I heard this statement from a very astute entrepreneur whom I respect a lot. When he made this statement I asked him to explain what he meant.

In a simple sentence he said, “Say Goodbye to former competitors.”

A bad economy causes a lot of pain. A lot of people and industries are suffering as never before, and there is nothing positive about that. However, I see a silver lining in the economic slowdown we are experiencing today.

When you get over the worry and fear, you will discover that there are areas of opportunity and growth. In fact there are actually more opportunities than ever before.

In a bad economy, you can surpass your competition. You can win very easily in this economy, if you know how to benefit from bad times.

Others are dropping out of the race and looking backwards. They are terrified, and you are prospering. Not only because you apply the lessons from my Marketing Tip of The Week and from this blog, but because you are seeing opportunities and overlooked markets that they are not seeing.

As a business owner or professional, you should be anything but fearful in a bad economy. In a bad economy, other business owners become paralyzed. They don’t know what to do. They retreat and stagnate.

A small handful of businesses actually become strategic during hard times. By taking on a growth-minded frame of mind, they capture the vast majority of new clients in the market. But even more important, positive thinking companies will capture, “steal” in an ethical manner, 15-20% of the best customers from all of their competitors.

You can have your best years while those around you are facing disaster. You will come out of this down turn stronger, more prosperous, and ready to grow faster than you ever imagined.

What is your biggest challenge in this downturn? And if you have no challenges, why do you think that is? What did you do to eliminate challenges? What’s working for you?

I’d really like to hear from you on this. Getting a discussion going on this topic might be very helpful for all the readers of this blog, so let’s hear from you in the comments below.

And if you would like to get more people in on the discussion, go ahead and tweet this to your twitter list.

Technorati Tags: competitors, dealing with economic downturn, how to deal with bad economy, stealing customers, survive the recession, surviving the recession

For instance, your customer relation systems may be in place. Your instructions may be clear. But are your employees performing as the systems dictate?

As an example…

If you’ve been in Best Buy, you know they usually have a greeter inside the door, and the employees are generally courteous. So it’s obvious Best Buy trains its employees in customer relations.

However, Best Buy hasn’t inspected all its systems; why do I say that?

Well, a few weeks ago, I had to go to Best Buy’s Geek Squad. The audio on my laptop wasn’t working when I played videos. There were about 5 people in the line, so I was # 6. The problem was that there was only 1 person handling all of us.

After waiting for 1 ½ hours (which I couldn’t believe), my turn finally came. As the clerk was completing the form with my warranty information, a salesperson from another department came up and interrupted the clerk, asking him to come with her to answer another customer’s question.

Guess what? The clerk left to go to the other department without even asking me if I would mind.

Very poor training, and very inconsiderate! He could have said to the other clerk, “Bring the Customer over and have him/her stand in line”, like the rest of us. But he didn’t.

What a turn off! Insufficient staff and inconsiderate staff!

As I said, we know Best Buy trains its employees in customer relations. However, it’s obvious this department was not inspected for its compliance with that training.

The lesson here is to train your people the right way AND to inspect what you expect. Don’t think your staff is doing what you trained them to do.

When I was on the road, I always used to call my office to see if my staff answered the phones the way I trained them to answer. I also hired someone to visit my business and let me know how they were treated.

Remember your staff is your front line. They could either create a customer for you, or lose a customer for you.

Technorati Tags: Best Buy, customer relations, Customer Retention, customer satisfaction, Lifelong Customers

I’ve also recommended his restaurant to at least 100 other individuals.  In fact, when I spoke in front of an audience of 250 local business individuals, I mentioned how great the food was at this restaurant and that the audience should try it.

I’m usually the first of our party to arrive and normally I get a table and wait for the others to arrive.  This time I was told that their new policy “was to not seat anyone until all of the party arrives.” When I asked to speak to Antonio (name changed for privacy), the owner, I was told he was too busy in the kitchen. She said this without even checking to see if indeed he was busy in the kitchen.

When the others arrived 10 minutes later, I went to the hostess and said we were all here, and her response was, “Since the others were late they had to give our table away to someone else, and we’ll have to wait until another table opens up.”

