josh Mogerman

Is Groupon Changing What People Are Willing To Pay? Alex Salkever

Dining in The Dark At Opaque: Eat Like Nobody's Watching Laurenne Sala

What to Consider Before you Groupon Mark Netsch

The Groupon Paradox

As Groupon Grows, Will Small Business Be Left Behind?

Power to the People or Just a Fad? Forecasting the Future of Group Buying Sites

Considering Groupon for your tour or activity business? Stephen Joyce

Is Groupon Good for Small Businesses? By MP Mueller

How Effective are Groupon Promotions for Businesses? Utpal M. Dholakia
Rice University - Jesse H. Jones Graduate School of Management

Why I won’t be recommending Groupon to clients. by Justin Goldsborough

And for the most part I agree with Justin

Websites Rein In Tracking Tools

2010-11-10T17:01:00.006-05:00

Cookies and other tracking methods are the front line of research for many web companies. The information gleaned from tracking consumers is more valuable in many cases than the interaction between a single web visit and the content/advertising they are exposed to. It allows for a variety of modeling scenarios including behavioral targeting. It is going to get more difficult over time to capture this data - at least at no cost. Next up - you can drop cookies but I am going to need a check first...

I found the following article posted on a Twitter feed - from RMM_Online. It is posted on The Wall Street Journal here.

By JESSICA E. VASCELLARO

Major websites are moving to limit the number of tracking technologies like "cookies" spreading on their sites, hoping to keep lucrative data about visitors for themselves—and avoid privacy risks.

More sites are counting the number of tracking tools—software that can clandestinely monitor people's activities online—that are being installed on the computers of people who visit the sites.

A few sites have dropped companies that install tracking tools, due to practices they consider intrusive. Other Internet publishers want to sell more ads themselves, relying less on online ad networks that install tracking software.

Many Web publishers are finding that tracking software is operating on their sites without their knowledge. Some worry they are missing out on an opportunity, since others are profiting by selling data about the sites' users for ad-targeting purposes.

Sites are also worried outsiders may gain access to sensitive information about their visitors, raising privacy alarms.

MSNBC.com, jointly owned by Microsoft Corp. and NBC Universal, has intensified monitoring of software being installed on visitors' computers. "The sheer volume of activity was greater than we thought," said Kyoo Kim, vice president of sales for the company's digital network. There were "a lot of things happening without our knowledge."

Mr. Kim said MSNBC is reviewing its privacy policies and marketing partners, but declined to discuss specifics.

The Huffington Post site recently removed technology from ad firm Lotame Inc. after The Wall Street Journal reported that Lotame was analyzing comments on the site. A spokesman for Lotame declined to comment.

About a year ago, automotive site Edmunds.com found an unfamiliar company installing tracking cookies on its visitors' computers. Officials determined the company was linked to a technology provider for some advertisers on Edmunds' site.

"It was clear to us that they shouldn't have been there," said Avi Steinlauf, Edmunds' president. "I can't tell you what they were doing, because we can't know."

A new study by technology start-up Krux Digital Inc. found that nearly a third of the tracking tools on 50 popular U.S. websites were installed by companies that gained access to the site without the publisher's permission.

On average, visiting a single page on those sites resulted in 10 trackers being installed or updated on the visitor's computer. Krux found some pages installed or updated 40 trackers.

Krux studied most of the sites the Journal first investigated in its "What They Know" series on Internet tracking. Krux, however, focused on identifying tracking software being installed without the knowledge or permission of the host site.

The Journal's series is investigating the fast-growing industry of tracking Internet users and trading in their personal details. The business stems from advertising based on users' online behavior—putting car ads in front of potential car buyers, for example. Such behavioral ads sell for a premium, which attracts revenue-hungry websites.

Now, site operators are learning the costs of letting ad companies and other data-gatherers track their users.Kirk McDonald, a digital executive at Time Warner Inc.'s Time Inc., said some companies are "pirateering" by selling data generated from other sites' content.

Krux estimates the 50 sites are losing at least $850 million of annual revenue by others selling or trading data about their users without their knowledge. Eliminating some of these middlemen would allow the publishers to make more money from ad sales, it said.

Some publishers are rethinking practices.

Internet conglomerate IAC/InterActiveCorp has enhanced its internal ad-sales technology and reduced its use of outside ad networks. IAC says it now sells directly 30% of the ads that used to go to ad networks; its goal is to sell all of its ads on its own. "We needed to take our destiny in our own hands," said Ali Mirian, vice president of product and technology for IAC Advertising.

IAC owns Dictionary.com, which the Journal found installed more than 200 trackers on a visitor's computer, more than any other site tested. Mr. Mirian said he believes the new approach has reduced the number of trackers installed on visitors' computers.

Time Warner's Turner Broadcasting stopped using ad networks in 2008 to maintain control of which ads appeared where on its sites.Walker Jacobs, executive vice president of Turner/SI digital-ad sales, said many Web publishers embraced targeting technology without considering the consequences; that allowed others to profit by assembling profiles of the sites' users.

Since then, the chains of data handlers involved in placing ads on websites have grown more elaborate.

When Adam Ross, an Atlanta entrepreneur, recently visited the Huffington Post, at least 12 companies placed or accessed cookies on the computer he used.

The Huffington Post worked directly with two of those companies: Google Inc.'s DoubleClick, which places ads on the site, and PubMatic Inc., which helps maximize revenue from those ads.

When Mr. Ross arrived on the site, DoubleClick instantaneously sent a request to PubMatic, which installed a cookie on his computer, according to computer code reviewed by the Journal.

PubMatic then sent details about an ad slot it was trying to fill to ad buyers and their partners, including AdBrite, AppNexus, Turn and Traffic Marketplace. Each of those companies installed its own cookie on Mr. Ross's computer. An ad appeared on the Huffington Post site just after Mr. Ross went to the webpage.

Traffic Marketplace then pinged five other ad-targeting or measurement companies, some of which placed new cookies or accessed a previously installed one.

"It makes me feel like I need to take a shower," said Mr. Ross. He said he is generally comfortable sharing his data with a site he is visiting and its direct partners, but not with others.

It isn't clear what data on Mr. Ross's Web browsing moved through the chain. A spokesman for Huffington Post said it takes users' privacy concerns seriously and monitors outside ad partners closely. He said the company doesn't share any personally identifiable information with ad partners or data providers.

PubMatic said it didn't use any data about Mr. Ross's Web browsing for ad targeting.

A spokeswoman for AppNexus said it placed a cookie to track how many times its customers' ads were viewed and didn't, in this instance, gather any other data about Mr. Ross.

A Turn spokesman said data collected by its cookie is restricted to a single advertiser, and not shared with others.

A spokesman for Traffic Marketplace said it didn't collect any data from the visit for ad-targeting, because the Huffington Post doesn't allow it.

AdBrite said it uses data gathered from its cookies to create targeting profiles, but those profiles don't identify specific sites a user visits.

Write to Jessica E. Vascellaro at jessica.vascellaro@wsj.com

Why I won’t be recommending Groupon to clients

2010-10-28T07:22:00.008-05:00

Groupon is all the rage... Is it a good idea for a small business or a bad idea? You will have to decide for yourself, but below is a very interesting article found online at Justin case you were wondering... It may be possible for a small business to make money using Groupon, but I doubt it - at least short term.

At best, Groupon is a sampling technique, not all that different than Dick Ransom's famous Beef Stick and Cheese sampling at the leaseline for Hickory Farms. Try a free sample and if you like it, you will buy.

The biggest difference with Groupon is that you are not starting your critique with a taste, your are starting with a meal, a massage or two games of Laser Tag. You pretty much get the whole experience. And this is important because the very premise of Groupon is - if you can just get someone to sample your service, they will be overwhelmed and flock to your business as a long term customer! Dick Ransom gambled a nickel's worth of cheese and sausage. You are gambling $10 - $50 of revenue.

But the reality is that the service level of the average business is - at best - average (and I am being charitable). Everyone (clients and business owners) wants a deal - it is why these deals are so successful. But as a business owner you have to realize what the true motivation of the buyer is - especially if you are in a service based industry. Consumers are interviewing you to see if you are truly different than the business they are currently frequenting. If you demonstrate beyond a shadow of a doubt that you are clearly better than the current service provider, you have an excellent chance of winning the trial customer as a long time client.

But people hate change. If you "tie" with their current provider, they will stay with the business they are already familiar with... And the weakest link is rarely the owner, it is the employees actually interacting with the customers. Do they know how the Groupon promotion works? Do they know why you are running this promotion? Do they care? More on this later...

Why I won’t be recommending Groupon to clients

By Justin Goldsborough | October 27th, 2010

I won’t be recommending Groupon to any client anytime soon. Just thought you should know. Because, you see, I feel like Groupon is a tactic my clients are going to have to convince me makes sense for their brand.

Before you ask, no I haven’t been drinking :). And yes, I remember I’m in a sales business. But I’ve had way too many conversations lately with clients, peers, etc. where the rationale for considering Groupon is as follows — everyone I talk to loves it.

I don’t curse on this blog very often — but no shit they love it. It’s a site that gives consumers food, spa treatments, tickets, furniture and God knows what else for 50 percent off or more. What’s not to love? That’s not enough of a reason to spend money on a tactic. In fact, that sounds an awful lot like the arguments I used to hear (and still do every now and then) for why an organization thinks it should “do” social media.

Sure, there’s the Gap and the Blanc Burger Groupon case studies. Headlines like Groupon Smashes Nationwide Sales Record with Gap Deal sound great. But take a closer look at the Mashable story at that link and you’ll find the following feedback from Augustine Fou, chief digital officer at Omnicom’s Healthcare Consultancy Group (full disclosure: Fleishman-Hillard, where I work, is also an Omnicom company):

Gap is receiving a lot of word of mouth and press, sending more buyers to the deal. This may seem like good news for Gap, but Fou argues, “The more press they get, the more money they lose.” With the current sales of around 300,000 Groupons, that translates into a $7.5 million revenue loss for one experimental campaign. That’s a hefty lump of cash, and the deal isn’t even over. “It’s still a better use than wasting $7.5 million on TV ads.” Fou added, “At least they did capture the other half as ‘money spent [by customers],’ and consumers will eventually go into the stores. For TV advertising, there is never proof anyone ever saw it, let alone went to the store.”

These results may be ok for a national brand like The Gap, especially if its leadership team ID’s the budget spent on Groupon as a marketing/advertising expense. But what about brands — specifically small businesses, which Groupon caters to — looking to drive increased sales, traffic and (gulp!) loyalty off their Groupon campaigns?

Chicago Bagel Authority sold nearly 10,000 $3 vouchers worth $8 of food and lost $65,000
- “This will end up being the year of the Groupon for us, and that’s not a good thing,” CBA Owner Greg Gibbs said. “We’ll count it as a loss. “
Posies Cafe sold 1,000 Groupons and lost $8,000 after being told they couldn’t cap their Groupon sales and was surprised by how many Groupon buyers tipped on what they owed, not the value of the coupon
- “When you sign up for Groupon, you are agreeing to sell as many as get sold… and why would Groupon want it any other way? They get half of the earnings,” wrote Poises owner. “There came a time when we literally could not make payroll because at that point in time we had lost nearly $8,000 with our Groupon campaign.”

9 times out of 10, Groupon is NOT a good deal for the brand, IMO, especially small businesses. It is ALWAYS a good deal for the consumer and Groupon, which according to my research and reading, generally takes about 50 percent of the Groupon sales. I can see how Groupon makes sense for large brands like The Gap, at least to some extent. It’s like a mass traditional or digital ad buy and if viewed as such, can add value. I’m with Fou there. Plus, companies like The Gap or Blanc Burger are more likely to have a CRM system in place they can use to track customer loyalty to see just how many of those Groupon buyers come back to the store. But big brands are not the typical Groupon user, at least from what I’ve seen. The Gap’s are the exception to the rule. With that in mind…

If you think you’re going to make money of the Groupon sales, don’t do Groupon.

If you think everybody’s doing it or Groupon sounds cool, don’t do Groupon.

If you think you’re going to coupon anyway, so why not, don’t do Groupon. At least you can set the rules for your own coupons.

If you think Groupon will build consumer loyalty, pass me what you’re smoking and don’t do Groupon. You build consumer loyalty with the service, experience and product you provide.

If you think Groupon makes sense because you want to compare some of your more traditional tactics to this new tactic and you have no expectation the Groupons will make you money, let’s talk about it first and then maybe I’d say do Groupon.

