If you’re starting a business right now, marketing can be one of the first efforts to take a hit. After all, why should you market products aggressively to customers who aren’t ready to spend?
Cutting back on marketing efforts right now is actually a pretty risky move- studies show that companies who increased or maintained marketing budgets during lean times are rewarded with more sales as the economy begins to pick back up. According to McGraw-Hill research, companies who increased or did not change marketing budgets during the ’81-’82 recession saw significantly higher sales growth within five years- over twice as much as those companies that chose to cut back.
So how do you design and implement an online interactive marketing strategy on a shoestring budget? What can you save on when contracting for services? Here’s a quick primer on choosing an online marketing company and forming the contract you want- at a price that’s within your budget.
Evaluate your requirements.
Do you already employ online marketing strategies such as email blasts, customer follow-up emails, or search optimization strategies? If you’re already working with an online marketing firm and are unhappy with the services you’re receiving, the price you’re paying, or both, figure out exactly what you need before you switch or begin to negotiate. Do you want to build relationships, increase brand visibility among certain customer groups, or stay in touch with existing clients? Evaluate your needs before choosing- or choosing to stay with- a company: List the services you want and how much you’re willing to pay.
Re-negotiate.
If your current online marketing firm is meeting your needs, you can still negotiate on price. Most of the time, this means contracting for additional services or a longer term- a better deal in the long run if you’re working with a reputable company. You may be able to get discounted services simply by asking, especially if your contract is about to expire. Trying to re-negotiate your existing contract- if you have one- is a step you should take before looking for a new provider.
Use smart bargaining tactics.
If you’ve narrowed down the field of providers to a few worthy contenders, try to negotiate with each to get the best deal for services. Most vendors are a bit more flexible and open to bargaining near the end of the month or the end of a sales quarter. You can ask for more services, an extended agreement, a payment plan, or any other compromise that reduces your out-of-pocket-cost. Up-front payments (retainers) are usually not negotiable- most vendors will require some monetary outlay before beginning work.
Get a written estimate or service quote.
These usually serve as previews for the final contract. It should be specific, but not too specific- it can be a good idea to split projects into phases if you’re using several different strategies. You should have access to all necessary information (graphics, advertising agreements, affiliate information) in the event that you ever decide to use a different company for later efforts. Make sure that you compare several different service quotes to get an idea of the “going rate” for services- this places you in a better position to negotiate.
Make sure you can track efforts.
Make sure you know how results are tracked. Will you be able to monitor key information (web traffic, conversions, etc.) yourself? Make sure you know how results of the marketing strategy will be measured.
Online marketing is one of the most effective methods of sales generation. Make sure you shop around for a company, compare price quotes, and ask for references. A good firm won’t ever “guarantee” a certain search engine result or output, but will be able to accurately track the results of their efforts. Spending on marketing is effectively investing in future sales- make sure you invest wisely.
Merrin Muxlow is a writer, yoga instructor, and law student based in San Diego, California. She writes extensively for Resource Nation, a company that provides resources for business owners, and is a frequent contributor to several sites and programs that offer tools for entrepreneurs, including Dell and BizEquity.
Category: Customer Service
Article by Ronald Lang, the CEO of Majestic Consulting Group. He offers readers simple recommendations for leveraging your CRM system to maximize your client base. His insights help both product and service-based organizations discover new revenue opportunities.
A critical part of building your CRM strategic plan should be an effective “Customer Profile” to identify up-sell and cross-sell opportunities. While new customers come at an extreme premium today with longer sales cycles, existing clients would be more receptive to hear your offerings, especially if it can be a positive impact to their business. Take the following three recommendations if your business is primarily a product-based sales operation:
1. Are there products you have sold to a client in the last three years that have new accessories or a new model (or discontinuation of the current model)? – if so, this is a golden opportunity to setup a presentation with the client.
2. Do you have service-level agreements (SLA) with your clients? This is an opportunity for you to strengthen your relationships with your client prior to the SLA’s coming due. Reinforce your support commitment, response time and quality assurance. The SLA coverage information should be tracked in your CRM system.
3. Do you have your clients organizations mapped out? Meaning, if you have done well selling into one or more areas of the organization, it is time to map out the rest of the organization and key contacts with each department or division. Connect with each of them and/or get referrals and introductions from the current contacts you are doing business with above general satisfaction levels. Your CRM system should be able to track hierarchy and organization charts of your clientele.
Take the following three recommendations if your business is primarily a service-based sales operation:
1. Have you done a customer survey lately of how satisfied your clients are with your services? If not, put together a 4-7 question survey that should take more than 5 minutes to complete. The questions should focus on the quality of service you are providing. You might want to ask about other services they may require. Track this in their CRM customer profile and target a campaign around their needs. If the client is not happy, make a call with your manager or CEO to the client within 24-48 hours.
2. Are your customers using competitive services along with yours? If so, find out how happy they are with them and see if there is an opportunity to win that business. If they have a contract, find out when it expires and track that with a reminder. Also have an automated report sent to you when expiring competitive contracts the first week of every month. This is a strategy to win more business without trying to pitch your services on a frequent basis.