Is this a way to Get Customers to Call, Buy and Beg for More?  Of course not!  But if the owner doesn’t inspect what he expects, his business will go downhill very quickly.  He is in an area where people vacation in the summer and is currently booked solid.  But after the vacation season, he will wish he had his constant patrons.

He is focused on efficiency instead of customer retention; on the quick buck without brand building for the long-term; on delegating without customer service in mind.

I expect him to be out of business within 1 year if he continues to operate his restaurant in this way.

Tell me what you think.

Technorati Tags: brand building, Customer Retention, customer service, local business, marketing brand, restaurant

The beaches are almost empty, and from what I hear from the Aruba Hotel Association, the island is experiencing a 45% reduction in tourism. 

Besides the hotels low occupancy rate, the restaurants are virtually empty.  The deteriorating world economic condition is affecting everyone.

So you might be asking what do season tie-ins have to do with the economy?  Well I was there during the holiday season and I didn’t see any businesses taking advantage of season tie-ins.  Yet, in looking at the state of affairs on the island, it is indicative of most of the countries in the world. 

The various businesses, whether they were catering to the local Arubans, or the tourists, should have been capitalizing on the season to increase sales.  Unfortunately, they didn’t.

People are very aware of holidays and the seasons and tend to be very responsive to offers that logically are linked to any of them. 

There are dozens of holidays you can choose from.  Think of ways to tie your business or products into the seasons or holidays.

Here’s one example.  Send out a mailer to your customer data base and say that because of the spirit of X-Holiday, you would like to give them a special gift.  Take whatever you have to offer and package it into an offer that your customer can’t refuse.

Or let’s say you do home cleaning.  You can make a tie-in with Spring, which is just beginning.

Here’s what you can say: “We will give your home a complete spring cleaning for ‘half price’ and help you to permanently ‘resign’ your position as home cleaner at a surprisingly low cost.” 

Again, the same approach can be used at any time.  In September, for example, you can make the same offer for getting the home ready for Thanksgiving. 

I’m sure you get the idea.  So start thinking of ways to tie in the seasons with your product.  Let me know some of the ways you implement this idea.

Technorati Tags: holiday promotions, holiday tie-ins, seasonal promotions, seasonal tie-ins

Remember, a Joint Venture involves two or more professionals or businesses, who have common prospects, or possibly complementary services.   These entities now join together for mutual marketing and sales, usually for specific prospects. 

They will work together to create joint marketing materials, joint sales calls, referring of prospects, joint direct mail, e-mail or advertising campaigns.  They might even combine their services, talents and assets to create a larger base of potential customers. 

When I had my Insurance Agency, I would do Joint Ventures with accountants, financial planners and various attorneys.  Each individual professional benefited from wider exposure, more referrals, and marketing that is more efficient.

I would venture to say that every professional and company has many opportunities to create joint Ventures.

Here’s an important part of a Joint Venture.  Both parties must assume responsibility for marketing the joint venture. A Joint Venture Partner who expects to ride the back of the other partner will quickly find themselves alone. 

Here are a few things to keep in mind:

1. When you form a Joint Venture,  your partner will define your company and will directly impact your sphere of influence and reputation.  Each Partner’s reputation “rubs off” on the other. So make sure that you take care when approaching someone as a Joint Venture Partner.  As the initiator, you have the advantage of choosing who you want to join forces with. Do Joint Ventures only with those partners that have the reputation you want for yourself and the market reach that you desire.

2. When you approach another business to become your Joint Venture partner, you will have to sell them on the idea that the partnership will be beneficial to them, not just for you.  They will have a real profit benefit. You must always be ready to give before you receive.

3. You must also be the one to assume the responsibility for the Joint Ventures success and you will have to do the vast majority of the work, at least at first.  You will be approaching individuals who may like the concept and want it to work, but they will also be skeptical.  You will have to carry the ball and show them that you are committed to the Joint Venture and that you will produce results for them.

If you follow thru, the Joint Venture will be an ongoing marketing strategy that will create more and more new customers for you and your business. 