But do not forget this, whatever you decide. Groupon is a business and they’ve created an A-plus model for them and the consumer. You’re going to have to convince me it’s an A-plus model for your business goals and objectives before I’ll sign off.

People Do Business With People!

2010-10-04T15:05:00.008-05:00

People Do Business With People...

Not businesses. I have written about this previously and heaven knows I have practiced and preached it daily. People do business with people, not businesses. The business brand will get you to pick up the phone, stroll in the door or visit a web site. But a long term profitable relationship with a client takes a one on one relationship.

Some people will argue that price is a great motivator. But price can only get you so far. One of my very few golden rules - I only work with clients that strive to be profitable. With the internet today you can almost always find a lower price. But as a business owner you have fixed expenses - you simply can not afford to give your products or services away for less than your cost. So one of the best ways to compete is to add value and few things are as valuable as having a personal interest in your client's success.

I'll share an interesting idea that I read online... Break Free & Pick Up the Phone! While e-mail is a wonderful communication tool, no client will expect his or her e-mail to be returned with an actual telephone call. This reinforces that you care about the relationship and that your client isn’t just another message in your inbox.

I am amazed at the length some people will go to avoid having a conversation - on both sides of the phone. "Email is more efficient." If you simply measure how fast you can get a task off your to do list, it is rather quick. But one drawback to email is that it is almost impossible to communicate emotions. How many times have you received an email from your boss and wondered "what crawled up his..." Only to find out that you had read into the email emotions that were not there?

Another great reason to call a client - because no else will. When I taught marketing in New Dealer Training at Tuffy Auto Service Centers I gave every franchisee the one tip that would allow them to dominate the marketplace in auto repair. Every morning start your day calling the clients from the previous day. "Mrs. Hayes, this is Jeff Davis the owner of the Tuffy Auto Service Center and I am just calling to make sure the brakes we fixed on your 1999 Pontiac Grand Am are working for you. Do you have any problems, any questions..."

90 days later I would follow up and ask these new franchisees if they were still calling every client. The answer was predictable... "I called them religiously every day for the first three weeks... Then as business picked up I started calling every other day... Once per week... Once in while." Did they stop calling because it didn't work? No, they stopped calling because it was hard work and takes incredible discipline. That is why no one does it. That is why you should.

When a client has any question about TV or web marketing, I want them to think that I will be on the other end of the phone to help them. No one else.

Set aside a few minutes each morning and call a client. Especially an ornery one that you would prefer to simply email. I have one in mind right now. He will be my next phone call.

Nine Centuries Ahead of Nike

2010-09-28T08:03:00.000-05:00

Nine Centuries Ahead of Nike

I’m “Awakening the Buddha Within” these days by reading a book of the same title by Lama Surya Das, an American-born lama who has been an integral part of Buddhism’s surge in popularity in the West.

He tells the story of Milarepa, a famous Tibetan yogi who lived in the 11th century, and one of his prize students, Gampopa, a physician and monk. After many years of studying with Milarepa, it was time for Gampopa to part from his teacher and he asked for one final teaching, one instruction he could carry away with him. At first, Milarepa seemed reluctant, saying that what was required after all these years was more effort, not more instructions.

Then, as Gampopa started on his way, crossing the narrow stream that parted him from his master, Milarepa shouted out, “Hey Doctor-Monk, I have one profound secret instruction. It is too precious to give away to just anyone.” As Gampopa joyfully looked back to receive this last teaching from his beloved guru, Milarepa turned around and bent over, pulling up his flimsy cotton robe. Milarepa’s buttocks were as callused and pockmarked as a horse’s hoof, toughened from all those hours and years spent in seated meditation on hard rock. Milarepa shouted, “That is my final teaching, my heart-son. Just do it!”

This story reminds me of Seth Godin’s plea in his book “Linchpin” to practice the discipline of “shipping” – to produce, shove it out the door, and live with the consequences rather than sitting on projects. “Sometimes shipping feels like a compromise. You set out to make a huge difference, to create art that matters and to do your best work. Then a deadline arrives and you have to cut it short,” Godin writes.

“Shipping isn’t focused on producing a masterpiece (but all masterpieces get shipped). I’ve produced more than a hundred books (most didn’t sell very well), but if I hadn’t, I’d never have had the chance to write this one. Picasso painted more than a thousand paintings, and you can probably name three of them.”

Just ship! Just do it!
--Paul Nolan

Automated Love Kills the Relationship

2010-08-06T07:19:00.002-05:00

Another great article. This time from TJ Wisner.

Automated Love Kills the Relationship

Professional speakers and trainers tend to spend many hours using free Wi-Fi in sandwich and coffee shops. We meet clients, write, read, and maybe most importantly, watch the interesting interactions of the people who cross our paths.

One such day at the local Panera Bread, three young ladies took the table next to me and began to rave about the “awesome” white sports car one of them had recently purchased. Not only was she a proud new owner of her “first new car” but her friends were obviously envious of her new wheels as well.

Then the conversation turned negative.

The young lady disgustedly proclaimed how she had just spent $36,000 with the local dealership where her family had done business for years, and all she got was a “bleeping” automated email. “I mean what the bleep, I spent more money than my parents did for their first house…and all I get is a “bleeping” automated email to thank me?”

After hearing that, I had to approach her. “I consult and train dealerships on building strong customer relationships, do you mind if I ask you a quick question?” I asked. After the typical, “What’s with this guy look?” she nodded and agreed to entertain the question.

“What could the dealer or sales person have done that would have made you happy?”

“They could actually show me that they care! I don’t think that’s too much to ask.”

Big lesson here -- whatever client services or relationship management software system you use…make your contact with them personal.

And that doesn’t mean merely typing in their full, given name from the contract.

Automated love doesn’t leave customers feeling that the dealership really cares. Nothing can damage or stifle customer relations more significantly than a “personal contact” that is perceived as highly impersonal.

Don’t get me wrong. Friendly reminders and the occasional educational email or direct mail piece can be routine and automated, but thank you notes must be personal. That’s right. Just a simple thank you note will go a long way. For those who have forgotten the lost art of handwritten thank you notes, here is a brief reminder:

Address them directly. Start off with a “Dear ….” greeting or if it’s a long-time customer you can call them by their first name if more appropriate.

Keep it simple. There is no need to get all syrupy and cutesy. Keep it simple and specific. Thank them for coming to you for their transportation needs and welcome them to the dealership “family” or make a statement that will tie-in to the dealership tag line.

Sign-off, but don’t sell. Sincerely thank them again and tell them how important their relationship is to you and the dealership. Reassure them that you will be there to meet their continued needs. DON’T UPSELL or even thank them for their business. This is all about personal relationships.

A simple thank you note would have made our first time buyer Panera Bread friend much happier. In fact, thank you notes will make everyone happier. The next time you use an “Automated Love” email from your “Customer Relationship Management” software system, think about the young lady in Panera Bread…how did it make her feel?

Kill the automated love. Relationship building starts with a simple thank you note. And by the way, thanks to Panera Bread for the Wi-Fi.

You're Asking the Wrong Question

2010-07-28T07:39:00.002-05:00

I had to share the following article from Mediapost.com

You're Asking The Wrong Question
by Rob Griffin , Monday, July 26, 2010

Far too often, I still hear questions from ecommerce-focused advertisers regarding why they should buy search. Beyond the obvious quick replies shouting statistics of how print and TV drive search activity or of how high brand awareness increases CTR for a better effective CPC, I like to ask questions back. Heck, it works with my two-year-old.

So my question is this: Why do you have a Web site?

Yes, Mr. or Ms. Advertiser, you have some recipes, maybe some coupons, games and/or fun facts, plus maybe an email list, and some corporate info, but you are underutilizing tracking and optimization, and you generally don't seem concerned with enriching the site experience. So I ask again, why do you have a Web site? It's always good to start with the fundamental purpose of the site, as it is a central component of a brand's digital footprint and the health of the overall business. From here it gets easier to understand the role search plays in your media mix.

In my opinion, if you buy TV, run any print, radio, and/or outdoor, then you'd better be buying search in proportion to the uptick in query volume. Search engines are where your consumers (B2B or B2C) are turning for more information when they begin to immerse themselves in a brand experience. Enable them -- don't make it hard.

Most advertisers already have a Twitter handle, a Facebook page, a myriad of high-profile high-priced endemic sponsorships, plus corporate information that can be easily indexed within local listings and directors anyway. So the next important question should be specific to where you should direct relevant searchers.

Many advertisers have a lot of media investments tied up in seeding, sponsoring, and owning key content relevant to their brand, yet we send most searchers to the corporate site. If a brand already owns health/finance/sports/coupon/recipe information on vertically branded sites, I'm going to go out on a limb here and say, use search to extend your media investments by leveraging your publishing and social community partners, their brands, and their existing SEO efforts to enhance your brand visibility within relevant SERPs. Drive traffic to these locations instead of sending all your traffic back to your corporate site, because this content likely has greater credibility and existing equity with visitors. Why fight these publishers in search and try to divert traffic back to your brand site?

The really big question then becomes how much search is appropriate. You might have to fund some research to get at this insight, as search doesn't have a ton of syndicated data available, but you can get at this answer. Also, don't be afraid to sink resources into your own SEO because of the inherent benefit it will have on your sponsored search efforts. For one, video SEO is a great way to get some extra mileage out of your creative and content investments as well.

Then the last key questions should be about technology and analytics. Whatever the answers are above and whatever you choose to do, it must incorporate a tracking solution so you can quantify performance and continually refine your efforts.

Are you going to run some modeling exercises and consumer research to feed your campaign criteria? Are you going to test some addressable TV against panel data to get some granular insight into the impact on search behavior? Do you plan to implement a tag management system to increase the accuracy and efficiency of managing the data collection? Do you have a system that can handle multiple data feeds so you can efficiently run the analysis and feed optimizations in near-real time? Do you have the capacity to feed/pull from CRM, store sales, etc. for retargeting?

This may sound daunting and it can take some time to sort out, but if you start with the proper questions, you can begin to find the right answers to build a game plan for better optimizing your media mix and ultimately enhancing your overall brand experience with search. The reality will be a combination of the right monitoring and tracking tools with a mix of advanced campaign management solutions, Web analytics platforms, simple site surveys, targeting, testing, and auditing tools.

The right questions and iterative testing will get you to what the right amount of search is for your brands -- not whether you should or shouldn't do search, because of course you should.

The Very Best Marketing Plans...

2010-03-11T09:58:00.002-05:00

Time to get back to writing...

25 years ago I was taught one of two of my most important marketing lessons at the same time. I was young and full of ambition, desperately trying to impress my boss. We were in the convenience store business and our biggest competitor and market leader was 7-11, so I spent a lot of time in their stores looking to see what was new. When I found something of interest I would rush back and tell my boss (Let’s call him Dan since that was and still is, his name.)

After a few months of this Dan sat me down and we had a learning moment…

“Jeff, why do you want to implement this program?”

Because 7-11 is doing it!

“OK. Watching to see what the competition is doing is a good idea. But you are simply playing follow the leader. What are you going to do if the marketing guy over there is an idiot? You are intelligent and creative, it is one of the reasons we hired you for this position. I have found that when, not if, I make a mistake, it should be because it was my idea, not because I was playing follow the leader. Own your success, own your failures.”

Lesson One – The other guy might be an idiot which is one of the reasons not to play “follow the leader”.

“The very best marketing plans come from observing consumer behavior, and then inserting your message into their behavior. You can change human behavior, but you better have a lot of time and a lot of money and you know that we do not have either of these items in our budget… Let’s see some of this zeal put to work observing our customers behavior and then come up with ideas that are based on our customers, not the people across the street.”

Lesson Two - The very best marketing plans come from observing consumer behavior, and then inserting your message into their behavior.

For 25 years I have followed this advice and it has served me well. Which brings us to the following example of consumer behavior – media consumption…

I am still amazed at the number of businesses that do not have an internet strategy. February 2009 was a watershed mark in media consumption in the U.S. For the first time in recent history, the consumers daily use of radio fell behind the consumer’s daily use of web surfing.

You want to insert your message into your consumer’s behavior.

Keep watching consumer behavior because in two to three years I believe cell phone (smart phone) usage will surpass radio use…

Should I Advertise On Local Web Sites?

2009-08-26T07:42:00.010-05:00

Yes.

Effective marketing means discovering consumer behavior and then inserting a relevant message into their lifestyle. The web will only continue to grow because of consumer use continues to increase. Here is a must read article by Eric Sass - Local Advertisers Going Digital.

