I’m often asked that if I had only one method of getting new customers, what would it be.

My answer is that it would be using endorsed mailings.

Endorsed mailings work for any business on a local level, global level, or via the internet.  It should be at the forefront of almost any set of marketing strategies.

The concept really is quite simple.  You want to look for a company that has the customers that you would also like as your customers.  Naturally, you won’t be going to a competitor for their list.  It will always be a non-competitor, even though I’ve worked out endorsements with competitors in rare situations.

That said, the endorsing company would send out a letter, on their letterhead, to their customers.  The letter would be addressed from the principal of the company, if possible.   Or an endorsement letter could be sent out as a cover letter with your sales letter or literature along with it.   You want the mailing to be done, using the endorser’s identity on the outside of the envelope.

Because the endorser is known by the customers being mailed, there’s almost a 100% chance that the mailing will be opened and read by the receiver.

Of course the one variable is the quality of the relationship the endorser has with his/her list of customers.

If your letter is done properly, approval of your business by another business, almost always builds an understanding in the prospect’s mind of honesty and believablility.

There are two requirements that must be met in order for an endorsement situation to work.

1. The customers of the endorser must need and want your product.

2. They must trust the endorser. 

You might look at your present vendors to find a good endorser.  Here are some examples:

1. A carpet retail store might look for a rug-shampoo and cleaning company.

2. A florist might consider wedding planners, caterers or bridal stores.

3. A bridal store could endorse a florist, a dry cleaner, decorator, or furniture store.

4. A CPA could endorse a lawyer.

5. A doctor could endorse a dentist, chiropractor or a veterinarian.

You get the idea, right?

Here are some phrasings I found effective when I sent out endorsements to my customers:

1. “I value you as a customer, and I want to share with you the benefits I’ve received from (whatever)”

2. Jimmy Smith of Smith and Company holds our relationship in very high esteem, and he felt you would want to know about our (whatever)”

3. “Because you are a very good customer of mine, I have arranged for you to get two free hours with this very talented financial planner.  I’m giving you this in appreciation for being my customer.”

I feel that # 3 here is one of the best ones to test.

Do you use endorsed mailings as part of your marketing strategy?  If so, have you been pleased with your results?  If not, what do you think has not worked?

Also, if you have not used endorsed mailings as part of your marketing strategy, why not?

Technorati Tags: endorsed mailings, get new customers, getting new customers, marketing strategy

I often talk about the Law of Reciprocity as an example of how you can build rapport with a prospect or customer.
 
Reciprocity works because most of us don’t like to feel obligated to someone else.   When someone gives us a gift, we want to reciprocate.  So when you give a gift to a prospect or customer, they will generally want to reciprocate by at least giving you their attention. And their attention is the first thing you need before you can build rapport that can eventually lead to a sale.

So what does this have to do with network group meetings?

A couple weeks ago, I spoke at a network group meeting.  One of the things I noticed is that the Law of Reciprocity is one of the most challenging aspects in a networking environment.  Why?  Probably because we learn quickly that participation in a networking group creates a sense of obligation to do business with, and to refer business to, fellow members. But it’s just another method of conducting business, so let’s do it the right way.

Here are some suggestions on being proactive when at a networking event.  I have found that if you ask the questions you want someone to ask you, you will be building trust and relationships.

So if you want someone to ask you a specific question, you ask it first.

Here are some examples of questions you could massage to fit your business and use.

1. Who is your target market?

2. What is your biggest challenge?

3. How do you generate most of your business?

4. What sets you apart from your competition?

5. How can I know if someone I’m talking to would be a great prospect for you?

This last question I feel is the best one to ask, as it is telling them that you are interested in referring business to them.

By doing this, they are likely to ask you the same question.
 
The next time you are at a networking event, use these questions and see what happens.

And if you have other questions that have worked well for you (as I’m sure you do), tell us about them in the Comment section below.

By the way, since we are talking about gifts, I have a standing gift for you…

If your business is B2B, you can take my 10 Marketing Mistakes book, add your personal message and logo to it (following some guidelines) and give it away as a gift to companies you do business with.  To see 3 ways you can use it to start building reciprocity, go to this link: www.kenvarga.com/report.php   Call my office if you have any questions.

