Marketing Strategies for a New Year
January begins a new year. At the Giersch Group we recommend that clients start the year by looking at their marketing strategy. In that look, clients will reflect on what worked well in the second half of the prior year, how the year ended from a customer activity perspective, and anticipate how the first half of the year should shape up. A good marketing program has many components to it. Other resources have considered some of these components. In this resource we will look at the time tested and proven business methods of networking, but will incorporate modern technology where appropriate.
Shotgun vs. Rifle
Let’s begin by considering a key challenge of marketing – its efficiency in reaching the customer. Generally referred to as shotgun vs. rifle, the question is the targeted effectiveness of the marketing method chosen. In Giersch Group language, marketing must be about sales. Therefore, the more targeted a marketing tools is the more sales per effort it will generate.
The classic example of low targeting is mailings. The expected return on mailings is about 1.5%. This means the other 98.5% was wasted money and effort. Another non-targeted activity is conferences. A company that attends a conference as a display participant will often find the orders are a net loss given the cost of the conference. The Giersch Group has seen over and over again the shotgun approach leading to large costs and little profitable sales. We should note here that there are exceptions to every statement and if your company is such an exception, then carry on. However, we would suggest even then that now is the time to consider trading in the shotgun for the rifle.
The marketing challenge is the merit of exposure versus sales. Our caution is exposure is expensive, whereas as sales are the goal. Much of the exposure strategies are geared to major organizations, who have fundamentally different market positions from the smaller private company. Done right, smaller private companies actually benefit from their position and have smaller marketing budgets.
In marketing there is strong movement into the use of technology, primarily with the internet. The Giersch Group has a TOM on web-marketing, which could be useful. Here we wish to touch on the continuing enthusiasm for social media as the right next platform for selling your goods and services. There is no denying that social media reaches a massive amount of individuals. Facebook claims that there are 500 million active uses, whom spend over 700 billion minutes on Facebook each month.[1] This is a staggering number, and understandably enticing to small business owners who are looking to achieve maximum exposure for their company. Unfortunately, social media suffers from two dilemmas for the smaller company. First is the shotgun question and the infrastructure to do social media; second is more important – Facebook is not yet a real market place. There have been some nitch successes, but these are rare. Therefore, the Giersch Group is not finding the majority of its clients to head down this path. Instead we recommend the rifle approach.
Direct contact strategy
The rifle approach selects marketing activity based on a strong understanding of the customer and where and how to find the customer. One of the most tried and true targeted approach is networking and direct contact with the customer and prospect. All of these activities discussed below work well with existing customers as well as developing new leads.
For smaller businesses face to face contact with prospects will achieve the most efficient marketing results. This “pound the pavement” approach can be cost effective and more accurate than using social media to reach a massive amount of people.
There are several ways that a small business can effectively utilize this approach. Networking is one activity. Directly reaching out to potential customers through events or activities is another. Sales calls are a third.
Networking
Networking events are social planned gatherings, with the goal of connecting to other individuals. Attending networking events allow small business owners the opportunity to market themselves as well as their business in a relaxed, social, and most importantly, face to face environment. To get the most out of each networking event, the every small business owner utilize each of the following steps:
- Arrive on time
- Introduce yourself
- Always shake hands
- Monitor time
- Follow up
Arrive on time – It is important to arrive early to check the name tags on the table. This allows for an accurate scan of names on the name tags, and the development of a game plan of who would be beneficial to talk with. Wear your name tag. Too often people do not use the name tag and it will chill any networking event.
Introduce yourself – Take the initiative to introduce yourself. Be sure to include first name, last name, and company affiliation (without any titles). Exchange business cards as part of this introduction. Cards should be convenient, but not visible.
Always shake hands – As face to face communication decreases, the art form of the handshake declines as well. Be sure to be the first to offer a handshake. A firm handshake should last approximately 3 second (about three shakes). It is important to shake the hand of a female the same as a male. Be sure to have a 30 second “elevator pitch” that explains your business. Part of a good elevator speech is the connection to the networking event, which leads to your business.