Highlights:

The migration of local advertisers from traditional to digital media accelerated over the course of the 2008-2009 recession
...penetration by online and digital media among local advertisers -- meaning the proportion of local advertisers who have used digital or online, to any extent -- increased from 73% in August 2008 to 77% this year. Meanwhile, the proportion of local advertisers using any kind of traditional media fell from 74% to 69%.
Even more noticeably, digital and online's actual share of local advertising in dollar terms jumped dramatically, from 22% to 37%
74% of advertisers that use Internet say they are using it more than they did one year ago
49% of advertisers that use print say they are using it less
...some good news for mobile advertising, which has struggled to find its footing in the U.S. market: 69% of advertisers that employ mobile advertising say they are using it more than they did a year ago, suggesting the medium has proven itself -- at least to marketers willing to try it.

In short local advertisers are buying digital advertising. At this point it is dominated by search marketing but search marketing works best with banner (display) advertising backing it up. In her article The Bottom Line Is Online Ads Work For Branding And Sales, Laurie Sullivan quotes Gian Fulgoni, chairman and co-founder of comScore:

"Fulgoni says advertisers and marketers need to forget the click, focus on the sales impact on campaigns and conduct post-buy analysis. They also need to realize that display ads help search advertising succeed and vice versa. Don't forget the power of creative display ads. Online branding campaigns can be effective. Internet advertising has had an impact on retail that is on par with television. "

Simply put, you can not bypass The Law of Familiarity. People buy from companies/brands they are familiar with. For the vast majority of businesses, simply relying on search marketing PPC will not sustain thier business. For local brands it supplements their current marketing programs, but it will never replace them. Branding (display ad, contest sponorships, events like Face of Fox), when used with strong creative, drives foot traffic into local businesses. And unless you are a pure internet business, advertising is designed to make the phone ring or get people into your showroom...

What Are People Twittering About?

2009-08-21T08:05:00.030-05:00

Recently a number of clients have asked me for assistance in understanding the Twitter phenomenon. How can we get involved? Should we be involved? By now you should know that Twitter is a social networking tool that allows people/businesses to post messages in text format up to 140 characters. Text only no graphics, pictures or video, but you can post links to web pages.

Unlike traditional web sites, you establish a Twitter account and then attempt to get individuals to "follow" your messages. So in essence I am subscribing to your "words of wisdom". Some people/businesses have developed massive followings. On the business side a good example is the news networks - CNN Breaking News (2.6 million!), Weather Channel and Fox Toledo. Be sure to look around for variuos feeds from these services as many have multiple feeds. Fox Toledo has news, sports, weather, Face of Fox etc.

On the individual front, Ashton Kutcher made news earlier this year by reaching the one million followers status faster than CNN. He now enjoys 3.2 million followers. Oprah has +2 million followers.

So onceyou open an account, what is next? My recommendation is to start following people and businesses with similar interests to yours. For example, since I am in marketing I used Advertising Ages Top 50 Media People to Follow on Twitter. Here are links to the first 25 and the next 25. Read their posts for a few weeks and cancel the ones that are not of interest!

Next - add Ashton Kutcher and Oprah. Maybe you can find the allure. I have not been able to so far...

Look for local sources. I follow a number of people in local broadcasting- TV, radio and print. Don't forget ad agencies. Blogs. Competitors. One way to find people is to use Twitters Find People tool. I found sometimes it is easier to simply visit the target's web site and look for the Twitter icon to subscribe.

140 characters does not give you a lot of space to broadcast a message.

eMarketeting's report
What Are People Twittering About? sums it up best. 40% of Tweets are "pointless babble".

But tweeting can get your message out and help drive business. If you have a compelling reason for someone to subscribe to your messages, you can attract followers. Breaking news and weather are good examples.

If I were in the food business - say pizza - and business is slower than expected on Wednesday... Save $5 on the pizza of your choice... Add a web page "Save $5" and tweet the link. Good today only... Marketing a sporting event and still have tickets to sell 3 days prior to the event? Tweet... Breaking news about a new concert or other "hard to get tickets to event"? "Subscribe to our Twitter feed and be the first to know"...

If I ran a local ad agency I would post links to case studies of successful campaigns that have helped other businesses... Auto Repair - tips on maintaining your car that you can do yourself. Tweet us with your questions... Research - Learn how "Cash for Clunkers Gives Auto Makers a Boost."... Door and Window Replacement - The Advantages of Replacement Windows and Double Glazing...

Most businesses can find a reason to use Twitter, but keep the following in mind before you start:

Only tweet relevant information. Keep it professional.
If you have nothing to say, keep it to yourself.
If you wouldn't read it, don't post it.
Be a resource, not a pest.
Don't forget to post links to the complete article on your web site

Here are links to more articles on Twitter and social networking:

"Why People Use Twitter"

"Focusing on Social Networks"

"Marketers Embrace Twitter over Facebook"

And start your account by following http://twitter.com/Eaglewolfbear I use it mostly to post research that I come across...

Your Best Customer Is Not a 'Woman With Children Under the Age of 4"

2009-08-13T12:35:00.002-05:00

I love this article by Josh Bernoff.

The gist...

Who are your best customers?

Do you know their names?

Here's a conversation I often have with marketers:

Josh: Who are your best customers?

Marketer: Women with a child under 4. [Or "People with assets of at least $1 million." Or some such.]

Josh: No, I really mean "Who are your best customers?" What are their names?

Marketer: [No response.]

Read the rest of the article

And follow the comments at the bottom. Enjoy!

Internet, Cell Phone, Land Line - What Would you Eliminate First?

2009-07-10T08:35:00.014-05:00

Times are tight. So which is the first to get the axe in your household budget?

Broadband Internet
Digital TV
Land Line Phone
Cell Phone Voice
Cell Phone Data

According to Strategy Analytics Mobile Data Plans are the first to go. 48% of Adults said they would eliminate/reduce their mobile data plan if faced with budget constraints.

The last to go? "Don't touch my Broadband Internet Connection!'

Other tidbits... Old Fashioned "land lines" are the next to under go the budget axe, but as cable companies continue to bundle TV/Internet/Phone, this decision becomes more complex. With my local cable company I can eliminate my phone service, but the "new unbundled" price of the remaining Internet and cable is almost the same as the VIP bundle... Still the long term outlook for traditional land line telephones is looking belak.

According to Pew Internet and American Life Project, 22% of US Adults "canceled or cutback on cable TV Service", while 11% canceled their land line service. 22% of US adults also reported cutting back or canceling their mobile service plans.

So take away my cell phone, land line and reduce my TV - just don't touch my internet. Note: 2009 is the first time that consumers have spent more time daily engaging the internet than the radio. In order of use it is TV, Internet, Radio, Newspaper, Magazine.

For more information visit Home Broadband a Must in Downturn.

The Law of Familiarity

2009-07-09T10:21:00.018-05:00

The Law of Familiarity should be the first concept taught in every franchising company, marketing class and advertising sales job.

This is one of my favorite business principles and I have writ ten about it previously.

Unless the market is familiar with you - your brand, you have no chance for success. The more familiar your brand, the more likely people are to engage it.

The first step in the purchase funnel is awareness. Followed by familiarity... Brand Image, Purchase Consideration, Shopping and finally Purchase.

But until you have aura of Familiarity in the consumer's mind you are not going to move on to the ultimate goal - a purchase.

So how do you become familiar? Marketing and Advertising.

All too frequently I will ask a business owner "what is your marketing plan?" and the answer is "I plan to open the doors and service everyone who walks in..." or "I think Word of Mouth is the most effective form of advertising".

No disagreement here, but few businesses can afford to wait around while Word of Mouth builds their business to profitability. (Want to learn more about WOM advertising – start with the Word of Mouth Marketing Association.)

There are very few businesses that can exist without advertising. Advertising makes your brand (name) familiar so prospects can at least consider doing business with you when the need arises for your service.

As I have posted before, there are only three reasons not to advertise in Today’s economy.

Reason One: Business is booming and I can’t handle additional customers.

Reason Two: Waiting for the economy to turn around.

Reason Three - I can’t answer the following question in 30 seconds or less:

What would a client say makes me different than my competition?

Even in tough times, few people will do business with a company they have never heard of. So stop whining and develop a plan to get your name in front of potential clients today. You do not need to launch a massive TV, print, radio, direct mail or web campaign, but you do need to do something.

Want some ideas? Shoot me an email at jeffreydavis@bex.net and I will share my 30 years of experience with you.

“You can never control yourself into profitability; you can only sell your way there.”

SEO for Bing.com and How to Improve Your Rankings

2009-07-09T06:54:00.019-05:00

I have received a number of inquires along the line of "What do I have to do to make my web site attractive to Bing". By now you know that Bing is Microsoft's latest attempt at a search engine and it is aimed at taking market share from Google.

In short, your efforts to optimize your site for other search engines like Google will help you in the rankings on Bing.

Dante A. Monteverde has a great article in the August edition of Web Site Magazine. Here are some of his thoughts:

Start by performing searches on Bing.com for your brand, website and relevant keywords.
Title and description are coming directly from "title" and "meta name="description"" tags.

Sound familiar? These are the first two steps for making your web site visible to any search engine.

Be sure to have a meta description that compels the searcher to click your listing and it accurately describes your pages content.

Once again this advice works for any search engine. In performing a web site analysis for a client the most frequently asked question I hear is "how do I improve my rankings?" Here is the magic answer...

Hard work.

Deciding on a title, key words and descriptions is the easy part. (Try searching for the key words that are important to your business. See who is ranked first. Look at their title, key words and descriptions.) Links to and from other web sites is easy. The hard part is relevant content.

"Responsibility is the one thing people dread most of all. Yet it is the one thing in the world that develops us."

-- Frank Crane

Relevant means new. Current. If you simply build out your web pages and sit back and wait for traffic you are on the road to disappointment. Search engines view your site and then return looking for something new. New content gives them reason to return - looking to see if you added more content... More and new content is a key ingredient to improved rankings.

Develop a schedule that forces you to sit down every week/month to review your web site. What have you learned in the prior time period that is relevant to your web site? Add it. Read a great article? Post it.

Another key component for Bing results - the Quick Preview. When a visitor hovers over the search results: "The preview contains a longer description of the page, internal links on the page, phone numbers, emails and physical addresses. To leverage this feature, consider adding these elements to every one of your pages." This is good advice for any site that uses their web site to generate sales leads. If a prospect is interested in your product but can not find out how to immediately make contact with you, the opportunity is lost.

Finally Local Search is a core component of Bing. "If your site/business is not listed on a Bing Maps search, add your profile in the Listing Center."

To learn more try reading the following articles:

Brilliance Doesn't Have to Cost a Fortune

2009-07-08T08:34:00.002-05:00

Full discloser - the headline is a direct ripoff from an article I read in the online edition of Advertising Age this morning - so I felt compelled to share! Here is the complete article.

Written by Bart Cleveland, it talks about how smaller agencies can compete with larger agencies in developing compelling advertising. He uses an ad created for Pringles (Cannes festival winner) to show how an ad can be low budget, yet effective. Here is the ad. Try clicking on the ad a few times... Like 5 or 10 times....

"The first thing you should rely upon is between your ears. Even if you have a budget, pretend you don't. Succeed without the need of big production money, so when you have it you will be even better."

This reminds me of my days at Tuffy Auto Service Centers. Mike Sands used to call our inhouse advertising agency "Creativity On Demand!" Short lead times and even shorter budgets. A shoestring budget looked big to us!

But we still did great work. Creative minds blended with a few common concepts. "People do business with people, not businesses." The Tuffy brand name gets the initial attention, but then how do we relate to people (living, breathing individuals) and still get the message across.

More than once during our brainstorming we would start off with a great idea and suddenly find ourselves running down a train track... And Mike would say "what does this mean to me?" And by me he meant the consumer we were trying to speak to...

Anyway, enjoy the Pringles ad.

Cash For Clunkers

2009-07-06T09:39:00.003-05:00

I was reading a recent e-letter on the "Cash for Clunkers" issue and the erroneous information that is being circulated. Here is a great article and a couple of web sitse you should use to learn about "Cash for Clunkers"...

Warning issued about 'Cash For Clunkers' online scams

www.CashforClunkersInformation.org

Note that www.Cars.gov (currently the only government web site on this issue) issues the following disclaimer...

"While the CARS Act makes transactions on and after July 1 potentially eligible for credits under the CARS program, interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued. Issuance will occur around July 23...."

Car Dealers see uptick as "clunker" law arrives...

Cell phone numbers to be released to Telemarketers!

