Posted by Chris Kauza on June 8, 2009 under Marketing Monday | 
Service innovation ideas aren’t limited to sophisticated technology companies or big, expensive consulting firms. Just look at how two different small engine repair shops gave themselves the competitive edge and grow their businesses, step by step.
A marina service operator guarantees parts and labor on all work for 60 days. It doesn’t sell big ticket items like boats, but it does increase engine warranty service sales because he has a receptive, happy customer who is willing to hear the up-sell pitch to an extended service warranty. Annuity business like this keeps customers coming back to his shop – and it separates him from the competition who won’t provide such a substantial guarantee on their work. He also let’s customers drop off their boats outside of marina operating hours, as many customers will come in from the water long after everyone in the shop has gone home. He finds that providing that extra, little service flexibility make his customers happy and keeps them coming back to him for other products and services.
Another entrepreneur, an owner of a landscaping / garden / small engine repair shop, provides additional warranties on all equipment sold in their shop. Further, they offer “off season specials”. For example, to pick up revenue in the winter months when times are slow, he offers to “summer-ize” his customers’ lawn equipment (i.e. – tractors, lawn mowers, etc.). The equipment gets special treatment and his customers feel important and come back to his shop for other needs, because they know they will be well taken care of.
Action Step:
Check up on your competition’s business and look at them through the critical eye of the customer. What are they doing that you could be doing, or doing differently? What are they not offering that you could offer (for free or at a special price), that would distinguish you and make you unique in their eyes?
Come up with one idea that you are committed to implementing within the next 30 days, and get the word out there about what you are doing!
And don’t forget to let us know too – we’d love to let others know about your business success stories!
Posted by Chris Kauza on June 1, 2009 under Marketing Monday |
Light bulbs provide a weak, diffuse light that can light up a large area. Lasers provide a very narrow band of light that has the ability to cut through the hardest materials. Neither is better than the other, but when it comes to your Marketing, one could be better than the other.
With the introduction of “The Long Tail” into our common culture, and tools like the Internet promoting an increasingly wide variety of information and choice, your customers can shop for – and very often customize – products and services into solutions that best fit their needs. And it’s usually without your knowledge or permission! But there are tools you can use and steps you can take to make this work to your advantage.
A home remodeling business owner identified and developed a specialty around remodeling homes for people who were physically challenged. He
over-weighted his advertising dollars to target online and offline publications and venues that were naturally targeted towards these markets. He also participated in discussions on blogs and forums that people who were physically challenged were visiting, often giving free advice and referrals (without giving away his business). AS a result, he saw a marked increase in his business activity.
There are a number of popular Social Media tools out there (like Facebook, LinkedIn, Twitter, etc.) that enable conversations between people with common interests. But did you know you can have these work for you, on your website?
Action Step:
Look at your market and find all of the different niches that are in it. Then, take your top 2 and find online communities and blogs that cater to these specific niches. THE MORE SPECIFIC THE BETTER! Take 30 minutes to really define and refine each one. Now, create profiles on each of these communities and actively participate in the forums and the community at large. Give good advice and be helpful. If there is an opportunity tot support he community by advertising your business, pursue it and show your support of what is interesting to that community. It very often will prove to be a good allocation of your Marketing dollars.
Posted by Chris Kauza on May 25, 2009 under Marketing Monday |
Discrimination can be a good thing, when it comes to focusing on a particular market segment or in an effort to produce a particular result.
A children’s clothing store owner in the Eastern United States found that out when she decided to offer a discount to grandparents who came in to shop in her store on Wednesdays. The result? She increased store traffic and sales by 20% over the other weekday revenues, and her overall profit increased by 10%! Why? It turns out that the grandparents brought in their grown children to shop for kids’ clothes, as well as their friends who also have grandchildren. Because of her focus and service on a specific segment of her market, she was able to increase sales from existing customers, and also have them grow her market by bringing in their friends and relatives. Now she has a larger number of loyal followers, and she should continue to see her sales increase.
Action Step:
Look at your current market and see how you could further refine your segment to find an under-served group you could target. Can you offer them a unique price, or a special performance discount? If they buy your product, can you up-sell or offer them a service on how to use that product more effectively? Can you run a promotion and target your competition’s customer, by offering a discounted or free review service of what they are currently getting (even if it doesn’t net you any new customers, it would offer you excellent insight into what your competition is up to)?
Find one new segment you are not currently serving or focusing on. Commit to implementing one new idea that will serve them, or at least introduce your business to them in a new and unique way.
Posted by Chris Kauza on May 18, 2009 under Marketing Monday |
“The information you seek is all around you, Neo. You simply have to know what to ask and where to seek.”
Everybody from a supplier to a competitor’s customer is a good source of “inside” information. Each will give you there own unique perspective on what your competition is doing. Ask them! Find out what they are and are not wiling to do for you suppliers and (potential) customers. Take in competitor coupons or match (maybe even beat?!) their online discounts and offers. Attract them into your business and find out what they are up to.
One very effective strategy you can use is to “regularly shop the competition”. Find out how they treat their customers by being one yourself. Review their website and online shopping process. Experience what it feels like to have to go through a multitude of screens and entering passwords – would you buy if you had to endure this each time you wanted to make a purchase?
Action Step:
If you can’t speak with your competition’s customers, then commit to speaking with two of your suppliers. Find out what their experiences are with your competition. See if there is anything they are doing that you are not or could improve upon, and distinguish yourself in the market. Be careful, however, to never, ever bash the competition; even if you feel it, it never helps you and makes your customer’s think you can’t compete!
Posted by Chris Kauza on May 11, 2009 under Marketing Monday |
Entrepreneurs are nothing if not a driven lot. I think Chumbawumba had them in mind when they sang, “I get knocked down but I get up again
You’re never goin
g to keep me down!” Bottom line: admit your mistakes, learn (and if possible, profit) from them, and move on.