Technorati Tags: joint venture secrets, joint ventures

Here are a few examples:

I consulted with a company which had 6 restaurants.  It catered to different groups of individuals.  4 catered to local residents, and 2 were in locations that catered to the business community because the two were located among office buildings and hotels.

If you’re going to do a direct mail promotion, the questions is: should you mail the same offer to both groups?

My answer is no.  For the restaurants located in the business community, I would get a list of the executives and managers who worked in the office buildings.  I would then send them a mailer that contained a brief cover letter, a brochure stressing that the restaurant was the perfect place to stop for dinner with visiting executives whom they have to entertain, or the perfect place to stop after work for Happy Hour.  I would mention that it was a great place to meet, greet, network and mostly relax in a great environment.

I would also enclose a few coupons for a 2-for-1 executive lunch and/or dinner.  I’d would also have something in the envelope for the secretary to use for lunch.  It would offer a 50% discount for lunch.

For the neighborhood restaurant I would get a list of the area homeowners with families and I would mail them a letter, but with a different brochure.  I would also create a small booklet of coupons.  Perhaps two offers for 50% off of lunch, and depending on the day of the week that we are slower than usual, I’d offer a 2-for-1 dinner, early-bird dinners for two, or all-you-can-eat for spaghetti on the slow days.  This could be only for the hours of 4 thru 6PM. 

John, here’s one for you for your dry cleaning business.   Because you have a few locations, I’m going to assume that they are located in different neighborhoods.  If you are like most dry cleaners and advertise in the local community weekly newspapers, and since there are quite a few newspapers to choose from, you must be selective.  Let’s assume there are two newspapers and one goes to the high-income neighborhood and one goes to a middles-class neighborhood.  The questions is, “Should you run the same ad in both papers?”

In looking at the papers in my area, I find that most merchants run the same ad in both papers.  They are wrong to do so and here is why.

Just as I mentioned in the restaurant example above, there are different groups of individuals you are trying to convince to visit your establishment.  Therefore, the messages should also be different. 

To the high-income neighborhood, I would write an ad that stressed how important it is to be looking your best for upward mobility and how individuals would see them as well dressed. I would then offer them one suit cleaned and pressed free, with another suit at full price or one tie done free with each suit.  You can create other offers for other garments

For the middle-class neighborhood, I would write an ad that stressed quality cleaning at a very modest and affordable price.  I would also create a small booklet entitled, “How Dry Cleaning can Help Certain Clothes Last Longer,” and just as above, offer discounts to get them into the store. 

I’m sure you can think of others, so let me hear some of them in the comments section.

Technorati Tags: attract customers, more customers

1. Everyone has a strip shopping center or mall near them.  Wherever there is a grand opening, attend the opening and talk with the business owners and staff and hand out your business cards.  Remember to have your Unique Selling Proposition stated clearly on the card to tell them how they will benefit by doing business with you. Even if it’s an established shopping center, do the same thing. Use this method to introduce yourself and your services to them.  With the Banks I started, each time we opened a branch, I had our various staff members visit with all of the businesses within a 5-mile geographic area of the branch.

2. Create flyers with your business information on it and place them at the grocery store, coffee shops, library, or other places people meet. Always carry them with you so that you never miss an opportunity to place them when you come across an opportunity to do so.

3. There is a place called www.VistaPrint.com, where you can obtain free or low cost business cards. Make sure you add your USP, again to let everyone know how you can benefit them.  While you are out running errands, drop off a business card at every business you see, such as Restaurants, Medical Professional Offices, Gyms and Health Clubs, Drycleaners, and even gas stations.  You never know when someone will need what you have to offer.

4. Getting back to # 2, you can do the same flyers with Door Knob Hangers.  Go into neighborhoods and put the flyers on the doorknobs of the residents.  You can even hire a high school student to do this as a part time job.  I used this method also with the Banks I started. It is very cost effective.

5. Put together a presentation that is very informative about how your product can benefit others then contact organizations, such as your local Chamber of Commerce, Rotary Club, etc., and offer to speak at their monthly meeting.  They are always looking for speakers to educate and inform their members.