2009-04-24T16:27:00.002-05:00

Say it “ain’t” so! I enjoy my quite evenings free from the telemarketing calls for siding, windows, insurance, book of the month, magazine subscriptions, stock tips, free prizes, free trips…

Every few months, I get emails from friends and colleagues asking me “Is the government is really releasing all the cell phone numbers to telemarketers?”

Sample I received yesterday – 4/23/09…

Beware!

REMEMBER: Cell Phone Numbers Go Public next month.

REMINDER.... all cell phone numbers are being released to telemarketing companies and you will start to receive sale calls..

.... YOU WILL BE CHARGED FOR THESE CALLS

To prevent this, call the following number from your cell phone: 888-382-1222.

It is the National DO NOT CALL list. It will only take a minute of your time. It blocks your number for five (5) years. You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.

HELP OTHERS BY PASSING THIS ON TO ALL YOUR FRIENDS.. It takes about 20 seconds.

The answer is NO! They are not releasing our cell phone e numbers, they are selling them to telemarketers…

So that is how rumors get started…

No our government is not releasing your cell phone number to telemarketers or anyone else (well maybe the FBI). This is another popular urban myth. For more info visit Snopes.com.

But if a telemarketer does get your number and calls follow these easy instructions available at www.donotcall.gov.

Step One – Hang up

Step Two – call 888-382-1222 and register your cell number on the Federal Do Not call List. Yes you can also register cell phones on the Federal Do Not Call List. Note you must call from the cell phone you wish to register. Or go to https://www.donotcall.gov/register/reg.aspx and register the numbers online.

If they continue to call, visit https://www.donotcall.gov/complaint/complaintcheck.aspx and learn:

¨ You must be on the registry for 31 days before you may file a complaint.

¨ You need the date of the call and the name of the company calling or the telephone number they called from.

It is that easy. Now our government springs into action! Keep in mind though that “The National Do Not Call Registry does not limit calls by political organizations, charities, or telephone surveyors.”

Now I am going to go home and enjoy a beautiful warm, spring day in Toledo!

Tracking Consumer Behavior Using Yellow Pages

2009-04-18T21:50:00.014-05:00

So how do consumers find law firms? One way is the yellow pages. Another way is by using the internet.

Over the weekend I used some of the free analytical tools available from Google to measure consumer behavior. Currently Google controls 70% of the searches in the U.S. so I find they are a good resource for measuring consumer behavior at the macro level.

I conducted a series of keyword searches within the legal profession to determine what the key words and phrases used by consumers in Toledo Ohio to find legal representation.

Nationally here is how consumers research the legal profession. The top ten terms used in Google Search over the prior 12 months are:

Attorney, Attorneys, Criminal, Lawyer, Lawyers, Personal Injury, Business Attorneys, Criminal Attorney, Law Attorney and Law Firms. Collectively these search terms were used 33,909,000 times.

Note the use of singular and plural version of search terms. Google reports exactly how individuals search their site. This is a good thing to keep in mind when developing keywords for your web site.

So how does this compare to local searches for the Toledo market? In Toledo the most commonly used search terms are: Toledo Attorney, Lawyers Toledo, Lawyer Toledo, Lawyers Toledo Ohio, Toledo Attorneys, Toledo Ohio Attorney, Lawyer Toledo Ohio, Toledo Ohio Attorneys, Bankruptcy Attorneys Toledo and Divorce Attorney Toledo.

So nationally individuals are looking for pretty much the same things that local Toledo residents are looking for.

The term attorney is more prevalent than lawyer
Nationally, "business and criminal attorney" does better than in local searches
Bankruptcy and Divorce do better in Toledo
The top ten search terms in Toledo generated 14,652 local searches from individuals looking for legal advice.

In a separate Google search I used the terms mentioned above to find actual law firms in Toledo. Unfortunately I did not find your firm's web site once. I did find a number of your competitors including Steven M Burke, Dennis Strong, Charles Boyk, Westmyer, Leizermen, Franklin & Greenfield, Levy & Clarke and Mark Davis (love the web site name - AttackAttorney.com)

In our meeting he indicated that 1,000 individuals called the firm every year as a result of yellow page advertising. But 14,000 individuals in the Toledo market used Google last year in an attempt to find a lawyer, rather than the yellow pages. Web marketing has several advantages over print advertising.

It is easily measurable and eliminates the need to develop tracking systems based on asking a prospect how they found your firm.
Consumer behavior is changing and the web increasingly is the medium of choice for consumers. Our latest research shows that 83% of the Toledo market has internet access. 44% spend more than five hours per week on the internet.

A recent article in EMarketer stated:

“Digital marketing offers compelling benefits, especially for cash-conscious companies,” he says. “Marketers can more readily measure the results of Internet advertising than with most traditional media. This produces more-efficient advertising and higher ROI, which in turn pushes traditional media to compete with lower pricing.”

Next,I will compare internet usage by age and income for your "sweet spot". Do individuals age 18 - 39 have internet access? Do individuals with income levels less than $50,000 per year use the internet?

Does Yellow Page Advertising Work for the Legal Profession?

2009-04-18T21:32:00.006-05:00

Last week I met with a local law firm to do what we call a “time out call”. This is where we (Fox Toledo-WUPW) meet with a business to discuss marketing issues and learn more about the business. This law firm is full service and their primary means of advertising is the yellow pages. In fact they are one of the largest yellow page clients in NW Ohio, buying a multitude of books and buying “large”. They have a sizeable investment in their yellow page marketing program.

Before the meeting I had taken the time to visit their web site and came prepared with a number of suggestions that would make their web site work harder by generating more sales leads. This could be accomplished by primarily making the site easier for search engines to find and categorize the firm’s work. It is hard for consumers to find your web site if Google can’t!

During the course of the conversation it was apparent that while the firm’s principal felt strongly about his yellow page marketing program, he had no faith in the web’s ability to drive clients to his business. (Or any other advertising medium.) He has an elaborate system in place that tracks how his client’s find his firm and his analysis shows him that the vast majority of his clients answer “the yellow pages” when asked.

My experience has taught me that this is a terribly inefficient way to track advertising. Research shows us that the majority of consumers will answer with the first thing that comes to mind. In this case, unfortunately this usually means the reporting the last act the consumer made prior to making the call. “Let’s look in the phone book.” Even if the real reason was that they heard your radio ad, watched your TV commercial, saw the article in the local newspaper, read about you on a local news web site, etc. Mike Sands has constantly reminded me that “Nothing acts in a vacuum."

Placing your faith in the consumer primarily finding your law firm in the yellow pages is courageous! It is one of the few forms of advertising where you PAY to be listed next to all your competition! If you are going to invest in yellow pages, before you place a single ad, remember two simple facts. First is the Law of Familiarity. Simply put, people will do business with a business that is familiar to them, before they will do business with a company that is not familiar to them. That means you must engage consumers with other means of advertising, so when they need your goods or services, you will be the “safe, low risk” choice. “I have heard of them…” Multiple media campaigns work better than single media campaigns. They re-enforce each others message by increasing frequency.

Next, if you are going to be listed next to your competition in the yellow pages, you had better have a strong message that clearly shows how you are different than the other law firms. Otherwise, the consumer might as well start throwing darts to make their choice.

There are a number of items you could list in your yellow page ad that would show the difference between you and other law firms. Here are a few suggestions:

¨ Free consultation

¨ Experienced and Aggressive

¨ Call toll free

¨ Available 24 hours per Day

¨ Saturday and Evening Hours by Appointment

In fact, these “differences” are currently in use by almost every law firm in the current 2009 Yellow Book from page 59 to page 92. All 33 pages of attorneys list the same “differences”, with a few minor exceptions. If I blocked out the firms name from the ads, you could not tell me the name of a single firm.

If you are spending tens of thousands of dollars per year on yellow page advertising next to every one of your competitors, you damn well better tell prospects what makes you different than the firm on the next page!

And a bigger ad is not better. Research by the Yellow Page Publishers Association shows that the size of the ad has no bearing on the number of phone calls generated. All consumers do not start at the front of the attorney section of the phone book and start calling law firms until they come across a firm that makes them feel safe and secure. All consumers will look at advertisements and make calls based on their own criteria - starting with “does this advertisement convey that this firm is different because they understand my problem, they specialize in my problem and they can help me”.

Want to know who is different? See Page 62 – Charles Boyk. They provide a number of statements that show me that if I am ever in an accident and need legal representation “they understand my problem, they specialize in my problem and they can help me.”

The best way to market to consumers is to first monitor consumer behavior and then find a way to insert your message into their behavior. You do not have enough money to change consumer behavior. To succeed, monitor behavior and embrace it.

Next, let’s take a look at consumer behavior and how it embrace it…

Online Coupons Are Redeemed Over Print Coupons by a 13 to 1 Margin

2009-04-07T14:42:00.009-05:00

•Online Coupons Are Clipping Along

–

–
www.emarketer.com/Article

According to the above referenced artcile in EMarketer:

•MARCH 12, 2009

Don’t clip—click!

•

With the recession in full swing, US retail shoppers are looking for ways to save, and are finding deals through online coupons.

Not surprisingly, retailers are finding online coupons effective for bringing customers to their stores.

According to coupon processor Inmar, 13% of online coupons were redeemed in 2008, versus only a 1% redemption rate for print coupons.

Online coupons are growing at a furious pace, too, posting a 140% growth rate over 2007’s previous high.

What are some best practices for merchants looking to ride the momentum of online couponing?

“First, transparency,” said Coupons.com CEO Steve Boal. “Tell the consumer what they’re getting. Don’t hide the coupon behind a scheme.”

“From a coupon point of view, the most important best practice on the Internet is to treat everybody the same,” added Mr. Boal. “Give all consumers the same value and coupon, except where geography makes a difference. Don’t give different coupons to different people based on things like behavior or demographic data.”

But all is not rosy. Online coupons have an inherent weakness. Less than 30% of current shoppers currently go online to get coupons.

But, much like the consumer usage of printed yellow pages and newspapers, the web continues to eat away at print distribution. This is a trend well worth monitoring.

Three Reasons Not to Advertise in Today’s Economy

2009-04-05T19:03:00.006-05:00

Three Reasons Not to Advertise in Today’s Economy

Reason One: Business is booming and I can’t handle additional customers.

It may sound like a foreign concept, but there are businesses out there that are experiencing tremendous growth. I spoke to a local gun shop about advertising and he asked me “what would I advertise?” He had gaping holes in his shelves that 6 months ago were jammed with guns. The shelves were he usually kept ammunition were freshly waxed, clean and empty. For months he has not been able to restock his store as fast as the consumers buy! His suppliers can’t get additional product either… (I am not saying that there will be a run up in retail price once production increases, but the laws of price elasticity seem to indicate that this will be the case.)

Last May the USA network of Vespa had the same problem. Vespa’s are imported and when gas was souring past $4 per gallon, our local dealer said, “I am selling everything I can get. I am buying from other dealers…” Then WHAM.

The dealer network had sold everything Vespa had imported for the rest of the year. Vespa simply could not respond to the increase in demand for the product. There was nothing left to advertise.

One of the few reasons not to advertise is that you simply do not need or want more business. Otherwise, If you are not working to improve your sales, you are working to decrease your sales.

Reason Two: Waiting for the economy to turn around.

If you are not working to improve your sales…

Waiting to see if the market rebounds? It will. It always does. Read Roger Lowenstein’s Origins of the Crash: The Great Bubble and Its Undoing. When internet bubble burst in 2001 it was the end of the world. When the telecomm/energy bubble popped in 2003 it was the end of the world. Enron and WorldCom died, the market fell and yet life went on. In 1987 the end of the world was upon us as the stock market crashed. Now it is the real estate/credit crisis… This too will pass. There are already signs that some market segments are starting to slowly rebound.

The problem with waiting is that it is an impassive effort. While you are waiting, your competition is gobbling up market share – your customers. I spoke to two businesses this week who are buying up competitors. “There is never a cheaper time to acquire new customers than right now” one business owner told me. Both business owners know their businesses will rebound. They have faith… Their other option is close up and give up. Do you have faith in yourself and your ability to satisfy the needs of your consumer base? If you are not working to improve your sales, you are working to decrease your sales.

Advertising is at its most affordable level in years. eMarketer.com is reporting “Prices for ads on Websites of all sizes had decreased; small, medium and large sites’… TV ad prices are down… MediaWeek: “An analysis by independent media agency TargetCast shows the average cost per unit for a prime-time commercial on the broadcast television networks in the second quarter declined by 11.1 percent…

If you don’t invest in advertising now, your customers will forget you. It is called the Law of Familiarity. Today I saw an ad for Red Wells Sandwiches. I thought they went out of business years ago! Out of sight, out of mind.