An owner of a boutique shop in the Midwest of the United States didn’t have the time or money for fancy market research. “I just go with my gut and what my customers tell me”, she said. “If something doesn’t sell, I just mark it down and don’t repeat the mistake.” Not letting her own pre-conceived ideas get in the way, she simply watches and listens to her customers, and what is important to them. She subscribes to the “fail early / fail fast to succeed more quickly” motto.
Action Step:
Ask yourself, “Do I have a product or service that is not selling as well as I thought it would? If so, what can I do to change that?” Is it how you are marketing or selling your products? Are you attracting or talking to the right customers? Then again, maybe there is nothing wrong with your Search Engine Optimization (SEO) strategy or your merchandising approach; maybe your market has changed and you are moving too slow…
What can you do in the next 3 days – before the end of this week – to make a positive impact on your market?
Posted by Chris Kauza on May 4, 2009 under Marketing Monday |
One small business owner bought a nationally-known variety store franchise. Soon after opening, he found that in his particular area of the country people expected him to merchandise his products in a certain manner – battery-operated equipment should be sold alongside the appropriate batteries; lighting fixtures should have the right size light bulbs stocked nearby, etc. After speaking with his customers, he quickly adjusted to the needs of his market and stocked the expected items the way they needed to be for his market, and went on to grow his business.
Another business owner who runs a pet store solicits suggestions from current customers, very often changing not just stock but different food recipes, or various product and service combinations (i.e. – dog training with leashes and whistles).
Further, establishing a social media presence for your company will frequently give you rapid feedback about what is and is not working for your business. However, you need to be committed to engaging with the community you build, as ignoring the community will be interpreted as they are “not important” – which is never true for your customers.
Action Step:
Pick one Social Media tool (Twitter might be an easy one for you to start with) and set up a profile for either you or your business (for extra credit – set up a separate one for each). Then, pick 10 customers (start with two customers per day), and ask just this one question:
“What can I do for you, that other companies like mine don’t or won’t do for you?”
Listen to their answers. Understand what they are telling you.
Review your answers at the end of five days and commit to incorporating one new idea that you heard, by the end of next week.
Posted by Chris Kauza on April 27, 2009 under Marketing Monday, Service |
People go into business for many reasons – make more money, be their own boss, have more control over their time and lives, etc. Ultimately, though, one’s financial success is frequently determined by how much they can be of service.
Regardless of what you sell, you are offering your customers, and you market, a service. It’s a problem solving service – you are saving them time, you are offering an innovative solution, you have incredible resources at your service that you can rapidly bring to bear on their problem. To get the edge required in today’s market, however, you need to do more and go farther than your competition is willing to.
Action Step:
Ask yourself these questions and see how you can improve. Then, take 4 of the answers and implement them over the next 4 weeks, one new one each week:
- Can you provide Audio / Video / Written instructions for your product or service, and thus make it easier for your customers to use?
- Can you deliver your product or service in less time, thereby delivering the value more quickly?
- Can you cut any of your operating costs and still provide the same level of service?
- Are there any accessories, or any other complimentary products or services, that you could offer? Could you start an affiliate program or partnership(s), and offer these to your market?
- Could something as simple as a name or branding change, influence how your customers perceive the value of your product or service (and maybe enable you to increase your prices)?
- Can you offer your customers something for free, that your competition charges for?
- Can you follow up with and engage your customers better and faster than your competition? How can you leverage Twitter and Facebook in your business?
Posted by Chris Kauza on April 20, 2009 under Marketing Monday |
“You have to know your market…and the more specific, the better.”
But how do you get access to the market research you need, at a low cost or (better yet) for free?
Ask.
Ask your network. Post a poll on a social networking site like LinkedIn, Plaxo or Facebook. Twitter is a great application to get a quick “pulse” on a particular topic. For example, last July I wrote an article for The National Networker, discussing the results of a poll I posted on Plaxo and LinkedIn. As Social Media tools evolve, we will see even more specialized functionality being deployed; Twitpoll is a great example of one application that is specifically designed for polling the Twitter community on various topics.
But don’t neglect the power of face-to-face interaction. Here are several offline methods that can give you real results; depending your product or service, these may or may not work for you:
- Susan Smith (name changed) built a $5 Million weight loss business, with 10 locations and over 100 employees. She started by going to shopping centers, talking to people to find out what they needed, and convincing them to come to one of her centers for a trial.
- Is your gadget still in the prototype phase? Do a low-cost launch and get feedback from people online or demonstrate it at a local swap meet. People will be able to experience your product and give you direct feedback – without the expensive overhead of going to a trade show or hiring high-priced marketing consultants and focus groups.
- Not your style? A little more courageous? Check out Meetup.com and find local entrepreneurial groups in your area. Very often they will have an “open mic nite” where you can present you business and get feedback. And if there isn’t one in your local area, you just may be able to find someone who is “local” to you on the Internet; if not, you can always start a Meetup group in your area.
A strong favorite of ours, though, is to collaborate with local universities. Students get the opportunity to work with a real-world business, and you get the opportunity for new perspectives on your product or service. And you don’t have to just work with institutions close to you – virtually any school with business disciplines are candidates to help you. And they don’t need to be MBAs; many local community colleges are great sources of talented students who are eager for an opportunity.
Action Step:
Take one of your current products or services (or even a new one you might be working on) and write down 7 things you’d like to know about your market before launching it – color? pricing? branding? content? etc. Pick one online and one offline method of market research, implement within the next 24 hours and ask your questions. Give yourself at least 5 days to get a “quick reaction” from the people you are asking. Let us know your results and how it goes!
