How to Fill The “Black Hole” of Customer Service

One of the key strategies all businesses should adopt is a differentiation strategy.  A differentiation strategy is an integrated set of actions designed to produce goods or deliver services that customers perceive as being different in ways that are important to them.  

The concept of being unique or different is far more important today than it was ten years ago.  One of the keys to successful marketing and competing is differentiation.

Because of the “Black Hole” that exists today with most businesses approach to customer service, I believe outstanding customer service can be an excellent differentiation strategy for businesses that can actually deliver a higher level of service.

Like many people, I constantly find myself baffled and frustrated by the inept “customer service” I encounter almost daily as I go about my business.

In his book, Hug Your Customers, Jack Mitchell, CEO of Mitchells/Richards, shares his family’s philosophy of how a clothing retailer has adopted a no-nonsense approach to customer service that has allowed their two stores to achieve among the highest margins in its industry, as well as amazing customer loyalty.  Jack has a very simple, but effective approach to customer service, with the belief that a relationship is at the heart of every transaction.  Jack’s business philosophy is based upon “hugs”, that is personal touches that impress and satisfy the customer, such as:

- Calling a customer to make sure he’s satisfied after a purchase

- Having a “kids” corner with TV, books and treats to keep kids occupied while the parents shop

- Remembering the name of your customer’s dog

- Introducing customers to business contacts

Hug Your Customers is an well-written, easy to read book that provides ideas and action steps of how business owners can develop a ”hug your customer” approach to customer service.

In my next post, I will provide additional ways that business owners can provide outstanding customer service to differentiate themselves from the majority of businesses that don’t have a clue when it comes to customer service.

The Changing Landscape of Marketing has resulted in the “Confidence Gap”

 

Marketing and sales has changed dramatically since the 1980’s.  In the days of simple selling the seller had the power.  There were fewer competitors, fewer choices, less technology and lower education.   The buyers of products did not have the information available to them to make informed decisions.  Therefore, selling and marketing was easier.

Today, the power is in the hands of the buyer.  The buyers of products and services have more choices, increased information, and increased technology.  This shift has lead to increased resistance, longer buying cycles in most industries, more price competition and products and services being view as commodities rather than unique.   

So what is the result of this dramatic shift in sales and marketing that has taken place in the last 20 years?

This shift has resulted in what I refer to as the Confidence Gap.

 The Confidence Gap represents the buyer’s inability to distinguish whether any of the businesses, any of the products, or any of the services are any BETTER, any DIFFERENT, or any WORSE than any of the others.

In this scenerio, the consumer views all products and services as basically being the same.  All accountants are alike; all plumbers do the same thing.  And what is the end result when a product or service is viewed the same or as a commodity?  Price becomes the overriding reason for choosing one service or product of another.  For any business owner, competing only on price is usually the “kiss of death”.

In my next post, you will learn simple ways to avoid only competing on price and how to elevate your business above your competition so that your business becomes the obvious choice for the product or service you sell.  

      

Super Bowl Ads Flunk the Marketing Equation Test

Now that the dust has settled on Super Bowl, the Dayton Business Journal Reports “that companies that spent big bucks to air advertisements during the Super Bowl did not necessarily see those dollars translate into more visits to their Web sites this year.”  Traffic to Super Bowl advertisers’ Web sites saw no dramatic increase during the game this year, according to a figures released Monday by Akamai Technologies(Nasdaq: AKAM), a Cambridge, Mass.-based content delivery network company.

How can that be?  At a cost of $2.4 million per 30 second ad how can the ads not deliver more interest, more web trafic to the advertiser?

The answer is simple.  None of the ads I saw follow the equation for what makes an effective, powerful ad. 

Sure, some of them were cute, entertaining, comical, but how many of the ads you witnessed can you connect with a company?

If you remember from my last post, great advertising is a simple equation and here’s the equation:

Interrupt + Engage + Educate + Offer = Success      

Let’s take a closer look at the Marketing Equation.

Interrupt - The ad should get qualified prospects to pay attention to your marketing.

Engage –  The ad should give prospects the promise that the information provided in the ad will facilitate their decision making process.

Educate – The ad should identify the important and relevant issues prospects need to be aware of , then demonstrate how your company stacks up against those issues.  

Offer – The ad should provide prospects a low-risk way to take the next step in the buying process . . .  give more information to the prospect so they have the necessary information to make a good decision.  

Most of the ads I witnessed on Super Bowl Sunday only met one piece of the Marketing Equation – - -  Interrupt.  They got me to pay attention, but then, there was some much nonsense attached to the ad, that by the time time the ad was finished, in many cases, I couldn’t tell you who the company was or even what the product was that they were pushing.   