The only legitimate reason not to advertise is:

I can’t answer the following question in 30 seconds or less:

What would a client say makes me different than my competition?

First let’s lay to rest the items that do not make you different. Almost every client I ask answers the same way. “We are different because we are and nice, friendly, well trained, experienced, local, national, regional, young, clean, hip, cool, old, we care, we care more, go above beyond, we sell X…” Everyone makes these claims. My English literature called these “glittering generalities. To the average consumer they mean nothing.

You need to tell a story that sets you apart form the competition in a meaningful manner. What is your competitive advantage? What can you get here that you can not get anywhere else? At Fox Toledo, we have American Idol. No one else does. You want the American Idol audience, you come to Fox.

One of my favorite advantages expressed in the window and siding business comes from Wallside Windows. “We don’t just sell and install windows, we manufacture them.” In the Toledo market they are not the only installer who can make this claim, but they are the one that owns that position in the consumer’s mind in Toledo. And if another company makes the same claim, they simply legitimize Wallside’s claim – Me too! Me too! We can do the same thing they can. How pathetic.

Today I saw an advertisement for Chevrolet – if you lose you job, we will make the payments for you – Just like Hyundai! Me too! Me too! No, I am sorry that was Ford making this claim. Or was it Auto Nation? Actually they all say this now. Want to kill a few minutes? Google “will make your car payments for you”.

Sorry guys, Hyundai beat you to the punch. How about something original?

Domino’s is known for??? Well back in the day it was “30 minutes or less”. It allowed them to corner the pizza delivery market. Everyone else was advertising “come on into Pizza Hut”. Dominos found their niche. “We will bring your pizza to you!”

What can you do that strikes at the heart of what your customers really want? What stops them from doing business with you? For most businesses it is not price. Want to know why customers really leave?

The short answer is that it is not price… Try the following exercise. Write all your competitors down on a sheet of paper. Now write down everything that comes to mind about them next to their name. Use your customer eye, not your business competitor eye and be honest! Now ask your family and friends to describe each of these businesses. Now ask some of your best customers.

In Toledo when I say Vito’s Pizza, I think of a Tony Pacos pizza (a great specialty pizza). I took an informal survey this weekend by asking everyone who wouldn’t run away – tell me the first thing that comes to mind when I say the following pizza chain:

Vitos – Tony Packos, specialty pizza, Cajun shrimp pizza, lots to choose from…

Dominos – bad, dead, gone, not here…

Pizza Hut – buffet, buffet, lost (pizza? pasta?), buffet…

Papa John’s – great!, very good, good stuff, the best banana peppers…

Ginos – excellent, finally in my neighborhood, OK, where are they?...

Marcos - not fond of it, no clue, I like!, cheesy…

Jets – no idea, no idea…

Little Caesar – cheap, cheap, Pizza Pizza

Now what do you notice about this informal survey? Only one mention of price and it is with the one brand that focuses on price – Little Caesar.

Vitos has been hammering their “specialty pizza” message in the market and it is the message remembered by consumers.

Pizza Hut is better known for its buffet than its new pasta items.

Not a single “We are different because we are and nice, friendly, well trained, experienced, local, national, regional, young, clean, hip, cool, old, we care, we care more, go above beyond, we sell X…”

What do your customers say about you that makes you different? Once you figure this out, you should advertise. Even in the current economic climate. If you are not working to improve your sales, you are working to decrease your sales.

Making Eye Contact and Other Ways to Run Off Your Last Remaining Customer…

2009-04-02T17:07:00.006-05:00

Making Eye Contact and Other Ways to Run Off Your Last Remaining Customer…

“The ability to focus attention on important things is a defining characteristic of intelligence.”
-- Robert J. Shiller, Irrational Exuberance

Face it. Busy is tough. You read about the “constricting economy” everywhere…

Toledo Blade: Automakers post steep sales drops for March…

Time: Can Bankruptcy Work?

Bloomberg: U.S. Economy: Jobless Claims Highest Since 1982

Just this week I am in a client’s restaurant having lunch. Trying to do my part to support the local Toledo economy and a business partner… All I wanted was a refill on my ice tea. “Holly” was sitting in the back of the dining room folding napkins with two other employees. “Holly” was facing the back of the room. To better to ignore me. Now I consider myself rather low maintenance. Sandwich. Ice tea. Reading Jeff Jarvis’ What Would Google Do?

I tried catching the “eye” of one of the other wait staff. Then a friendly wave of the hand. Followed by a frantic wave… The patrons around me jumped in to help… Nothing, so I finally walked over and asked if I could please get a refill…

Last week I stopped in a local auto specialty shop and asked “Jeff” if they carried truck consoles. I am looking for a console to put in my truck that will hold my stereo. I told him I had found one made by Tuffy Security , but wanted something a little lower in height. He said sure, he would make some inquiries and call me with some options. That was on Thursday.

Yesterday, the following Thursday, I called him asking for an update. “Oh yeah, I was just getting ready to call you.” I agreed to stop by today and see what he had uncovered.

He showed me the exact console I had told him last week was too tall. Shorter please. A co-worker said “try the XYZ catalog”. We looked around found one that looked acceptable in catalog, so Jeff called the “warehouse” and found that he could have it for me in 24 hours. The price was acceptable - $135 vs. $275 for the Tuffy console.

“What if it comes in and I don’t like it? It is hard to buy out of a catalog…”

“No problem – we can send it back.”

A voice barked from the back. “Hold on a minute – I don’t think we can do that. I need to check our return rate with the ‘warehouse’. If we return too much merchandise, we loose our discount rate.”

So you want me to purchase it sight unseen, with no return privilege? “Yes. See if we return too much merchandise…”

How do they expect to sell merchandise they “special order” if you can’t return it? Now keep in mind this is a stock item – it is not custom built – one of the selling points is “universal fit”.

I came in knowing what I wanted. I had spent an afternoon with my son and Google, so I had a pretty good idea of what was available in the marketplace. I chose to support my local merchant rather than order it on the internet… “Well I am not ordering it for you until I get confirmation that my discount rate will not be affected if you choose to return it. I will call you when I get an answer.”

I left the shop and went to the “other” truck accessory store in the market. Voting with my money! After standing in the waiting room for ten minutes and not being able to find a single employee, I left. Once again with my money.

I sat down with my computer and ordered the same product from California, with a 100% money back guarantee for a couple of dollars less than I would have gotten it locally. By the time I finished this blog, I had received confirmation that my order was processed and would be at my home early next week.

I will concede that the economy stinks. But perhaps your business could be better if you focused on the positive – customers in your store, restaurant, and business today. Now is the time to excel at customer service. Smother clients with attention. Based on today’s headlines and the conversations I am having with local business owners, it is not like you don’t have the time.

Still haven’t received the call. Wonder if the warehouse is cutting them a break on the order they drove away?

I leave you with words of wisdom from Benson Shapiro:

"The companies who seriously focus on customers inevitably do better. The interesting thing is that despite the overwhelming data, as well as a plethora of startling anecdotes, some companies just do not take the customer orientation seriously."

How to Increase Sales Using Web Marketing

2009-01-09T13:39:00.021-05:00

Basic thoughts on web marketing...

Should you advertise on the web? If you are looking for a cost efficient way to reach a large group of potential customers, absolutely! As you can see on the first slide, within the new medium of online advertising, display ads are the most efficient way to get your brand and message in front of the largest number of people at the lowest cost.

On a cost per viewer basis, Web site display ads are the new Media's version of TV advertising. And as you can see, the cost per thousand increases as you more narrowly focus the target of your advertising campaign.

So there is a cost advantage to web advertising when compared to other media choices. There is also a reach advantage. Like most of us, the majority of your target audience works during the day. As you can see, "Daytime is Primetime Online". While many people surf the web at home, everyone surfs at work. The hours leading into and out for the lunch hour are the peak surfing times !

Research shows us that there is a small bump in traffic around 4pm - people getting ready to go home and from 10pm - 11pm when the local evening news is on...

According to research by EMarketing, there will be 200 million internet users in 2009.

Let's look a few ways to engage these consumers...

American Backyard Buildings - Web Site Suggestions

2008-07-17T12:53:00.014-05:00

WUPW – Fox Toledo Four Seagate, Toledo Ohio 43604 www.MyFoxToledo.com 419.244.3600

July 9, 2008

American Backyard Buildings
8825 Airport Hwy.
Holland, OH 43528

Thank you for taking time out of your busy schedule to meet with Jamie and me. I am looking forward to working with you.

Among other marketing endeavors, I have been involved with web marketing and web design since 1996 when I secured the web domain Tuffy.com from the Tuffy Taffy Company and set about the building of the corporate site for Tuffy Auto Service Centers. In addition to my duties as Vice President of Marketing and Advertising at Tuffy, from 1999 to 2001, I was also the President and CEO of InspectValue.com, a company that functioned only on the internet. (Nothing makes you learn faster about web marketing than having to sell everyday over the web to make that week’s payroll!). Since that time I have been involved with the design and marketing of dozens of web sites.

The goal of this memo is to provide you with a complementary analysis of your web site - www.AmericanBackyardBuildings.com. Fox Toledo has provided this service to clients since I joined the staff last year. This analysis will be broken down into three sections: General Web Practices, Organic Search Optimization and Paid Search Optimization. I have already presented several dozen analyzes to Fox clients over the past year.

General Web Practices

After reviewing your web site, I believe that you have a good, basic, functional web site. The site is straight forward and presents the most important information to your potential audience. If you were to ask me to re-design the look and functionality of your web site to increase traffic and enhance the American Backyard Buildings brand, here are my recommendations.

I had a little trouble finding your web site unaided since American Backyard Buildings does not immediately show up in the organic (free) Search results. I will cover the search process a little later. If a visitor did not know the exact name of your business they may have difficulty finding your web site.

www.AmericanBackyardBuilding.com is currently available and I suggest you buy it.
* This will prevent a competitor from getting it.
* It will guide consumers who leave off the S to your site instead of someone else’s web site.
* You can own multiple web site names and still have them point to your primary web site.

Content Recommendations. Who is American Backyard Buildings? This is the biggest item missing from your web site. The Story. The Romance. The Sizzle.

What is the single biggest competitive advantage that you offer? How are you different than Home Depot or Lowes? How about www.BackyardBuildings.com and www.BetterSheds.com? Why should I do business with you rather than them?

People do business with people, not businesses. Good advertising is the ability to tell a compelling story and I bet that with your experience, you have a terrific story to tell. What are some of the projects you have worked on? Do you have client testimonials you could post? Where are the photos of completed installations?

You don’t sell backyard buildings. You solve storage problems. Somewhere in your business there is a great story waiting to get out. This is what you want on your home page! Not discount offers, especially conflicting offers. Is the Hampton 10% off, 20% off or 30% off? (There is nothing wrong with having promotions, but they should be in their own section.)

Who are the people that make up American Backyard Buildings? Where are their stories? How many years of experience? How many storage buildings installed? What is your customer satisfaction rate? Are you members of the Better Business Bureau? Who does the installation – employees or contractors? What is their story?

Use more bullets to highlight your differences. It is easier on the eyes, especially considering the “graying” of America. Bold a few powerful statements. Examples:

Don’t call them sheds!
• American Backyard Buildings are quality constructions that add functionality and style to any outdoor space.
• Structures range from 6’x6’ to 16’ x 24’ and larger.
• These are ideal for storage, play, work and more! Usage is limited only by your imagination.

Items that cost extra elsewhere are standard here.
• All framing is 2”x4”
• All runners, joists, and plywood floors are pressure treated
• Our buildings also feature 2”x6” front and rear overhangs that push water away from the building and protect the sidewalls
• You can choose from a wide array (how many? 4? 40? 71?) of shingle colors
• 44 (use the correct number) siding styles including vinyl and ready to paint Smart Panel.
• Over 45 options available on the 3 models.

Prices start at $999 including installation (Add hyperlink to the installation section – www.AmericanBackyardBuildings.com/installation and include a 5 year warranty (Add hyperlink to the warranty section – www.americanbackyardbuildings.com/warranty )

As you will see later on, links are an important way to communicate with clients and it helps in SEO (Search Engine Optimization).

Link to your map! At the bottom of the Home page you invite visitors to “Stop out at our Airport Highway location and look for the BIG RED BARN!” This is a great opportunity to link to your map, showing them exactly where you are. And don’t forget to add a nice photo of the BIG RED BARN so they know exactly what they are looking for!