Technorati Tags: law of reciprocity, network meetings, Networking, reciprocity

I’m writing this week about this topic because I recently visited my local Chamber of Commerce’s Expo, where about 200 businesses had booths and/or offered food in the food court. What a terrible experience. Not one…not one of the exhibitors had any mechanism to gather the information from a visitor.

Why would they need to do that? Because how can you contact or build rapport with a prospect if you never got them to give you their contact information.

All that was needed was to have a drawing for a prize where the visitors would fill out a card with their name and email address.

Trade Shows and Consumer Shows are one of the most abused and misused marketing tools in the world. The majority of exhibitors go into a show without any strategic plan. And if they do happen to have a mechanism to gather the visitor’s information, they do a terrible job of follow-up. Every time I go to a show, I’m just amazed watching the reps standing around in the booths looking brain-dead.

Here are some keys you should consider if exhibiting:

1. Create a detailed plan of what you want to accomplish and who you want to talk to.

2. Do some pre-show marketing in the local media. Target this to those “groups” of prospects you want to visit your booth.

3. Create a method of collecting and qualifying the leads.

4. Create a strategy for making immediate sales. No one ever asked me to buy when I stopped at their booths.

5. Create a plan for following up on the leads IMMEDIATELY after the show.

If you do one thing and one thing only, create a form to have whoever stops at your booth fill in their contact information. This way, you can communicate with them over the next few months.

Refer to my blog article at http://www.kenvarga.com/news/how-to-get-a-95-closing-ratio and read about what you should do to get a 95% closing rate. In order to accomplish this you need to communicate with them over the next 13 months at least 15 times.

Technorati Tags: acquire customers, consumer shows, expand business, grow business, long-term profit, quick profit, trade shows

Here’s an experience I just had this week. I was reading my local newspaper, and an ad jumped out at me. It was for a Hair Salon. It stated: “Bring this Ad with you and your first visit is FREE.”

I set up an appointment and complimented the owner on her ad.

Here’s the interesting part—

When I was leaving, the girl that did my haircut gave me a small bag with a gift of a sample shampoo they probably got from their supplier, but also a small sample of the conditioner she used when she washed my hair. And in the bag was a “Thank You" letter from her.

Here’s what the letter said.

Hi
I just want to say it was a privilege to have the opportunity to treat you to one of my personalized haircuts and styles.

As a thank you, I am giving you 50% off your next haircut and style when you book your next haircut.

Please call and reserve your time with me, Elaine at Salon by the Sea, 732-282-1600.

My hours are Thurs 10-8 Fri 9-5, Sat 7-4.

Sincerely
Her name, address and the website

The reason I’m mentioning this is that you could massage this process to fit your own enterprise.

The thing is that I still paid for the haircut, because I’d feel bad if I didn’t. Plus, the salon owner now also has a new client because she gave me a great haircut and created a great “experience”. Could you do something similar and get similar results?

Let me know in the comments section below how you might use this concept in your enterprise.

Technorati Tags: free offer, grow business, growing a business, thank you letter

“I love a Bad Economy.”

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

To add a little more to my last post, it’s not sufficient to only institute systems that keep the customer/client in mind; it’s also necessary that you inspect those systems. You have to inspect what you inspect. You have to make sure that the systems are performing as you intended and make the adjustments necessary until they do.

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

A few weeks ago, I had a very bad customer service experience.  I’ve known the owner of this restaurant since he was a kid helping his parents in their Deli.  Six weeks ago he opened his restaurant.  I’ve been there nine (9 ) times already with at least 6 people in our party.  

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

I just returned from the beautiful island of Aruba, walking the beach each day, and seeing the effect the world economy was having on tourism and business in general on the island.

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

I’ve received a few emails asking me to give you more ideas of doing Successful Joint Ventures.

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

Before I give you some methods and ideas of offers to get Customers Beating a Path to Your Door, it is important that you understand that the real secret to creating a successful offer is to do the initial research and to find out as much as you can about the individuals whom you are targeting for your offer.

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