Monitor time – Be sure to monitor the amount of time spent talking with any individual. The goal of a networking event is to meet people. The goal should be to maximize the amount of time spent talking to different people, not the same person even if the conversation is meaningful. The exchange of business cards should only happen if it is beneficial to both parties. Remember a person only gives their business card if they want to be contacted, and should be treated as such.
Follow up – The most important thing is the follow up. Following up with contacts made at every networking event should happen within a week of the event. The follow up should include specifics about the conversation that was had at the event including any action items that were discussed, if any. The goal would be to achieve another face to face meeting with every relevant contact met at the event to discuss potential opportunities.
Following these steps allows for a confident navigation of networking events. It is important to remember that every one of these steps doesn’t come easy to even the best public speakers. It will take time to become comfortable with all these steps. However, once mastered, networking can prove to be fruitful on a personal and professional level.
Events
Events allow targeted audiences to experience the products and services in a face to face environment. This breaks down a key purchasing barrier – trust. Each product and service will have its own event. Examples include food samples for food companies. These can be at stores or direct handouts. In New York City it is a regular for companies to give out samples. Chipwich and Dove bars started this way as small private companies – right on the streets of Manhattan. Delis working on delivery services can take samples to targeted offices. Even where “No Solicitation” signs are present, samples are generally welcome and orders come surprisingly fast. For professionals, speaking events before targeted audiences is a most effective way to gain leads. Remember get the business cards of those present.
Sales calls
Sales calls apply to both existing customers, referrals and leads from networking and events. It is lumped in this target marketing portion because sales calls are more than just selling. The end is a sale, but a good sales call also builds relationships, informs the customer of new opportunities and seeks more knowledge about the customer’s plans for future sales call activity.
Too often marketing and selling are seen as inconvenient or pushy activities. While the sales is needed, we see that most sales are indeed based upon a customer having a real need that is being addressed in the sales call process.
Pipeline
After every event, the focus shifts to, “how to drive to revenue.” Driving to revenue is the whole reason for these activities. Without a developed game-plan for follow up, there is a significant potential to leave revenue on the table. The Giersch Group recommends the follow actions to monitor and track client or customer pipeline to maximize the potential revenue:
- Create a pipeline
- Track Wins/Losses
Create a Pipeline
By creating a pipeline, a small business owner allows for easy monitoring of all opportunities with potential or existing customers. Pipelines can range in detail. The Giersch Group recommends tracking the following information.
- Prospect Name
- Proposed service or product
- Price of proposed service or product
- Date introduced to pipeline
Tracking the previous metrics provides a small business owner efficient data that can be broken down into identifiable and quantifiable information which can be used to drive to revenue. Below is an example of how to set up a pipeline using the previous information.
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James Brown
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Tree Trimming Service
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$1,000
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1/03/2011
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Track Wins/Losses
Tracking wins and losses provides a small business owner with knowledge of how well he/she is converting the pipeline into paying clients or customers. This knowledge allows the owner to take an objective look at what is working or what is not working. Identifying the successes and failures allows for a small business owner adapt their strategies to become more successful in converting prospects to clients or customers.
January Goals
- Attend two networking event
- Pass out 50 business cards
- Initiate 3 personal meetings
Articles for further reading
- “How to Network Effectively.” This article discusses other tips and tricks to networking properly and maintaining a database of contacts. http://www.ehow.com/how_1382_network-effectively.html
- “How to Network: 12 tips for Shy People.” Networking can be difficult for individuals who are introverted by nature. This article discusses tips on networking for those individuals. http://www.cio.com/article/164300/How_to_Network_12_Tips_for_Shy_People
- “10 Websites to find the Best Local Business Networking Events.” This blog shows how technology can be used to find face to face networking events. http://www.bradleywill.com/2009/07/13/10-websites-to-find-local-business-networkingevents/
[1] http://www.facebook.com/press/info.php?statistics