3. If you offer services that your clients use frequently (i.e. weekly, monthly, etc.) look to offer them a services agreement for a year at a discounted rate. This will provide you predictability and consistency over the next 12 months. If the client calls frequently now, a schedule can be constructed or a block of time can be pre-purchased as part of this annual agreement. This will also help with resource planning. The CRM system can track this contract, hours against it on a monthly basis and most importantly profitability.
These are just a few simple recommendations to leverage your CRM system to maximize your client base.
Contact Info: Ronald Lang, CEO – Majestic Consulting Group, Inc. – rlang@majestictechnology.com – (888)403-9400
This article is contributed by Michelle Ulrich.
“Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.” by Margaret Mead
Here is a list of my Top 10 Reasons Volunteering Can Help You Grow Your Business:
1. Volunteering helps you find your place in the community, whether online or in person, especially if you are “the new kid on the block.”
2. Volunteering facilitates many new learning opportunities. This occurs through mentoring or just being around others who share your passion or interests.
3. Volunteering fosters new relationships and builds on existing ones.
4. Volunteering can be a great opportunity to try out new skills or hone existing ones.
5. Volunteering gives you a sense of giving service; studies have found this to be very healthy for our brains, our overall health and our psyche (soul).
6. Volunteering creates opportunities for you to be on ‘ground zero’ of your community or industry.
7. Volunteering builds self-confidence and great potential for leadership building opportunities.
8. Volunteering can lead to business opportunities as most people like to do business with people they know and trust.
9. Volunteering is an important value we can teach our children. We can also act as role models for those in need. You may be the reason they give back and volunteer when they are ready.
10. Volunteering is a way to share your knowledge with others as others before you have passed down history and traditions from one generation to the next.
When you are in a rut, need some help or want to impart your knowledge to others, find a community (online or offline) and get involved. It won’t feel so lonely, your questions will be answered and you can pass down your legacy to share with others. Besides, it’s good for your health and well-being.
P.S. Volunteering can be a great way to ‘pay it forward.’ I have seen commercials where one person is having a horrible day and takes it out on someone else, and then the next person takes it out on the next and so on. If we turn that around and perform random acts of kindness via volunteering in our communities, what an incredible and beautiful synergy we can pass on to others. We can affect our communities with one single act. Imagine if everyone pitched in and volunteered for something…what a peaceful and happy planet this would be!
About the Author
Michelle Ulrich is the Chief Villager and founder of The Virtual Nation, an educational destination for Virtual Professionals around the globe. Michelle is an avid believer in giving back to her industry and she does this by offering coaching, teleclasses, resources, and tools, in addition to providing a community of learning, a nation of culture, and a virtual village for her members. Education is the foundation of her organization as well as for her own personal and professional development. Michelle has been a community college instructor teaching a Virtual Assistant certificate program online. Aside from coaching and teaching, she is also a speaker and soon-to-be author on the subject of Virtual Assistance. She maintains her private practice where she specializes in working with authors, coaches and speakers who struggle to keep up with e-commerce and new technologies. Clients can check out her services at www.virtualbusinessmarketing.com, while Virtual Assistants can find her over at www.thevirtualnation.com. She can be reached by telephone at (916) 536-9799 in the Pacific Time zone.
This article is contributed by Dittman Incentive Marketing (www.dittmanincentives.com).
In today’s competitive marketplace, the race to increase profits by cultivating customer loyalty is going at full speed. Customer retention is not only a cost-effective and profitable strategy, it is a necessity for businesses wanting to stay ahead of the pack.
As consumers are spending less thanks to soaring fuel and food costs, companies are more reliant than ever on the loyalty of a dedicated customer base to maintain a competitive advantage. Following the Pareto Principle, 80% of your sales come from 20% of your customers, and in a recession the numbers are closer to 95% and 5%, says Ajit Maira, senior vice president of the Information Technology Services Marketing Association. Since these returning customers cost less to reach, are less vulnerable to ploys from the competition and buy more over time, companies need to give customers an incentive not to go elsewhere for the same product or service.
One of the most successful ways to achieve this cost-effective retention is through the use of customer loyalty reward programs. By rewarding the ongoing purchase of product or services, companies achieve long-term relationships with customers. With a variety of loyalty programs available to companies, the key is discovering what works best for your needs and goals.
Build a Strong Foundation
Successful loyalty reward programs are built from a working knowledge of your customer base. To create the foundation, you must first identify the type of customers you want to retain and understand the types of products and services they value most. This information can then be used to determine the kinds of rewards programs that will appeal to them.
To obtain this level of understanding about your customers, it’s vital to conduct targeted research. In an article in the Harvard Business Review, authors Thomas O. Jones and W. Earl Sasser, Jr., suggest utilizing a combination of customer satisfaction surveys, customer feedback and market research. Together, these three tools can help businesses better grasp the wants and needs of the customer to build stronger brand loyalty.