Another suggestion on content would be to make contacting you easier. Your web site should be a sales lead generator. Your contact information should be available on every page including embedded links that generate email contact, not just the phone number. Great job of posting your phone number on every page!

How do you handle phone calls 24 hours per day?

When potential clients send you an email through your web site, do you have an auto response that acknowledges receipt of their email? “Thank you for contacting American Backyard Buildings….” Here is the simple message I send to individuals registering for our Business Building Seminar:

Hello Malinda,
Thank you for registering for this event. Your RSVP has been received. We look forward to seeing you there and are pleased that you can attend.
Please arrive promptly to the program. It will begin at the scheduled time. If you have any questions or need to change your RSVP, please email me at jeff.davis@foxtoledo.com.
Warm regards,
Jeff Davis
MyFoxToledo.com

I am a big believer in making it amazingly simple for potential clients to contact me. In every section of your web site, it would be easy to add a line at the bottom of the page – “To find out how AMERICAN BACKYARD BUILDINGS can solve your storage problems…” (with embedded email link).

A variation on this idea is to capture the visitors contact information using a splash/contact page. Use an online form and ask for Name, Address, Email and Phone Number. (See more on this topic in page 8.)

Legitimacy. You already have a great reputation in the Toledo market. But there is a large part of the market that has yet to meet you. And when they land on your web site, you want to maximize the legitimacy of your business. One easy way to accomplish this is to advertise your email address:

Malinda@AmericanBackyardBuildings.com.

You are paying someone to host your site (Kinetica Media?). Your web host can easily activate a number of email accounts for you and there should not be a charge for doing so. While you are at it, you can add to your legitimacy by adding additional accounts that you post on your site.

Marketing@AmericanBackyardBuildings.com
Inquiries@AmericanBackyardBuildings.com
CustomerService@AmericanBackyardBuildings.com
Accessories@AmericanBackyardBuildings.com

All these addresses can route to a single individual if you wish, but to a first time visitor, you have just doubled the size of your company.

I would also add samples of your work. One easy way to accomplish this is through the introduction of a Photo Gallery or slide show. (I have found that taking pictures of clients and their projects and posting them on your site will increase web traffic and clients love it. At Tuffy I kept a photo gallery of our franchisees (our direct clients) on the site at all times. We also posted photos of unique cars we had worked on.) Later on we can discuss how adding video can enhance your site as well.

After reviewing your Products section http://americanbackyardbuildings.com/our_products.php, I have to ask myself “what is the purpose of listing all the products available with prices?” There is no system in place that allows me to order online. By merely posting a variety of products with sizes, it allows your competition to price shop you and adjust accordingly. More importantly it allows potential clients to rule out doing business with you as well. Some will see your price as too high (without knowing the real story behind the building they are getting) and some will rule you out because you are too cheap (the same building at Home Depot (Tuff Shed) is $2,039. There must be something wrong with American Backyard Buildings.)

If you truly want to market by price point on your web site, visit the Tuff Shed section at Home Depot - http://www.888tuffshed.com/models.cfm.

They start the presentation showing you photos, then features, options and paint and shingle samples - http://www.888tuffshed.com/model_details.cfm?ModelID=KTB-600&StyleID=KTB. Then they show you the price with a feature called “Build a Quote”. Online the visitor constructs the building they want, picking out paint colors for the building and trim, shingles, storage packages, windows, etc. When “you” have finished trimming out “your” building, it tallies the invoice total.

One of the options they offer – “Request a free phone consultation…”

This is the strategy I would recommend for you. You can invest in flash applications and online databases that would allow visitors much of the same functionality as Tuff Shed.

Or you could decide that your site should be a sales lead generator and redesign the functionality to support lead generation.

Instead of listing all the sizing options available (currently taking up the better part of two pages), romance the three styles you offer. Tell a story. Start with the very best seller… The Hampton, with 6 foot sidewalls (notice the hyperlink – you need to add a glossary of terms. I have no doubt that you know what a 6 foot sidewall is, but I don’t have a clue.) is our most popular model. Available in sizes starting at 6’ by 6’ up to 10’ by 10’ it is popular because the 2” by 4” heavy duty framing means years of demanding use. Other standard features that make this model unique:
• 2’ by 4’ constructed doors
• 6’ Continuous Aluminum Hinge
• Door stabilizer

Note the hyperlinks to the new glossary of terms.

The Hampton makes the perfect… (List three typical uses for the model – potting shed, lawnmower storage, children’s fort…) Starting as low as $899! For a free phone consultation… Now link directly to a prospect capture page.

The prospect capture page is very similar to your current Contact Us page. The main difference is that it is structured to capture additional information that you can use to qualify them as a sales lead. Name, address, phone number, email address. Now ask the questions that you would ask if the prospect were standing in front of you:
• How long have you lived in your home?
• What is the purpose for your new building?
• Are you considering any of the following options?
 Windows
 Electrical connection
 Heating
 AC
 Wood Floor
 Cement Floor
 Financing

I did not find a section on your web site that addresses financing, but it is something you could consider to increase your average ticket. At Tuffy adding a finance option raised the average ticket from $135 to +$275

There are several companies offering this service. Let me know if you want to learn more.

Rather than waiting for prospects to find your contact page, now you are proactively engaging them.

Great use of a map on your Contact Us page - http://americanbackyardbuildings.com/contact_us.php . My only suggestion would be to move the email contact up to the top and move the map over to the right side of the page. Your web site is one of the few I have seen in the market with an option to Get Driving Instructions. Fabulous!

Other suggestions:

Accessories – http://americanbackyardbuildings.com/accessories.php Allow visitors to order online. Add photos or diagrams. Hyperlink to installation instructions. Become a resource! I keep very few owners’ manuals at home, but I do bookmark the owner’s manual page on the manufacturer’s web site!

Installation Policies and Procedures - http://americanbackyardbuildings.com/install_process.php . Who does your installations? Employee or contractor? There is an opportunity here to tell another story. One that sets you part from the competition. I would include a link for people to contact you. Still have questions? Hyperlink to email form. Provide hyperlinks to the County Zoning Board. County Building Permits. Any agency necessary to answer the consumers questions about building construction. Be a resource!

Other questions to answer:

• How long does installation take?
• What common elements should I consider before I choose the location for my building?

Terms & Conditions - http://americanbackyardbuildings.com/install_process.php

I would not include this section. Web sites are for lead generation, not to post the Operations Manual. There is nothing in this section that generates revenue and everything covered here can be explained in person and followed up with a printed hand out at the store.

5 Year Warranty - http://americanbackyardbuildings.com/warranty.php

Later we will cover SEO practices, but this section provides a multitude of opportunities to provide links to other web sites…

“The Storage Building must be painted with (Note typo – should be – within) sixty (60) days of installation, with an acrylic-latex paint.” (http://www.Sherwin-Williams.com/search/acrylic-latex+paint NOTE: this does not link to the home page, it links to the acrylic latex paint page.)

The same idea can be applied to each section – Circulation, Insulation, Heating. Be a resource!

The Warranty. Rather than throwing up all the language – much of which can be perceived as negative, I would think about how this section can outline all the positive attributes of having a 5 year warranty – why do I want a warranty, how do check on what is covered, then provide the following link – For more information on your warranty… On the linked page you can publish the actual warranty disclaimers.

Video, Photos and Client Testimonials

A majority of The Story you tell can be told with video, photos and client testimonials. Photos can tell the story from start to finish. Think of a section that outlines what it takes to build one of your quality products. Start with the stakes in the ground all the way to the finished building ready to use! After the “how it is done” add photos of every building you put up starting tomorrow!

Go back in a week and find out how your clients are actually using their new buildings!
–Make a contest out of the client’s story and give a way a $50 gas card to the best use!

Eventually photos will give way to video. Video is one of the fastest growing segments on the internet today. The decision to go video is no longer, if, only when! Video recorders currently are available in the marketplace starting at $150! And don’t forget to ask for testimonials from your clients. Including ones that where not satisfied initially, but allowed you to fix the problems which led to their satisfaction!

Web metrics - How do you measure success?

Finally, how do you measure how successful your web site is? What tools do you have in place to measure current traffic levels, sections of the web site visited, time on site, etc.? Some of the programs I have used in the past – Hitbox, Web Trends, Google Analytics, comScore, Hitwise. The ISP hosting your web site should have standard reporting software that can measure and index site traffic and report on a number of important trends.

How do people find your web site? Here is a quick look at on how to increase traffic to your site for little or no money.

The Five Steps to Search Engine Optimization

There are five generally accepted steps to search engine optimization listed below. However, the only people who know how search engine algorithms actually work are the software engineers who write the code.

Search engines use a formula to compute your ranking on various search terms. Basically it is:

The title (name) of your web site + meta tags and descriptions + web site content (including relevancy) + Links to and from Other Web Sites + Traffic = Relevancy. Note that all the components of this formula are not weighted equally.

Search Engine Optimization is simply the process of making your web site easier for search engines (Google, Yahoo, MSN, etc.) to find and categorize it properly so consumers and business owners can find the services you market. You may have heard of this process as “organic” (or natural) growth - versus paid search results. A strong online marketing program needs both of these components.

Search Engines send out “bots” – software programs that scour the internet looking for web sites and content. When they locate a site, they index or score the site based on a variety of factors and then report back to the search engine database with their findings. These findings are stored on server farms, which allows you to type “Elvis” into Google and Google gives you 87,200,000 “relevant” web sites to choose from in less than 1 second. When you engage a search engine, they do not go out and find the information you seek, they already have it!

Keep in mind that in many ways search engines are today’s version of the yellow pages. When the yellow pages were first being published, they were the primary source of information for service providers. This is prior to direct mail (32 billion pieces delivered by the USPS in 2006), affordable TV commercials and dozens of radio stations in each market. Then, if you wanted to find a service provider, you always “let your fingers do the walking through the yellow pages”.

Then as the other forms of advertising became more prominent, the yellow pages role started to change. Now I know “who” I want to fix my brakes and repair the washer, I just need to find their phone number. A study I conducted while at Tuffy Auto Service Centers showed us that 50% of our calls came from the yellow pages. And 50% of our calls came from the white/pink/blue pages that were the alphabetical listings of all businesses. “Just show me the phone number!” Clearly consumer behavior has changed over time.

The same is happening with search engines. Consumers are conducting the same two types of searches… Who performs the service I want? What is the web site address of the business I want to engage? You need to keep both of these needs in mind when organizing your web site for search engine optimization. Make it as easy as possible for search engines to find you and they will allow consumers to find you! Some consumers do not know who performs the service they are seeking. Some know who, and are merely trying to find your site for more information.

The first element of a web site the bot categorizes is the title bar or name of your web site (the blue frame at the top of the web page that few consumers even notice). Note this is not the same as your URL address.

In the case of www.AmericanBackyardBuildings.com it says “American Backyard Buildings: Warranty”. Few people ever notice the name in the title bar of the web site, but it is the launching point for search engines to start their classification and ranking of your web site. I think the name works fine, although I am not sure why the word “Warranty” is included.

My only suggestion is that you expand this title to include references that further explain the purpose of the site and add geographic references. For example - “American Backyard Buildings - quality construction, ideal for storage, play and work. Serving Northwest Ohio and Southeastern MI. Home of the 5 Year Warranty.”

Now the bot has a clearer understanding of where you are located and who you serve.

Next the bot reviews the meta tags and descriptions contained within the source code of the web site. Meta tags tell the bot what content it should expect to find on the web site. Meta tags should be a description of the products and services you provide. This information IS NOT viewed by the public; it is for the search engines to use in categorizing your web site. In the case of www.AmericanBackyardBuildings.com there are no meta tags currently being listed.

The net result of your current title bar and lack of meta tags is that the search bots are having a difficult time finding your web site. When I enter “Storage buildings Toledo” in a Google search, here are the results:

You are not located on page one of the search results where +90% of all consumers terminate their search.