So, what is marketing supposed to do again?  Marketing and advertising should get the attention of the target market, facilitate their decision making process, and lower the risk of taking the next step in the selling process.

Did Sunday’s Super Bowl ads accomplish this?   

It’s no wonder we are confused at what company or product is any better or worse than than the others.

In my next post, I will discuss the Confidence Gap and why it is prevalent with today’s consumers. 

Marketing is an Equation

How can a small business owner get better results with their marketing and advertising dollars?  The first step in maximizing the effect of your marketing ads is to understand that marketing is an equation. 

Unfortunately, most small business advertising falls into Menu-Board style advertising.  This type of ad is similar to a restaurant menu that basically states “here is our name, here is a list of stuff we have for sale and come buy from us for no justifiable, rational reason besides we have it”.  Now, that’s not to say because the ads are done wrong and violate the  Marketing Equation doesn’t mean they won’t work.   As the saying goes, “Even a dead fish can float down stream”.   But to really maximize your advertising dollars and get more people raising their hands that want to know more about what you have to offer you need to follow some basic principles of marketing. 

So, what is your marketing supposed to do?  All your marketing ads should do the following three things:

1. Capture the attention of your target market
2. Facilitate the prospect’s information gathering and decision-making processes
3. Lower the risk of taking the next step in the sales cycle  

And, how to we accomplish what marketing is supposed to do . . .  with the Marketing Equation.

Interrupt + Engage + Educate + Offer = RESULTS! 

In my next post, I will get into the specifics of the Marketing Equation.

    

The distinction between strategic and tactical marketing is huge!

Most business owners mistakenly assume that when you talk about marketing that you’re automatically talking about tactical marketing -placing ads, generating leads, placing media, creating brochures and so forth.  They fail to realize that the strategic side of the coin – what you say, how you say it and who you say it to is almost always MORE important than the marketing medium or WHERE you say it. 

Here’s the difference between strategic and tactical marketing.  Strategic Marketing has to do with what you say in your ads, how you say it, and who you say it to.  Tactical Marketing is the execution of your strategic marketing plan as far as generating leads, placing media, creating marketing tools, and implementing a follow up system.  In other words, it’s the medium your message is delivered in.

So, if that makes sense to you . . . and it should, in order to get the “biggest bang for your buck” with your marketing dollars, it is critical that you develop your strategic message before you implement your tactical plan.  Stay tuned for my next post where I will show you a very simple way to formulate a powerful Core (strategic) message that will get your target audience to raise their hands and want to know more.    

Stand Out From the Crowd with a Handwritten Note

When was the last time you received a handwritten note?  When was the last time you actually wrote a handwritten note to one of your customers or prospects?  Too long to remember?  If you do happen to remember, how did it make you feel to receive a handwritten note?  In the age of e-mails, text messages and  instant messaging the handwritten note has become a lost art.  Here is a real simple, idea for success for business owners and sales professionals to distinguish themselves from their competitors by reviving this lost art.    

And the greatest part is that the handwritten note is simple, affordable and because it is rarely used extremely effective.  

So, when should you send a handwritten note?  

Here are a couple of ideas of when you can stand out from the crowd by sending a handwritten note:

• You have received a gift
• You were a guest in someone’s home
• You were treated to a meal
• You received a business favor
• You are replying to an invitation
• You are sending condolences
• You want to offer congratulations
• You need to apologize

Of course, like any type of activity, you should develop a system for doing this.  Commit to sending out 5-10 handwritten notes on a weekly basis.  If that seems like too much work, send out one handwritten note per day.  Then, get ready for the positive comments you’ll hear from those you send these to.  You’ll be amazed at the comments you receive with the power of the pen.   

Live by a Marketing Calendar

“A good plan is like a road map: It shows the final destination and usually the best way to get there.”

H. Stanley Judd

One of the core principles I preach to the business owners I work with is the necessity of operating their business by implementing a Marketing Calendar.  Simply put, a Marketing Calendar is a written road map for your marketing activities for a period of time.  And, what better time to plan your Marketing Calendar for 2008 than  in December of 2007.

If this sounds like a daunting task, it doesn’t need to be if you follow these simple steps for creating your Marketing Calendar:

1. Your calendar must be in writing.  If it’s not in writing you won’t commit to it.
2. Keep it simple.  Your Marketing Calender can be stated effectively in 1 or 2 pages. 
3. Develop a “marketing wish list”.  Include all marketing objectives that you would like to accomplish in a given period of time, even if the objective may not be realistic for your budget .
4. Develop a realistic marketing budget.  Choose those strategies that you can afford.
5. Implement an Objective and Strategy to Achieve the Objective approach.  State what your marketing objectives are and then the strategies required to achieve your objectives.