6. Develop a press release announcing something that is currently an important topic that you can attach your information to, and offer a free report that reveals the 5 items that will help them solve this problem. Then send it to your local newspaper and other free area publications.

7. Always ask for referrals.  Give your business cards to your family members, neighbors, wherever you shop, and ask them to pass out your cards to their patrons, or whomever they cross paths with.  Offer an hour of free service or a free product to anyone who refers a client to you.

OK.  That’s just a few ways to market your business frugally.  I’m sure if you put your mind to it, you can think of others.   Let me know in the comments section other ideas that you think of.

Technorati Tags: business cards, cheap ways to market, flyers, frugal ways to market, inexpensive ways to market, word of mouth advertising, word of mouth marketing

You should learn everything there is to know about your competition and to understand and know what their marketing strategies are.

The first thing you should do is to make a list of the competitors that are a threat to you and your future. Take the time to research them and get a feel for how they deal with their customers, then answer the following questions:

1. Do they have testimonials and are they positive?
2. Do they offer discounts?
3. Do they offer a guarantee and do they have a return policy?
4. By comparison, are their prices in line and competitive with yours?
5. Do they offer anything special like free delivery or double your money?
6. Which areas are they negligent in and how can you capitalize on it?
7. How do they promote their business?
8. What do they offer that you don’t?

Now you should create a profile of each of your main competitors.  Outline how they advertise and why you think their customers shop there; in fact, you should try to locate one of their customers and ask them that question.  Next determine what areas they need to improve on and how successfully you can expect to compete with them.

Doing the above will help you understand your competitors strengths and their weaknesses.

Now, evaluate and compare your own strengths and weaknesses, in comparison to the competition.

Once you have this list, you can now shout the differences between you and your competition in all of your advertising and marketing methods.

The information that you glean about your competition will also help you formulate your Unique Selling Proposition.

This is why it’s important to research your competition first.  One of the keys to a successful business is identifying what makes your business unique and letting everyone know about it.

This in turn will help your prospects understand why they should buy from you, rather than the competition.  When it is used successfully, it makes you the obvious choice in their minds.

The best USP’s consist of unique concepts that set your business favorably apart from your competition.

A business that employs USP’s has a way of competing in the marketplace that goes way beyond price.  Price will never be an issue.

Let me know what your USP’s are in the comment section.

Technorati Tags: beating the competition, competitive advantage, competitive intelligence, competitive strategy, USP

How can you get people to subscribe to your online mailing list? Better yet, how can you get a lot of people who don’t even know you yet to subscribe to your ezine, thereby asking you to send them information on a regular basis about your business? In my last blog article I gave you some ways to build that list. 

Here are several more ways that I thought of since, to accomplish that feat without spending bucket loads of money on marketing.

1.  Ask people to subscribe to your newsletter mailing list when they complete a purchase. This is done at the time of purchase.  You should train your sales people to ask for it.  Yesterday I had a hamburger for lunch at a restaurant called, “The Fox and The Hound.”  When I received the check, my waitress mentioned that they have a gift of $5.00 the next time I visit if I would complete a form and allow them to communicate with me via email. You can do the same thing. Just because someone bought a product from you once doesn’t mean they’ll remember to come back the next time they need something that you sell. To get that customer back again, be sure you capture the customer’s email address as part of the sale and include a checkbox on the form letting people indicate that they’d like to be included on your mailing list.

2. Ask current subscribers to forward your newsletter to their friends. Word of mouth is one of the best ways to grow your newsletter list. Remind your readers to spread the word about you by including a note in every newsletter asking them to please forward the newsletter to their friends who would be interested in reading it. Be, sure, too, that there’s a prominent link to your subscription page in every issue of your newsletter. I use a “Forward to a friend” link at the bottom of my Marketing Tip of The Week newsletter.  Sometimes I also ask you within the body of the newsletter, near the end of the article, to forward the newsletter to others.