How can you improve on these results and generate more sales leads? My first choice of research is to find out what the competition is doing. When I Googled “Storage buildings Toledo”, very few local companies show up in the page one results. www.olympiabuildings.com shows up, but is not local. Here is their choice of Meta Tags:

META NAME="description" content="Olympia Steel Buildings manufactures commercial metal buildings, metal building systems, pre engineered steel buildings and steel building kits shipped factory direct. Call today or request an online steel building quote."
META NAME="keywords" content="steel buildings, metal buildings, american steel building, commercial metal building, barns, metal barn, steel barn, metal garage kit, metal garages, steel garage, steel garage kit, steel building kit, pole barns, pole buildings, storage buildings, metal storage building, warehouse buildings, metal warehouses, steel warehouse, commercial steel building, metal commercial buildings, horse arena, horse barn kit, horse riding arena, horse stables, horse stalls, indoor arena, indoor riding arena, covered arena, riding arena, mini storage building, mini storage units, mini warehouse, self storage building, church building, steel church buildings, metal church building, modular buildings, aircraft hangar, airplane hangar, metal building manufacturer, prices, metal building sale, metal building shed, metal building supplier & systems, discount steel building, farm buildings, general steel buildings, pre engineered buildings, pre fab building, prefab metal building, prefabricated steel building, residential metal buildings, residential steel building, metal steel building, steel metal buildings, steel building manufacturer, steel building prices, steel frame building, surplus steel building, us metal buildings, industrial steel building, metal school buildings, metal shops"

Meta tags should provide the search bots a complete description of your business using the terms that an average consumer would use. In short, if you were doing a search for yourself, what are the key variables you would look for? Use common terms that are familiar to your target audience.

To view the source code on a web site, go to the home page, right click your mouse and select “view source code/view page source”. Usually you need to find a “blank section” of the web site that is not running java or flash applications in order to view the code.

Now that the bot has indexed the title bar and meta tags and descriptions, it starts looking at the content on the site itself. If “storage building” is in the title bar and the meta tags, the bot expects to find these terms used in the web site content.

I believe in "the law of three to five”, which means you should use the term “storage building” three to five times in the text of the page if possible.

Many web sites use a piece of code telling the bots to use the content as the source of meta tags.

meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">

This only works if you have killer content that clearly describes your business and remember – content means text – the written word! If you are not content rich, you are compromising your rankings in the search results.

One important aspect frequently overlooked is “search bot relevancy”. Not relevant as in “is the information displayed accurate”. To bots, relevant means “how new is the information?” The information may be perfectly accurate, but if it is not “new information”, it is not relevant and you loose points.

You need to change/update the information on your web site frequently, at least once per month. (At MyFoxToledo.com we change our content dozens of times per day.) You do not need major overhauls of your content to remain relevant. Rework a paragraph. Move a few words around. Minor revisions lead search bots to think you have new information – thus you receive more relevancy points.

These first three steps are easy to do and cost you nothing to implement. Keep in mind that making these changes will not drive instant traffic to your site. But it will make it easier for search engines to find you over time.

The next two indices are a little harder to implement.
• Links to other sites (to and from)
• Traffic

More links to and from your web site make your site more “relevant” so search engines have a tendency to rank you higher in the free search results.

Your web site does not appear to have any links to other sites. Some of the links you might consider:

Links to vendor web sites as outlined earlier – http://www.sherwin-williams.com/
Add links to sites like http://www.nari.org/ –NARI - National Association of The Remodeling Industry and the National Association of Home Builders - http://www.nahb.org/
Link to articles in popular magazines
In short, what are some of the web sites you would use if you were a consumer and could find them?
Be a resource!

Links are also important guiding traffic to your site. Do you have links to your site in the online phone directories like http://www.yellowbook.com/? (You do not provide a link to your web site.) How about the Chamber of Commerce? Better Business Bureau? Every link increases relevancy.

The more visitors you have, the more relevant your site and the search engines rank you higher and try to send you more traffic. It is the old “chicken and egg” discussion. The way to get more traffic is to already have more traffic?

In a very simplistic view, you now have reviewed a course in “organic marketing”. Growth from within.

Paid Search

The second type of marketing within search engines like Google is paid search marketing. Google AdWords. I ran a number of inquiries and a number of businesses are currently investing in paid search marketing with Google in your category.

Here is how it works:

If you do a search on Google for “Elvis memorabilia” you will return the results shown below with 1,760,000 relevant web sites -

Now you will see two types of listings on Google. Free (organic listings based on the title bar, meta tags, content, links and traffic) and paid listings (people who pay money to jump the top of the rankings).

In this example the first organic result is for http://www.elvispresleynews.com/. But above this result is a lightly shaded box that lists three “paid search” results. http://www.shopelvis.com/, http://www.gracelandcellars.com/ and http://www.elviscollectablestoday.com/.

How did they leap ahead of the competition? They paid to jump ahead. (Adwords.Google.com)

Google (and other search engines) has programs that allow you to bid against other companies to appear at the top of the list. Generally you set up a monthly budget (using a credit card) and submit a list of search terms that you want to bid on. The highest bid wins!

How much should you bid? Now the fun begins! What is a sales lead worth to you? The lowest bid Google currently accepts is $0.05, but they will allow you to bid as much as you want. How much did www.ShopElvis.com pay? There is no way to know. Submit a bid and see where you are placed. If you bid $0.25 and you run the search with your term and you don’t show up, you know you did not bid enough. If you come in second, you know that one company bid more than you and everyone else bid less. It becomes a game of chess, but within a few days you should get an idea of the cost of the search terms that are important to your business.

Note: Your account is only charged if the viewer clicks on your link to your site. And when your monthly budget starts to run low, Google emails you and offers to “refill” your account so they can continue sending you leads.

Once again for your Google Ad words, think like a consumer! Google also provides a tool that lets you see which key words and phrases are used most often in AdWords. Let’s see some results for various key words in your business category, starting with “storage buildings”:

Here is what we get:

These charts show you various combinations of key words that other advertisers are currently investing in. Note the difference in search volume between “storage buildings” and “storage shed”!

Hopefully this has given you some ideas so you can make your web site work harder for you. I am available anytime you need marketing assistance and I look forward to working with you!

Jeffrey A. Davis
WUPW FOX Toledo
419-725-1565 (Office)
419-244-8842 (Fax)
419-787-6928 (Cell)
Jeff.Davis@FoxToledo.com
www.MyFoxToledo.com

The Unpublished Secrets of Direct Mail

2007-09-25T14:33:00.000-05:00

In 2001 the United States Postal Service delivered 21 billion pieces of direct mail.
In 2006 the United States Postal Service delivered 32 billion pieces of direct mail.

Yes that is billions and it represents an increase of 65% in five years. I think we received about half of these at our house.

So what is Direct Mail?

Simply put, it is an advertising message mailed to a client or potential client. Direct Mail comes in three forms:

Direct mail to existing customers. Usually this is a single mail piece meaning the only message the client sees is yours! Here you are marketing ONLY to consumers who have already done business with you. This varies in cost, but plan on spending at least $0.50 per piece. You can easily spend a lot more. For $0.50 you can expect to mail a single sheet, printed on both sides. If your product is a higher ticket transaction you may want to spend more on your piece. A nice catalog will cost more than $1.00 each to print and mail. Some companies spend $3.00 or more. The question you have to ask yourself is what is a client’s business worth to you.

This cost includes postage using bulk rate (the least expensive). For tips on how to save on mailing costs, visit www.bulkmail.info. For a more technically accurate snoozer on this topic, visit www.usps.org/national/pubcom/bulkmail.pdf.

Shared mail. Shared mail is when you share the printing and distribution costs with other advertisers. Val Pak and Reach Magazine are great examples. They are remarkably efficient at reaching a large number of households for a very reasonable price. For example, Val Pak will deliver 10,000 HH starting at about $350. The downside is that these products rarely offer product exclusivity, so you have to make sure your offers are HOT!

Rented Lists. Birds of a Feather Flock Together. Rented lists allows you to take the power of the individual mailed piece and prospect for new clients. The more accurately you can profile your best current customers, the better this program will perform. List brokers will rent you the names and addresses of individuals that match your profiles. The easiest to match are demographic variables like, sex, age, “live within three miles of my store”. But the most powerful matches come when you can provide your broker with more information – “owns a car that is four or more years old” or “lists gardening as one of their hobbies”. The more specific the profile, the better the results. And the higher the cost. The more variables you include, the smaller your target becomes, but this is good news! The perfect advertisement is the one going to a qualified prospect at the exact time they are ready to make a purchase.

Work with a reputable vendor. You can do direct mail yourself, but using a reputable vendor assures that you will be placing a timely, quality piece in the hands of your clients. Here in Toledo Ohio, I have worked with the following companies and have had excellent results.

Miami Systems, Mike Sands (419) 893-7619 x14, MikeS@miamisystems.com

Valpak and Reach Magazine, Jim Slattery (419) 475-4100, JSlattery@reachusa.com

Direct Mail Works!

The single most effective advertising that you can do is to advertise to your existing customers first. Don’t believe me? Go to MyCustomersAreDifferent.blogspot.com and read “How to Capture New Customers”. I have made a fortune advertising to some one else’s best customers – the ones you thought you owned. Existing customers are seven times more likely to make a purchase than a new customer.

The Law of Three. Regardless of which method you choose, remember The Law of Three. Commit to using the product you have selected three times regardless of the perceived results of the first flight. Frequency builds action. It takes time for advertising to find its audience.

Direct Mail Doesn’t Work!

Response rates are scary. In “the good old days” it was well known that you should expect a 2% response rate. Today that is not necessarily the case. Direct Mail to existing customers can easily generate a 2% response. I have seen 7% to 11% response rates. I have also seen 0% response rates. Want a great response rate? Send out a great offer! Not average. Not “the usual”. Be aggressive. Be unexpected. And also keep in mind that you can not take percentages to the bank. You take dollars. When measuring response rates, focus on the sales dollars generated. This is an easy metric to understand.

Do the math. Make sure you track the response. All three flights. Put an envelope under the counter and put the redeemed coupons in it. Write down how much they spent. Clip the coupon to the sales order. Do something. Don’t ask your customers if they saw your ad.

As much as 80% of all Direct Mail goes straight from the mailbox to the trash can. So what can you do to keep your advertising piece from being one of the “never viewed” pieces? Don’t hide who you are. Big bright logo on the envelope. Try printing a message on the envelope (yes this costs a few cents more) giving the customer a reason to look inside. “103 new fabrics to choose from.” “Save $20 on your next…”

Finally don’t forget to use Co-op Advertising Dollars. Check with your vendors to see what is available. Yes it is a lot of work, but it is FREE MONEY. A reputable direct mail vendor will help you with the documentation.

Want to know why customers really leave?

2007-09-24T09:25:00.000-05:00

Want to know why customers really leave?

1 percent die
3 percent move away
5 percent from other friendships
9 percent cite competitive reasons (price)
14 percent due to product dissatisfaction
68 percent due to indifferent attitudes towards them by some employee or employees

Fix your service first.

The Law of Familiarity and the 2008 Presidential Election

2007-03-14T15:54:00.002-05:00

Why don’t we just move all the presidential primaries to next week and be done with it?

It is bad enough that we have to listen to the politicians, but now states are jockeying for position to determine who is going to hold the first primary.

Have you ever wondered why we are listening to politicians running for office in November 2008, debate, postulate and in some cases hyperventilate in March of 2007? It is because smart marketers understand the Law of Familiarity.

People act on familiarity. All things being equal, people buy based on familiarity. If they have heard of a product or a company, they are more inclined to buy. If they have not heard of the product or company they are more likely not to buy. This is the primary reason for advertising. It is why the 2008 election campaign starts two years before the election. Politicians know that people have to be familiar with their name before they will vote for them. Even if a voter does not know the views and beliefs of a politician, research shows they will stand in the voting booth and vote for the name that sounds familiar to them. This is the underlying principle behind the old adage “There is no such thing as bad publicity.” Over time, people will forget the details, but remember the name. Consumers act the same way.

“Nothing but the mint can make money without advertising.” Thomas Macaulay

Think about your favorite song playing on the radio. Perhaps you like it enough to go out and buy the CD. You pop the CD into your player and immediately search out “your” song. Then you listen to the rest of the CD during your drive home and are disappointed… One good song on the entire CD? But you continue playing it. Now the third track is starting to sound pretty good. Before you know it, you know the words to fifth track. At some point you realize that this is a darned good CD and you are recommending it to your friends! (Musicology by Prince) What happened? Did the CD get better? No. Familiarity set in. The same thing happens in our business.

So how do you become familiar to a customer? Consistency. Repetition. Advertising. In testing new advertising mediums, I am a firm believer in the law of three. Advertising works when your message becomes familiar to the consumer. “Let’s try Advo direct mail this month!” Great, but only if you are willing to invest in it at least three times. Frequency builds familiarity. When familiarity meets need, an opportunity for a sale is born. This is especially important in a service industry.

Birds of a Feather Flock Together!

2007-03-05T20:17:00.000-05:00

Remember when we looked at the different segments of automotive repair? Tier 1, Tier 2 and Tier 3?

“Sure, I am in Tier 2.”

Right. Now, one of the axioms of successful advertising is…

Birds of a Feather Flock Together!