Finally, understand that your Marketing Calendar is a dynamic, living document that will change over time.  Remember, plans are useless, but planning is essential for the success of your business.

     

A formula for making your ideas stick like glue!

Why do some ideas thrive while others die?  How do we improve the chances for worthy ideas? 

Every business owner is on the “look out” for new ideas to propel their business into the stratosphere.  But, how do we come up with ideas that “stick”, ones that resonate with our customers and make them want to do business with us?

Give up?  Well, I recently read a book called Made to Stick, by Chip and Dan Heath where this issue is tackled head on.  The brothers offer what they consider the anatomy of ideas that “stick” and explain sure fire methods for making ideas “stickier”.

By “stick” the authors mean that your ideas are understood and remembered, and have a lasting impact that changes the audience’s opinions or behavior. 

Specifically, the book uses the SUCCESS acronym to illustrate the key elements required to make ideas more likely to “stick”.

S – Simplicity – ideas should be easily understood

U – Unexpected -create mystery

C – Concreteness – help people remember and understand the idea

C – Credibility – the idea needs to be believable

E – Emotions – your idea must provoke an emotion in the reader or listener  

S - Stories – people love a good story that they can relate to.

This book is a worthwhile read for anyone looking to have their ideas “stick like glue”.

Make Your Business Unique

I had the opportunity to attend a business seminar where Barry Tatelman, founder of Jordan’s Furniture, spoke about the marketing strategy and culture that built Jordan’s Furniture.  For those unfamiliar with the company, Jordan’s Furniture is a $750 million dollar furniture retailer that sells more furniture per square foot than any other furniture retailer in the country.  The company was started in 1918, by Barry’s grandfather, who sold furniture out of the back of a truck until 1926.  When Barry and his brother, Elliot, took over the operation there were 5 employees and sales were around $200,000.  Now there are close to 2,000 employees and in 1999, Warren Buffet of Berkshire Hathaway, one of the wealthiest people in the world, was so impressed with the company he bought it. 

So, what was the secret to taking a “mom and pop” family-owned business and parlaying it into the furniture giant that it is today.  According to Barry, the key to their success was being unique and “thinking outside the box” when it came to selling furniture.  ”We wanted to create a fun experience for our shoppers, a place where a family could go together have fun, get something to eat and yes, maybe even find a living room set that they really liked and wanted to buy.”  

 And create a fun experience they did.  All four locations have beautiful showrooms, impeccable customer service and quality-crafted furniture.  But that’s where the similarities with other furniture retailers ends.  For example, in their Avon, Massachusetts store, you can take a ride on M.O.M., a Motion Odyssey Movie, which takes place in a 48-seat theatre with a 4-story movie screen.  When you visit the Natick, Massachusetts store, you walk into Bourbon Street.  Complete with a 9-minute Mardi Gras experience, interactive robots and beautiful 3-story facades.  

Jordan’s Furniture - not just a furniture store, it’s an experience.

The moral of the story . . . find a way to make your business unique and fun, back it up with excellent products, great customer service and your business will not only be remembered but you will become the logical choice for the product or service you sell. 

There is no magic when it comes to marketing

Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals.
Jim Rohn 

This is a great quote for a business owner to pay attention to when it comes to their marketing efforts.   For those not familiar with his work, Jim Rohn, is a motivational speaker and author whose work has been influential in launching the careers of many others in the personal development industry, including Anthony Robbins, Mark Victor Hansen, Brian Tracey and Jack Canfield.

There are universal marketing principles when applied consistently, repetitively and over time will dramatically increase revenues for a business owner.  And, many of the principles can be very affordable. For example, every business owner should have a database program, such as ACT or Outlook that keeps track of customers and prospects.  Not only have a database program, but actually use it to “touch” customers and prospects on a regular basis.  You can “touch” or stay in contact with your customers and prospects in a number of ways such as with a newsletter, notices of upcoming sales, new product line introductions or industry news.

Whenever possible, use education-based marketing that helps your customers and prospects understand what they need to know about the industry you are in and what makes you different than your competitors.  You need to make a powerful case for your company providing the reasons why your business should be the logical choice when a customer chooses to purchase the product or service you sell.  If this is accomplished on a regular basis, more customers and prospects will engage with your company.  Again, there is no marketing magic, just developing good habits and consistent behavior.