3. Promote your newsletter at seminars and talks. If you give seminars or talks on your area of expertise, be sure to let your audiences know that you have a newsletter and what the benefits of subscribing to the newsletter are. And don’t forget to include your newsletter subscription link in your handouts. I do this whenever I speak at Chamber of Commerce’s in my state, and also whenever I speak at a seminar.

4. Promote your newsletter in your 30-second commercial. Many organizations, such as your Chamber of Commerce and Rotary Clubs, give members a few seconds at the beginning or end of meetings to introduce themselves and their businesses. End your "commercial" with an appeal to visit your website and sign up for your newsletter. Remember to tell them how valuable it is to them and how they will benefit from it.

5. Offer a free gift – If it’s on your website, make it downloadable of course, so you have no delivery charges — to those who sign up for your newsletter. To simplify the delivery process put a link to your freebie in the thank-you note you send to new subscribers. And, just in case any of those new subscribers pass on the link to their friends who haven’t subscribed, put a subscription box on your free offer page, too. Lead it off with a note that says "Not a subscriber yet? If a friend sent you a link to this page, sign up for your own copy of (your newsletter name.)" If your business is offline, you can also offer a coupon as an incentive for them to visit your establishment.

6. Get a friend in your industry to promote your newsletter to their mailing list — then promote the friend’s list in yours. This is called a JV, Joint Venture.  It works for both of you.

7. Send a postcard mailing to targeted mailing lists you’ve built from collecting business cards or from the newspaper. I have found post cards to be the lowest-cost way to build my list.  Use the mailing to solicit newsletter signups. To get the recipients to take action, offer a free gift (a downloadable product) to people who subscribe by a specific date, or offer a coupon for when they visit your establishment.

8. Never stop soliciting subscribers.  This is the most critical step of all.  I’ve found over the years that individuals quit too soon.  Keep at it and you will succeed. Also, email addresses change, and people’s email addresses become undeliverable. People’s information needs or product needs change, and they unsubscribe. Keep your list fresh and growing by continually promoting your mailings.

I hope these additional suggestions help you grow your list and make it very profitable.

Technorati Tags: build email list, customer list, grow email list, Growing your business, postcard marketing

Email, when used properly, is really a great way to increase your sales and profits. A single email sent to a list of people who have asked to be on your mailing list can bring in business immediately, either through your online shopping cart (if you have an online store), or through phone calls or email inquiries about services you provide, if you are in a service business.

If you don’t have an online presence, the email may help more people to find their way to your establishment, especially when you have an inducement to visit your place of business.

The more targeted prospects you have on your email list, will result in more business being done by them, with your business. When I say targeted customers or prospects, I mean individuals who have asked to be on your mailing list.  It doesn’t mean emails you have because someone gave you a business card.

Have an email signup form on every page of your website. Make it prominent on the page. If it’s buried on the bottom of one page on your site, few will see it.  Make sure you offer something for free for them to sign up.  If you don’t have a free product to offer, you could use one of my e-books (after getting my permission), or even use a coupon for a discount they can use when they purchase from you.

If you don’t have a website here are some further suggestions:

1.  If your place of business is a physical store or clinic setting, ask customers if they’d like to receive emails from you notifying them of special offers. Have forms available or some other mechanism to immediately capture their email address.

2.  Produce an informational newsletter that appeals to your customers and prospects. Print up one issue and mail it the traditional way, being sure to include a prominent ad telling readers how to get the newsletter delivered to them regularly in email.

3.  In addition to sending the printed copy through the postal system, if the newsletter you produce is informative, talk to local libraries and other community resources to see if they would make it available to their patrons.

4. Give out your printed newsletter at your booth at local trade shows. Encourage visitors to take an extra copy to hand out to others who might be interested in the information you provide.

5.  This last method is one that I see very rarely used effectively…include a flier promoting your free newsletter or promotional mailings in every package you ship, or in every bag you pack in your retail store.

So go to it and use these ideas to grow your business and create more customers. I’m sure over a period of time that you can think of many other ways to get your customers to ask to be on your mailing list.

Technorati Tags: build email list, build your list, grow email list, List