This means that people of similar interests live next to each other. When Janelle and I moved to the Toledo market 20 years ago we had three small children. When we met with the realtor to find a new home, we were looking for three important factors in making our decision about a neighborhood. Affordability, good schools, children that were the same age as ours. So we settled on a budget first. Then we did research to determine the best school systems. Now we narrowed our search down to two communities – Perrysburg and Sylvania. Then our realtor drove us through the neighborhoods that we were interested in and we looked for swings sets, basketball hoops and bicycles.

After two days, Janelle fell in love with a house here in Sylvania that we could not afford, so it was back to the drawing board. We changed the budget and pretended that we could afford it. We have now been happily ensconced in our residence for 20 years. And as we settled in we noticed some other interesting aspects about our new neighbors. A number of the guys played golf, so now I had something and someone to spend my Saturday mornings with! This evolved into an annual golf tournament and block party. And Janelle and Kelly swapped cuttings form their various flowers and plants. The point is that the longer we lived here, the more we discovered that we had in common with our neighbors. It wasn’t just the neighborhood fleet of mini-vans. Birds of a feather do flock together! Now Bryan, why is this important to our project?

“I guess you are saying that if I have an existing good customer, I could probably service the neighbor’s car as well. Since birds of a feather flock together, there is a good chance that the neighbor uses Tier 2 automotive services as well.”

Correct. Now all we need is a way to visualize the neighborhoods that we want to attack! We have two options. One way is to use an old fashioned map of Sylvania and a box of push pins. Simply take each one of your invoices from the last year or two, find the customer’s address and then stick a pin into the map. Once you get all the addresses plotted, it will become apparent where the majority of your current customers live. This is where you want to focus your initial advertising efforts.

If you are lucky enough to have a point of sale system that captures this information electronically, you can export an electronic version into a Microsoft product called MapPoint. MapPoint allows you to take customer data and import it for geographic references. If you wish, you can even use different color/size pins to show different levels of customer purchases. I use “red is hot, blue is not”. It also allows you run other data points on geographic areas and to drill down into the map for easier use.. For more information go to: http://www.microsoft.com/mappoint.

The Pareto principle suggests that 80% our client base will be found in 20% of the geographic vicinity. Hundreds of similar studies in the automotive service industry have shown me that, on average, 80% of the sales are generated within a three mile radius of the service center.

Here is what a sample map could look like for some sales data in Iowa:

Now you can start to drill down and see the dominant sales areas.

Note how the customers travel down University Boulevard and even within the three mile radius, consumers do not shop in concentric circles. They follow natural commuting routes and their travel behavior is frequently affected by natural barriers like rivers, interstate highways and hills. In the example above Interstate 380 impedes the flow of consumers even though these neighborhoods lie within the 3 mile radius.

Now we have zoomed in close enough to see individual neighborhoods and streets, giving us a much better idea of where to start our marketing push.

We are close to launching an advertising campaign!

But why don’t we take a look at one other option – newspapers – first.

Are We Ready to Advertise Yet?

2007-03-05T20:11:00.000-05:00

Bryan – we are almost ready to start that advertising campaign. Before we get around to designing the ad, let’s consider what type of advertising we want to do.

“I want the type that works!”

We all do, but all advertising works. It is just that some advertising works better than others, once you consider what you want to accomplish.

I want to increase sales by increasing car counts. If I can just get them in the door I know I can sell them.”

What are you currently doing?

“Nothing really. Word of mouth I guess.”

What kind of a budget do you have?

“Not much. That is why it needs to work fast. The more sales I have then the more of a budget I can afford.”

First let’s look at what is available. Generally speaking, there are two types of advertising – image and promotion. Image advertising allows for a long term marketing program that builds and keeps awareness of you and the services you offer. Electronic media – radio and television work best for image advertising. The downside is that it takes time and there is rarely a consumer call to action, only brand awareness. Here in the local Toledo market the “average cost” for good flight of radio currently runs around $30,000 per month. If you want to do television you are looking at closer to $50,000. And then there is the cost of producing the spots.

Promotional advertising is intended to be a time specific push that gives the consumer an immediate call to action.

“Promotional advertising it is then. But I don’t have $30,000 to spend?”

You don’t need it. We can use forms of advertising that are not only less expensive, they are also geographically targeted. Radio and Television are both terrific forms of advertising in the right circumstances, but one of the draw backs here is that they cover a tremendous territory – all of Toledo.

“That’s what I need. The more people that know about me, the more business I have.”

I agree that sounds good, but let’s think about it for a minute. Your single shop is in Sylvania. Is a potential customer in Northwood listening to the radio going to come 19 miles to Sylvania to have their car serviced? Or is it more likely that they will stay in their own neighborhood to have this service done? Where do you shop for groceries?

“Right here at the Kroger down the street.”

That is the same way people shop for auto service. They prefer to use a service center close to home or close to work.

Once you get your second, third, fourth service centers around town up and running we will take another look at radio and television, but first we are going to look at advertising methods that stay a little closer to home.

For now let’s focus on this neighborhood. There are several great forms of advertising that will work here in Sylvania. Three types of direct mail, newspapers and other forms of print. The single biggest advantage to these forms of advertising is that you can direct where they contact existing and potential customers. You are in control!

The first option is direct mail. I like direct mail because it can be personalized to the individual you are “courting”. Direct Mail breaks down into two primary types – individual and shared mail. The advantage to individualized mail is that it goes directly to the consumer in its original form. It is your message going to an individual – your letter, flyer, postcard, magnet, your choice. No competition. The downside is that it costs more. You pay the full cost of postage, printing and production. Look to spend about $45 to $55 per thousand for this type of direct mail.

One way to reduce the cost is to share with other advertisers. All of you go into a shared envelope. The cost of postage is shared between the advertisers that are in the envelope with you. For example, look at Val Pak and Advo. You can mail your advertisement for as little as $35 to $40 per thousand households. But there are other costs. You can only use the size and layout that the advertising vehicle offers. You have larger minimum requiremeents, usually starting at 10,000 households at a time. Rarely do you get a service category exclusive which means the other automotive service centers may be in your mailing looking for the same customers that you are. If this is true, you have to seriously think about the promotional offers you are going to print. If you run a basic oil change for $19.99 and the service center down the street advertises it for $12.99, you are going to look silly. Not only are you likely to loose business today because you do not appear to be cost competitive, now you have started a dangerous perception in the consumers mind – “I wonder if all of his services are this expensive?” Remember – in marketing -perception rules in the consumer’s mind.

But before we run an ad, let’s look ad make sure we really know where we are going to advertise. We may decide not to use direct mail. Have you ever thought about newspaper advertising?

It Semed Like A Simple Thing

2007-01-14T19:26:00.001-05:00

"So Jeff how were the holidays?

Not bad. We were in Florida visiting the family. How about your holidays, Brian? Everyone have a good time?

"You bet. Too much to eat and drink, but everyone was home, the kids had a great time and the misses was happy. So what brings you by today? Ready to start some advertising?"

Almost. But first I want to tell you something that happened to me while I was away... It seemed like such a simple thing. I was in Florida visiting with family when my sister-in-law told us that she had not seen the Lord of the Rings trilogy. This wasn’t a surprise to me since we had been renting movies for the family to watch for each the prior two nights and Fran had yet to have seen anything! So during my daily trip to “Primetime Video”, I asked “Chris” for the first two movies, The Fellowship of the Ring and The Two Towers. The Return of the King was going to have to wait until tomorrow – there was no way I was watching three movies in a row since each movie runs about three hours!

“Sorry, Jeff, I only have one copy of the first movie on DVD and it is rented. It is due back tomorrow.”

No big deal, there are still a lot of movies Fran and “Nana” haven’t seen yet. Put me on the list and I will come in tomorrow and rent the first two.

Tomorrow came. The movie didn’t. “Well it’s late. That’s fairly common, especially with a long movie and a holiday weekend. Do you want to keep the second movie?” No, there is no sense in watching them out of order. I’ll find something else.

Once again tomorrow came. The movie didn’t. “I’ll give her a call and ask her if she is bringing it in and I’ll hold it for you.”

Once again tomorrow came. The movie didn’t. And again. Saturday afternoon I came in and Chris wasn’t working, but Diane was behind the counter. “Sorry, I don’t know anything about the movie you are waiting for - but hold on, we keep this log for exactly this reason. Here is your name and here are your movies!” Only in a small town like Crestview Florida can you still receive this style of personalized service. I was impressed!

Off to the house, dinner out of the way, dishes compete, movie in the player. As the opening credits rolled across the screen I thought to my self, this doesn’t look right. I had put in the second movie by mistake. As I grabbed the second DVD case I noticed the title – The Return of the King – the third movie. Never fear – five minutes later I was back at Primetime Video with the third movie in hand – “Sorry, I was in here earlier and you mistakenly gave me the wrong movie!” Uh-Oh! That’s not Chris or Diane.

It’s David. I patiently explained about the log book and the mix up. David replied, “I didn’t do anything wrong. What do you expect me to do about it?”

“I am sorry, I wasn’t implying that anyone did anything wrong. I am sure it was a simple error. I just want the correct movie.” Without referring to the log book, opening a drawer to look or making a phone call, he replied, “Isn’t going to happen.”
“Why not?”

“It is simple. I rented the only copy out on Wednesday. (I thought it was being held for me???) The lady took the “five days for five bucks” so it will not be back in the shop until next Tuesday.” (No wonder I am so tired – Wednesday to Tuesday is only five days long). “You can try back then.”

In my mind, Primetime Video went from the best video rental store to average to “it sucks” in only ten days. The “tone” was even worse than the message. I firmly believe that this employee could care less if I ever came back. I was simply an interruption to the conversation he was having with a young lady friend.

Chris, the owner, went out of her way to get me in the store the first time (advertising). She, possible against the advice of legal counsel, approved my out of state rental application with no hesitation. She remembered me everyday that I came in the store for two new rentals, asked me to rate the videos I had watched so she could share the information with other customers (I like to tell myself) and knew everyday that I was looking for Lord of the Rings. When I came in one day and asked if the first Harry Potter movie was back in she corrected me and reminded me that I was looking for Lord of the Rings. She had even set up a method of communicating with the employees to tell them who was looking for a movie and how to hold it for them. So what went wrong so fast?

Expectations.

Recently a franchisee that I admire asked me why our business is so difficult. He had worked hard during his first year ultimately making page one of the sales report during his first full year in business. But he thought the second year was like “pulling teeth”. “I worked so hard to build a business and show customers that I am different than other automotive service centers. But the second year is even harder than the first. What am I doing wrong?”

Nothing. You too are the victim of Expectations. For years now I have been writing that we need to show consumers that we are different than the other automotive shops in town. We have to raise the bar of automotive service performance. If we can do this, we can finally charge the prices we need to be profitable. If not, we can expect to continue to arm wrestle consumers for every nickel we can get. In the case of Primetime Video I came to expect great service. I never once questioned the price. $7.70 to rent two DVDs for one night.

Back home I can get the same two movies for $6.00 and change. But in the sprawling metropolis of Sylvania, Ohio I can not get a smile and a hello. I can rarely get the one employee who speaks a version of English that I can understand. They will hold a movie for you but you need a deposit and secret handshake. (Actually I am not sure how to hold a movie at Video Connection because the last employee who would engage you in a conversation left about two years ago.) I am convinced that the corporate analysts at Video Connection are wondering why they have high consumer turn over and why customers like the Davis family only rent movies when they are promoting their 20% discount program. (The answer is that when all you have to trade on is price, price dominates. The Davis family simply goes where the cheapest rental is or if no one is “on sale” doesn’t rent at all. They prefer to trade on price, not value.)

Once you give customers great service, you can not go back. They come to expect it. And demand it. The good news is that you can charge more, but you will have to deliver more. The other thing that you should take from this story (no it’s not a fable), is to keep an ear out for what your employees are telling your customers. I could be dead wrong, but I will bet that “Chris” would not have approved of the discussion (certainly the tone) “David” had with one of her customers. I was so shocked that I went home and told my in-laws (who had never rented from, nor heard of, Primetime Video) and now they have not only lost a current customer, they have now lost a future customer. (“I wonder why the advertising isn’t working.”)

Are you currently telephone taping your shop on the days you aren’t working?
When was the last time you asked a friend or family member to shop your location on your day off?

Just to make sure and in an attempt to give Primetime Video a second chance, I did swing back in on Monday just in case the movie had come back early. As soon as I entered the store it was immediately apparent that David remembered me!

Without even asking he said, “I told you it wouldn’t be back until Wednesday.”