Establish Winning Relationships
While good service is the key to earning customers, it’s not enough to maintain their long-term loyalty. In his book How to Win Customers & Keep Them for Life, author Michael LeBoeuf states, “Smart companies go the extra mile for the customer and show them just how dedicated they are to making sure that they feel good about doing business with them.”
To prove to your customers that your company is going that extra mile, you must show them you are doing just that on a regular basis. For example, Ben McConnell, co-author of Creating Customer Evangelists: How Loyal Customer Become a Volunteer Sales Force, suggests showing customers they are valued by inviting them to lend their opinions on new products and ideas, or invite them to your company’s conferences or meetings. These offers to participate in your company’s operations will promote a feeling of value and inclusion.
It’s also vital to maintain open lines of communication and always treat customers with courtesy. Loyalty is established over time, and customers need to believe that your company values them.
Give Them Incentives
Giving customers incentives to let their purchases be tracked allows you to base loyalty programs on very specific requests and needs. The incentives can help your business to increase customer traffic and sales, and most importantly—allow you to measure the effectiveness of the incentive.
The incentives can vary, and can include immediate rewards like free long-distance phone calls for hotel guests, targeted deals such as exclusive “friends and family” sales events, valuable membership cards offering extras like bonus spending points. Other options are also successful, like manufacturer rewards for items such as brand merchandise and discounts, and point-earning partnerships between retailers and online shopping sites.
Offering these loyalty incentives, also know as frequency marketing, allows your business to build a database of loyal customers that you can target again and again, and with precise tracking.
Follow Through
To reap the rewards of a customer loyalty programs, it is vital to maintain a consistent approach and follow through with your strategy. By staying the course with targeted research, communication and incentives, you can establish a loyal customer base yielding great results.
It’s important to remember that customer loyalty can’t be established overnight, but the investment required to create a satisfied customer is always worth the effort. Establishing long-lasting, loyal relationships with clients should not be an afterthought in the current market; it’s now a fundamental necessity on the road to achieving higher profits and business longevity.
About Dittman Incentive Marketing
This article was provided by Dittman Incentive Marketing (www.dittmanincentives.com), a quality leader in the field of people performance improvement. Since 1976, Dittman has helped companies achieve critical corporate goals via original, one-of-a-kind customer loyalty programs and motivation programs that inspire a sales force to sell more and customers to buy more.
R.L. Fielding Bio
R.L. Fielding is a freelance writer who has written on a wide variety of topics, with special expertise in the education, pharmaceutical and healthcare, financial service and manufacturing industries.
Categories
The Customer is Always Right
It takes a long time for a self employed business owner to build up a reputation for great customer service. I am a caring person, and putting customer service first is something I hold very dear as an important aspect of how I do business. And recently, I almost blew it. In a fit of irritation over a client’s request for help, I made a very poor assumption — and almost made an idiot of myself in the process.
As I reflected on that experience, I came up with these four elements of providing great customer service as a self employed business owner. I share them as a model of how to think about your own customer service interactions (especially those that occur via email) and as a reminder to myself too. I call it the CARE model of email customer service.
C = already a Customer!
Gaining a new customer is 5-10 times more expensive than keeping an existing customer. So doesn’t it make sense that we should treat them accordingly? It’s easy, when you are in a rush, to forget all the work it took to get them to be a customer in the first place. And never underestimate the wrath of a customer scorned — a disgruntled customer is much more likely to talk to others about that one bad experience they had with you, than all the good experiences that came before it.
Customers are precious — remember to treat them that way!
A = Attitude
Having a bad day? In a rush to get to an appointment? If you respond to a customer under those circumstances, chances are that your annoyance or hurry, even if it is not about them, will creep into your response. The words you choose are very important; doubly so if you are responding via email. It’s hard to choose the best words if you are peeved or if your mind is elsewhere!
So, take time and care to respond. Find a time when you can take a few deep breaths and set aside any distractions. If you can’t find the time, or feel yourself unable to curb your negative energy, get someone else on your team to respond.
R = Relationship
EVERY customer interaction is a link in your relationship with that customer. A good customer interaction, where you solve their problem and make them feel better in the process, makes for a solid, strong relationship. On the other hand, a careless response puts a weak link into the relationship. And a chain is only as strong as its weakest link!
Customer retention is all about how you make your customer feel. Use polite, professional (but not necessarily formal) language, take care to re-read what you’ve written before sending, and thank them, even if they are complaining. And always ask, at the close of your email, if you’ve solved their problem or answered their question adequately. These little things can make a big difference.
E = Extra
How can you go the extra mile when interacting with your customers? Can you deliver more than they are asking for? Or just add an unexpected measure of kindness in your response?
Include additional information or advice related to their request. Or, if you can’t answer their question, do a little research and point them to a helpful resource. Add a P.S. with a personal note about their health, family, a recent trip, etc. Following up with a hand-written card or note can also be a nice touch.
Treat your customers with CARE, every time, and they will come back, time and time again.